Advanced Drainage Systems (WMS) Q2 FY2027 earnings: revenue $889 million, up 4.6% on the year

Advanced Drainage Systems, Inc. (WMS) reported revenue of $889 million for Q2 FY2027, the quarter ended 30 September 2026, up 4.6% on the same quarter a year earlier. Net income was $110 million, down 29.2% on the year, and diluted earnings per share $1.46. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$889 million

+4.6% on the year · -11.2% on the quarter

Q3 FY2025Q2 FY2027

Operating margin

21.9%

26.3% a year earlier

Q3 FY2025Q2 FY2027

Net income

$110 million

-29.2% on the year · -34.5% on the quarter

Q3 FY2025Q2 FY2027

Diluted EPS

$1.46

-26.6% on the year · -33.3% on the quarter

Q3 FY2025Q2 FY2027

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 lowered, 1 kept.

Quarter net sales rose 4.6%: Net sales were $889.4 million, up 4.6% from $850.4 million, with Stormwater sales up 6.2% including NDS. Organic net sales fell in the quarter.
Quarter Adjusted EBITDA flat, margin lower: Adjusted EBITDA was $286.8 million, down 0.2%. Margin was 32.2% against 33.8%, which the company attributed to the factors cited earlier in the release.
First half margin highest in history: Management said the first half Adjusted EBITDA margin of 34.1% is the highest first half profitability in the company's history.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Revenue	889	1,001	850	-11.2%	+4.6%
Gross profit	346	408	340	-15.2%	+1.7%
Gross margin	38.9%	40.8%	40.0%
Operating income	195	255	223	-23.4%	-12.7%
Operating margin	21.9%	25.4%	26.3%
Pre-tax income	176	229	208	-22.9%	-15.2%
Income tax	44.2	53.7	52.4	-17.7%	-15.6%
Effective tax rate	25.0%	23.4%	25.2%
Net income	110	169	156	-34.5%	-29.2%
Net margin	12.4%	16.8%	18.3%
Diluted EPS	$1.46	$2.19	$1.99	-33.3%	-26.6%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Operating cash flow	192	260	235	-26.1%	-18.1%
Capital expenditure	41.6	57.2	58.4	-27.2%	-28.8%
Free cash flow	151	203	176	-25.8%	-14.6%
Free cash flow margin	17.0%	20.3%	20.7%
Cash from investing	-42.2	-55.0	-35.4
Cash from financing	-164	-269	-24.7
Depreciation and amortisation	63.7	62.2	54.7	+2.5%	+16.4%
Share-based compensation	11.3	13.3	8.6	-15.2%	+31.2%
Buybacks	140	233	0.0	-40.1%
Dividends paid	15.2	15.3	14.1	-0.7%	+7.8%
Dividend per share	$0.20	$0.20	$0.18	0.0%	+11.1%
Diluted shares, weighted	76m	77m	78m	-1.6%	-3.2%
Shares outstanding at period end	70m	71m	73m	-1.2%	-3.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Shareholders' equity	1,755	1,792	1,826	-2.0%	-3.9%
Non-controlling interest	25.0	26.7	20.2	-6.5%	+23.5%
Redeemable equity	69.0	71.8	82.6	-3.9%	-16.4%
Debt	1,611	1,612	1,257	-0.1%	+28.2%
Finance lease liabilities	121	115	133	+5.6%	-8.7%
Other liabilities	882	892	760	-1.2%	+16.0%
Total liabilities and equity	4,463	4,510	4,079	-1.0%	+9.4%
Fixed assets	1,248	1,230	1,111	+1.5%	+12.4%
Goodwill	1,041	1,043	725	-0.1%	+43.6%
Intangible assets	808	828	424	-2.4%	+90.8%
Cash and equivalents	153	162	813	-5.6%	-81.1%
Receivables	429	459	400	-6.3%	+7.2%
Inventory	564	549	424	+2.8%	+33.0%
Other assets	219	239	182	-8.5%	+20.2%
Total assets	4,463	4,510	4,079	-1.0%	+9.4%

Questions

What was Advanced Drainage Systems' revenue in Q2 FY2027?

Advanced Drainage Systems (WMS) reported revenue of $889 million for Q2 FY2027, the quarter ended 30 September 2026, up 4.6% on the same quarter a year earlier.

How much did Advanced Drainage Systems earn in Q2 FY2027?

Net income for Q2 FY2027 was $110 million, down 29.2% on the year, and diluted earnings per share $1.46.

When did Advanced Drainage Systems report Q2 FY2027 results?

Advanced Drainage Systems filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	715	678	914	884	655	618	778	780	662	654	815	783	691	616	830	850	693	677	1,001	889
Gross profit	209	190	352	320	224	222	331	303	260	252	332	294	242	226	330	340	259	238	408	346
Gross margin	29%	28%	39%	36%	34%	36%	43%	39%	39%	39%	41%	38%	35%	37%	40%	40%	37%	35%	41%	39%
Operating income	110	80.8	252	218	124	126	245	198	153	135	226	187	127	117	206	223	137	53.3	255	195
Operating margin	15%	12%	28%	25%	19%	20%	32%	25%	23%	21%	28%	24%	18%	19%	25%	26%	20%	8%	25%	22%
Pre-tax income	103	74.7	242	199	109	107	227	184	136	120	211	171	109	99.2	189	208	123	39.4	229	176
Tax rate	28%	38%	23%	24%	24%	20%	24%	26%	22%	22%	24%	24%	25%	23%	25%	25%	25%	14%	23%	25%
Net income	73.7	46.3	187	152	82.0	85.9	174	136	106	94.8	161	130	81.2	77.2	144	156	93.6	32.9	169	110
Net margin	10%	7%	20%	17%	13%	14%	22%	17%	16%	15%	20%	17%	12%	13%	17%	18%	14%	5%	17%	12%
Diluted EPS	$0.86	$0.54	$2.22	$1.80	$0.99	$1.06	$2.18	$1.71	$1.34	$1.21	$2.06	$1.67	$1.04	$0.99	$1.84	$1.99	$1.19	$0.42	$2.19	$1.46
Operating cash flow	99.0	81.0	250	187	223	47.4	244	215	241	17.7	183	167	190	41.2	275	235	269	39.9	260	192
Capital expenditure	36.6	48.7	36.2	39.4	51.3	40.1	42.1	40.5	53.8	47.4	57.7	54.5	54.2	46.5	52.6	58.4	85.7	53.0	57.2	41.6
Free cash flow	62.4	32.3	214	148	172	7.3	202	174	188	-29.8	126	112	136	-5.3	222	176	184	-13.1	203	151
Buybacks	0.0	0.0	57.7	135	182	200	47.8	53.8	76.6	29.1	49.2	20.7	0.0	0.0	0.0	0.0	0.0	92.0	233	140
Dividends paid	9.1	10.7	10.2	10.2	9.7	9.5	11.1	11.1	10.9	10.9	12.4	12.5	12.4	12.4	14.0	14.1	14.0	14.0	15.3	15.2
Shares outstanding	71m	72m	72m	73m	72m	70m	70m	70m	70m	71m	71m	71m	72m	72m	72m	73m	73m	73m	71m	70m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 5 November 2026: the filing.