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B. Metzler seel. Sohn & Co. AG lifted its holdings in shares of Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report) by 40.7% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 30,267 shares of the construction company’s stock after buying an additional 8,756 shares during the period. B. Metzler seel. Sohn & Co. AG’s holdings in Advanced Drainage Systems were worth $4,751,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of WMS. Allworth Financial LP acquired a new stake in Advanced Drainage Systems in the 2nd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Advanced Drainage Systems by 352.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company’s stock valued at $26,000 after buying an additional 176 shares during the last quarter. SJS Investment Consulting Inc. boosted its stake in shares of Advanced Drainage Systems by 78.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company’s stock worth $33,000 after acquiring an additional 107 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in shares of Advanced Drainage Systems during the 3rd quarter worth approximately $36,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of Advanced Drainage Systems during the 4th quarter worth approximately $37,000. Institutional investors own 89.83% of the company’s stock.

Wall Street Analysts Forecast Growth WMS has been the subject of a number of research reports. Royal Bank Of Canada raised their target price on shares of Advanced Drainage Systems from $170.00 to $178.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Jefferies Financial Group started coverage on shares of Advanced Drainage Systems in a report on Thursday, June 11th. They issued a “buy” rating and a $175.00 price target on the stock. DA Davidson started coverage on shares of Advanced Drainage Systems in a research report on Tuesday, August 25th. They set a “buy” rating and a $190.00 price objective for the company. KeyCorp restated an “overweight” rating on shares of Advanced Drainage Systems in a report on Monday, June 22nd. Finally, National Bank Financial set a $190.00 target price on Advanced Drainage Systems in a research report on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $188.70.

Get Our Latest Research Report on Advanced Drainage Systems Advanced Drainage Systems Stock Up 1.7% WMS stock opened at $134.95 on Friday. Advanced Drainage Systems, Inc. has a 52 week low of $128.03 and a 52 week high of $179.32. The business has a 50-day simple moving average of $144.97 and a 200 day simple moving average of $145.22. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95. The company has a market cap of $10.18 billion, a PE ratio of 23.31, a price-to-earnings-growth ratio of 1.45 and a beta of 1.28.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.39. The business had revenue of $1 billion during the quarter, compared to the consensus estimate of $991.39 million. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%.Advanced Drainage Systems’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.95 EPS. Sell-side analysts anticipate that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current fiscal year.

Advanced Drainage Systems Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. Advanced Drainage Systems’s dividend payout ratio is 13.82%.

(Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

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Kingspan Group (OTCMKTS:KGSPF – Get Free Report) and Advanced Drainage Systems (NYSE:WMS – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Dividends Kingspan Group pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Advanced Drainage Systems pays an annual dividend of $0.80 per share and has a dividend yield of 0.6%. Kingspan Group pays out 15.0% of its earnings in the form of a dividend. Advanced Drainage Systems pays out 13.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Advanced Drainage Systems has increased its dividend for 1 consecutive years. Advanced Drainage Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation This table compares Kingspan Group and Advanced Drainage Systems”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Kingspan Group N/A N/A N/A $0.57 206.20 Advanced Drainage Systems $3.05 billion 3.44 $426.46 million $5.79 24.03 Advanced Drainage Systems has higher revenue and earnings than Kingspan Group. Advanced Drainage Systems is trading at a lower price-to-earnings ratio than Kingspan Group, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares Kingspan Group and Advanced Drainage Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Kingspan Group N/A N/A N/A Advanced Drainage Systems 14.00% 28.28% 12.30% Analyst Recommendations This is a summary of current ratings and recommmendations for Kingspan Group and Advanced Drainage Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Kingspan Group 0 0 0 0 0.00 Advanced Drainage Systems 0 2 7 1 2.90 Advanced Drainage Systems has a consensus price target of $188.70, indicating a potential upside of 35.60%. Given Advanced Drainage Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Drainage Systems is more favorable than Kingspan Group.

Insider & Institutional Ownership 46.6% of Kingspan Group shares are owned by institutional investors. Comparatively, 89.8% of Advanced Drainage Systems shares are owned by institutional investors. 1.7% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary Advanced Drainage Systems beats Kingspan Group on 14 of the 15 factors compared between the two stocks.

About Kingspan Group (Get Free Report)

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in Western and Southern Europe, Central and Northern Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation, Roofing + Waterproofing, Light, Air + Water, and Data + Flooring. The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades. The Insulation segment produces rigid insulation boards, technical insulation, and engineered timber systems. The Roofing + Waterproofing segment produces roofing and waterproofing solutions for renovation and new construction of buildings. The Light, Air + Water segment offers daylighting, smoke management, ventilation systems, and service activities, as well as provides energy and water solutions, and related services. The Data + Flooring segment manufactures data center storage solutions, as well as raised access floors. Kingspan Group plc was founded in 1965 and is based in Kingscourt, Ireland.

(Get Free Report)

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America 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; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield 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. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.

