Revenue growth remains inconsistent with a 9.9% year-over-year increase in 2026Q4, while gross margins have compressed from a 40.8% peak in 2025Q1 to 32.4% in the most recent period.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 |
|---|
| Sales/Revenue | 3.05B | 2.9B | 2.87B | 3.07B | 2.77B | 1.98B | 1.67B | 1.38B | 1.33B | 1.26B | 1.29B | 1.18B | 1.07B | 1.02B | 1.01B |
| Revenue Growth % | 5.03% | 1.04% | -6.4% | 10.9% | 39.67% | 18.46% | 20.88% | 4.09% | 5.81% | -2.5% | 9.48% | 10.18% | 5.1% | 0.33% | - |
| Cost of Goods Sold | 1.94B | 1.81B | 1.73B | 1.95B | 1.97B | 1.29B | 1.18B | 1.06B | 1.03B | 961.45M | 1.01B | 935.48M | 856.12M | 829.14M | 818.4M |
| COGS % of Revenue | 63.69% | 62.32% | 60.13% | 63.58% | 71.1% | 65.2% | 70.27% | 76.39% | 77.26% | 76.47% | 78.24% | 79.42% | 80.09% | 81.52% | 80.73% |
| Gross Profit | 1.11B | 1.09B | 1.15B | 1.12B | 800.38M | 690.08M | 497.54M | 326.97M | 302.48M | 295.81M | 280.65M | 242.34M | 212.89M | 187.96M | 195.36M |
| Gross Margin % | 36.31% | 37.68% | 39.87% | 36.42% | 28.9% | 34.8% | 29.73% | 23.61% | 22.74% | 23.53% | 21.76% | 20.58% | 19.91% | 18.48% | 19.27% |
| Gross Profit Growth % | 1.22% | -4.51% | 2.46% | 39.73% | 15.98% | 38.7% | 52.17% | 8.1% | 2.26% | 5.4% | 15.81% | 13.83% | 13.26% | -3.79% | - |
| Operating Expenses | 420.83M | 436.81M | 413.82M | 399.1M | 388.47M | 345.56M | 592.89M | 193.91M | 199.22M | 210.97M | 197.78M | 167.2M | 164.91M | 131.43M | 144.94M |
| OpEx % of Revenue | 13.8% | 15.04% | 14.4% | 13% | 14.03% | 17.43% | 35.42% | 14% | 14.98% | 16.78% | 15.34% | 14.2% | 15.43% | 12.92% | 14.3% |
| Selling, General & Admin | 469.55M | 380.38M | 370.71M | 339.5M | 321.09M | 267.57M | 271.14M | 186.03M | 191.16M | 202.43M | 188.56M | 157.03M | 153.5M | 121.41M | 133.55M |
| SG&A % of Revenue | 15.39% | 13.1% | 12.9% | 11.05% | 11.59% | 13.49% | 16.2% | 13.43% | 14.37% | 16.1% | 14.62% | 13.33% | 14.36% | 11.94% | 13.17% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.66M | 2.16M | 3.37M | 3.87M | 3.55M | 3.27M | 3.54M | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 0.19% | 0.16% | 0.27% | 0.3% | 0.3% | 0.31% | 0.35% | - |
| Other Operating Expenses | -48.72M | 56.43M | 43.1M | 59.59M | 67.37M | 77.98M | 321.75M | 7.88M | 8.07M | 8.55M | 9.22M | -12.77M | -133K | -103K | -2.42M |
| Operating Income | 686.71M | 657.44M | 732.13M | 719.31M | 411.92M | 344.52M | -95.35M | 129.41M | 88.25M | 76.33M | 82.06M | 75.89M | 53.31M | 57.48M | 95.05M |
| Operating Margin % | 22.51% | 22.64% | 25.47% | 23.42% | 14.87% | 17.38% | -5.7% | 9.35% | 6.63% | 6.07% | 6.36% | 6.44% | 4.99% | 5.65% | 9.38% |
| Operating Income Growth % | 4.45% | -10.2% | 1.78% | 74.62% | 19.56% | 461.33% | -173.68% | 46.64% | 15.62% | -6.98% | 8.13% | 42.34% | -7.24% | -39.53% | - |
| EBITDA | 900.54M | 840.72M | 887.03M | 864.46M | 553.73M | 490.11M | 17.07M | 201.31M | 163.26M | 148.68M | 91.28M | 131.76M | 109.21M | 120.58M | 150.22M |
| EBITDA Margin % | 29.52% | 28.95% | 30.86% | 28.15% | 20% | 24.72% | 1.02% | 14.54% | 12.27% | 11.83% | 7.08% | 11.19% | 10.22% | 11.86% | 14.82% |
| EBITDA Growth % | 7.12% | -5.22% | 2.61% | 56.12% | 12.98% | 2770.51% | -91.52% | 23.31% | 9.8% | 62.88% | -30.72% | 20.64% | -9.43% | -19.73% | - |
| D&A (Non-Cash Add-back) | 213.83M | 183.28M | 154.9M | 145.15M | 141.81M | 145.59M | 112.42M | 71.9M | 75M | 72.36M | 9.22M | 55.87M | 55.9M | 63.1M | 55.17M |
| EBIT | 686.71M | 681.27M | 755.62M | 727.28M | 417.06M | 347.93M | 169.39M | 130.23M | 92.2M | 82.3M | 77.76M | 24.29M | 52.64M | 57.38M | 92.63M |
