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Advanced Drainage Systems (WMS) has announced plans to acquire Orenco Systems, a move aimed at enhancing the company's infrastructure and solutions to better protect against water crises. Advanced Drainage Systems CEO Scott Barbour joins to discuss the company's outlook and latest earnings.

Barbour notes the company saw growth across its infrastructure, non-residential, and residential segments, saying "it really speaks to the diversity of end markets that we serve in the construction industry and in the water space." Regarding margins, Barbour states this was "the second best quarter" in the company's history, adding "so we're right on plan where we thought we would be."

Barbour highlights that as "the frequency and intensity of rain events" rises, the current water infrastructure is not up to date to handle such events. He points to areas like Houston, South Florida, and other coastal regions, which are more susceptible, noting this forces "a rewriting of the stormwater management codes and design rules that would really increase the capacity of these systems and these solutions" — which in return drives demand for Advanced Drainage Systems' solutions.

In terms of the election impacting their operations, Barbour tells Yahoo Finance, "Good water management, clean water is a bipartisan issue. Everyone wants clean water. Everyone wants a neighborhood that doesn't flood. Everyone wants a community that has good stormwater management."

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This post was written by Angel Smith