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On August 13, 2026, Advanced Drainage Systems Inc (WMS) shares rose 6.2%, reaching a current price of $149.23. This price sits within a 52-week range of $128.03

Posted by Defense World Staff on Aug 11th, 2026

Bank of America Corp DE decreased its position in Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report) by 3.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 439,577 shares of the construction company’s stock after selling 17,795 shares during the period. Bank of America Corp DE owned approximately 0.56% of Advanced Drainage Systems worth $60,279,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Oddo BHF Asset Management Sas bought a new position in shares of Advanced Drainage Systems in the 1st quarter worth about $566,000. Amundi boosted its position in shares of Advanced Drainage Systems by 0.7% during the 1st quarter. Amundi now owns 1,288,672 shares of the construction company’s stock valued at $176,734,000 after purchasing an additional 9,096 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Advanced Drainage Systems by 128.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 466 shares of the construction company’s stock valued at $64,000 after purchasing an additional 262 shares in the last quarter. California State Teachers Retirement System grew its stake in Advanced Drainage Systems by 25.4% during the first quarter. California State Teachers Retirement System now owns 86,740 shares of the construction company’s stock worth $11,895,000 after purchasing an additional 17,546 shares during the period. Finally, Royal Bank of Canada grew its stake in Advanced Drainage Systems by 12.9% during the first quarter. Royal Bank of Canada now owns 154,436 shares of the construction company’s stock worth $21,177,000 after purchasing an additional 17,607 shares during the period. Institutional investors own 89.83% of the company’s stock.

Analyst Ratings Changes WMS has been the topic of a number of research analyst reports. Stephens upgraded Advanced Drainage Systems from an “equal weight” rating to an “overweight” rating and cut their price target for the stock from $190.00 to $175.00 in a report on Wednesday, May 27th. Zacks Research upgraded shares of Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. Jefferies Financial Group assumed coverage on shares of Advanced Drainage Systems in a research report on Thursday, June 11th. They set a “buy” rating and a $175.00 target price on the stock. UBS Group increased their target price on shares of Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Advanced Drainage Systems in a research note on Friday, July 17th. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Advanced Drainage Systems currently has an average rating of “Moderate Buy” and an average target price of $188.38.

Read Our Latest Stock Analysis on Advanced Drainage Systems

Advanced Drainage Systems Stock Performance NYSE WMS opened at $142.19 on Tuesday. The company has a fifty day simple moving average of $143.99 and a 200 day simple moving average of $147.79. Advanced Drainage Systems, Inc. has a 12-month low of $128.03 and a 12-month high of $179.32. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The company has a market cap of $10.90 billion, a P/E ratio of 24.56, a PEG ratio of 1.53 and a beta of 1.27.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.10 by $0.39. The firm had revenue of $1 billion during the quarter, compared to analysts’ expectations of $991.39 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The business’s revenue was up 20.6% on a year-over-year basis. During the same period last year, the company earned $1.95 earnings per share. Sell-side analysts predict that Advanced Drainage Systems, Inc. will post 6.62 earnings per share for the current fiscal year.

Advanced Drainage Systems Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.20 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. Advanced Drainage Systems’s payout ratio is 13.82%.

About Advanced Drainage Systems (Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

Featured Articles Five stocks we like better than Advanced Drainage Systems SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat 3 Dividend Champion Utilities for a Market That Can’t Sit Still These 3 Most-Upgraded Stocks Have Almost Nothing to Do With AI First Solar’s Profit Engine Faces a New Policy Test in Washington Want to see what other hedge funds are holding WMS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report).

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Advanced Drainage Systems, Inc. (WMS) Q1 2027 Earnings Call August 6, 2026 10:00 AM EDT

Company Participants

Michael Higgins - Vice President of Corporate Strategy & Investor Relations
D. Barbour - CEO, President & Director
Scott Cottrill - Executive VP, CFO, Secretary & Treasurer
Craig Taylor - President Infiltrator & EVP of ADS

Conference Call Participants

Matthew Bouley - Barclays Bank PLC, Research Division
Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division
John Lovallo - UBS Investment Bank, Research Division
Bryan Blair - Oppenheimer & Co. Inc., Research Division
Jeffrey Hammond - KeyBanc Capital Markets Inc., Research Division
Trey Grooms - Stephens Inc., Research Division
Jeffrey Reive - RBC Capital Markets, Research Division
Collin Verron - Deutsche Bank AG, Research Division
Jae Hyun Ko - Jefferies LLC, Research Division

Presentation

Operator

Good morning, ladies and gentlemen, and welcome to Advanced Drainage Systems First Quarter of Fiscal Year 2027 Results Conference Call. My name is Caleb, and I'm your operator for today's call. [Operator Instructions] I would now like to turn the presentation over to your host for today's call, Mr. Mike Higgins, Vice President of Corporate Strategy and Investor Relations. Sir, you may begin.

Michael Higgins
Vice President of Corporate Strategy & Investor Relations

All right. Good morning, everyone. Thanks for joining us today. Here with me, I have Scott Barbour, our President and CEO; Scott Cottrill, our Chief Financial Officer; and Craig Taylor, President of Infiltrator.

I would also like to remind you that we will discuss forward-looking statements. Actual results may differ materially from those forward-looking statements because of various factors, including those discussed in our press release and the risk factors identified in our Form 10-K filed with the SEC. While we may update forward-looking statements in the future, we disclaim any obligation to do so. You should not place undue reliance on these forward-looking statements, all of which

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 wastewater industries today announced financial results for the fiscal first quarter ended June 30, 2026.

