Advanced Drainage Systems, Inc. (WMS) Earnings Call Transcripts
Advanced Drainage Systems, Inc.'s Latest Earnings Call - Q4 FY2026
In the fourth quarter of fiscal year 2026, Advanced Drainage Systems, Inc. (WMS:US) reported a revenue increase of 10% to $677 million, exceeding expectations, driven by strong performance in Allied Products and the recent NDS acquisition. Adjusted EBITDA rose 6%, resulting in a margin of 27.8%. For fiscal year 2027, the company provided guidance of $3.35 billion to $3.55 billion in revenue and $1 billion to $1.05 billion in adjusted EBITDA, reflecting a cautious outlook due to anticipated inflationary pressures and market conditions. Management emphasized their confidence in navigating these challenges and highlighted ongoing integration efforts with NDS, projecting $25 million in annual cost synergies by year three.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $677 million (beat) |
| Adjusted EBITDA | $188 million (beat) |
| Adjusted EBITDA Margin | 27.8% (beat) |
| Free Cash Flow | $569 million (positive) |
| Fiscal Year 2027 Revenue Guidance | $3.35 billion to $3.55 billion (neutral) |
| Fiscal Year 2027 Adjusted EBITDA Guidance | $1 billion to $1.05 billion (neutral) |
Guidance from management
For fiscal year 2027, management expects revenue between $3.35 billion and $3.55 billion and adjusted EBITDA between $1 billion and $1.05 billion, reflecting a cautious outlook due to inflationary pressures and market conditions.
What management said
I think that's a fair way to look at it, Mike. I think you've got a little bit more of the volume kicking in, in that first quarter based on the pull ahead with the pricing actions we've taken, mostly starting to hit in the fiscal second quarter, and again, we've assumed right now that's a dollar-for-dollar basis. So as we move through the year, that's going to be dilutive to margins. I mean, again, it's focusing o...
Can I add one thing to that, Mike. This is Scott B. Matching those up is really tough as materials and transportation costs. We run a big fleet, uses a lot of diesel every brick-and month. So those are tough to match up. And we -- this is based on these things kind of normalizing but there's -- it's going to be a little choppy. I just want to kind of get that out there. We're on top of it, but it's hard to perfectly ...
What analysts pressed on
Analysts expressed concerns regarding the potential impact of inflation on margins and the overall demand environment, particularly in the residential and agricultural sectors. There were questions about the company's ability to maintain pricing power amidst these challenges and the implications for future growth.
Main topics on the call
- Revenue Growth — The company achieved a 10% revenue increase in Q4, totaling $677 million, with a notable 43% rise in Allied product sales. Management stated, "We believe our results outpaced the underlying end markets, demonstrating the...
- Acquisition Integration — Management expressed satisfaction with the integration of NDS, stating they are "on track to achieve our integration milestones" and expect $25 million in annual cost synergies by year three. This acquisition is anticipa...
- Market Outlook — Management indicated a cautious outlook for fiscal year 2027, particularly in agriculture and single-family housing, stating, "Demand is very choppy with order patterns shifting as customers try to get orders in ahead of...
- Profitability — Adjusted EBITDA increased 6% in Q4, resulting in a margin of 27.8%. Management noted that this margin reflects a favorable product mix and operational initiatives, stating, "This quarter's resilient margin is a reflectio...
Read the full Advanced Drainage Systems, Inc. transcript (Q4 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Advanced Drainage Systems, Inc.
Advanced Drainage Systems, Inc. (WMS) is a publicly listed company in the Building Products industry, within the Industrials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 29 calls on record spanning February 6, 2020 to August 6, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 29 Advanced Drainage Systems, Inc. earnings call transcripts on record, spanning February 6, 2020 to August 6, 2026. Based on this history, Advanced Drainage Systems, Inc. reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- WMS
- Exchange
- NYSE
- Country
- US
- Sector
- Industrials
- Industry
- Building Products
- Calls on record
- 29
- First call
- February 6, 2020
- Most recent
- August 6, 2026
- Reporting cadence
- quarterly