"We are in a great position to execute on our capital deployment priorities," stated Scott Cottrill, CFO, highlighting the company's robust liquidity and capital management strategy.
— Scott Cottrill
03Detailed Report
WMS
Advanced Drainage Systems Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
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Executive Summary
In Q3 2025, Advanced Drainage Systems Inc (WMS) reported a revenue of $691 million, reflecting a 4% increase year-over-year, driven by strong performance in non-residential sales and residential markets. Despite a challenging infrastructure sector, which saw a 6% decline, management remains optimistic about future growth driven by ongoing demand in construction and strategic acquisitions such as Orenco. The company is well-positioned for continued growth with a robust EBITDA margin of approximately 27.6% and a significant cash flow generation, allowing for future expansion and shareholder returns.
Key Performance Indicators
Revenue
Decreasing
690.54M
QoQ: 0.00% | YoY: -15.31%
Gross Profit
Decreasing
241.59M
34.99% margin
QoQ: 0.00% | YoY: -24.63%
Operating Income
Decreasing
126.86M
QoQ: 0.00% | YoY: -43.99%
Net Income
Decreasing
81.23M
QoQ: 0.00% | YoY: -49.67%
EPS
Decreasing
1.05
QoQ: 0.00% | YoY: -49.52%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance Highlights
- Revenue: $691 million (YoY Growth: +4%)
- Gross Profit: $241.59 million (Gross Margin: 35%)
- Operating Income: $126.86 million (Operating Margin: 18.3%)
- Net Income: $81.23 million (Net Margin: 11.7%)
- EBITDA: $191 million (YoY Decline: -6%)
- EPS: $1.05 (YoY Decline: -49.5%)
### Year-over-Year Comparisons:
- Revenue increased by 4% mainly due to a strong residential market, up 9%, and an increase in non-residential sales, which grew by 7%.
- The infrastructure segment experienced a decrease of 6%, reflecting tougher comparisons due to previous strong performance in the same period.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
690.54M
-15.31%
0.00%
Gross Profit
241.59M
-24.63%
0.00%
Operating Income
126.86M
-43.99%
0.00%
Net Income
81.23M
-49.67%
0.00%
EPS
1.05
-49.52%
0.00%
Key Financial Ratios
Gross Profit Margin
Fair
35.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
18.40%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.26%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.25%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.21
Current ratio indicates excellent liquidity and financial flexibility