Scott Barbour, President and Chief Executive Officer of ADS commented, “Performance for the first quarter of fiscal 2027 unfolded largely as we anticipated, with net sales increasing 21% to $1.0 billion and Adjusted EBITDA increasing 29% to $358.3 million, expanding our Adjusted EBITDA margin 230 basis points to 35.8%. These results reflect some pull-forward of sales from the second quarter ahead of price actions in addition to the ongoing strength and resilience of our diversified water management platform, strong organic growth, and a meaningful contribution from NDS, which we acquired in February. Domestic construction market sales increased 20%, with growth across all product categories and end markets. Several factors impacted the results this quarter, including price increases to cover inflationary cost pressure on transportation and materials impacting order patterns and normal seasonality.”

“Importantly, favorable volume was driven by strength in the non-residential market and customer purchases ahead of pricing actions. This demand, combined with disciplined price/cost management, drove margin expansion across both our Stormwater and Wastewater segments. NDS continues to perform well, expanding our reach in residential stormwater management and landscape irrigation while accelerating growth in Allied Products. Importantly, we continue to successfully sell the full solutions package, leveraging Allied Products alongside our core offerings to deliver greater value to customers and drive share gains.”

“We are pleased with the strong start to the year; however, we remain cautious on the overall demand environment. Broadly speaking, demand trends look similar to last year, with a number of moving pieces beneath the surface across end markets and geographies. That said, we remain confident in our position as a pure-play water company, supported by favorable long-term secular tailwinds, our differentiated growth strategy, a resilient operating platform, and disciplined capital allocation.”

First Quarter Fiscal 2027 Results

Net sales increased $171.2 million, or 20.6%, to $1,001.1 million, as compared to $829.9 million in the prior year quarter. Stormwater sales increased $157.8 million, or 24.2%, to $809.4 million, as compared to $651.5 million in the prior year quarter. Stormwater sales include $94.7 million of revenue from the acquisition of National Diversified Sales (“NDS”). On an organic basis, stormwater sales increased 9.7%, driven by growth in both pipe and allied products. Wastewater sales increased $13.4 million, or 7.5%, to $191.7 million as compared to $178.4 million in the prior year quarter.

Gross profit increased $77.6 million, or 23.5%, to $408.0 million as compared to $330.4 million in the prior year. The increase in gross profit is primarily driven by the acquisition of NDS, volume growth, and favorable price/cost and manufacturing costs, partially offset by higher transportation costs.

Selling, general and administrative expenses increased $26.9 million, or 25.8% to $130.8 million, as compared to $104.0 million. As a percentage of sales, selling, general and administrative expense was 13.1% as compared to 12.5% in the prior year. The increase was primarily driven by the acquisition of NDS.

Net income from continuing operations increased $32.5 million, or 22.5%, to $176.6 million as compared to $144.1 million in the prior year. Diluted Earnings Per Share (“EPS”) From Continuing Operations increased $0.42, or 22.8%, to $2.26 as compared to $1.84 in the prior year quarter.

Adjusted EBITDA (Non-GAAP) increased $80.1 million, or 28.8%, to $358.3 million, as compared to $278.2 million in the prior year, primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 35.8% as compared to 33.5% in the prior year.

Segment sales results are based on Net sales to external customers. Reconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA, Organic Net Sales, Free Cash Flow and Adjusted Earnings per Share have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Balance Sheet and Liquidity

Net cash provided by operating activities was $260.4 million, as compared to $275.0 million in the prior year. Free cash flow (Non-GAAP) was $203.2 million, as compared to $222.4 million in the prior year. Net debt (total debt and finance lease obligations net of cash) was $1,603.4 million as of June 30, 2026, an increase of $54.5 million from March 31, 2026.

ADS had total liquidity of $900.9 million, comprised of cash of $162.3 million as of June 30, 2026 and $738.6 million of availability under committed credit facilities. As of June 30, 2026, the Company’s trailing-twelve-month leverage ratio was 1.5 times Adjusted EBITDA.

In the three months ended June 30, 2026, the Company repurchased 1.6 million shares of its common stock for a total cost of $228.5 million. As of June 30, 2026, approximately $822.5 million of common stock may be repurchased under the Company's existing stock repurchase authorization.

Fiscal 2027 Outlook

Based on results to date, current visibility, backlog of existing orders and business trends, the Company confirmed its financial targets for fiscal 2027. Net sales are expected to be in the range of $3.350 billion to $3.550 billion and Adjusted EBITDA is expected to be in the range of $1.0 billion to $1.050 billion. Capital expenditures are expected to be approximately $200 million.

Conference Call Information

Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. An online replay will be available on the same website following the call.

About the Company

Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps millions of pounds of plastic out of landfills each 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.

Forward-Looking Statements

Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of any claims, litigation, investigations or proceedings; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Financial Statements

  ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

  Three Months Ended
June 30,

(In thousands, except per share data)

2026

2025

Net sales

$

1,001,112

$

829,880

Cost of goods sold

593,065

499,442

Gross profit

408,047

330,438

Operating expenses:

Selling, general and administrative

130,818

103,961

Loss on disposal of assets and costs from exit and disposal activities

2,621

7,024

Intangible amortization

20,060

13,707

Income from operations

254,548

205,746

Other expense:

Interest expense

27,040

23,029

Derivative (gains) loss and other (income) expense, net

(1,452

)

(6,705

)

Income (loss) before income taxes

228,960

189,422

Income tax expense (benefit)

53,689

46,674

Equity in net (income) of unconsolidated affiliates

(1,297

)

(1,343

)

Net income from continuing operations

176,568

144,091

Net loss from discontinued operations, net of taxes

(5,653

)

