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WMS

Advanced Drainage Systems, Inc.

WMS

Advanced Drainage Systems, Inc. • NYSE
$152.38 ▼ -0.72% (-1.11)
Market Cap $11.85 B
52w High $155.39
52w Low $93.92
Dividend Yield 0.68%
P/E 25.96
Volume 287.40K
Outstanding Shares 77.76M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $850.381M ▲ $116.837M ▼ $156.017M ▲ 18.347% ▲ $2.01 ▲ $284.944M ▲
Q1-2026 $829.88M ▲ $124.692M ▲ $143.922M ▲ 17.343% ▲ $1.85 ▲ $262.679M ▲
Q4-2025 $615.761M ▼ $109.271M ▼ $77.157M ▼ 12.53% ▲ $0.99 ▼ $150.668M ▼
Q3-2025 $690.538M ▼ $114.73M ▲ $81.231M ▼ 11.763% ▼ $1.05 ▼ $179.422M ▼
Q2-2025 $782.61M $106.565M $130.382M 16.66% $1.68 $239.139M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $812.862M ▲ $4.079B ▲ $2.15B ▲ $1.909B ▲
Q1-2026 $638.268M ▲ $3.91B ▲ $2.132B ▲ $1.759B ▲
Q4-2025 $463.319M ▼ $3.69B ▲ $2.055B ▲ $1.618B ▲
Q3-2025 $488.859M ▼ $3.602B ▲ $2.038B ▼ $1.546B ▲
Q2-2025 $613.02M $3.536B $2.043B $1.475B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $156.5M ▲ $234.866M ▼ $-35.409M ▲ $-24.721M ▲ $174.655M ▼ $176.446M ▼
Q1-2026 $144.091M ▲ $274.977M ▲ $-69.934M ▼ $-31.132M ▼ $175.009M ▲ $222.379M ▲
Q4-2025 $76.788M ▼ $41.227M ▼ $-44.977M ▲ $-21.783M ▼ $-25.482M ▲ $-5.307M ▼
Q3-2025 $82.289M ▼ $189.938M ▲ $-291.347M ▼ $-21.304M ▲ $-124.097M ▼ $135.71M ▲
Q2-2025 $131.174M $166.9M $-54.325M $-40.745M $71.48M $112.433M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Allied Products And Other Business Segments
Allied Products And Other Business Segments
 $170.00M ▲$150.00M ▼$190.00M ▲$200.00M ▲
Infiltrator Water Technologies Segment
Infiltrator Water Technologies Segment
 $150.00M ▲$140.00M ▼$190.00M ▲$200.00M ▲
International Segment
International Segment
 $0 ▲$0 ▲$0 ▲$0 ▲
Intersegment Eliminations
Intersegment Eliminations
 $-40.00M ▲$-40.00M ▲$-30.00M ▲$40.00M ▲
Pipe Segment
Pipe Segment
 $360.00M ▲$330.00M ▼$430.00M ▲$430.00M ▲
Reportable Segment Aggregation before Other Operating Segment
Reportable Segment Aggregation before Other Operating Segment
 $0 ▲$0 ▲$-30.00M ▼$-30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Income statement Revenue has grown strongly over the last five years, with a big step-up after 2021, followed by a small pullback and then largely flat sales more recently. That suggests the company benefited from a strong construction and infrastructure cycle and is now in a more mature, slower‑growth phase rather than in a downturn. Profitability has improved even more than sales. Gross profit, operating profit and cash‑style earnings all expanded meaningfully versus five years ago, showing good pricing power and cost control. Net income has roughly doubled compared with the early part of the period, although it has leveled off in the last couple of years and even edged down slightly, hinting at some margin pressure from input costs, mix, or softer demand. Overall, the income statement shows a company that is far more profitable than it was a few years ago, but with growth now moderating and earnings no longer rising in a straight line. That creates a picture of a high‑quality business facing a more normal, competitive environment rather than one still in a hyper‑growth phase.

Balance Sheet

Balance Sheet Balance sheet The balance sheet has expanded steadily, with total assets and shareholders’ equity rising over time. This indicates that earnings have been retained and reinvested, strengthening the company’s capital base and giving it more flexibility to fund growth and weather cycles. Debt has also increased over the period, but not in a way that looks extreme relative to the bigger size and profit base of the business. The company has clearly chosen to use leverage as part of its growth strategy, yet equity has grown faster, which helps keep the overall financial structure balanced. Cash on hand is now meaningfully higher than it was a few years ago, moving from a very thin buffer to a more comfortable liquidity position. In combination, this points to a stronger, more resilient balance sheet, though with the usual risk that higher debt needs to be serviced if conditions in construction or infrastructure were to weaken sharply.

