Water management company Advanced Drainage Systems (NYSE: WMS) will be reporting earnings this Thursday morning. Here’s what to look for.

Advanced Drainage beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $829.9 million, up 1.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Advanced Drainage a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Advanced Drainage’s revenue to grow 1.9% year on year to $797.5 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advanced Drainage has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Advanced Drainage’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Northwest Pipe delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 14.4%, and Zurn Elkay reported revenues up 11.1%, topping estimates by 3%. Northwest Pipe traded up 1.7% following the results while Zurn Elkay was also up 4.1%.

Read our full analysis of Northwest Pipe’s results here and Zurn Elkay’s results here.

Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the hvac and water systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Advanced Drainage is down 4.1% during the same time and is heading into earnings with an average analyst price target of $161.22 (compared to the current share price of $135.75).

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