| Net Interest Income | -68.87M | -68.32M | -66.81M | -60.4M | -33.5M | -35.37M | -82.71M | -18.62M | -15.26M | -17.47M | -18.46M | -19.37M | -18.81M | -18.53M | -21.84M |
| Interest Income | 25M | 23.48M | 22.05M | 9.78M | 52K | 287K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 93.8M | 91.8M | 88.86M | 70.18M | 33.55M | 35.66M | 82.71M | 18.62M | 15.26M | 17.47M | 18.46M | 19.37M | 18.81M | 18.53M | 21.84M |
| Other Income/Expense | -121.86M | -63.8M | -59.84M | -57.37M | -26.82M | -32.25M | -82.36M | -17.8M | -11.31M | -11.5M | -22.76M | -14.13M | -20.77M | -9.84M | 18.28M |
| Pretax Income | 564.85M | 593.64M | 672.29M | 661.94M | 385.1M | 312.27M | -177.71M | 111.61M | 76.94M | 64.83M | 46.46M | 46.5M | 37.04M | 38.85M | 70.79M |
| Pretax Margin % | 18.52% | 20.44% | 23.39% | 21.55% | 13.91% | 15.75% | -10.62% | 8.06% | 5.78% | 5.16% | 3.6% | 3.95% | 3.46% | 3.82% | 6.98% |
| Income Tax | 134.99M | 141.06M | 159M | 150.59M | 110.07M | 86.38M | 14.09M | 30.05M | 11.41M | 24.61M | 19.09M | 16.28M | 22.57M | 15.94M | 27.06M |
| Effective Tax Rate % | 23.9% | 23.76% | 23.65% | 22.75% | 28.58% | 27.66% | -7.93% | 26.92% | 14.83% | 37.97% | 41.08% | 35.01% | 60.95% | 41.02% | 38.23% |
| Net Income | 426.46M | 450.17M | 509.92M | 507.09M | 271.33M | 224.23M | -193.17M | 77.77M | 62.01M | 32.95M | 20.63M | 26.3M | 11.12M | 20.66M | 43.26M |
| Net Margin % | 13.98% | 15.5% | 17.74% | 16.51% | 9.8% | 11.31% | -11.54% | 5.62% | 4.66% | 2.62% | 1.6% | 2.23% | 1.04% | 2.03% | 4.27% |
| Net Income Growth % | -5.27% | -11.72% | 0.56% | 86.89% | 21.01% | 216.08% | -348.38% | 25.42% | 88.19% | 59.74% | -21.57% | 136.43% | -46.16% | -52.24% | - |
| Net Income (Continuing) | 429.86M | 452.57M | 513.29M | 511.35M | 275.03M | 226.09M | -191.8M | 81.47M | 64.79M | 35.91M | 30.57M | -1.36M | 11.06M | 23.18M | 44.43M |
| Discontinued Operations | -1.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 23.58M | 17.7M | 18.8M | 17.49M | 16.62M | 13.73M | 11.76M | 13.99M | 16.66M | 14.91M | 15.03M | 16.41M | 22.58M | 23.27M | 20.63M |
| EPS (Diluted) | 5.44 | 5.76 | 6.45 | 6.08 | 3.15 | 2.59 | -3.04 | 1.35 | 1.10 | 0.59 | 0.34 | 0.51 | 0.20 | 0.38 | 0.79 |
| EPS Growth % | -5.56% | -10.7% | 6.09% | 93.02% | 21.62% | 185.2% | -325.19% | 22.73% | 86.44% | 73.53% | -33.33% | 155% | -47.37% | -51.9% | - |
| EPS (Basic) | 5.48 | 5.81 | 6.52 | 6.16 | 3.22 | 2.64 | -3.04 | 1.36 | 1.11 | 0.60 | 0.38 | 0.51 | 0.21 | 0.39 | 0.82 |
| Diluted Shares Outstanding | 78.48M | 78.19M | 79.02M | 83.34M | 72.91M | 71.57M | 63.82M | 57.61M | 56.33M | 55.62M | 61.38M | 52M | 55.69M | 54.92M | 54.92M |
| Basic Shares Outstanding | 77.82M | 77.55M | 78.25M | 82.31M | 71.28M | 70.16M | 63.82M | 57.02M | 55.7M | 54.92M | 53.98M | 51.34M | 52.13M | 52.75M | 52.75M |
| Dividend Payout Ratio | 13.16% | 11.05% | 8.63% | 7.81% | 13.64% | 13.68% | - | 33.62% | 29.8% | 51.05% | 78.73% | 29.92% | 1034.32% | 29.79% | 11.4% |
Cyclical construction demand volatility
According to the latest quarterly financial data, Advanced Drainage Systems experienced a 9.9% year-over-year revenue increase in 2026Q4, yet the broader trend remains inconsistent, with growth rates fluctuating between a 5.8% contraction and a 9.9% expansion over the last ten reported fiscal periods.
