Detailed financial statements for Advanced Drainage Systems, Inc. (WMS): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Advanced Drainage Systems, Inc., established in Hilliard, Ohio in 1966, is a leading provider of innovative water management solutions. The company specializes in the design, manufacturing, and global distribution of thermoplastic corrugated pipes and related drainage products, primarily targeting the underground construction and infrastructure sectors across the United States, Canada, Mexico, and other international territories.
Analysis Summary
Advanced Drainage Systems, Inc. reported revenue of $3.05B in the most recent fiscal year, growing at a 5-year CAGR of 9.0%. Net income reached $426.5M, with a 13.7% 5-year CAGR.
Balance sheet quality for WMS: current ratio of 2.4, net debt of $1.57B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $569.3M represents 133% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.26B | $1.33B | $1.38B | $1.67B | $1.98B | $2.77B | $3.07B | $2.87B | $2.90B | $3.05B |
| Cost of Revenue | $961.5M | $1.03B | $1.06B | $1.18B | $1.29B | $1.97B | $1.95B | $1.73B | $1.81B | $1.94B |
| Gross Profit | $295.8M | $302.5M | $327.0M | $497.5M | $690.1M | $800.4M | $1.12B | $1.15B | $1.09B | $1.11B |
| Research & Development | $3.4M | $2.2M | $2.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $202.4M | $191.2M | $186.0M | $271.1M | $267.6M | $321.1M | $339.5M | $370.7M | $380.4M | $469.5M |
| Operating Expenses | $211.0M | $199.2M | $193.9M | $592.9M | $345.6M | $388.5M | $399.1M | $413.8M | $436.8M | $420.8M |
| Operating Income | $76.3M | $88.3M | $129.4M | -$95.3M | $344.5M | $411.9M | $719.3M | $732.1M | $657.4M | $686.7M |
| EBITDA | $154.7M | $167.2M | $202.1M | $281.8M | $493.5M | $558.9M | $872.4M | $910.5M | $864.5M | $872.5M |
| Interest Expense | $17.5M | $15.3M | $18.6M | $82.7M | $35.7M | $33.5M | $70.2M | $88.9M | $91.8M | $93.8M |
| Pre-tax Income | $64.8M | $76.9M | $111.6M | -$177.7M | $312.3M | $385.1M | $661.9M | $672.3M | $593.6M | $564.9M |
| Income Tax | $24.6M | $11.4M | $30.0M | $14.1M | $86.4M | $110.1M | $150.6M | $159.0M | $141.1M | $135.0M |
| Net Income | $33.0M | $62.0M | $77.8M | -$193.2M | $224.2M | $271.3M | $507.1M | $509.9M | $450.2M | $426.5M |
| EPS | $0.60 | $1.11 | $1.36 | $-3.04 | $2.64 | $3.22 | $6.16 | $6.52 | $5.81 | $5.48 |
| EPS (Diluted) | $0.59 | $1.10 | $1.35 | $-3.04 | $2.59 | $3.15 | $6.08 | $6.45 | $5.76 | $5.44 |
| Shares Outstanding (Diluted) | $55.6M | $56.3M | $57.6M | $63.8M | $71.6M | $72.9M | $83.3M | $79.0M | $78.2M | $78.5M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $850.4M | $693.4M | $676.8M | $1.00B |
| Gross Profit | $340.1M | $245.7M | $219.0M | $408.0M |
| Operating Income | $223.3M | $136.9M | $129.2M | $254.5M |
| EBITDA | $284.9M | $196.8M | $125.6M | $319.1M |
| Net Income | $156.0M | $93.6M | $32.9M | $168.5M |
| EPS | $2.01 | $1.20 | $0.42 | $2.20 |
| EPS (Diluted) | $1.99 | $1.19 | $0.42 | $2.19 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $6.5M | $17.6M | $8.9M | $174.2M | $195.0M | $20.1M | $217.1M | $490.2M | $463.3M | $223.0M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $168.9M | $172.0M | $187.0M | $200.0M | $236.2M | $341.8M | $306.9M | $323.6M | $333.2M | $390.5M |
