Advanced Drainage Systems Inc (WMS) FinancialsWMSFinancialAdvanced Drainage Systems Inc

Advanced Drainage Systems Inc (WMS) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Pipe, accounting for 4.9% of total sales, equivalent to $41.61M. Another important revenue stream is Allied Products. Understanding this composition is critical for investors evaluating how WMS navigates market cycles within the Construction Supplies & Fixtures industry.

Evaluating the bottom line, Advanced Drainage Systems Inc maintains a gross margin of 38.76%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 25.69%, while the net margin is 17.64%. These profitability ratios, combined with a Return on Equity (ROE) of 25.27%, provide a clear picture of how effectively WMS converts its operational activities into shareholder value.

In the context of the broader market, WMS competes directly with industry leaders such as AWI and BRC. With a market capitalization of $10.33B, it holds a leading position in the sector. When comparing efficiency, WMS's gross margin of 38.76% stands against AWI's 41.74% and BRC's 51.80%. Such benchmarking helps identify whether Advanced Drainage Systems Inc is trading at a premium or discount relative to its financial performance.

In Q1 FY2027, Advanced Drainage reported over $1 billion in revenue, a 21% year-over-year increase, and an adjusted EBITDA rise of 29% to $358 million, showcasing strong financial performance despite market challenges.