Filing Flows › Advanced Drainage Systems (WMS) › Q2 FY26
Advanced Drainage Systems (WMS) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Nov 6, 2025
Advanced Drainage Systems (WMS) reported revenue of $850M for the second quarter fiscal 2026 (Q2 FY26), +9% from a year earlier and +2% from the quarter before. Operating margin was 26.3%, net earnings $156M (18.3% of revenue).
Advanced Drainage Systems, Q2 FY26: revenue $850M (+9% year over year), operating margin 26.3%, net earnings $156M, operating cash flow $235M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $850M | +2% | +9% |
| Gross profit | $340M | +3% | +16% |
| Operating profit | $223M | +9% | +19% |
| Net earnings | $156M | +8% | +20% |
| Operating cash flow | $235M | -15% | +41% |
| Free cash flow | $176M | -21% | +57% |
What changed
Revenue was $850.4M in Q2 FY26, up 9% year over year and up 2% from the previous quarter.
Gross margin was 40.0%, up 2.4 points from a year earlier. Operating profit was $223.3M, a 26.3% margin (up 2.3 points year over year). Of the extra revenue versus a year earlier, 53% reached operating profit, above the 24% margin then. Operating expenses grew 10% against revenue growth of 9%. Net earnings were $156.0M, up 20% year over year. The effective tax rate was 25.1%.
Operating cash flow was $234.9M (up 41% year over year), 150% of net earnings. Non-cash charges added back $54.7M of depreciation and amortization and $8.6M of share-based compensation. Working capital and other items added $15.1M. Capital expenditures of $58.4M left free cash flow of $176.4M.
Questions
What was Advanced Drainage Systems' revenue in the second quarter fiscal 2026?
Advanced Drainage Systems (WMS) reported revenue of $850M for the second quarter fiscal 2026 (Q2 FY26), +9% from a year earlier and +2% from the quarter before.
Was Advanced Drainage Systems profitable in the second quarter fiscal 2026?
Operating profit was $223M (26.3% of revenue) and net earnings $156M.