Advanced Drainage Systems, Inc.
- Open
- 143.17
- Day high
- 143.36
- Day low
- 139.37
- Prev close
- 143.04
- Volume
- 46K
- Mkt cap
- $10.9B
- P/E (TTM)
- 25.5
- EPS (TTM)
- $5.48
- P/B
- 5.6
- P/S
- 3.6
- Yield
- 0.27%
- Per share
- $0.38
Advanced Drainage Systems, Inc. (WMS) is a Industrials company listed on NYSE. The stock is up 29% over the past year.
Advanced Drainage Systems, Inc. (WMS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WMS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 21, 2026 | $1.00 | $1.07 | +7.0% | $677M | +3.8% |
| Feb 5, 2026 | $1.11 | $1.27 | +14.4% | $693M | +6.3% |
| Nov 6, 2025 | $1.64 | $1.97 | +20.1% | $850M | +6.2% |
| Aug 7, 2025 | $1.75 | $1.95 | +11.4% | $691M | -13.4% |
| May 15, 2025 | $1.06 | $1.03 | -2.8% | $616M | -6.6% |
| Feb 6, 2025 | $1.34 | $1.09 | -18.7% | $691M | +4.4% |
| Nov 8, 2024 | $1.90 | $1.70 | -10.5% | $783M | -4.5% |
| May 16, 2024 | $1.01 | $1.21 | +19.8% | $654M | +6.8% |
| Feb 8, 2024 | $1.02 | $1.34 | +31.4% | $662M | +9.6% |
| Nov 2, 2023 | $1.63 | $1.71 | +4.9% | $780M | +0.6% |
| Aug 3, 2023 | $1.54 | $2.18 | +41.6% | $778M | +4.1% |
| May 18, 2023 | $0.77 | $1.06 | +37.7% | $618M | +9.7% |
WMS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 20, 2026 | Seetharam Anildirector | Grant | 1,782 | — |
| Jul 20, 2026 | CHAIBI ANESAdirector | Grant | 1,110 | — |
| Jul 20, 2026 | GAST KELLY S.director | Grant | 1,110 | — |
| Jul 20, 2026 | FRATTO TANYA Ddirector | Grant | 1,110 | — |
| Jul 20, 2026 | PEREZ DE LA MESA MANUEL Jdirector | Grant | 1,782 | — |
| Jul 20, 2026 | FISCHER ALEXANDER Rdirector | Grant | 1,110 | — |
| Jul 20, 2026 | COLEMAN MICHAEL B.director | Grant | 1,110 | — |
| Jul 20, 2026 | EVERSOLE ROBERT Mdirector | Grant | 2,253 | — |
| May 28, 2026 | BARBOUR D. SCOTTdirector, officer: See Remarks | Grant | 9,036 | — |
| May 28, 2026 | KING BRIAN W.officer: Executive Vice President | Grant | 2,115 | $138.09 |
| May 28, 2026 | TAYLOR CRAIG J.officer: Executive Vice President | Grant | 1,530 | — |
| May 28, 2026 | Martz Bretofficer: See Remarks | Grant | 1,252 | — |
| May 28, 2026 | Cottrill Scott Aofficer: EVP, CFO AND SECRETARY | Grant | 5,573 | $138.09 |
| May 28, 2026 | TAYLOR CRAIG J.officer: Executive Vice President | Grant | 3,406 | $138.09 |
| May 28, 2026 | BARBOUR D. SCOTTdirector, officer: See Remarks | Grant | 20,124 | $138.09 |
Source: WMS SEC Form 4 filings, latest Jul 20, 2026. For informational purposes only — not investment advice.
See the full WMS insider & 13F page →Advanced Drainage Systems, Inc. company profile
Overview
Advanced Drainage Systems, Inc. (NYSE:WMS) is a leading North American manufacturer of thermoplastic corrugated pipes and water management products founded in 1966 and headquartered in Hilliard, Ohio. The company went public in 2014 and has grown to become a dominant player in the underground construction and infrastructure marketplace through both organic expansion and strategic acquisitions. ADS operates through four main business segments: Pipe, International, Infiltrator, and Allied Products & Other, serving customers across the United States, Canada, Mexico, and other international markets with a network of approximately 38 distribution centers.
Business
Advanced Drainage Systems operates in the water management and drainage infrastructure industry, designing and manufacturing products that handle stormwater, wastewater, and agricultural drainage applications. The company's core business revolves around thermoplastic corrugated pipes - essentially large plastic pipes with ridged surfaces that provide strength while remaining lightweight and flexible for underground installation. The company operates through four primary business segments. The Pipe segment represents the legacy core business, manufacturing single, double, and triple wall corrugated polypropylene and polyethylene pipes used primarily for stormwater drainage in construction projects. This segment has faced some headwinds recently, with sales declining 3% in recent quarters. The Infiltrator segment focuses on on-site wastewater treatment solutions, including plastic leachfield chambers, septic tanks, and advanced treatment systems. This higher-margin business has shown strong growth, with sales increasing 15% annually and representing a significant portion of company profitability. The Allied Products segment encompasses complementary water management products including storm retention/detention systems, drainage structures, fittings, water quality filters, and separators. This segment has grown 3-8% recently and represents the company's push into higher-value products. The International segment handles operations outside the United States, primarily in Canada and Mexico, though this represents a smaller portion of total revenue. The company's products serve four main end markets: non-residential construction (approximately 45% of sales), residential development (35% of sales), infrastructure projects (7% of sales), and agricultural applications. These products are essential for managing water flow in everything from residential subdivisions to major highway projects, with increasing importance due to climate change driving more intense weather events.