| Inventory | $258.4M | $263.8M | $264.5M | $282.4M | $301.0M | $494.3M | $464.0M | $464.2M | $488.3M | $543.4M |
| Total Current Assets | $440.6M | $458.5M | $466.5M | $666.2M | $743.0M | $871.9M | $1.02B | $1.30B | $1.32B | $1.23B |
| Property, Plant & Equipment | $406.9M | $399.4M | $398.9M | $506.3M | $504.3M | $619.4M | $733.1M | $876.4M | $1.05B | $1.22B |
| Goodwill | $100.6M | $103.0M | $102.6M | $597.8M | $599.1M | $610.3M | $620.2M | $617.2M | $720.2M | $1.04B |
| Intangible Assets | $59.7M | $54.6M | $50.2M | $566.4M | $482.0M | $431.4M | $407.6M | $352.7M | $448.1M | $848.5M |
| Total Assets | $1.05B | $1.04B | $1.04B | $2.37B | $2.41B | $2.65B | $2.90B | $3.27B | $3.69B | $4.51B |
| Accounts Payable | $121.9M | $105.5M | $93.6M | $106.7M | $171.1M | $225.0M | $210.1M | $254.4M | $218.0M | $237.7M |
| Short-term Debt | $37.8M | $26.8M | $25.9M | $8.0M | $7.0M | $19.5M | $14.7M | $11.9M | $9.9M | $5.9M |
| Total Current Liabilities | $255.8M | $221.2M | $206.3M | $238.2M | $318.3M | $391.2M | $378.8M | $439.6M | $398.4M | $509.5M |
| Long-term Debt | $310.8M | $270.9M | $208.6M | $1.09B | $782.2M | $908.7M | $1.27B | $1.26B | $1.25B | $1.61B |
| Total Liabilities | $704.1M | $617.9M | $541.5M | $1.59B | $1.35B | $1.54B | $1.91B | $1.99B | $2.05B | $2.55B |
| Retained Earnings | -$83.7M | -$39.2M | $17.6M | -$267.6M | -$75.2M | $158.9M | $626.2M | $1.09B | $1.49B | $1.86B |
| Total Equity | $327.3M | $408.7M | $486.6M | $772.8M | $1.05B | $1.09B | $977.4M | $1.26B | $1.62B | $1.93B |
| Total Debt | $428.8M | $379.7M | $319.2M | $1.17B | $850.5M | $958.8M | $1.34B | $1.37B | $1.45B | $1.79B |
| Net Debt | $422.3M | $362.1M | $310.3M | $995.7M | $655.5M | $938.7M | $1.12B | $876.6M | $981.8M | $1.57B |
| Working Capital | $184.8M | $237.2M | $260.2M | $428.0M | $424.7M | $480.7M | $638.7M | $860.3M | $926.4M | $721.4M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $812.9M | $1.01B | $223.0M | $162.3M |
| Total Assets | $4.08B | $4.14B | $4.51B | $4.51B |
| Total Liabilities | $2.15B | $2.12B | $2.55B | $2.62B |
| Total Equity | $1.91B | $2.01B | $1.93B | $1.86B |
| Total Debt | $1.43B | $1.45B | $1.79B | $1.77B |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $35.9M | $64.8M | $81.5M | -$191.8M | $226.1M | $275.0M | $511.4M | $513.3M | $452.6M | $489.2M |
| Depreciation & Amortization | $72.4M | $75.0M | $71.9M | $124.9M | $145.6M | $141.8M | $145.1M | $154.9M | $183.3M | $216.3M |
| Stock-based Compensation | $17.9M | $18.8M | $21.8M | $279.1M | $65.4M | $108.0M | $21.7M | $32.0M | $26.6M | $32.4M |
| Change in Working Capital | -$8.6M | -$22.4M | -$37.9M | $53.9M | $20.7M | -$241.2M | $33.4M | $26.2M | -$82.2M | $81.2M |
| Operating Cash Flow | $104.2M | $137.1M | $151.7M | $306.2M | $452.2M | $274.9M | $707.8M | $717.9M | $581.5M | $819.1M |
| Capital Expenditure | -$51.3M | -$41.7M | -$43.4M | -$67.7M | -$78.8M | -$149.1M | -$166.9M | -$183.8M | -$212.9M | -$249.8M |
| Acquisitions | -$8.6M | 0 | 0 | -$1.09B | 0 | -$49.3M | -$48.0M | 0 | -$237.3M | -$991.1M |
| Stock Repurchased | 0 | -$7.9M | 0 | 0 | 0 | -$292.0M | -$575.0M | -$207.3M | -$69.9M | -$92.0M |
| Dividends Paid | -$16.8M | -$18.5M | -$26.1M | -$92.1M | -$30.7M | -$37.0M | -$39.6M | -$44.0M | -$49.7M | -$56.1M |
