Advanced Drainage Systems (MEX:WMS) Operating Income: MXN11,743 Mil (TTM As of Mar. 2026)

What is Advanced Drainage Systems Operating Income?

Advanced Drainage Systems MEX:WMS 60 Operating Income is MXN11,743 Mil as of Mar. 2026. GuruFocus rates MEX:WMS with a GF Score™ of 60/100 and a GF Value™ of MXN2,106.96 (Fairly Valued). The stock has 3 warning signs investors should review.

Advanced Drainage Systems's Operating Income for the three months ended in Mar. 2026 was MXN1,467 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN11,743 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Advanced Drainage Systems's Operating Income for the three months ended in Mar. 2026 was MXN1,467 Mil. Advanced Drainage Systems's Revenue for the three months ended in Mar. 2026 was MXN12,204 Mil. Therefore, Advanced Drainage Systems's Operating Margin % for the quarter that ended in Mar. 2026 was 12.02%.

Good Sign:

Advanced Drainage Systems Inc operating margin is expanding. Margin expansion is usually a good sign.

Advanced Drainage Systems's 5-Year average Growth Rate for Operating Margin % was 6.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Advanced Drainage Systems's annualized ROC % for the quarter that ended in Mar. 2026 was 8.50%. Advanced Drainage Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.03%.

Advanced Drainage Systems (MEX:WMS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Advanced Drainage Systems's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	5868.852 * ( 1 - 13.59% )	/	( (49801.354	+	69490.543)	/ 2 )
=	5071.2750132	/	59645.9485
=	8.50 %

where

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	74621.221	-	6666.7	-	( 18153.167	-	max(0, 7443.142	-	30701.411	+	18153.167	))
=	49801.354

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	81248.548	-	7736.497	-	( 4021.508	-	max(0, 9187.102	-	22195.17	+	4021.508	))
=	69490.543

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Advanced Drainage Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4657.992	/	( ( (20770.475 + max(5881.544, 0))	+	(21948.771 + max(9512.212, 0)) )	/	2 )
=	4657.992	/	( ( 26652.019	+	31460.983 )	/	2 )
=	4657.992	/	29056.501
=	16.03 %

where Working Capital is:

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4278.046	+	7764.868	+	505.33)	-	(6666.7	+	0	+	0)
=	5881.544

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6390.464	+	9798.627	+	1332.616)	-	(7736.497	+	0	+	272.998)
=	9512.212

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Advanced Drainage Systems's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	1467.213	/	12203.828
	=	12.02 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Advanced Drainage Systems Operating Income Related Terms

Advanced Drainage Systems Operating Income Historical Data

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The historical data trend for Advanced Drainage Systems's Operating Income can be seen below:

Advanced Drainage Systems Operating Income Chart

Advanced Drainage Systems Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Operating Income

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8,269.36

13,044.82

12,011.81

13,528.89

11,512.31

Advanced Drainage Systems Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Operating Income	Get a 7-Day Free Trial															2,463.31	4,006.29	3,804.02	2,465.16	1,467.21

60GF Score

Advanced Drainage Systems Inc MEX:WMS

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Advanced Drainage Systems Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN11,743 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of MXN11,743 Mil mean?

Advanced Drainage Systems (MEX:WMS) has a Operating Income of MXN11,743 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Advanced Drainage Systems and its competitors.

Is Advanced Drainage Systems' Operating Income too high?

Advanced Drainage Systems' current Operating Income is MXN11,743 Mil. Overall, Advanced Drainage Systems has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Advanced Drainage Systems' Operating Income compare to SPXC and OC?

Advanced Drainage Systems' Operating Income of MXN11,743 Mil can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Construction company?

A good Operating Income depends on the Construction industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Advanced Drainage Systems and its competitors. Advanced Drainage Systems's current Operating Income is MXN11,743 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Advanced Drainage Systems stock overvalued right now?

Based on GuruFocus' analysis, Advanced Drainage Systems (MEX:WMS) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,106.96, compared to a current price of MXN2,100.00 — trading 0.3% below its estimated fair value. The current Operating Income is MXN11,743 Mil. Advanced Drainage Systems' overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current Operating Income is MXN11,743 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Advanced Drainage Systems (MEX:WMS) Overvalued in 2026?

Based on GuruFocus' analysis, Advanced Drainage Systems stock appears to be undervalued. The current stock price of MXN2,100.00 is trading 0.3% below its estimated GF Value™ of MXN2,106.96. GuruFocus considers Advanced Drainage Systems to be Fairly Valued.

Key valuation signals for MEX:WMS:

Operating Income: MXN11,743 Mil
GF Value™: MXN2,106.96 vs. price of MXN2,100.00 (0.3% below fair value)
GF Score™: 60/100 with 3 warning signs

No single metric tells the full story. See the MEX:WMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Advanced Drainage Systems Business Description

Industry Industrials Construction

Comparable Companies SPXC OC AAON BLDR CSL MAS AWI LPX FBIN TREX TT JCI CARR XPAR:SGO TSE:6367 XSWX:GEBN LII MAIR DUB:KRX XSWX:BEAN

Other Exchanges WMS:USA 6DA:Germany

Address 4024 Green Stripe Lane, Hilliard, OH, USA, 43026

Website https://www.adspipe.com

Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets. The company's products are used across a broad range of end markets and applications, including non-residential, residential, infrastructure and agriculture applications. It has two reportable segments: Stormwater and Wastewater. It derives the majority of revenue from the Stormwater segment, which manufactures and markets thermoplastic corrugated pipe and complementary products, including single wall pipe, N-12 HDPE pipe, polypropylene pipe, StormTech, Nyloplast, Inserta Tee, water quality filters and structures, and NDS channel drains, and access boxes.

60GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,100.00

Price

MXN2,106.96

GF Value

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