Advanced Drainage Systems (WMS) · Q2 2026 results and valuation

At −0.2% growth a year (3-year revenue growth), the model's fair value is $65.56 a share — the stock trades 97% above it. Today's price assumes 7.5% growth a year.

1. Guidance

   WMS updated its outlook to expect first-half revenue to represent 55% to 60% of total annual revenue due to normal seasonality.

   Source quote

   “Ultimately, we expect the first half of the year to have normal seasonality, representing 55% to 60% of revenue.”

2. Guidance

   WMS updated its guidance because while demand is expected to remain tepid, inflationary cost pressure is dynamic.

   Source quote

   “While we expect the demand environment to remain tepid, the inflationary cost pressure is dynamic.”

3. Figure

   WMS recorded over $1 billion in revenue this quarter, an increase of 21% from the prior quarter, marking the first time the company reached this milestone.

   Source quote

   “For the first time ever, we recorded over $1 billion in revenue this quarter, an increase of 21% versus the prior...”

4. Fading

   WMS will share updates on its differentiated growth strategy and resilient profit platform at an Investor Day on June 18.

   Source quote

   “We are looking forward to sharing updates on our differentiated growth strategy and our resilient profit platform as well as our medium-term... Regarding the upcoming Investor Day, which will take place on June 18 at our engineering and technology center in Hilliard, Ohio. We hope to see you all there.”

Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“The facility will deliver industry-leading cost efficiency, improved quality and consistency and superior operational performance, strengthening our recycled material supply chain, supporting our long-term growth and margin improvement.”

“Growth was driven by new tank products and expanded distribution as well as growth in our market-leading advanced treatment products.”

“Our differentiated growth strategy, where we continue to outperform our end markets through material conversion, innovation, strategic partnerships, expanded distribution and disciplined acquisitions.”