Here are 1-3 brief analogies to describe Advanced Drainage Systems (WMS):

• Trex for underground water management systems. (Like Trex provides advanced materials for outdoor decking, WMS offers innovative thermoplastic solutions for unseen drainage and water management infrastructure.)
• Owens Corning for critical underground water infrastructure materials. (Similar to how Owens Corning supplies essential, often hidden, building materials like insulation, WMS provides crucial, unseen components for water infrastructure.)

• Thermoplastic Corrugated Pipes: Designs and manufactures single, double, and triple wall corrugated pipes made from polypropylene and polyethylene.
• Wastewater Treatment Systems: Offers products such as plastic leachfield chambers, EZflow synthetic aggregate bundles, mechanical aeration solutions, and septic tanks.
• Storm Retention/Detention and Septic Chambers: Provides specialized chambers for managing storm water runoff and septic waste.
• Polyvinyl Chloride (PVC) Drainage Structures: Manufactures structures made from PVC for various drainage applications.
• Fittings: Supplies components used to connect and adapt its piping systems.
• Water Quality Filters and Separators: Provides products designed to improve water quality and remove impurities.
• Geosynthetic Products: Distributes construction fabrics and other geosynthetic materials for soil stabilization, filtration, and erosion control.
• Drainage Grates: Supplies grates used in drainage systems to prevent debris entry.

D. Scott Barbour, President and Chief Executive Officer

Mr. Barbour has served as President and Chief Executive Officer of Advanced Drainage Systems since 2017. Prior to joining the company, he held various roles within several business units for Emerson Electric Co. from 1989 to 2016, including President and CEO of its Network Power business. During his tenure at Emerson, he also helped manage the spin-off and subsequent sale of the Network Power business (now Vertiv). He began his career as a product engineer at Colt Industries. Mr. Barbour has served on the board of Allison Transmissions Holdings, Inc. (NYSE: ALSN) since 2022.

Scott Cottrill, Executive Vice President, Chief Financial Officer and Secretary

Mr. Cottrill joined Advanced Drainage Systems in November 2015. He oversees the company's finance, business development, and information technology functions. From 2012 to November 2014, Mr. Cottrill served as Executive Vice President and Chief Financial Officer of Jeld-Wen, Inc., a leading global manufacturer of windows, doors, and treated composite trim and panels. From 1998 to 2012, he held various finance and accounting positions with Goodrich Corporation.

Kevin Talley, Executive Vice President and Chief Administrative Officer

Mr. Talley joined Advanced Drainage Systems in October 2011 and has served as Executive Vice President & Chief Administrative Officer since August 2016. He provides overall leadership to the company's human resources, legal, office services, and aviation functions. Before joining ADS, Mr. Talley spent seventeen years at The Scotts Miracle-Gro Company in increasingly responsible human resources leadership positions, most recently as Vice President, Human Resources.

Brian King, Executive Vice President, Product Management and Marketing

Mr. King worked at Owens Corning, a company that develops and produces insulation, roofing, and fiberglass composites, serving as Vice President, Strategic Marketing from 2016 to 2020 and Director of Strategic Marketing from 2015 to 2016. Prior to his roles at Owens Corning, he held leadership positions at The Stanley Works, Elmer's Products Inc., and Avery Dennison Corporation.

Thomas Waun, Executive Vice President, International, Product Development and Material Sciences

Mr. Waun joined Advanced Drainage Systems in June 2020 and brings over 30 years of management experience. From 2017 to 2020, he served as Vice President and General Manager, Consulting, at Emerson Electric Corporation. From 2015 to 2017, Mr. Waun served as President, Power Management at Emerson.

Key Risks to Advanced Drainage Systems (WMS)

1. Reliance on Cyclical Construction and Infrastructure Spending: Advanced Drainage Systems' business performance is closely tied to the cyclical nature of construction activity and public-works spending. The company is vulnerable to economic downturns, high interest rates, and overall tepid market demand in its end markets. A prolonged softening in residential, non-residential, agriculture, and infrastructure spending could lead to reduced demand for its water management products and negatively impact revenue and profitability. Management has flagged a challenging macroeconomic backdrop for fiscal year 2026, which can weigh on industrials closely tied to construction and infrastructure demand.
2. Raw Material Price Volatility: As a manufacturing company, Advanced Drainage Systems is dependent on the availability and pricing of its raw material inputs, particularly resin. Resin prices are noted to be volatile, often influenced by changes in oil and gas prices. Significant increases in raw material costs could squeeze profit margins and potentially affect demand for the company's products if these costs are passed on to customers.
3. Customer Concentration Risk: A significant portion of Advanced Drainage Systems' net sales comes from a limited number of large customers. In fiscal year 2023, 42% of the company's net sales were generated from its ten largest customers. The loss of one or more of these major customers, or a significant reduction in their purchasing volume, could adversely affect the company's business, financial condition, and results of operations.

The increasing adoption of decentralized, nature-based stormwater management solutions (green infrastructure) which prioritize on-site retention, infiltration, and evapotranspiration over traditional collection and rapid conveyance via extensive underground piping networks. This paradigm shift in stormwater management could significantly reduce the overall demand for traditional underground stormwater conveyance piping systems, a core product offering for Advanced Drainage Systems.