Revenue model
Advanced Drainage Systems generates revenue primarily through product sales to a diverse customer base including contractors, distributors, and municipal agencies. The company operates on a traditional manufacturing business model, producing pipes and water management products in its facilities and selling them through a network of distribution centers. The company's customers are primarily construction contractors who purchase pipes and drainage products for residential developments, commercial construction projects, and infrastructure work. Additionally, ADS sells to distributors who resell products to smaller contractors, and directly to municipal agencies for public infrastructure projects. The Infiltrator segment also serves septic system installers and wastewater treatment professionals. Revenue generation varies significantly by end market and product mix. The higher-margin Infiltrator and Allied Products segments command premium pricing due to their specialized nature and technical requirements, while the legacy pipe business operates in a more commoditized environment. The company has strategically focused on expanding these higher-margin segments, which now represent a substantial portion of profitability. Several factors influence the company's margins and profitability. Positive margin drivers include the ongoing shift toward higher-margin products like advanced wastewater treatment systems, material conversion from traditional materials to thermoplastics, and operational efficiency improvements from manufacturing investments. The company also benefits from its position as one of North America's largest plastic recyclers, helping control raw material costs. Negative margin pressures include raw material cost inflation, particularly for plastic resins, competitive pricing pressure in the commodity pipe business, and cyclical construction market downturns. Weather events can both positively and negatively impact demand - while severe storms drive long-term infrastructure investment, they can disrupt short-term operations and customer activity. Interest rate changes significantly affect residential construction activity, which represents over one-third of the company's revenue base.
Competitive moat
Advanced Drainage Systems possesses a moderate competitive moat built primarily on scale advantages, distribution network, and technical expertise, though the strength varies significantly across business segments. The company's strongest moat exists in its distribution network and logistics capabilities. With approximately 38 distribution centers strategically located across North America, ADS can provide superior customer service and delivery times compared to smaller competitors. This network represents significant capital investment and provides meaningful barriers to entry for new competitors seeking national scale. The company also benefits from technical expertise and product innovation, particularly in the higher-margin Infiltrator and Allied Products segments. Advanced wastewater treatment systems require specialized engineering knowledge and regulatory compliance expertise that creates switching costs for customers and barriers for new entrants. Scale advantages provide cost benefits in manufacturing, procurement, and R&D investment. As one of the largest players in the North American market, ADS can achieve economies of scale in production and maintain competitive pricing while preserving margins. However, the moat faces several challenges. The legacy pipe business operates in a more commoditized environment where competition is primarily price-based, limiting pricing power. Large competitors like Contech and various regional manufacturers provide meaningful competition. Additionally, the company faces potential disruption from alternative materials or construction methods, though the transition to thermoplastic pipes from traditional materials has generally benefited ADS. The regulatory environment provides some protection, as drainage and wastewater products must meet strict engineering and environmental standards, but this also creates compliance costs and potential regulatory risks. Overall, while ADS has built meaningful competitive advantages, the moat is moderate rather than dominant, requiring continued investment in innovation and operational efficiency to maintain market position.
Risks & safety
Advanced Drainage Systems demonstrates a strong financial position with solid liquidity and manageable debt levels, though recent quarters show some operational challenges. **Liquidity and Solvency:** - Strong cash position of $463 million as of Q4 2025 - Current ratio of 3.33, indicating excellent short-term liquidity - Net debt to EBITDA leverage of approximately 1.0x, well within comfortable ranges - Free cash flow generation of $369 million for full year 2025, though Q4 showed negative $5 million **Debt and Capital Structure:** - Debt-to-equity ratio of 15.39 appears elevated due to accounting treatment, but actual leverage remains manageable - Total liabilities of $2.1 billion against $3.7 billion in total assets - Strong balance sheet provides flexibility for strategic investments and acquisitions **Valuation Metrics:** - Trading at 18.7x P/E ratio based on 2025 earnings - EV/EBITDA of 14.3x for full year 2025 - Price-to-book ratio of 90.9x appears distorted by recent accounting adjustments **Other Considerations:** - Cyclical nature of construction markets creates earnings volatility risk - Exposure to interest rate sensitivity through residential construction exposure - Raw material cost inflation presents ongoing margin pressure risk
Recent development
Advanced Drainage Systems has undertaken several strategic initiatives over the past few years to diversify its product portfolio and expand into higher-margin markets. The company's most significant strategic pivot has been the aggressive expansion into advanced wastewater treatment solutions, highlighted by the acquisition of Orenco Systems, which brought sophisticated wastewater treatment technology and expanded ADS's addressable market by approximately $10 billion. The company has also made substantial investments in innovation and technology infrastructure, including the construction of a world-class engineering and technology center that serves as a hub for product development and customer collaboration. This facility represents ADS's commitment to moving beyond commodity pipe manufacturing toward more sophisticated water management solutions. Product innovation has been a key focus, with the launch of new products like the ECOPOD-NX advanced onsite septic treatment system and EcoStream biofiltration products. The company has also expanded its recycling capabilities, operating one of North America's largest plastic recycling operations and processing over 0.5 billion pounds of recycled material annually. Geographic and market expansion has been another priority, with particular focus on high-growth markets in the Southeast, Texas, and other priority states in the lower half of the United States. The company has also expanded its international presence, though this remains a smaller portion of total revenue. Recent acquisitions beyond Orenco include River Valley Pipe, demonstrating the company's strategy of consolidating the fragmented drainage industry while expanding technological capabilities. The company has also refreshed its transportation fleet and improved manufacturing efficiency through automation and process improvements. The strategic direction clearly emphasizes transitioning from a commodity pipe manufacturer to a comprehensive water management solutions provider, with particular focus on higher-margin products and markets less susceptible to economic cycles.
WMS company profile · for informational purposes only — not investment advice.
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