Filing Flows › Advanced Drainage Systems (WMS) › Q1 FY26
Advanced Drainage Systems (WMS) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Aug 7, 2025
Advanced Drainage Systems (WMS) reported revenue of $830M for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and +35% from the quarter before. Operating margin was 24.8%, net earnings $144M (17.3% of revenue).
Advanced Drainage Systems, Q1 FY26: revenue $830M (+2% year over year), operating margin 24.8%, net earnings $144M, operating cash flow $275M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $830M | +35% | +2% |
| Gross profit | $330M | +46% | -0.6% |
| Operating profit | $206M | +76% | -9% |
| Net earnings | $144M | +87% | -11% |
| Operating cash flow | $275M | +567% | +50% |
| Free cash flow | $222M | — | +77% |
What changed
Revenue was $829.9M in Q1 FY26, up 2% year over year and up 35% from the previous quarter.
Gross margin was 39.8%, down 1.0 points from a year earlier. Operating profit was $205.7M, a 24.8% margin (down 3.0 points year over year). Operating profit fell $20.5M even though revenue rose $14.5M versus a year earlier, so costs grew faster than sales. Operating expenses grew 17% against revenue growth of 2%. The fastest-growing cost line was Other operating costs (+70%). Net earnings were $143.9M, down 11% year over year. The effective tax rate was 24.5%.
Operating cash flow was $275.0M (up 50% year over year), 191% of net earnings. Non-cash charges added back $50.2M of depreciation and amortization and $8.4M of share-based compensation. Working capital and other items added $72.3M. Capital expenditures of $52.6M left free cash flow of $222.4M.
Questions
What was Advanced Drainage Systems' revenue in the first quarter fiscal 2026?
Advanced Drainage Systems (WMS) reported revenue of $830M for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and +35% from the quarter before.
Was Advanced Drainage Systems profitable in the first quarter fiscal 2026?
Operating profit was $206M (24.8% of revenue) and net earnings $144M.