Business Description

Unless the context otherwise indicates or requires, as used in this Annual Report on Form 10-K, the terms “we,” “our,” “us,” “ADS” and the “Company” refer to Advanced Drainage Systems, Inc. and its directly- and indirectly-owned subsidiaries as a combined entity, except where it is clear that the terms mean only Advanced Drainage Systems, Inc. exclusive of its subsidiaries. The term “Infiltrator” refers to Infiltrator Water Technologies, LLC, our wholly-owned subsidiary. ADS is the leading manufacturer of innovative water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions to manage the world’s most precious resource: water. Our innovative products are used across a broad range of end markets and applications, including residential, non-residential, infrastructure and agriculture applications. We have established a leading position in many of these end markets by leveraging our national sales and distribution platform, market share model, industry-acclaimed engineering support, overall product breadth and scale plus manufacturing excellence. Our best-in-class product portfolio, go-to-market strategy and material conversion strategy helped drive consistent above market growth. On February 2, 2026, we completed the acquisition of National Diversified Sales (“NDS”). NDS is a leading designer and manufacturer of residential stormwater and drainage solutions focused on managing surface and subsurface water around homes. NDS develops durable, easy‑to‑install products that help homeowners and contractors control runoff, prevent water damage, and protect landscapes and foundations. This combination brings together complementary water management solutions to expand our offerings. By adding NDS’ expertise in residential water management solutions, access boxes and irrigation to our product portfolio, we further enhance our capabilities as a comprehensive provider of full-scale water management solutions. We believe the ADS brand has long been associated with quality products and market-leading performance. Our trademarked green stripe, which is prominently displayed on many of our products, serves as clear identification of our commitment to the customers and markets we serve, and fortifies our brand recognition and presence. Our approach to water management is to manage the lifecycle of a raindrop from the moment water hits the ground until it is released back into the ecosystem. The ADS product portfolio is built around four steps of this lifecycle: Capture, Conveyance, Storage, and Treatment. ADS solutions safely and efficiently manage stormwater with environmentally friendly products. We believe we are the only water management solutions company that manages stormwater from when the rain first hits the ground until the moment it is returned to lakes and streams. We estimate that the stormwater industry, including landscape irrigation, annually, is an approximately $14 billion industry. We estimate that the onsite wastewater market is a roughly $2 billion industry and that approximately 30% of new North American single-family homes utilize onsite wastewater systems. On a combined basis, we estimate that we have an addressable market opportunity of approximately $16 billion. SEGMENT INFORMATION For a discussion of segment and geographic information, see “Note 20. Business Segment Information” to our audited consolidated financial statements included in “Item 8. Financial Statements and Supplementary Data” of this Form 10-K. 1 Table of Contents Advanced Drainage Systems, Inc Following the acquisition of NDS, we realigned our