WMS earnings analysis
What we found in WMS's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Advanced Drainage Systems, Inc. reported a strong fiscal year 2026, with net sales increasing by 5.0% to $3.05 billion, partially driven by growth in both the Stormwater and Wastewater segments, reflecting diversified product offerings and successful acquisitions, including NDS. However, net income from continuing operations fell by 5.0% to $429.9 million due to increased operational costs and significant restructuring expenses.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Net sales increased 5.0% to $3.05 billion, up from $2.90 billion in FY2025.
- Strong Cash Flow
- Free cash flow rose to $569.3 million, an increase from $368.5 million in FY2025.
- Profitability Maintained
- Adjusted EBITDA grew by 8.3% to $962.9 million, representing a margin of 31.6%.
- Successful Acquisitions
- The acquisition of NDS on February 2, 2026, expanded product offerings and accounted for $48.8 million in net sales.
- Segment Performance
- Wastewater sales rose 13.0% to $653 million, significantly contributing to overall growth.
- Improved Collections
- Days sales outstanding improved, enhancing working capital efficiency with receivables of $390.5 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Operational Costs
- Selling, general, and administrative expenses increased to $469.5 million, up from $380.4 million in FY2025.
- Increased Debt Levels
- Total debt rose to $1.77 billion from $1.25 billion, reflecting strategic acquisitions and market conditions.
- Cautious Market Outlook
- Management noted potential demand challenges in fiscal 2027, affecting revenue guidance.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.44
- Gross margin
- 38.3%
- Operating margin
- 20.3%
- Segment
- Stormwater
- Segment
- Wastewater
What they said about what is next.
FY2027 revenue expected to range between $3.35 billion and $3.55 billion.
The filing reads about the same as the one before it.
What came before.
- 10-Q · February 6, 2025
- ADS reported Q3 net sales of $690,538,000, up $28.2M (4.3%) versus the prior-year quarter, but profitability weakened as gross profit fell to $241,594,000 and operating income declined to $126,864,000. Diluted EPS…
- 10-K · May 16, 2024
- Advanced Drainage Systems (ADS) positions itself as the leading manufacturer of water management solutions, claiming it is the only company that manages stormwater through the full lifecycle and highlighting a broad…
- 10-Q · November 2, 2023
- Advanced Drainage Systems reported Q1 (three months ended Sept. 30, 2023) net sales of $780,220,000, down from $884,209,000 a year ago, while diluted EPS fell to $1.71 from $1.80. Despite lower sales and net income,…
- 10-Q · August 5, 2021
- Revenue grew sharply to $669.3M in Q1 (up $160.7M or 31.6% vs $508.6M a year ago), driving higher net income of $77.1M and diluted EPS of $0.87 (up $0.04 vs $0.83). However, gross and operating margins contracted…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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