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Advanced Drainage Systems ( (WMS) ) has provided an update.
Advanced Drainage Systems reported on May 21, 2026, that fourth-quarter net sales for the period ended March 31, 2026 rose 9.9% to $676.8 million, driven by strong Allied products and the contribution from its newly closed NDS acquisition, while organic stormwater sales grew 2%. Despite higher gross profit and a 6.4% increase in adjusted EBITDA to $188 million, net income from continuing operations fell 54.1% to $35.2 million due to acquisition-related and restructuring costs.
For fiscal 2026, net sales increased 5% to $3.05 billion and adjusted EBITDA expanded 8.3% to $962.9 million, with higher-margin Infiltrator and Allied products growing double digits and reaching nearly half of revenue, even as reported net income declined 5% on elevated SG&A tied to the Orenco and NDS deals. On May 21, 2026, the board approved a $0.20 per-share cash dividend payable June 15, 2026, as the company highlighted robust cash generation, $569.3 million in free cash flow, rising shareholder returns and a cautious outlook for fiscal 2027 amid macroeconomic uncertainty, guiding to up to $3.55 billion in sales and as much as $1.05 billion in adjusted EBITDA.
ADS also detailed a post-NDS realignment of its reporting structure into Stormwater and Wastewater segments to better reflect how management runs the business. The company ended the fiscal year with $819.1 million in operating cash flow, $962.9 million in liquidity, a 1.6x leverage ratio and increased capital spending, while repurchasing $99.2 million of stock and leaving $1 billion of repurchase authorization available, positioning it to pursue disciplined capital allocation while navigating softer residential demand and seeking share gains in growth areas such as data centers.
The most recent analyst rating on (WMS) stock is a Buy with a $195.00 price target. To see the full list of analyst forecasts on Advanced Drainage Systems stock, see the WMS Stock Forecast page.
Spark’s Take on WMS Stock
According to Spark, TipRanks’ AI Analyst, WMS is a Outperform.
The score is driven primarily by strong financial performance (profitability and cash generation) and favorable technical trend signals. Raised guidance and positive operating commentary support the outlook, while the main constraints are a higher valuation (P/E ~28) and balance-sheet risk/ongoing financing activity.
To see Spark’s full report on WMS stock, click here.
More about Advanced Drainage Systems
Advanced Drainage Systems, Inc., listed on the NYSE under ticker WMS, is a leading provider of innovative water management solutions serving the stormwater and wastewater industries. The company focuses on products such as pipes, Infiltrator systems and Allied products, and operates through two primary segments, Stormwater and Wastewater, targeting construction markets including non-residential, residential and infrastructure projects.
Average Trading Volume: 877,358
Technical Sentiment Signal: Buy
Current Market Cap: $10.66B
For an in-depth examination of WMS stock, go to TipRanks’ Overview page.