The revenue trajectory appears heavily influenced by the timing of construction project cycles and seasonal demand for drainage solutions. Investors should monitor whether the recent growth acceleration can be sustained in a high-interest-rate environment that typically suppresses new residential and commercial land development.
As reported in recent income statements, the company's gross margin contracted to 32.4% in 2026Q4, down from a peak of 40.8% in 2025Q1, suggesting that the firm is struggling to fully offset rising raw material costs through its current pricing strategy.
The structural reliance on plastic resins makes the company's profitability highly sensitive to commodity price fluctuations. The recent margin compression warrants further investigation into whether the firm's ability to pass through costs to distributors is weakening or if internal recycling efficiencies are being offset by broader inflationary pressures.
Based on the provided financial figures, operating income dropped to $129.2 million in 2026Q4, representing an operating margin of 19.1%, which indicates that overhead costs are not scaling efficiently relative to the recent fluctuations in gross profit and top-line revenue performance.
The lack of consistent operating leverage suggests that fixed costs, including the extensive manufacturing and distribution footprint, may be weighing on profitability during periods of slower growth. Analysts should evaluate if management can optimize SG&A expenses to protect operating margins if revenue growth continues to exhibit volatility.
Financial disclosures indicate that net income fell to $32.9 million in 2026Q4, a significant decline from the $156.0 million reported in 2026Q2, highlighting that EPS volatility is being driven by both operational performance and potentially non-recurring items within the income statement.
The sharp drop in net income relative to revenue suggests that bottom-line results are sensitive to factors beyond core operational efficiency, such as tax rate anomalies or shifts in non-operating expenses. Investors should scrutinize the consistency of earnings to determine if the current EPS levels are sustainable or subject to further downward revisions.
Data from the last ten quarters suggests that the company's reliance on recycled material may not be a permanent hedge against commodity inflation, as evidenced by the recent decline in gross margins despite the firm's stated vertical integration and recycling capabilities.
Short-term observers may focus on the potential for margin compression if the spread between virgin resin and recycled plastic narrows unexpectedly. The company's valuation, which appears to command a premium, may be at risk if the market begins to view the business as a standard cyclical industrial rather than a high-growth material conversion play.
Quick answers to the most common questions about buying WMS stock.
For fiscal year 2026, Advanced Drainage Systems, Inc. (WMS) reported total revenue of $3.05B. This represents a 200.9% increase compared to $1.01B in 2012.
Advanced Drainage Systems, Inc. (WMS) is profitable, generating $426.5M in net income for the fiscal year ending 2026 with a net profit margin of 14.0%.
Advanced Drainage Systems, Inc. (WMS) reported an operating income of $686.7M, resulting in an operating profit margin of 22.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Advanced Drainage Systems, Inc. (WMS) generated $1.11B in gross profit for the year, representing a gross profit margin of 36.3%. This demonstrates the company's core pricing power and production efficiency.