—

Net income

170,915

144,091

Less: net income attributable to noncontrolling interest

2,394

169

Net income attributable to ADS

$

168,521

$

143,922

Weighted average common shares outstanding:

Basic

76,526

77,641

Diluted

77,024

78,122

Net income from continuing operations per share:

Basic

$

2.28

$

1.85

Diluted

$

2.26

$

1.84

Net loss from discontinued operations per share:

Basic

$

(0.07

)

$

—

Diluted

$

(0.07

)

$

—

Net income per share:

Basic

$

2.20

$

1.85

Diluted

$

2.19

$

1.84

Cash dividends declared per share

$

0.20

$

0.18

  ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

  As of

(Amounts in thousands)

June 30, 2026

March 31, 2026

ASSETS

Current assets:

Cash

$

162,251

$

223,012

Receivables, net

458,554

390,536

Inventories

548,544

543,381

Assets held for sale

38,534

43,451

Other current assets

33,051

30,449

Total current assets

1,240,934

1,230,829

Property, plant and equipment, net

1,230,283

1,217,165

Other assets:

Goodwill

1,042,531

1,042,716

Intangible assets, net

828,469

848,527

Other assets

167,766

166,386

Total assets

$

4,509,983

$

4,505,623

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current maturities of debt obligations

$

7,705

$

5,865

Current maturities of finance lease obligations

38,174

38,136

Accounts payable

298,242

237,706

Liabilities held for sale

12,354

15,139

Other accrued liabilities

212,411

212,623

Accrued income taxes

16,748

—

Total current liabilities

585,634

509,469

Long-term debt obligations, net

1,604,779

1,605,958

Long-term finance lease obligations

115,000

121,935

Deferred tax liabilities

221,333

220,994

Other liabilities

92,994

91,303

Total liabilities

2,619,740

2,549,659

Mezzanine equity:

Redeemable common stock

71,848

73,652

Total mezzanine equity

71,848

73,652

Stockholders’ equity:

Common stock

11,714

11,710

Paid-in capital

1,361,911

1,342,091

Common stock in treasury, at cost

(1,564,932

)

(1,325,713

)

Accumulated other comprehensive loss

(33,109

)

(32,290

)

Retained earnings

2,016,109

1,862,936

Total ADS stockholders’ equity

1,791,693

1,858,734

Noncontrolling interest in subsidiaries

26,702

23,578

Total stockholders’ equity

1,818,395

1,882,312

Total liabilities, mezzanine equity and stockholders’ equity

$

4,509,983

$

4,505,623

  ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

  Three Months Ended
June 30,

2026

2025

Cash Flows from Operating Activities

Net income (loss)

$

170,915

$

144,091

Less: Net loss from discontinued operations, net of taxes

(5,653

)

—

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

62,157

50,228

Deferred income taxes

1,160

(3,748

)

Loss on disposal of assets and costs from exit and disposal activities

2,621

7,024

Stock-based compensation

13,274

8,404

Amortization of deferred financing charges

960

511

Inventory step up related to NDS acquisition

14,197

—

Fair market value adjustments to derivatives

2,447

77

Equity in net income of unconsolidated affiliates

(1,297

)

(1,343

)

Other operating activities

1,911

809

Changes in working capital:

Receivables

(70,229

)

(42,126

)

Inventories

(19,874

)

40,001

Prepaid expenses and other current assets

(4,166

)

(5,945

)

Accounts payable, accrued expenses, and other liabilities

83,350

76,994

Operating cash flows from discontinued operations

(2,684

)

—

Net cash provided by operating activities

260,395

274,977

Cash Flows from Investing Activities

Capital expenditures

(57,151

)

(52,598

)

Proceeds from disposal of assets or a business

726

—

Acquisition, net of cash acquired

—

(19,576

)

Other investing activities

1,419

2,240

Net cash used in investing activities

(55,006

)

(69,934

)

Cash Flows from Financing Activities

Payments on syndicated Term Loan Facility

—

(1,750

)

Payments on Equipment Financing

(299

)

(933

)

Payments on finance lease obligations

(9,514

)

(8,335

)

Repurchase of common stock

(233,236

)

—

Cash dividends paid

(15,306

)

(13,980

)

Proceeds from exercise of stock options

475

549

Payment of withholding taxes on vesting of restricted stock units

(10,728

)

(6,683

)

Net cash (used in) provided by financing activities

(268,608

)

(31,132

)

Effect of exchange rate changes on cash

112

1,098

Net change in cash

(63,107

)

175,009

Cash at beginning of period

233,967

469,271

Cash at end of period

$

170,860

$

644,280

Less: cash held for sale

(8,478

)

—

Cash, excluding held for sale, at end of period

$

162,382

$

644,280

RECONCILIATION TO BALANCE SHEET

Cash

$

162,251

$

638,268

Restricted cash

131

6,012

Total cash and restricted cash

$

162,382

$

644,280

  Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). ADS management uses non-GAAP measures in its analysis of the Company’s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.

This press release includes references to Adjusted EBITDA, Free Cash Flow, Organic Net Sales and Adjusted Earnings per Share, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP and may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.

The following tables present reconciliations of non-GAAP financial measures to the most comparable GAAP measures for the periods indicated.

