Advanced Drainage Systems (WMS) stock plummeted 14.37% in pre-market trading on Thursday following the release of its fourth-quarter fiscal 2025 results and fiscal 2026 guidance, both of which fell short of analyst expectations.

The company reported Q4 adjusted earnings per share of $1.03, down from $1.23 a year earlier and below the FactSet consensus estimate of $1.06. Revenue for the quarter ended March 31 came in at $615.8 million, a 5.8% decrease from $653.8 million in the same period last year and significantly below analysts' expectations of $658.9 million. Net income for the quarter also declined by 19.6% to $76.8 million, compared to the previous year.

Adding to investor concerns, Advanced Drainage Systems provided a disappointing outlook for fiscal 2026. The company expects net sales in the range of $2.83 billion to $2.98 billion, which falls short of the $3.08 billion forecast by analysts. This weak guidance, coupled with the Q4 performance miss, appears to have triggered the sharp sell-off in pre-market trading. Investors will likely be closely monitoring the company's performance in the coming quarters for signs of improvement in sales and profitability.