These Analysts Revise Their Forecasts On Advanced Drainage Systems After Q4 Earnings

Advanced Drainage Systems, Inc. WMS reported worse-than-expected fourth-quarter financial results and issued FY26 sales guidance below estimates on Thursday.

Advanced Drainage Systems reported quarterly earnings of $1.03 per share which missed the analyst consensus estimate of $1.10 per share. The company reported quarterly sales of $615.76 million which missed the analyst consensus estimate of $653.22 million.

Scott Barbour, President and Chief Executive Officer of ADS, said, “In Fiscal 2025, domestic construction market sales increased 3% as we continued to drive above market performance through our material conversion strategy in the stormwater and onsite wastewater markets. Importantly, organic sales in our most profitable segments, Infiltrator and Allied Products, increased 4.6% and 2.5%, respectively, and the onsite wastewater and Allied products now represent a collective 44% of revenue. The resiliency demonstrated by this year’s 30.6% Adjusted EBITDA margin is due in part to our strategy to grow these more profitable products to be a higher mix of the overall sales.”

Advanced Drainage Systems said it sees FY2026 sales of $2.825 billion to $2.975 billion, versus market estimates of $3.07 billion.

Advanced Drainage shares gained 3% to trade at $121.09 on Friday.

These analysts made changes to their price targets on Advanced Drainage following earnings announcement.

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Barclays analyst Matthew Bouley maintained Advanced Drainage Systems with an Overweight rating and raised the price target from $130 to $135.
Loop Capital analyst Garik Shmois maintained the stock with a Buy and lowered the price target from $143 to $133.
Baird analyst Michael Halloran maintained Advanced Drainage Systems with an Outperform rating and lowered the price target from $146 to $141.
Oppenheimer analyst Bryan Blair maintained the stock with an Outperform rating and lowered the price target from $165 to $160.

Considering buying WMS stock? Here’s what analysts think: