Water management company Advanced Drainage Systems (NYSE: WMS) will be reporting results this Thursday before market hours. Here’s what investors should know.
Advanced Drainage beat analysts’ revenue expectations last quarter, reporting revenues of $693.4 million, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
Is Advanced Drainage a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Advanced Drainage’s revenue to grow 5.8% year on year, a reversal from the 5.8% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advanced Drainage has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Advanced Drainage’s peers in the hvac and water systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAON delivered year-on-year revenue growth of 54.3%, beating analysts’ expectations by 29.5%, and Northwest Pipe reported revenues up 19.1%, topping estimates by 10.5%. AAON traded up 42.1% following the results while Northwest Pipe was also up 14.3%.
Read our full analysis of AAON’s results here and Northwest Pipe’s results here.
Late 2025's AI disruption anxiety drove a defensive rotation, but by spring 2026 the US-Iran conflict had become the dominant story, proving that markets rarely dwell on one narrative for long. While some of the hvac and water systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.8% on average over the last month. Advanced Drainage is down 15.5% during the same time and is heading into earnings with an average analyst price target of $189.22 (compared to the current share price of $131.59).
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