Financial Performance - Net sales for the three months ended December 31, 2025, were $693.354 million, a slight increase from $690.538 million in the same period of 2024, while net sales for the nine months ended December 31, 2025, reached $2.374 billion, up from $2.288 billion in 2024, representing a year-over-year growth of 3.74%[13] - Gross profit for the three months ended December 31, 2025, was $259.152 million, compared to $241.594 million in 2024, indicating a gross margin improvement from 34.96% to 37.34%[13] - Operating income for the three months ended December 31, 2025, was $136.823 million, an increase from $126.864 million in 2024, reflecting a growth of 7.73%[13] - Net income attributable to ADS for the three months ended December 31, 2025, was $93.626 million, compared to $81.231 million in 2024, marking an increase of 15.5%[13] - The company reported a comprehensive income of $97.525 million for the three months ended December 31, 2025, compared to $74.068 million in 2024, representing a year-over-year increase of 31.7%[15] - Net income for the nine months ended December 31, 2025, was $394,628, an increase of 5% compared to $375,785 in 2024[18] - The Company reported a net income available to common stockholders of $93.6 million for the three months ended December 31, 2025, compared to $81.2 million for the same period in 2024, reflecting a year-over-year increase of 15.5%[51] - Basic net income per share for the nine months ended December 31, 2025, was $5.06, up from $4.81 in the same period of 2024, indicating a growth of 5.2%[51] Assets and Liabilities - Total assets as of December 31, 2025, were $4.144 billion, up from $3.690 billion as of March 31, 2025, indicating a growth of 12.3%[11] - Total liabilities increased to $2.115 billion as of December 31, 2025, from $2.055 billion as of March 31, 2025, reflecting a rise of 2.93%[11] - The company’s long-term debt obligations stood at $1.276 billion as of December 31, 2025, slightly up from $1.252 billion as of March 31, 2025[11] - Long-term debt obligations as of December 31, 2025, totaled $1.2757 billion, compared to $1.2516 billion as of March 31, 2025, reflecting an increase of 1.9%[55] Cash Flow and Management - The company’s cash position improved significantly, with cash increasing to $1.008 billion as of December 31, 2025, compared to $463.319 million as of March 31, 2025[11] - Net cash provided by operating activities increased to $779,133, up 44% from $540,264 in the previous year[18] - Net cash used in investing activities decreased significantly to $186,572 from $402,889, indicating improved cash management[18] - Cash and restricted cash at the end of the period totaled $1,010,903, a substantial increase from $494,753 in the previous year[18] - The company reported a net change in cash of $541,632, a significant improvement from a decrease of $1,095 in the previous year[18] - Cash paid for income taxes for the nine months ended December 31, 2025, was $83.411 million, a decrease from $111.420 million in the same period of 2024[76] Capital Expenditures and Investments - Capital expenditures for the period were $196,737, compared to $166,410 in the prior year, reflecting an 18% increase[18] - Capital expenditures for the three months ended December 31, 2025, totaled $85.719 million, significantly higher than $54.228 million in the same period of 2024, reflecting an increase of 58.1%[74] - The company incurred $17.7 million in restructuring expenses related to the closure of a recycling facility and other optimization efforts during the nine months ended December 31, 2025[35] - The acquisition of Orenco Systems, Inc. was completed for a total consideration of approximately $236.3 million, which includes a purchase price of $255 million net of cash acquired[39] - The company completed the acquisition of River Valley Pipe LLC for a preliminary fair value of consideration transferred of approximately $18.8 million[41] - The company completed the acquisition of National Diversified Sales (NDS) for approximately $1.0 billion on February 2, 2026, enhancing its water management business[78] Stockholder Information - Common stock dividends paid were $42,099, compared to $37,324 in the previous year, reflecting a 13% increase[18] - The Company’s common stock dividends declared were $42.1 million, equating to $0.54 per share[36] - A quarterly cash dividend of $0.18 per share was declared, payable on March 16, 2026, to stockholders of record as of March 2, 2026[77] Segment Performance - Net sales from the Pipe segment for the three months ended December 31, 2025, were $326.713 million, a decrease of 7.2% from $339.629 million in 2024[72] - The Infiltrator segment reported net sales of $152.881 million for the three months ended December 31, 2025, compared to $150.013 million in 2024, marking a growth of 1.9%[72] - Total consolidated net sales for the nine months ended December 31, 2025, reached $2.373615 billion, an increase of 3.7% from $2.288484 billion in 2024[72] - Segment Adjusted Gross Profit for the three months ended December 31, 2025, was $296.107 million, up from $275.943 million in 2024, indicating a growth of 7.3%[72] - Adjusted gross profit for the three months ended December 31, 2025, was $296.107 million, up from $275.943 million in the same period of 2024, representing an increase of 7.3%[73] Stock-Based Compensation - Stock-based compensation expense rose to $25,816, up 19% from $21,758 in the prior year[19] - The company’s stock-based compensation expense was recorded at $25.8 million for the three months ended December 31, 2025[36] - Total stock-based compensation expense for the three months ended December 31, 2025, was $8.835 million, an increase from $7.798 million in 2024, representing a growth of 13.3%[65] - For the nine months ended December 31, 2025, stock-based compensation expense totaled $25.816 million, up from $21.758 million in 2024, reflecting a year-over-year increase of 18.5%[66] Other Financial Metrics - The effective tax rate for the three months ended December 31, 2025, was 24.9%, compared to 25.0% for the same period in 2024[64] - The Company has a maximum potential obligation of $5.5 million under a guarantee for the South American Joint Venture as of December 31, 2025[54] - The Company has no outstanding purchase commitments with fixed price and quantity as of December 31, 2025[62] - The Company’s Senior Notes due 2027 and 2030 have fair values of $350.1 million and $511.8 million, respectively, as of December 31, 2025[61] - A 1.0% increase in interest rates on variable-rate debt would raise the annual forecasted interest expense by approximately $4.0 million based on borrowings as of December 31, 2025[134]

Advanced Drainage Systems (NYSE:WMS) Q3 2026 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsBryan Blair - Managing DirectorCollin Verron - DirectorCraig Taylor - President of InfiltratorDavid Tarantino - Assistant VPGarik Shmois - Managing DirectorJeff Reive - Research AssociateMike Higgins - VP of Corporate Strategy and Investor RelationsScott Barbour - President and CEOScott Cottrill - CFOConference Call ParticipantsJohn Lovallo - Managing Director and Senior Equity AnalystMatthew Bouley ...

Advanced Drainage Systems (NYSE:WMS) Q3 2026 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsBryan Blair - Managing DirectorCollin Verron - DirectorCraig Taylor - President of InfiltratorDavid Tarantino - Assistant VPGarik Shmois - Managing DirectorJeff Reive - Research AssociateMike Higgins - VP of Corporate Strategy and Investor RelationsScott Barbour - President and CEOScott Cottrill - CFOConference Call ParticipantsJohn Lovallo - Managing Director and Senior Equity AnalystMatthew Bouley ...

Advanced Drainage Systems (NYSE:WMS) Q3 2026 Earnings call February 05, 2026 10:00 AM ET Speaker9Good morning, ladies and gentlemen, and welcome to Advanced Drainage Systems third quarter of fiscal year 2026 results conference call. My name is Ellen, and I am your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, ...

Q3 Fiscal 2026 Financial Results February 5, 2026 Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Craig Taylor Forward Looking Statements Certain statements in this press release may be deemed to be forward -looking statements. These statements are not historical fac ts but rather are based on the Company's current expectations, estimates and projections regarding the Company's business, operations and other factors r ...

Advanced Drainage Systems (WMS) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +14.51%. A quarter ago, it was expected that this maker of water drainage systems and pipes would post earnings of $1.7 per share when it actually produced earnings of $1.97, delivering a surprise of +15.8 ...