Reconciliation of Segment Adjusted EBITDA to Net Income From Continuing Operations

Three Months Ended June 30, 2026

(Amounts in thousands)

Stormwater

Wastewater

Intersegment
Eliminations

Total

Net sales:

Net sales from external customers

$

809,376

$

191,736

$

—

$

1,001,112

Intersegment net sales

11,566

17,184

(28,750

)

—

Net sales

820,942

208,920

(28,750

)

1,001,112

Significant segment expenses:

Costs of goods sold

518,812

104,600

(30,347

)

593,065

Selling, general and administrative expenses

100,681

17,650

—

118,331

Other segment items(a)

(72,252

)

(8,789

)

—

(81,041

)

Segment Adjusted EBITDA(b)

$

273,701

$

95,459

$

1,597

Corporate and other costs(c)

12,487

Total consolidated Adjusted EBITDA

$

358,270

Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:

Interest expense

27,040

Interest income

(1,291

)

Depreciation and amortization

62,157

Stock-based compensation expense

13,274

Loss on disposal of assets and costs from exit and disposal activities

2,621

Transaction costs(d)

3,244

Inventory step up related to acquisition of NDS

14,197

Other adjustments(e)

8,068

Income before income taxes

228,960

Income tax expense

53,689

Equity in net income of unconsolidated affiliates

(1,297

)

Net income from continuing operations

$

176,568

Three Months Ended June 30, 2025

(Amounts in thousands)

Stormwater

Wastewater

Intersegment
Eliminations

Total

Net sales:

Net sales from external customers

$

651,527

$

178,353

$

—

$

829,880

Intersegment net sales

9,076

16,609

(25,685

)

—

Net sales

660,603

194,962

(25,685

)

829,880

Significant segment expenses:

Costs of goods sold

427,119

97,251

(24,928

)

499,442

Selling, general and administrative expenses

73,782

18,344

—

92,126

Other segment items(a)

(43,793

)

(7,897

)

—

(51,690

)

Segment Adjusted EBITDA(b)

$

203,495

$

87,264

$

(757

)

Corporate and other costs(c)

11,835

Total consolidated Adjusted EBITDA

$

278,167

Reconciliation of total consolidated Adjusted EBITDA to income from continuing operations before income taxes:

Interest expense

23,029

Interest income

(5,405

)

Depreciation and amortization

50,228

Stock-based compensation expense

8,404

Loss on disposal of assets and costs from exit and disposal activities

7,024

Transaction costs(d)

807

Other adjustments(e)

4,658

Income before income taxes

189,422

Income tax expense

46,674

Equity in net income of unconsolidated affiliates

(1,343

)

Net income from continuing operations

$

144,091

a.

Other segment items include depreciation, amortization recorded within cost of goods sold, stock-based compensation expense, inventory step-up costs, restructuring and realignment expense, and transaction costs.

b.

The Company calculates Segment Adjusted EBITDA as net income from continuing operations before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other gains and expenses.

c.

Represents certain unallocated selling, general and administrative expenses required to reconcile segment Adjusted EBITDA to consolidated Adjusted EBITDA.

d.

Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.

e.

Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, restructuring and realignment expense, and executive retirement expense (benefit).

  Three Months Ended
June 30,

(Amounts in thousands)

2026

2025

Net income from Continuing Operations

$

176,568

$

144,091

Depreciation and amortization

62,157

50,228

Interest expense

27,040

23,029

Income tax expense

53,689

46,674

EBITDA

319,454

264,022

Restructuring and realignment expense(a)

5,336

8,795

Loss on disposal of assets

459

1,198

Stock-based compensation expense

13,274

8,404

Transaction costs

3,244

807

Inventory step up related to acquisition of NDS

14,197

—

Interest income

(1,291

)

(5,405

)

Other adjustments(b)

3,597

346

Adjusted EBITDA

$

358,270

$

278,167

(a)

Includes costs associated with closure of one distribution yard, as well as professional fees incurred in connection with supporting enterprise-wide restructuring and realignment initiatives. Excludes gain on sale of properties previously held-for-sale and equipment.

(b)

Includes derivative fair value adjustments, foreign currency transaction (gains) losses, legal settlements, and the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accounting and executive retirement expense.

  Three Months Ended
June 30,

(Amounts in thousands)

2026

2025

Net cash flow provided by operating activities

$

260,395

$

274,977

Capital expenditures

(57,151

)

(52,598

)

Free cash flow

$

203,244

$

222,379

Three Months Ended
June 30,

(Amounts in thousands)

2026

2025

Net Sales

$

1,001,112

$

829,880

Less: Net Sales from NDS

(94,687

)

—

Organic Net Sales

$

906,425

$

829,880

  Three Months Ended
June 30,

2026

2025

Diluted Earnings Per Share from Continuing Operations

$

2.26

$

1.84

Restructuring and realignment expense

0.07

0.11

Loss on disposal of assets

0.01

0.02

Transaction costs

0.04

0.01

Inventory step up related to the acquisition of NDS

0.18

—

Income tax impact of adjustments (a)

(0.07

)

(0.03

)

Adjusted Earnings per Share from Continuing Operations

$

2.49

$

1.95

  (a) The income tax impact of adjustments to each period is based on the statutory tax rate.

More News From Advanced Drainage Systems, Inc.

