Advanced Drainage Systems (NYSE: WMS) is a water management products company that manufactures and sells drainage pipe, water management systems, and related products for construction and agricultural markets. Revenue is transactional, generated from the sale of pipe and allied products across residential, non-residential, infrastructure, and agricultural end markets. The company operates 64 manufacturing plants and 41 distribution centers across 105 total facilities in the United States, Canada, Mexico, and South America as of the FY2026 10-K filed May 21, 2026. Net sales reached $3.05 billion in FY2026 (fiscal year ended March 31, 2026), up from $2.90 billion in FY2025. Gross margin was 38.3% in FY2026. The company operates in a highly fragmented industry and holds positions across multiple market sectors. Products are primarily made from high-density polyethylene (HDPE) and polypropylene (PP), which the company asserts are lighter, more durable, and more cost-effective than traditional materials.

Revenue model

Transactional product sales of drainage pipe, water management systems, and allied products to customers in residential, non-residential, infrastructure, and agricultural construction markets. Net sales were $3.05 billion in FY2026 and $2.90 billion in FY2025 (fiscal years ended March 31).

Products and services

Products include corrugated HDPE pipe (including N-12 pipe for non-residential construction), NDS channel drains, NDS catch basins, NDS access boxes, BioDiffuser, Contactor, and Recharger onsite wastewater chambers and tanks. Products are injection-molded or thermoformed from HDPE or PP. The company also acquired Orenco, which added onsite wastewater system products.

Customers and end markets

End markets include residential construction, non-residential construction, infrastructure, and agricultural drainage. Agricultural drainage demand is concentrated in early spring and fall. Northern U.S. and Canadian construction activity peaks from late March through November. Southern and western U.S., Mexico, Central America, and South America are less seasonal.

Value-chain role

Manufacturer and distributor of water management products. The company operates its own network of manufacturing plants and distribution centers, which it cites as a cost advantage through proximity to customers and efficient product transport. Products require approvals from municipalities, state departments of transportation, engineers, and developers.

Geographic exposure

As of the FY2026 10-K (filed May 21, 2026): 83 facilities in the United States (54 manufacturing, 29 distribution), 8 in Canada, 6 in Mexico, 7 in South America, and 1 other, totaling 105 facilities.

Source: SEC 10-K, filed 2026-05-21

Industry: Plastics Foam Products Peers: Builders FirstSource Inc Carlisle Companies Inc Carrier Global Corp Fortune Brands Innovations Inc Lennox International Inc Masco Corp Owens Corning A O Smith Corp Trex Company Inc