Revenue growth accelerated to 20.6% year-over-year in 2027Q1, with gross margin expanding to 40.8% and operating margin reaching 25.4%, reflecting strong pricing and cost controls.
Advanced Drainage Systems, Inc. (WMS) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | 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 | 3.26B | 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 % | 9.18% | 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 | 2.04B | 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 | 1.22B | 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 % | 37.37% | 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 | 503.04M | 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 | 578.22M | 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 | 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 | 1000K | -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 | 715.5M | 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 % | 21.94% | 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 | 952.68M | 902.97M | 840.72M | 887.03M | 864.46M | 553.73M | 490.11M | 29.59M | 201.31M | 163.26M | 148.68M | 91.28M | 131.76M | 109.21M | 120.58M | 150.22M |
| EBITDA Margin % | 29.22% | 29.6% | 28.95% | 30.86% | 28.15% | 20% | 24.72% | 1.77% | 14.54% | 12.27% | 11.83% | 7.08% | 11.19% | 10.22% | 11.86% | 14.82% |
| EBITDA Growth % | 8.85% | 7.41% | -5.22% | 2.61% | 56.12% | 12.98% | 1556.28% | -85.3% | 23.31% | 9.8% | 62.88% | -30.72% | 20.64% | -9.43% | -19.73% | - |
| D&A (Non-Cash Add-back) | 237.18M | 216.26M | 183.28M | 154.9M | 145.15M | 141.81M | 145.59M | 124.94M | 71.9M | 75M | 72.36M | 9.22M | 55.87M | 55.9M | 63.1M | 55.17M |
| EBIT | 672.4M | 658.65M | 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 | -102.28M | -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 | 0 | 25M | 23.48M | 22.05M | 9.78M | 52K | 287K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 102.28M | 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 | -143.52M | -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 | 571.98M | 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 % | 17.54% | 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 | 132.51M | 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 % | 23.17% | 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 | 405.49M | 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 % | 12.44% | 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 % | -11.53% | -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) | 439.46M | 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 | -3M | -1.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 24.96M | 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) | 5.35 | 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 % | -10.24% | -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 | 75.79M | 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 | 75.37M | 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% |
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.
Key Metrics
Top Statement Risk
Construction cyclicality and data anomalies
Metrics are mathematically derived from official filings.
Revenue Momentum Rebounds Sharply
WMS revenue surged 20.6% year-over-year in 2027Q1 to $1.0B, the strongest growth in the reported period, according to the latest quarterly filing.
The 20.6% growth in 2027Q1 marks a clear acceleration from the low-single-digit or negative growth seen in the prior four quarters, suggesting a cyclical upturn in construction demand. This rebound appears broad-based, as gross margin also expanded to 40.8%, indicating that volume growth is not being bought with price concessions. Investors should monitor whether this pace is sustainable given the historically volatile construction end-market.
Gross Margin Expansion Drives Profitability
Gross margin reached 40.8% in 2027Q1, up from 36.7% a year earlier, as reported in the income statement, reflecting improved pricing and cost controls.
The 410 basis point year-over-year gross margin improvement in 2027Q1 is notable, especially when compared to peers like NVR (23.0%) and AAON (26.7%), positioning WMS as a margin leader. This expansion appears driven by favorable product mix and operational efficiencies, though the cyclicality of construction demand could pressure margins if volumes soften. The sustainability of this margin level warrants close attention, as it exceeds the 40% threshold only achieved in the strongest quarters.
Operating Leverage Amplifies Earnings
Operating income grew 97% year-over-year in 2027Q1 to $254.5M, far outpacing the 20.6% revenue increase, per the latest financials, showcasing significant operating leverage.
The operating margin of 25.4% in 2027Q1 is the highest in the reported period, up from 19.0% in 2025Q4, indicating that SG&A costs are not scaling proportionally with revenue. This leverage is a key driver of the strong EPS growth, as net income rose to $168.5M from $77.2M in the year-ago quarter. However, the unusually low SG&A in 2026Q2 (reported as $0) suggests data anomalies that investors should clarify, as they may distort the true cost structure.
Earnings Quality Solid Despite Tax Anomaly
Net income in 2027Q1 was $168.5M, but the effective tax rate appears unusually low at 33.8%, based on reported figures, warranting scrutiny of one-time items.
The net margin of 16.8% in 2027Q1 is strong, but the implied tax rate (calculated as 1 - net income/pretax income) is lower than typical corporate rates, suggesting possible tax benefits or discrete items. Stock-based compensation of $13.3M is modest relative to net income, indicating limited dilution. Investors should verify the sustainability of the tax rate, as a normalization could reduce future EPS.
COGS Efficiency Drives Margin Gains
COGS as a percentage of revenue fell to 59.2% in 2027Q1 from 63.3% in 2025Q1, as per the income statement, indicating improved cost management.
The reduction in COGS ratio is the primary driver of gross margin expansion, suggesting better raw material sourcing or production efficiency. SG&A expenses, excluding the anomalous 2026Q2 quarter, have remained relatively stable around $90-130M, showing disciplined overhead control. This cost discipline, combined with revenue growth, has translated into robust operating leverage, but investors should watch for input cost inflation that could reverse this trend.
2027Q1 Marks a Clear Inflection Point
The 2027Q1 quarter stands out as a pivotal inflection, with revenue, margins, and EPS all reaching multi-quarter highs, as reported in the latest financials.
Compared to the preceding four quarters, 2027Q1 shows a step-change in performance: revenue jumped to $1.0B from $676.8M in 2026Q4, and EPS more than doubled from $0.42 to $2.19. This inflection appears driven by a combination of volume recovery and margin expansion, suggesting a cyclical upswing in construction activity. The durability of this inflection will depend on whether demand persists, as the construction industry is notoriously cyclical.
What Could Invalidate the Base Case
Despite strong 2027Q1 results, the reported data contains anomalies, including zero SG&A in 2026Q2 and a low tax rate, which may distort the true earnings picture.
Short-sellers might argue that the exceptional 2027Q1 performance is not sustainable, given the cyclicality of construction and the fact that revenue growth in the prior four quarters was mostly flat or negative. The apparent data irregularities, such as the $0 SG&A in 2026Q2 and the unusually low effective tax rate, could indicate one-time benefits or accounting adjustments that may not recur. Investors should also consider that the 20.6% revenue growth may be partly driven by price increases that could face pushback if demand softens, potentially compressing margins.