Posted by Defense World Staff on Jul 31st, 2026

Arrowstreet Capital Limited Partnership purchased a new position in Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 123,643 shares of the construction company’s stock, valued at approximately $16,955,000. Arrowstreet Capital Limited Partnership owned 0.16% of Advanced Drainage Systems as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of WMS. Captrust Financial Advisors lifted its holdings in Advanced Drainage Systems by 2.8% in the fourth quarter. Captrust Financial Advisors now owns 2,170 shares of the construction company’s stock valued at $314,000 after buying an additional 60 shares during the period. Northwestern Mutual Investment Management Company LLC grew its holdings in Advanced Drainage Systems by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 16,007 shares of the construction company’s stock worth $2,318,000 after acquiring an additional 63 shares during the period. MML Investors Services LLC grew its holdings in Advanced Drainage Systems by 3.4% during the 4th quarter. MML Investors Services LLC now owns 1,961 shares of the construction company’s stock worth $284,000 after acquiring an additional 64 shares during the period. Larson Financial Group LLC raised its position in shares of Advanced Drainage Systems by 24.4% in the 4th quarter. Larson Financial Group LLC now owns 377 shares of the construction company’s stock worth $55,000 after acquiring an additional 74 shares in the last quarter. Finally, SJS Investment Consulting Inc. lifted its stake in shares of Advanced Drainage Systems by 78.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company’s stock valued at $33,000 after purchasing an additional 107 shares during the period. 89.83% of the stock is owned by institutional investors.

Advanced Drainage Systems Price Performance Shares of WMS opened at $137.83 on Friday. Advanced Drainage Systems, Inc. has a 12-month low of $110.85 and a 12-month high of $179.32. The business’s fifty day moving average is $142.79 and its 200 day moving average is $148.39. The company has a quick ratio of 1.35, a current ratio of 2.42 and a debt-to-equity ratio of 0.92. The stock has a market cap of $10.56 billion, a P/E ratio of 25.34, a P/E/G ratio of 1.49 and a beta of 1.26.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last issued its quarterly earnings data on Thursday, May 21st. The construction company reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.12. Advanced Drainage Systems had a net margin of 13.98% and a return on equity of 26.63%. The firm had revenue of $676.76 million during the quarter, compared to analysts’ expectations of $651.92 million. During the same period last year, the company earned $1.03 earnings per share. The business’s revenue was up 9.9% on a year-over-year basis. Sell-side analysts anticipate that Advanced Drainage Systems, Inc. will post 6.55 earnings per share for the current fiscal year.

Advanced Drainage Systems Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. This is an increase from Advanced Drainage Systems’s previous quarterly dividend of $0.18. Advanced Drainage Systems’s dividend payout ratio is presently 14.71%.

Wall Street Analyst Weigh In WMS has been the subject of several recent analyst reports. Oppenheimer decreased their target price on Advanced Drainage Systems from $195.00 to $190.00 and set an “outperform” rating for the company in a research note on Tuesday, May 26th. Jefferies Financial Group assumed coverage on Advanced Drainage Systems in a research note on Thursday, June 11th. They issued a “buy” rating and a $175.00 price target on the stock. Barclays increased their price target on Advanced Drainage Systems from $181.00 to $191.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Stephens raised shares of Advanced Drainage Systems from an “equal weight” rating to an “overweight” rating and reduced their price objective for the stock from $190.00 to $175.00 in a research report on Wednesday, May 27th. Finally, KeyCorp reiterated an “overweight” rating on shares of Advanced Drainage Systems in a research note on Monday, June 22nd. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $187.00.

Check Out Our Latest Analysis on WMS

About Advanced Drainage Systems (Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

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HILLIARD, 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, today announced that it will release its unaudited financial results for the fiscal first quarter ended June 30, 2026, before the market opens on August 6, 2026. President and Chief Executive Officer, Scott Barbour, and Chief Fi.

-

HILLIARD, 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 development, and will include a walking tour for in-person guests. Attendees will hear directly from the leadership team as they share updates on ADS’ pure play water exposure, differentiated growth story, and resilient profit platform, followed by a panel discussion on Innovation and the Future of Water Management Solutions. The Company will also unveil its fiscal 2030 outlook and growth projections.

The presentation will be followed by a question-and-answer session. The presentation is scheduled to begin at 9:00 a.m. ET and will be webcast live at investors.ads-pipe.com. A replay will also be available on the website following the event.

About the Company

Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps hundreds of millions of pounds of plastic out of landfills each 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.

Forward-Looking Statements

Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

More News From Advanced Drainage Systems, Inc.

Back to Newsroom

Achmea Investment Management B.V. lifted its holdings in Advanced Drainage Systems, Inc. (NYSE: WMS) by 2.9% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 129,694 shares of the construction company's stock after acquiring an additional 3,707 shares during the quarter. Achmea

Posted by Defense World Staff on Apr 8th, 2026

Perigon Wealth Management LLC acquired a new stake in shares of Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report) during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 4,905 shares of the construction company’s stock, valued at approximately $710,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in WMS. Wellington Management Group LLP boosted its stake in shares of Advanced Drainage Systems by 234.0% during the 3rd quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company’s stock worth $164,901,000 after acquiring an additional 832,929 shares in the last quarter. Interval Partners LP boosted its stake in shares of Advanced Drainage Systems by 98.0% during the 3rd quarter. Interval Partners LP now owns 968,534 shares of the construction company’s stock worth $134,336,000 after acquiring an additional 479,413 shares in the last quarter. SG Capital Management LLC purchased a new stake in shares of Advanced Drainage Systems during the 3rd quarter worth about $45,591,000. Franklin Resources Inc. boosted its stake in shares of Advanced Drainage Systems by 586.9% during the 3rd quarter. Franklin Resources Inc. now owns 285,810 shares of the construction company’s stock worth $39,642,000 after acquiring an additional 244,202 shares in the last quarter. Finally, Capital International Investors boosted its stake in shares of Advanced Drainage Systems by 34.9% during the 3rd quarter. Capital International Investors now owns 933,851 shares of the construction company’s stock worth $129,525,000 after acquiring an additional 241,500 shares in the last quarter. 89.83% of the stock is currently owned by institutional investors and hedge funds.

