Advanced Drainage Systems, Inc. (WMS) Builds Momentum in Manufacturing and Infrastructure Solutions

Advanced Drainage Systems, Inc. (NYSE:WMS) is one of the best manufacturing stocks to invest in now. On February 12, Advanced Drainage Systems, Inc. (NYSE:WMS) announced the pricing of a private offering of a $500 million of 5.375% senior unsecured notes due 2034.

The company plans to use net proceeds from the offering to refinance the outstanding balance under its existing senior secured credit facility. It also plans to redeem 5% senior notes due 2027, with the balance to be used for general corporate purposes.

Earlier on February 5, the company’s board of directors approved a quarterly dividend of $0.18, representing a 13% year-over-year increase. The dividend is to be paid on March 16, 2026, to shareholders of record as of March 2, 2026.

Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems, commented, “Today’s dividend announcement, as well as the new $1 billion stock repurchase authorization announced today, is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to strategically invest in our business.”

On February 5, Advanced Drainage Systems reported fiscal Q3 2026 results with net sales up slightly to $693.4 million, driven by growth in non‑residential construction despite weaker domestic pipe sales. Gross profit rose 7.3% to $259.2 million, while net income per diluted share climbed to $1.19. Adjusted EBITDA increased 9.3% to $209.2 million, reflecting stronger volumes and product mix.

Year‑to‑date, sales grew 3.7% to $2,373.6 million and EBITDA rose 8.8% to $774.9 million. The company completed its NDS acquisition in February, announced a new $1 billion stock repurchase program, and ended the quarter with $1.6 billion in liquidity and a leverage ratio of 0.5x. For fiscal 2026, ADS expects sales of $2.99–$3.04 billion and EBITDA of $930–$960 million.

Advanced Drainage Systems, Inc. (NYSE:WMS) is a leading manufacturer of high-performance thermoplastic corrugated pipe and water management products, focusing on stormwater and onsite septic wastewater solutions. It manufactures products for construction, infrastructure, and agriculture, while also operating as one of North America’s largest plastic recyclers.

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