Filing Flows › Advanced Drainage Systems (WMS) › Q3 FY26
Advanced Drainage Systems (WMS) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Feb 5, 2026
Advanced Drainage Systems (WMS) reported revenue of $693M for the third quarter fiscal 2026 (Q3 FY26), +0.4% from a year earlier and -18% from the quarter before. Operating margin was 19.7%, net earnings $93.6M (13.5% of revenue).
Advanced Drainage Systems, Q3 FY26: revenue $693M (+0.4% year over year), operating margin 19.7%, net earnings $93.6M, operating cash flow $269M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $693M | -18% | +0.4% |
| Gross profit | $259M | -24% | +7% |
| Operating profit | $137M | -39% | +8% |
| Net earnings | $93.6M | -40% | +15% |
| Operating cash flow | $269M | +15% | +42% |
| Free cash flow | $184M | +4% | +35% |
What changed
Revenue was $693.4M in Q3 FY26, roughly flat year over year and down 18% from the previous quarter.
Gross margin was 37.4%, up 2.4 points from a year earlier. Operating profit was $136.8M, a 19.7% margin (up 1.4 points year over year). Of the extra revenue versus a year earlier, 354% reached operating profit, above the 18% margin then. Operating expenses grew 7% against flat revenue. Net earnings were $93.6M, up 15% year over year. The effective tax rate was 24.5%.
Operating cash flow was $269.3M (up 42% year over year), 286% of net earnings. Non-cash charges added back $51.5M of depreciation and amortization and $8.8M of share-based compensation. Working capital and other items added $114.9M. Capital expenditures of $85.7M left free cash flow of $183.6M.
Questions
What was Advanced Drainage Systems' revenue in the third quarter fiscal 2026?
Advanced Drainage Systems (WMS) reported revenue of $693M for the third quarter fiscal 2026 (Q3 FY26), +0.4% from a year earlier and -18% from the quarter before.
Was Advanced Drainage Systems profitable in the third quarter fiscal 2026?
Operating profit was $137M (19.7% of revenue) and net earnings $93.6M.