Cash Flow

Cash Flow Cash flow Cash generation is a clear strength. Operating cash flow has been consistently positive and has generally trended higher, broadly tracking the improvement in profits. This shows that earnings are largely backed by real cash, not just accounting. Free cash flow has also been positive in every year, even as the company has increased its investment in facilities and equipment. Capital spending has risen but remains well covered by internal cash generation, suggesting that most growth and innovation efforts are being funded from the company’s own operations rather than heavy borrowing or equity issuance. Overall, the cash flow profile is robust: the business throws off surplus cash after investment, which can be used to reduce debt, support acquisitions, or return capital, depending on management’s priorities and market conditions.

Competitive Edge

Competitive Edge Competitive position Advanced Drainage Systems holds a strong position in water management solutions, not just as a pipe maker but as a provider of complete systems. Its proprietary plastic pipe technologies, broad product range, and engineering support make it more of a solutions partner than a commodity supplier, which tends to deepen customer relationships and reduce direct price competition. Scale is a major advantage. A wide manufacturing and distribution footprint lowers shipping costs, improves service levels, and raises the bar for new entrants. The company’s long history, brand recognition with engineers and contractors, and embedded product specifications in designs and codes all contribute to a durable moat that is not easily displaced. At the same time, the business is still exposed to the cyclical nature of construction and infrastructure spending, competition from traditional materials, and other plastics manufacturers. Regulatory changes, raw material cost swings, and public‑sector budgeting can all influence demand. In short, the competitive position is strong and defensible, but not immune to broader industry cycles.

Innovation and R&D

Innovation and R&D Innovation & R&D Innovation is a central pillar. The company’s patented pipe technologies, heavy use of recycled plastics, and its move into full stormwater systems show a clear focus on engineering‑led differentiation rather than competing only on price. This is reinforced by design tools, technical support, and on‑site assistance, which make it easier for engineers and contractors to specify its solutions. The new engineering and technology center is a meaningful long‑term investment. It is aimed at advancing materials science, improving manufacturing, and expanding water quality and treatment solutions. This should help the company stay ahead in performance, sustainability, and standards compliance, and could support ongoing conversion from concrete and steel to plastic-based systems. Strategic acquisitions and partnerships, such as the move into residential water management and modular stormwater systems, extend the product portfolio and market reach. The main risk is execution: research projects, new products, and deals need to integrate well and generate real customer value. If they do, the company’s innovation engine could remain a key differentiator in a market that is becoming more focused on resilience and environmental performance.

Summary

Summary Advanced Drainage Systems has transitioned over the last five years from a solid industrial player into a higher‑margin, cash‑rich water management platform with a much stronger balance sheet and broader capabilities. Revenue growth has cooled from its earlier surge, but profitability and cash generation remain well above where they were earlier in the decade. Financially, the company combines healthy earnings with a strengthened equity base, manageable leverage, and consistent free cash flow. Strategically, it benefits from scale, brand, technical know‑how, and a shift from selling components to offering complete, engineered solutions. Future performance will likely hinge on how well it navigates construction and infrastructure cycles, manages input costs, and continues to convert the market from traditional materials to its engineered plastic systems. Its focused investment in innovation and sustainability positions it to benefit from long‑term trends in water infrastructure and climate resilience, while still carrying the usual execution and cyclical risks of an industrial business tied to building and public works spending.

NEWS

November 6, 2025 · 6:42 AM UTC

Advanced Drainage Systems Announces Quarterly Cash Dividend

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November 6, 2025 · 6:40 AM UTC

Advanced Drainage Systems Announces Second Quarter Fiscal 2026 Results

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October 14, 2025 · 4:00 PM UTC

Advanced Drainage Systems to Announce Second Quarter Fiscal Year 2026 Results on November 6, 2025

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September 23, 2025 · 1:30 AM UTC

Advanced Drainage Systems Announces Acquisition of National Diversified Sales, a Subsidiary of Norma Group Se

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September 18, 2025 · 7:00 AM UTC

Advanced Drainage Systems Issues Fiscal 2025 Sustainability Report

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