Advanced Drainage Systems Announces Partnership with Geoplast

Rhea-AI Summary

Advanced Drainage Systems (NYSE: WMS) has partnered with Geoplast to distribute Aquabox, a modular stormwater retention/detention system, in the United States. This strategic alliance expands ADS's stormwater management product portfolio. Aquabox is designed for flexible underground storage, offering solutions for stormwater retention, infiltration, disposal, and harvesting for reuse.

The system's open cellular design allows for free distribution of stormwater runoff between modules, helping to reduce potential flooding in urban areas. With its high mechanical resistance, Aquabox is suitable for dense urban applications. This partnership aligns with both companies' commitment to innovative, sustainable water management solutions and resilient infrastructure.

Positive

• Expansion of ADS's stormwater management product portfolio
• Entry into the U.S. market for Geoplast's Aquabox system
• Potential for increased revenue through new product offerings
• Enhanced ability to address urban flooding issues

Negative

• None.

Insights

Market Research Analyst

This partnership between Advanced Drainage Systems (ADS) and Geoplast marks a significant expansion in ADS's stormwater management product portfolio. The introduction of the Aquabox system in the U.S. market could potentially increase ADS's market share and revenue streams. Given the growing concerns about urban flooding and water management, this move is timely and strategically sound.

The partnership leverages Geoplast's innovative design capabilities and ADS's established distribution network in the U.S., creating a synergy that could drive growth. However, the impact on ADS's stock may be in the short term, as market penetration and adoption of new systems typically take time. Investors should monitor future earnings reports for indications of Aquabox's contribution to revenue and market expansion.

Environmental Engineer

The Aquabox system represents a significant advancement in urban stormwater management. Its modular design and high-capacity storage capabilities address critical issues in densely populated areas where traditional drainage systems are often overwhelmed. The system's ability to retain, infiltrate and potentially harvest stormwater for reuse aligns with sustainable urban development goals.

From an environmental perspective, this technology could help mitigate urban flooding, reduce strain on existing infrastructure and contribute to groundwater recharge. The use of recycled plastics in manufacturing also supports circular economy principles. However, the long-term environmental impact and durability of these systems in various climate conditions will need to be closely monitored.

Financial Analyst

While this partnership is promising, its immediate financial impact on ADS is likely to be modest. In FY 2023, ADS reported net sales of $3.07 billion, with a significant portion from their core pipe products. The Aquabox system will diversify their product offerings but may take time to materially affect revenues.

Investors should focus on the potential for margin improvement if the Aquabox system proves to be a higher-margin product. Additionally, this move could enhance ADS's competitive position in the stormwater management market, potentially leading to increased market share and long-term growth. However, the financial success will depend on factors such as pricing strategy, market acceptance and the system's performance in real-world applications.

Aquabox storage system expands stormwater management product portfolio

HILLIARD, Ohio--(BUSINESS WIRE)-- Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries, and Geoplast, an Italian leader in recycled plastic solutions for sustainable construction products, entered into a strategic partnership to distribute Aquabox, a modular, high-capacity stormwater retention/detention system in the United States. The Aquabox product line is designed to create flexible underground storage for stormwater retention, infiltration, disposal or harvesting for reuse.

Geoplast has a proven history of designing and manufacturing innovative products for a variety of applications including in construction, stormwater management, urban greening and landscaping.

“Geoplast shares our commitment to design innovative solutions that safeguard the environment and build resilient communities,” said Brian King, Executive Vice President of Marketing, Product Management and Sustainability at Advanced Drainage Systems. “This shared commitment is exemplified by Aquabox, which is designed to help protect and manage water­—the world’s most precious resource. Geoplast plays a vital role in creating a resilient and sustainable stormwater management infrastructure.”

Geoplast’s Aquabox system offers several solutions for stormwater retention and detention. Aquabox’s open cellular design includes modules that allow incoming stormwater runoff to freely distribute between modules where it can be stored, collected and/or released with a time delay to reduce potential flooding created by the increase of stormwater intensity in urban areas. Aquabox has high mechanical resistance, so it can be installed in more dense urban applications.

“The company’s focus on managing the entire lifecycle of the raindrop made ADS an ideal partner for us as we looked to bring innovative solutions and design to U.S. customers,” said Giulio Paolin, Export Manager, North America & Latin America, Geoplast. “Heavy rainfall, combined with the expansion of urban impervious surfaces, demonstrate the need for efficient and sustainable stormwater management solutions like Aquabox.”

About Advanced Drainage Systems

Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world’s most precious resource: water. ADS and its subsidiary, Infiltrator Water Technologies, provide superior stormwater drainage and onsite septic wastewater products used in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture, while delivering unparalleled customer service. ADS manages the industry’s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 40 distribution centers. The company is one of the largest plastic recycling companies in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the company’s website at www.adspipe.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827594223/en/

Investor Contact:

Michael Higgins

VP, Corporate Strategy & Investor Relations

Advanced Drainage Systems, Inc.

Phone: (614)-658-0050

Michael.Higgins@adspipe.com

Media Contact:

Brian King

EVP Product Management and Marketing

Advanced Drainage Systems, Inc.

Phone: 614-404-8065

Brian.King@adspipe.com

Source: Advanced Drainage Systems

FAQ

What is the new partnership announced by Advanced Drainage Systems (WMS)?

Advanced Drainage Systems (WMS) has announced a strategic partnership with Geoplast to distribute the Aquabox stormwater retention/detention system in the United States.

What is Aquabox and how does it benefit stormwater management?

Aquabox is a modular, high-capacity stormwater retention/detention system. It creates flexible underground storage for stormwater retention, infiltration, disposal, or harvesting for reuse, helping to reduce potential flooding in urban areas.

How does the Aquabox system work in managing stormwater?

Aquabox has an open cellular design with modules that allow incoming stormwater runoff to freely distribute between them. The water can be stored, collected, and/or released with a time delay to reduce potential flooding caused by increased stormwater intensity in urban areas.

What advantages does Aquabox offer for urban applications?

Aquabox has high mechanical resistance, making it suitable for installation in dense urban applications. It helps manage stormwater in areas with expanded impervious surfaces, addressing the need for efficient and sustainable stormwater management solutions in cities.