Zacks Investment Research·Jun 22, 2026
New Strong Sell Stocks for June 22ndWMS, AAMI and RGLD have been added to the Zacks Rank #5 (Strong Sell) List on June 22nd, 2026.
Advanced Drainage Systems, Inc.(WMS)Earnings, Financials & Key Ratios
WMS•NYSE
$151.34
27.8× P/E·Price updated Jul 6, 2026
AboutAdvanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aeration wastewater solutions, septic tanks and accessories, and combined treatment and dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. The company was incorporated in 1966 and is headquartered in Hilliard, Ohio.Show more
- Revenue$3.05B+5.0%
- EBITDA$901M+7.1%
- Net Income$426M-5.3%
- EPS (Diluted)5.44-5.6%
- Gross Margin36.31%-3.6%
- EBITDA Margin29.52%+2.0%
- Operating Margin22.51%-0.6%
- Net Margin13.98%-9.8%
- ROE23.75%-23.1%
WMS Price & Volume
Advanced Drainage Systems, Inc. (WMS) stock price & volume — 10-year historical chart
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Cyclical Margin Volatility Challenges Capital Deployment Strategy
Investment Thesis • Updated 2026Q4
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Cyclical construction demand volatility
Key Thesis Takeaways
- Advanced Drainage Systems faces a complex outlook as it balances aggressive inorganic growth, evidenced by a $972.5 million acquisition in 2026Q4, against inconsistent top-line performance and margin compression.
- While the firm maintains a healthy liquidity buffer with a 2.42 current ratio, investors should monitor the sustainability of its 32.4% gross margin in the face of persistent commodity cost volatility.
- The long-term thesis remains contingent on the company's ability to scale operating income, which recently declined to $129.2 million, while managing a debt-to-equity ratio that has fluctuated significantly over the last ten quarters.
Verdict Logic
while the firm maintains a sufficient liquidity buffer with a 2.42 current ratio, the recent decline in net income to $32.9 million and the negative 1.9% FCF margin in 2026Q4 warrant a cautious approach until operational efficiency stabilizes.
WMS Growth Metrics
Advanced Drainage Systems, Inc. (WMS) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years8.99%
5 Years9%
3 Years-0.23%
TTM5.03%
Profit CAGR
10 Years35.38%
5 Years13.72%
3 Years-5.61%
TTM-5.27%
EPS CAGR
10 Years31.95%
5 Years16%
3 Years-3.64%
TTM-5.56%
Return on Capital
10 Years16.28%
5 Years23.34%
3 Years22.56%
Last Year18.84%
WMS Recent Earnings
Advanced Drainage Systems, Inc. (WMS) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 8/12 qtrs (67%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
May 21, 2026Metric
Actual
Est
EPS
$1.07+14.3%
$0.94
Rev
$677M+3.8%
$652M
Q1 2026
Feb 5, 2026Metric
Actual
Est
EPS
$1.27+14.4%
$1.11
Rev
$693M+0.9%
$687M
Q4 2025
Nov 6, 2025Metric
Actual
Est
EPS
$1.97+20.1%
$1.64
Rev
$850M+6.2%
$801M
Q3 2025
Aug 7, 2025Metric
Actual
Est
EPS
$1.95+11.4%
$1.75
Rev
$691M-13.4%
$797M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 21, 2026 | $1.07vs $0.94+14.3% | $677Mvs $652M+3.8% |
| Q1 2026 | Feb 5, 2026 | $1.27vs $1.11+14.4% | $693Mvs $687M+0.9% |
| Q4 2025 | Nov 6, 2025 | $1.97vs $1.64+20.1% | $850Mvs $801M+6.2% |
| Q3 2025 | Aug 7, 2025 | $1.95vs $1.75+11.4% | $691Mvs $797M-13.4% |
Based on last 12 quarters of dataView full earnings history →
Latest WMS News
Recent stock market news and headlines for Advanced Drainage Systems, Inc. (WMS)
Business Wire·Jun 18, 2026
Advanced Drainage Systems Hosts 2026 Investor DayHILLIARD, Ohio--(BUSINESS WIRE)--Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading manufacturer of stormwater and onsite wastewater management products and solutions for commercial, residential, infrastructure and agricultural applications, will host its 2026 Investor Day today in Hilliard, OH. The event will take place at the new ADS Engineering and Technology Center, the world's most advanced stormwater facility and a hub for innovation and new product developmen.
Seeking Alpha·Jun 17, 2026
Advanced Drainage Systems: More Than A Pipe Story, Initiating With A BuyAdvanced Drainage Systems is rated Buy, driven by its ability to deliver complete water-management systems for large, complex stormwater projects. WMS's competitive edge stems from product breadth, engineering expertise, manufacturing scale, and national distribution, making it a preferred supplier as project complexity increases. Data center construction is a key forward catalyst, with WMS positioned to capture higher revenue per project as demand for integrated stormwater solutions grows.
Business Wire·Jun 16, 2026
Epicor Indago Warehouse Management System Achieves Certified Integration with Karmak FusionAUSTIN, Texas--(BUSINESS WIRE)--Epicor, a global leader in industry-specific enterprise software, today announced that its Epicor Indago™ Warehouse Management System (WMS) has achieved certified integration with Karmak Fusion, the leading dealer management system (DMS) for heavy-duty truck operations. Certified by Karmak's Alliance Program, the integration enables seamless, real-time data exchange between warehouse and business operations, helping businesses improve inventory accuracy, streamli.
Peers Comparison
Key metrics vs top competitors for Advanced Drainage Systems, Inc. (WMS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $151.34 | $11.59B | 27.82 | 5.03% | 13.98% | 23.75% | 0.47% | |
| $6693.66 | $18.07B | 15.33 | -2.08% | 12.77% | 32.66% | — | |
| $109.35 | $8.96B | 84.77 | 20.11% | 7.3% | 13.4% | — | |
| $51.58 | $6.15B | 20.88 | -3.16% | 6.12% | 11.48% | — | |
| $48.30 | $5.02B | 27.13 | 1.98% | 16.25% | 18.85% | — | |
| $75.53 | $12.21B | 19.07 | 2.28% | 15.97% | 17.74% | — |
Compare WMS vs Peers
Advanced Drainage Systems, Inc. (WMS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
WMS SEC Filings & Documents
Advanced Drainage Systems, Inc. (WMS) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 21, 2026·SEC
Material company update
May 21, 2026·SEC
Material company update
Feb 27, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
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WMS Frequently Asked Questions
Advanced Drainage Systems, Inc. (WMS) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Advanced Drainage Systems, Inc.'s revenue?
Advanced Drainage Systems, Inc. (WMS) reported $3.05B in revenue for fiscal year 2026. This represents a 201% increase from $1.01B in 2012.
How fast is Advanced Drainage Systems, Inc. growing?
Advanced Drainage Systems, Inc. (WMS) grew revenue by 5.0% over the past year. This is steady growth.
Is WMS profitable?
Yes, Advanced Drainage Systems, Inc. (WMS) is profitable, generating $426.5M in net income for fiscal year 2026 (14.0% net margin).
Dividend & Returns
Does WMS pay dividends?
Yes, Advanced Drainage Systems, Inc. (WMS) pays a dividend with a yield of 0.47%. This makes it attractive for income-focused investors.
What is WMS's return on equity?
Advanced Drainage Systems, Inc. (WMS) has a return on equity (ROE) of 23.7%. This is excellent, indicating efficient use of shareholder capital.
What is Advanced Drainage Systems, Inc.'s free cash flow?
Advanced Drainage Systems, Inc. (WMS) generated $569.3M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.