Advanced Drainage Systems (WMS) Investor Day 2026 summary

Strategic vision and growth model

• Focus on pure-play water exposure, leveraging stormwater (78% of revenue) and wastewater (22% of revenue) segments for diversified growth and resilience.

• Differentiated growth driven by innovation, new products, material conversion, and targeted acquisitions (notably Infiltrator, NDS, Orenco), with cross-selling synergies.

• Emphasis on a resilient business model with a balanced portfolio: pipe, allied products, and advanced treatment, supported by vertically integrated recycling and manufacturing excellence.

• Continued investment in automation, logistics, and digital tools to enhance operational efficiency, safety, and customer experience.

• Strong secular tailwinds from aging infrastructure, regulatory changes, and environmental needs support long-term demand.

Financial performance and guidance

• Achieved 5% revenue growth and 8% adjusted EBITDA growth in the latest year, with 85% EBITDA-to-cash conversion and FY26 net sales of $3.05B, Adjusted EBITDA of $963M, and cash flow from operations of $819M.

• EBITDA margins expanded from 15.8% in FY18 to 31.6% in FY26, with a vision to sustain >30% margins and >70% cash conversion through FY30.

• Fiscal 2030 vision includes revenue over $4B, Adjusted EBITDA above $1.2B, and >8% organic growth.

• Capital allocation: 65-75% reinvested in growth (CapEx, M&A), 25-35% returned to shareholders via dividends and buybacks, with over $5B available for future M&A and share buybacks.

• Outperformed water peers in TSR over 3- and 10-year periods, with three-year TSR of 30.3% and ten-year return of 458.2%.

Operational and business development highlights

• Major investments in manufacturing, automation, and logistics, including $65M in the Engineering & Technology Center, $170M in fleet upgrades, and $175M in capacity since 2020.

• Southeast region saw $90M invested, boosting capacity by 42% and productivity by 18%.

• Infiltrator and Orenco acquisitions expanded advanced treatment capabilities, driving 49% CAGR in that segment since 2021.

• NDS integration expected to deliver $25M in cost synergies and $50M in cross-selling synergies, with acquisitions adding ~$1B in annual revenue and $110M in cost synergies.

• Innovation pipeline generated $430M in new product revenue in FY26, with acceleration expected as R&D and commercialization processes improve.