WMS Q4 earnings — Revenue +33% YoY · EPS -58% YoY · EBIT -100% YoY

The Print

Advanced Drainage Systems, Inc. (WMS) posted Q4 2026 revenue of $816 million, a 32.5% year-over-year increase from $616 million in the year-ago quarter, per the company’s 8-K Item 2.02 filing accepted May 21, 2026, at 07:06:01. The company reported diluted EPS of $0.42, a 57.6% YoY decline from $0.99 in Q4 2025, and EBIT of $0, a 100% YoY drop from $119 million in the prior year’s quarter. The results missed consensus EPS estimates of $0.979 and beat revenue estimates of $649.7 million, per the provided earnings history dataset.

Operating Leverage

The quarter delivered sharp operating margin compression, as 32.5% YoY top-line growth failed to offset declines in operating profitability. Q4 2025 operating margin totaled ~19.3% (calculated as $119 million EBIT divided by $616 million revenue), while Q4 2026 operating margin hit 0%. This represents a 19.3 percentage point contraction in operating margins, driven by the full erosion of prior-year EBIT despite meaningful revenue growth.

Forward Outlook

No formal forward guidance was disclosed in the May 21, 2026 8-K filing, per the provided research materials.

Cross-Referenced Signals

Analyst ratings for WMS have remained unchanged since February 2026, with a split of 2 Strong Buy, 7 Buy, and 1 Hold ratings across covering firms as of May 1, 2026. Insider activity includes a small open-market purchase by officer Bret Martz on March 19, 2026, who acquired 107 shares at $139.85 for a total of $14,964, per a Form 4 filing. Separately, institutional ownership as of December 31, 2025, stood at 91.4% of the company’s float, with 549 total institutional holders, including 86 new positions initiated, 248 increased positions, 212 reduced positions, and 44 fully closed positions in the prior quarter.

Unreported Data Points

This print omits three key datasets: 1) Detailed segment revenue breakdowns for Q4 2026 and fiscal 2026, which are typically included in the subsequent 10-Q filing and not disclosed in the Item 2.02 8-K; 2) Quarterly cash flow metrics including operating cash flow, capital expenditures, and free cash flow; 3) A line-item breakdown of operating expenses to identify the specific drivers of the 100% YoY EBIT collapse, such as elevated input costs, SG&A spending, or one-time charges.