Advanced Drainage Systems Stock Down 0.5% Shares of NYSE WMS opened at $139.98 on Wednesday. The company has a 50 day simple moving average of $153.55 and a 200-day simple moving average of $149.00. The company has a market capitalization of $10.90 billion, a P/E ratio of 23.29, a P/E/G ratio of 1.47 and a beta of 1.37. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.12 and a quick ratio of 3.08. Advanced Drainage Systems, Inc. has a 1 year low of $93.92 and a 1 year high of $179.32.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The construction company reported $1.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.11 by $0.16. The business had revenue of $693.35 million during the quarter, compared to the consensus estimate of $686.37 million. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The business’s revenue was up .4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.09 EPS. On average, equities research analysts predict that Advanced Drainage Systems, Inc. will post 6.1 earnings per share for the current year.

Advanced Drainage Systems Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were given a dividend of $0.18 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.5%. Advanced Drainage Systems’s dividend payout ratio (DPR) is presently 11.98%.

Wall Street Analyst Weigh In Several research firms have recently issued reports on WMS. KeyCorp increased their target price on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the stock an “overweight” rating in a research note on Friday, February 6th. Barclays increased their target price on shares of Advanced Drainage Systems from $187.00 to $198.00 and gave the stock an “overweight” rating in a research note on Friday, February 6th. Oppenheimer increased their target price on shares of Advanced Drainage Systems from $180.00 to $200.00 and gave the stock an “outperform” rating in a research note on Monday, February 9th. Royal Bank Of Canada increased their target price on shares of Advanced Drainage Systems from $176.00 to $205.00 and gave the stock an “outperform” rating in a research note on Friday, February 6th. Finally, Robert W. Baird set a $205.00 price objective on Advanced Drainage Systems in a report on Friday, February 6th. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Advanced Drainage Systems has an average rating of “Moderate Buy” and a consensus price target of $193.43.

Read Our Latest Research Report on WMS

About Advanced Drainage Systems (Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

Further Reading Five stocks we like better than Advanced Drainage Systems Want to see what other hedge funds are holding WMS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Drainage Systems, Inc. (NYSE:WMS – Free Report).

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Posted by Defense World Staff on Apr 14th, 2026

Advanced Drainage Systems, Inc. (NYSE:WMS – Get Free Report) has been assigned an average rating of “Moderate Buy” from the eight ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $191.00.

WMS has been the subject of a number of research reports. KeyCorp raised their target price on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Oppenheimer raised their price objective on shares of Advanced Drainage Systems from $180.00 to $200.00 and gave the stock an “outperform” rating in a research note on Monday, February 9th. Barclays decreased their price objective on shares of Advanced Drainage Systems from $198.00 to $181.00 and set an “overweight” rating for the company in a research note on Wednesday, April 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Advanced Drainage Systems in a research note on Wednesday, January 21st. Finally, UBS Group set a $215.00 price objective on shares of Advanced Drainage Systems and gave the stock a “buy” rating in a research note on Friday, February 6th.

Check Out Our Latest Research Report on Advanced Drainage Systems

Advanced Drainage Systems Trading Up 3.4% Shares of NYSE:WMS opened at $152.21 on Tuesday. The stock has a market capitalization of $11.86 billion, a price-to-earnings ratio of 25.33, a PEG ratio of 1.57 and a beta of 1.37. Advanced Drainage Systems has a 1-year low of $100.60 and a 1-year high of $179.32. The company has a debt-to-equity ratio of 0.72, a quick ratio of 3.08 and a current ratio of 4.12. The company has a 50 day moving average price of $153.21 and a 200 day moving average price of $149.24.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last issued its earnings results on Thursday, February 5th. The construction company reported $1.27 earnings per share for the quarter, topping analysts’ consensus estimates of $1.11 by $0.16. The firm had revenue of $693.35 million during the quarter, compared to analysts’ expectations of $686.37 million. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The firm’s revenue for the quarter was up .4% compared to the same quarter last year. During the same period last year, the firm posted $1.09 earnings per share. On average, research analysts anticipate that Advanced Drainage Systems will post 6.1 EPS for the current fiscal year.

Advanced Drainage Systems Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were paid a $0.18 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.72 dividend on an annualized basis and a yield of 0.5%. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 11.98%.

Hedge Funds Weigh In On Advanced Drainage Systems Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mather Group LLC. acquired a new position in Advanced Drainage Systems in the 3rd quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. boosted its stake in Advanced Drainage Systems by 352.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company’s stock worth $26,000 after purchasing an additional 176 shares during the period. Annis Gardner Whiting Capital Advisors LLC acquired a new position in Advanced Drainage Systems in the 3rd quarter worth approximately $33,000. Cullen Frost Bankers Inc. boosted its stake in Advanced Drainage Systems by 1,242.1% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 255 shares of the construction company’s stock worth $35,000 after purchasing an additional 236 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Advanced Drainage Systems during the 3rd quarter valued at $36,000. Institutional investors and hedge funds own 89.83% of the company’s stock.

