Advanced Drainage Systems Inc. (WMS) posted an 18% jump in share price following robust third-quarter earnings and a broader uptick in infrastructure spending across the U.S. The gains reflect heightened investor confidence in the company’s growth trajectory amid favorable policy and demand trends.
- WMS stock rose 18% on December 10, 2025, following strong Q3 results
- Q3 adjusted EPS of $1.37 exceeded estimates of $1.29
- Revenue reached $448 million, up 7.2% YoY
- Backlog increased 22% YoY to $1.2 billion
- Strategic manufacturing expansion in Georgia underway
- Reaffirmed full-year 2025 guidance with margin target of 23.5%-24%
Advanced Drainage Systems Inc. (WMS) saw its stock rise 18% in early trading on December 10, 2025, marking one of the strongest single-day performances in the construction materials sector this year. The rally followed the release of the company’s Q3 2025 financial results, which reported adjusted earnings per share of $1.37, surpassing analyst expectations of $1.29. Revenue for the quarter reached $448 million, a 7.2% increase year-over-year, driven by higher demand for stormwater management systems in both commercial and municipal projects. The surge is attributed to a confluence of macro and micro factors. On the macro side, federal and state-level infrastructure initiatives, including the Bipartisan Infrastructure Law and new state-level drainage mandates in high-growth regions like Texas and Florida, have intensified demand for engineered drainage solutions. On the micro side, WMS reported a 22% year-over-year increase in backlog, totaling $1.2 billion, and achieved record order intake in the Midwest and Southeast. The company also announced a strategic expansion of its manufacturing capacity in Georgia, designed to support anticipated demand through 2027. Market analysts note that WMS’s performance is setting a positive precedent for other infrastructure-focused industrial firms. Its valuation multiple, now at 24.3x forward earnings, reflects investor optimism about sustained growth in public infrastructure investment. The stock’s momentum has also drawn attention from ETFs and index funds that track industrial and environmental infrastructure themes. The rally has broad implications for the construction and civil engineering sectors. Competitors such as RainCatch Inc. (RCI) and NexGen Drainage (NGD) saw modest gains, while Wall Street analysts upgraded WMS to 'Overweight' in multiple research reports. The company’s management reaffirmed full-year 2025 guidance, projecting revenue growth of 6.5% to 7.5% and adjusted EBITDA margins of 23.5% to 24%.