Filing Flows › Advanced Drainage Systems (WMS) › Q1 FY27
Advanced Drainage Systems (WMS) Q1 FY27 earnings results (first quarter fiscal 2027)
10-Q filed Aug 6, 2026
Advanced Drainage Systems (WMS) reported revenue of $1.0B for the first quarter fiscal 2027 (Q1 FY27), +21% from a year earlier and +48% from the quarter before. Operating margin was 25.4%, net earnings $169M (16.8% of revenue).
Advanced Drainage Systems, Q1 FY27: revenue $1.0B (+21% year over year), operating margin 25.4%, net earnings $169M, operating cash flow $260M. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.0B | +48% | +21% |
| Gross profit | $408M | +72% | +23% |
| Operating profit | $255M | +377% | +24% |
| Net earnings | $169M | +412% | +17% |
| Operating cash flow | $260M | +552% | -5% |
| Free cash flow | $203M | — | -9% |
What changed
Revenue was $1.0B in Q1 FY27, up 21% year over year and up 48% from the previous quarter. Stormwater was the largest line at 81% of revenue. Stormwater added $0.16B year over year (up 24%), 92% of the total change.
Gross margin was 40.8%, up 0.9 points from Q1 FY26. Operating profit was $0.25B, a 25.4% margin (up 0.6 points year over year). Of the extra revenue versus Q1 FY26, 29% reached operating profit, above the 25% margin then. Operating expenses grew 23% against revenue growth of 21%. The fastest-growing cost line was Sales & marketing (+26%). Net earnings were $0.17B, up 17% year over year. The effective tax rate was 23.9%.
Operating cash flow was $0.26B (down 5% year over year), 152% of net earnings. Non-cash charges added back $0.06B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items added $0.01B. Capital expenditures of $0.06B left free cash flow of $0.20B.
Questions
What was Advanced Drainage Systems' revenue in the first quarter fiscal 2027?
Advanced Drainage Systems (WMS) reported revenue of $1.0B for the first quarter fiscal 2027 (Q1 FY27), +21% from a year earlier and +48% from the quarter before.
Was Advanced Drainage Systems profitable in the first quarter fiscal 2027?
Operating profit was $255M (25.4% of revenue) and net earnings $169M.