Financial Performance - Net sales for Q3 Fiscal 2026 increased by $2.8 million, or 0.4%, to $693.4 million compared to $690.5 million in the prior year quarter[3] - Adjusted EBITDA margin for the quarter was 30.2%, an increase from 27.7% in the prior year, with Adjusted EBITDA rising by $17.7 million, or 9.3%, to $209.2 million[7] - Gross profit for Q3 increased by $17.6 million, or 7.3%, to $259.2 million, driven by volume growth and favorable price/cost dynamics[4] - Net income for Q3 increased by $11.7 million, or 14.3%, to $94.0 million, with net income per diluted share rising to $1.19[5] - Year-to-date net sales increased by $85.1 million, or 3.7%, to $2.3736 billion, with domestic allied products sales up by 7.9%[8] - Operating income for the three months ended December 31, 2025, was $136,823,000, up from $126,864,000 in 2024, reflecting a 7.4% increase, and for the nine months, it rose to $565,864,000 from $540,455,000, a 4.7% increase[24] - Net income attributable to ADS for the three months ended December 31, 2025, was $93,626,000, compared to $81,231,000 in 2024, marking a significant increase of 15.5%, while for the nine months, it increased to $393,565,000 from $373,015,000, a growth of 5.5%[24] Cash Flow and Dividends - Free cash flow for the year was $582.4 million, compared to $373.9 million in the prior year, reflecting strong cash generation[15] - Cash dividends declared per share increased to $0.18 for the three months ended December 31, 2025, from $0.16 in 2024, and for the nine months, it rose to $0.54 from $0.48, reflecting a growth of 12.5%[24] - The company reported a net change in cash of $541,632,000 for the nine months ended December 31, 2025, compared to a decrease of $1,095,000 in 2024[28] - Free cash flow for the nine months ended December 31, 2025, was $582.396 million, significantly higher than $373.854 million for the same period in 2024, indicating a strong cash generation capability[42] Acquisitions and Guidance - The company completed the acquisition of NDS, enhancing its stormwater capture portfolio, primarily funded by cash on hand[2] - Fiscal 2026 guidance was updated, projecting net sales between $2.990 billion and $3.040 billion and Adjusted EBITDA between $930 million and $960 million[17] Assets and Expenditures - Cash and cash equivalents as of December 31, 2025, were $1,008,190,000, a substantial increase from $463,319,000 as of March 31, 2025[26] - Total assets increased to $4,144,311,000 as of December 31, 2025, compared to $3,690,360,000 as of March 31, 2025, reflecting a growth of 12.3%[26] - Capital expenditures for the nine months ended December 31, 2025, were $196,737,000, compared to $166,410,000 in 2024, indicating an increase of 18.2%[28] Segment Performance - The Pipe segment reported net sales of $339.175 million for the three months ended December 31, 2025, down from $352.236 million in the same period of 2024, a decrease of about 3.1%[31] - The Infiltrator segment achieved net sales of $167.666 million for the three months ended December 31, 2025, compared to $160.076 million in the same period of 2024, marking an increase of approximately 4.0%[31] - Total international net sales for the three months ended December 31, 2025, were $50.483 million, down from $53.281 million in the same period of 2024, a decline of about 5.3%[31] - The Allied Products & Other segment reported net sales of $168.050 million for the three months ended December 31, 2025, up from $154.295 million in the same period of 2024, reflecting an increase of approximately 8.9%[31] Restructuring and Realignment - The company incurred restructuring and realignment expenses of $1.706 million for the three months ended December 31, 2025, which were not present in the same period of 2024[41]

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 quarterly cash dividend to its shareholders in the amount of $0.18 per share, a 13% increase over the prior year dividend amount. Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems. ...

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 third quarter ended December 31, 2025. Third Quarter Fiscal 2026 Results Net sales increased $2.8 million or 0.4% to $693.4 million Net income increased $11.7 million or 14.3% to $94.0 million Net income per diluted share increased $0.1. ...

Core Viewpoint - Advanced Drainage Systems, Inc. (NYSE:WMS) is experiencing a positive trend in its consensus price target, indicating favorable analyst sentiment regarding its future performance [2][3][6] Company Overview - Advanced Drainage Systems, Inc. specializes in the design and production of thermoplastic corrugated pipes and serves various sectors including non-residential, residential, agriculture, and infrastructure [1] Price Target Trends - The consensus price target for WMS has increased from $181.57 last quarter to $184 last month, reflecting growing confidence in the company's performance [2][6] - Over the past year, the price target has risen significantly from $168.08 to $184, indicating strong belief in the company's future performance [3][6] Earnings Performance - The company reported earnings per share of $1.97, exceeding the Zacks Consensus Estimate of $1.70, which supports the positive sentiment among analysts [3] Analyst Opinions - Despite the overall positive outlook, analysts from Robert W. Baird have set a lower price target of $137 for WMS, suggesting differing views on the company's future performance or market conditions [4][6] - The company's strong fundamentals and history of earnings growth suggest it is well-positioned for continued success despite the lower target from some analysts [4][6] Strategic Insights - The recent Q2 2026 earnings call highlighted the company's achievements and future plans, reinforcing the optimistic outlook for Advanced Drainage Systems, Inc. [5]