Advanced Drainage Systems Company Profile (Get Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

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HILLIARD, 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, today announced that it will release its unaudited financial results for the fiscal fourth quarter and year ended March 31, 2026, before the market opens on May 21, 2026. In addition, Advanced Drainage Systems, Inc. (NYSE: WMS).

Wall Street expects a year-over-year decline in earnings on higher revenues when Advanced Drainage Systems (WMS - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 21. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of water drainage systems and pipes is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of -2.9%.

Revenues are expected to be $660.38 million, up 7.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.93% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Advanced Drainage?For Advanced Drainage, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Advanced Drainage will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Advanced Drainage would post earnings of $1.11 per share when it actually produced earnings of $1.27, delivering a surprise of +14.41%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Advanced Drainage doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Advanced Drainage Systems?The final step today is to look at a stock that meets our ESP qualifications. Advanced Drainage Systems (WMS - Free Report) earns a #3 (Hold) two days from its next quarterly earnings release on May 21, 2026, and its Most Accurate Estimate comes in at $1.02 a share.

Advanced Drainage Systems' Earnings ESP sits at +2.00%, which, as explained above, is calculated by taking the percentage difference between the $1.02 Most Accurate Estimate and the Zacks Consensus Estimate of $1. WMS is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

WMS is just one of a large group of Construction stocks with a positive ESP figure. Quanta Services (PWR - Free Report) is another qualifying stock you may want to consider.

Quanta Services is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on July 30, 2026. PWR's Most Accurate Estimate sits at $3.31 a share 72 days from its next earnings release.

The Zacks Consensus Estimate for Quanta Services is $3.26, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.58%.

WMS and PWR's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

On May 20, 2026, Advanced Drainage Systems Inc WMS shares rose 4.0% today, bringing the current price to $136.83. The stock has experienced a 52-week range of $105.14 to $179.32, showcasing significant volatility over the past year.

GF Value™ verdict: Current price is $136.83, 2.5% undervalued compared to GF Value™ of $140.38.GF Score™ of 88/100 indicates a strong overall performance, suggesting potential for higher long-term returns.No insider transactions in the last 3 months suggest stability in management and ownership. Is WMS Overvalued or Undervalued? The current price of Advanced Drainage Systems Inc WMS at $136.83 is slightly below the GF Value™ estimate of $140.38, indicating that the stock is 2.5% undervalued. This presents an opportunity for investors to consider entering the stock at a favorable price point. The GF Valuation label categorizes WMS as fairly valued, which suggests that while there is a margin of safety, the upside may be limited compared to other potential investments within the market.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, there is a modest margin of safety for those looking to invest. However, investors should remain cautious, as market fluctuations could impact this valuation in the near term.

How Does WMS's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)22.8x24.1x Forward P/E20.5x- With a current P/E (TTM) of 22.8x, WMS is trading below its 5-year median P/E of 24.1x. The forward P/E of 20.5x further supports this notion of undervaluation. The P/E analysis aligns with the GF Value™ verdict, reinforcing the perspective that the stock is undervalued relative to its historical performance.

What Does WMS's GF Score™ Tell Us? MetricRating GF Score™88 Financial Strength7/10 Profitability7/10 Growth8/10 Valuation9/10 Momentum8/10 The GF Score™ of 88/100 highlights that Advanced Drainage Systems Inc demonstrates strong potential across various metrics, particularly in the areas of Valuation (9/10) and Growth (8/10). However, Financial Strength and Profitability are rated at 7/10, indicating room for improvement. Overall, the scores suggest that while WMS is well positioned for growth, there are aspects of its financial health that merit attention.

What Are Insiders Doing with WMS Stock? There have been no insider transactions in the last 3 months for Advanced Drainage Systems Inc, indicating a period of stability among the company's executives and board members. The lack of insider buying or selling can suggest that management is confident in the stock's current valuation and future prospects.

What This Means for Investors Based on the GF Value™ assessment, Advanced Drainage Systems Inc WMS is currently undervalued at $136.83 compared to its fair value estimate of $140.38, presenting a potential investment opportunity with a modest margin of safety. However, investors should consider the broader market conditions and company performance metrics before making any decisions.

For the complete analysis, visit the Advanced Drainage Systems Inc WMS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WMS's GF Score™?

WMS's GF Score™ is 88/100, indicating a strong performance across key metrics and suggesting potential for higher long-term returns.

Is WMS overvalued or undervalued?

WMS is currently undervalued, with a GF Value™ estimate of $140.38 compared to its current price of $136.83.

What is WMS's P/E ratio?

WMS's current P/E (TTM) is 22.8x, which is below its 5-year median P/E of 24.1x, indicating the stock is trading at a lower valuation than its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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 wastewater industries, today announced that its Board of Directors (the "Board") has approved a total annual cash dividend to its shareholders in the amount of $0.80 per share, an 11% increase over the prior year dividend amount. Scott Barbour, President and Chief Executive Officer of Advanced Drainage Sys.

Advanced Drainage Systems, Inc. (WMS) Q4 2026 Earnings Call Transcript

Explore the exciting world of Advanced Drainage Systems (WMS 4.56%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!