The EPS of $1.80 fell short of consensus by 11 cents, while revenue of $884M lagged consensus by $44M.
Segments: Domestic pipe sales increased $116.5 million, or 30.3%, to $501.0 million.
Domestic allied products & other sales increased $56.5 million, or 38.8%, to $202.2 million.
Infiltrator sales increased $4.8 million, or 3.3%, to $150.7 million.
These increases were driven by double-digit sales growth in the U.S. construction and agriculture end markets.
International sales increased $9.9 million, or 15.6%, to $73.5 million, driven by growth in the Canadian, Mexican and Exports businesses.
Outlook: The company lowered its FY23 revenue outlook to $3.100 billion to $3.200 billion vs. consensus of $3.34B (prior $3.250 billion to $3.350 billion).
Adjusted EBITDA is unchanged and expected to be in the range of $900 to $940 million.
Capital expenditures are expected to be approximately $175 million.
Scott Barbour, President and Chief Executive Officer commented, "As we entered September and into October, we began to see the impact of the uncertain macroeconomic environment in isolated pockets across certain geographies and product lines. And while inflationary pressures have been persistent throughout the year, we are beginning to see some abatement, which when combined with our productivity initiatives position us well moving into the second half of Fiscal 2023.”