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…
Earnings analysis · 10-K
WMS earnings analysis
Filed May 21, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.44
- Segment
- Stormwater
- Segment
- Wastewater
What stood out
-
Revenue Growth
Net sales increased 5.0% to $3.05 billion, up from $2.90 billion in FY2025.
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Strong Cash Flow
Free cash flow rose to $569.3 million, an increase from $368.5 million in FY2025.
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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.
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Segment Performance
Wastewater sales rose 13.0% to $653 million, significantly contributing to overall growth.
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Improved Collections
Days sales outstanding improved, enhancing working capital efficiency with receivables of $390.5 million.
What to watch
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Rising Operational Costs
Selling, general, and administrative expenses increased to $469.5 million, up from $380.4 million in FY2025.
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Increased Debt Levels
Total debt rose to $1.77 billion from $1.25 billion, reflecting strategic acquisitions and market conditions.
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Cautious Market Outlook
Management noted potential demand challenges in fiscal 2027, affecting revenue guidance.
Management's outlook
FY2027 revenue expected to range between $3.35 billion and $3.55 billion.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.