Shares of Advanced Drainage Systems (WMS) surged 12.02% in Thursday's trading session following the company's impressive second-quarter fiscal 2026 results and raised full-year guidance. The water management solutions provider delivered a strong performance that exceeded analyst expectations across key financial metrics.

For the second quarter, Advanced Drainage Systems reported net sales of $850.4 million, up 8.7% year-over-year and significantly beating the consensus estimate of $801.4 million. Adjusted earnings per share came in at $1.97, surpassing the expected $1.67, while adjusted EBITDA of $287.5 million also outperformed analyst projections. The company's robust results were driven by double-digit revenue growth from its Infiltrator and Allied products segments, as well as contributions from recent acquisitions.

Adding to the positive sentiment, Advanced Drainage Systems raised its fiscal 2026 guidance, now expecting net sales between $2.900 billion and $2.990 billion, up from the previous range of $2.825 billion to $2.975 billion. The company also increased its adjusted EBITDA outlook to a range of $900 million to $940 million. Furthermore, the board approved a 13% increase in the quarterly cash dividend to $0.18 per share, demonstrating confidence in the company's financial strength and commitment to shareholder returns. These factors combined to fuel investor enthusiasm and drive the significant stock price surge.