| Free Cash Flow | $52.9M | $95.4M | $108.3M | $238.5M | $373.5M | $125.8M | $540.9M | $534.1M | $368.5M | $569.3M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $234.9M | $269.3M | $39.9M | $260.4M |
| Capital Expenditure | -$58.4M | -$85.7M | -$53.0M | -$57.2M |
| Free Cash Flow | $176.4M | $183.6M | -$13.1M | $203.2M |
| Dividends Paid | -$14.1M | -$14.0M | -$14.0M | -$15.3M |
| Stock-based Compensation | $8.6M | $8.8M | $6.5M | $13.3M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +5.8% | +4.1% | +20.9% | +18.5% | +39.7% | +10.9% | -6.4% | +1.0% | +5.0% | |
| Net Income Growth (YoY) | +88.2% | +25.4% | -348.4% | +216.1% | +21.0% | +86.9% | +0.6% | -11.7% | -5.3% | |
| EPS Growth (YoY) | +85.0% | +22.5% | -323.5% | +186.8% | +22.0% | +91.3% | +5.8% | -10.9% | -5.7% | |
| Shares Change (YoY) | +1.3% | +2.3% | +10.8% | +12.1% | +1.9% | +14.3% | -5.2% | -1.0% | +0.4% | |
| FCF Growth (YoY) | +80.2% | +13.5% | +120.3% | +56.6% | -66.3% | +329.9% | -1.3% | -31.0% | +54.5% | |
| Gross Margin | 23.5% | 22.7% | 23.6% | 29.7% | 34.8% | 28.9% | 36.4% | 39.9% | 37.7% | 36.3% |
| Operating Margin | 6.1% | 6.6% | 9.3% | -5.7% | 17.4% | 14.9% | 23.4% | 25.5% | 22.6% | 22.5% |
| EBITDA Margin | 12.3% | 12.6% | 14.6% | 16.8% | 24.9% | 20.2% | 28.4% | 31.7% | 29.8% | 28.6% |
| Net Margin | 2.6% | 4.7% | 5.6% | -11.5% | 11.3% | 9.8% | 16.5% | 17.7% | 15.5% | 14.0% |
| FCF Margin | 4.2% | 7.2% | 7.8% | 14.2% | 18.8% | 4.5% | 17.6% | 18.6% | 12.7% | 18.7% |
| Effective Tax Rate | 38.0% | 14.8% | 26.9% | -7.9% | 27.7% | 28.6% | 22.7% | 23.7% | 23.8% | 23.9% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.95 | $1.69 | $1.88 | $3.74 | $5.22 | $1.73 | $6.49 | $6.76 | $4.71 | $7.25 |
| Dividends Per Share | $0.30 | $0.33 | $0.45 | $1.44 | $0.43 | $0.51 | $0.48 | $0.56 | $0.64 | $0.72 |
| Shares Outstanding (Basic) | $54.9M | $55.7M | $57.0M | $63.8M | $70.2M | $71.3M | $82.3M | $78.3M | $77.5M | $77.8M |
What to look at in Basic Materials
Miners, chemicals, steel. 100% commodity-driven. Analysing them with pure P/E is a mistake — look at cost position and dividend sustainability.
- FCF yield — In commodities FCF is gold — EPS is very misleading
- Gross margin — 5y consistent gross margin = moat signal
- Net debt / EBITDA (trough) — Use EBITDA from the worst year of the cycle, not the current one
- Dividend coverage — Dividend covered by FCF in an average year, not at peak
- Capex / D&A — >1x = maintain/grow reserves. <0.7x = decapitalising
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
- P/B across cycles — Commodities: 0.8-1.2x at troughs, 2x+ at peaks. <2x still reasonable zone
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 36.50 | 23.33 | 19.31 | -9.68 | 39.16 | 36.90 | 13.67 | 26.13 | 18.70 | 25.02 |
| P/B | 3.67 | 3.53 | 3.08 | 2.43 | 6.91 | 7.78 | 7.09 | 10.57 | 5.21 | 5.52 |
| P/S | 0.96 | 1.08 | 1.08 | 1.12 | 3.66 | 3.06 | 2.26 | 4.64 | 2.90 | 3.50 |
| Gross Margin | 23.5% | 22.7% | 23.6% | 29.7% | 34.8% | 28.9% | 36.4% | 39.9% | 37.7% | 36.3% |
| Operating Margin | 6.1% | 6.6% | 9.3% | -5.7% | 17.4% | 14.9% | 23.4% | 25.5% | 22.6% | 22.5% |
| Net Margin | 2.6% | 4.7% | 5.6% | -11.5% | 11.3% | 9.8% | 16.5% | 17.7% | 15.5% | 14.0% |
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