Advanced Drainage’s third quarter was marked by margin expansion and robust execution, which led to outperformance relative to market expectations. Management pointed to strong growth in higher-margin Allied Products and Infiltrator segments, along with operational improvements and disciplined cost controls. CEO Scott Barbour highlighted the company’s ability to generate above-market growth despite a “challenging market environment,” citing successful material conversion strategies and the launch of new products as key contributors. Continued demand in nonresidential markets and resilient pricing also played a significant role in supporting results.
The stocks featured in this article have all approached their 52-week highs.
When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
Water management company Advanced Drainage Systems (NYSE:WMS) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 8.7% year on year to $850.4 million. The company expects the full year’s revenue to be around $2.95 billion, close to analysts’ estimates. Its non-GAAP profit of $1.97 per share was 19.8% above analysts’ consensus estimates.
Water management company Advanced Drainage Systems (NYSE:WMS) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 8.7% year on year to $850.4 million. The company expects the full year’s revenue to be around $2.95 billion, close to analysts’ estimates. Its non-GAAP profit of $1.97 per share was 19.8% above analysts’ consensus estimates.
Advanced Drainage has had an impressive run over the past six months as its shares have beaten the S&P 500 by 13.4%. The stock now trades at $142.55, marking a 38.2% gain. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Shares of water management company Advanced Drainage Systems (NYSE:WMS)
jumped 2.4% in the morning session after it agreed to acquire National Diversified Sales (NDS), the water management business of Norma Group SE, for approximately $1 billion in cash.
Shares of water management company Advanced Drainage Systems (NYSE:WMS)
fell 10% in the morning session after Darin Harvey, Executive Vice President of Supply Chain, left to join Mueller Water Products.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Advanced Drainage (NYSE:WMS) and its peers.
Water management company Advanced Drainage Systems (NYSE:WMS) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 1.8% year on year to $829.9 million. The company expects the full year’s revenue to be around $2.9 billion, close to analysts’ estimates. Its non-GAAP profit of $1.95 per share was 10.9% above analysts’ consensus estimates.