Advanced Drainage Systems (WMS) operates in several key addressable markets related to water management and drainage solutions. The market sizes for their main products and services are as follows:

• Stormwater Management Solutions: The U.S. stormwater management market was valued at approximately USD 7.1 billion in 2023 and is projected to grow to USD 13.95 billion by 2032.
• Onsite Septic Systems: The U.S. onsite septic market is estimated to be worth USD 2.0 billion annually. Separately, the U.S. septic tanks market size was valued at USD 1.02 billion in 2023 and is projected to grow to USD 1.39 billion by 2032. The North America septic tanks market size was valued at USD 1.14 billion in 2023 and is projected to reach USD 1.54 billion by 2032.
• Thermoplastic Corrugated Pipes: The North America Corrugated Pipe market was valued at over USD 4.69 billion in 2024. The U.S. thermoplastic pipe market is projected to reach USD 1.03 billion by 2026. Globally, the thermoplastic pipe market size was valued at USD 4.31 billion in 2025 and is projected to reach USD 6.66 billion by 2034.
• Geosynthetic Products: The U.S. geosynthetics market size was estimated at USD 3.08 billion in 2023 and is expected to grow to USD 4.58 billion by 2030. The North America Geosynthetics Market is projected to reach a valuation of USD 3,304.7 million by 2033.
• Drainage Systems (Broader Market): The global Drainage System Market size was valued at USD 1.76 billion in 2023 and is expected to reach nearly USD 2.25 billion by 2030. North America holds the largest share of this market, at approximately 45%.

1. Strategic Acquisitions and Integration: Advanced Drainage Systems is expected to benefit from strategic acquisitions, most notably the acquisition of National Diversified Sales (NDS), which closed in early fiscal year 2026. This acquisition is anticipated to contribute approximately $40 million in revenue in fiscal year 2026 and generate an estimated $25 million in annual cost synergies, while also being accretive to EPS in its first year. The integration of past acquisitions, such as Orenco into the Infiltrator business, has also exceeded expectations, contributing to synergy capture and expanded product reach through cross-selling.
2. Growth in Higher-Margin Product Segments and New Product Launches: The company is strategically shifting its portfolio mix toward higher-margin products, specifically within its Allied Products and Infiltrator segments. Growth in Allied Products has been driven by key offerings like StormTech storage chambers, Nyloplast capture structures, and water quality products, many of which have benefited from new introductions over the past year. Similarly, the Infiltrator business, including advanced treatment systems and tanks, has seen growth from new product launches, product line expansion, and increased distribution, particularly gaining share in the residential market.
3. Increased Infrastructure Spending: Significant opportunities for revenue growth are tied to increased infrastructure spending. The Texas infrastructure bill, a $20 billion initiative focused on water management and infrastructure, is expected to begin implementation in 2027 and provide material benefits to Advanced Drainage Systems and its Infiltrator business. More broadly, the long-term demand drivers related to water management, climate resilience, and general infrastructure upgrades remain highly favorable for the company.
4. Residential Market Recovery and Penetration: Despite some variability, the company expresses confidence in its strategies to increase participation in the residential market as it recovers. The overall shortage of available housing in the United States and the lack of existing homes for sale continue to provide long-term market growth potential and opportunities for further market penetration for ADS. Improved outlook for single-family housing starts is expected to drive land acquisition and development activity, benefiting ADS products sold early in the development cycle.

Share Repurchases

• Advanced Drainage Systems announced a new $1 billion stock repurchase authorization on February 5, 2026, increasing its total authorization to $1.148 billion.
• As of September 30, 2025, approximately $147.7 million of common stock remained authorized for repurchase under the existing program.
• The company did not repurchase any shares of its common stock in the nine months ended December 31, 2025.

Share Issuance

• As of March 13, 2026, Advanced Drainage Systems had 82,711,585 shares in issue.
• As of May 9, 2024, the company had 77,426,265 shares of common stock outstanding.

Outbound Investments

• Advanced Drainage Systems completed the acquisition of National Diversified Sales (NDS) on February 2, 2026, in an all-cash transaction valued at approximately $1.0 billion, or approximately $875 million when adjusted for expected tax benefits. This acquisition expands ADS' water management offerings, strengthens its Allied Products portfolio, and enhances distribution and customer reach.
• The NDS acquisition is anticipated to contribute approximately $40 million in revenue and a 20% EBITDA margin in the fourth quarter of fiscal 2026.
• Inorganic growth from the acquisitions of Orenco and River Valley Pipe contributed 3.6% to the company's second-quarter revenue increase in fiscal 2026.

Capital Expenditures

• For fiscal year 2026, capital expenditures are expected to be approximately $250 million.
• Year-to-date capital spending for fiscal year 2025 increased by 22% to $166 million, with full-year expectations projected at approximately $225 million.
• Approximately 70% of total capital deployed from fiscal 2020 to 2026 was dedicated to growing the business through capital expenditures and strategic acquisitions.