Download PDF

1. Company Snapshot

1.a. Company Description

Willdan Group, Inc., together with its subsidiaries, provides professional, technical and consulting services primarily in the United States.It operates in two segments, Energy, and Engineering and Consulting.The Energy segment offers comprehensive audit and surveys, program design, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, and measurement and verification services, as well as software and data analytics.


The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services.This segment also offers district administration, financial consulting, and federal compliance services; and communications and technology services.It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies.


The company was founded in 1964 and is headquartered in Anaheim, California.

Show Full description

1.b. Last Insights on WLDN

The recent 3-month performance of Willdan Group, Inc. was negatively impacted by a sharp decline in stock price following its Q4 2025 earnings release. Despite beating estimates with strong energy demand and 23% annual revenue growth, the company's shares tumbled 13% after hours. The stock had previously closed at $119.60, but opened at $100.15, with a volume of 504,012 shares traded. This sudden drop in stock price suggests that investors may be reevaluating the company's growth prospects and valuation.

1.c. Company Highlights

2. Willdan Group's Record 2025 Performance Fueled by Energy and Data Center Growth

Willdan Group achieved a record financial performance in 2025, with contract revenue increasing 21% to $682 million and net revenue growing 23% to $365 million. The company's adjusted EBITDA grew 40% and yearly margins expanded to above 20% for the first time, driven by strong energy work. The fourth quarter saw contract revenue rise 21% to $174 million, and net revenue grow 13% to $89.5 million, with adjusted earnings per share more than doubling to $1.57. This impressive performance was fueled by a robust pipeline of opportunities, with the average contract size continuing to grow, and a strong presence in the utility and data center markets.

Publication Date: Mar -03

📋 Highlights
  • Record Revenue Growth: Contract revenue grew 21% YoY to $174M (Q4) and $682M (2025), with net revenue up 13% to $89.5M (Q4) and 23% to $365M (2025).
  • Strong EBITDA and Margin Expansion: Adjusted EBITDA surged 40% in 2025 to $85.5M (up from $61M in 2024), with gross margins expanding to 37.5% (from 35.8%) and EBITDA margins exceeding 20%.
  • Data Center Segment Growth: Data center revenue is projected to more than double in 2026 (from APG acquisition), reaching 20% of total revenue by year-end, driven by power demand for digital infrastructure.
  • 2026 Guidance: Net revenue forecasted at $390M–$405M, adjusted EBITDA of $85M–$90M, and EPS of $4.50–$4.70, with margins expected to exceed 20%.
  • Free Cash Flow and Capital Position: Generated $71M in free cash flow in 2025, achieving a net cash position, with $20M in adjusted EBITDA for Q4 alone.

Segment Performance and Growth Drivers

The utility segment, representing about 41% of revenue, continued to perform well, driven by programs funded through rate payer mechanisms. The data center market, which has rapidly grown to 11% of revenue, is expected to drive future growth, with sustained demand for electricity extending through the end of the decade. The company's ability to quickly bring the right resources to customers and execute projects impeccably has enabled it to win in this segment. As Mike Bieber noted, "We're winning due to our ability to quickly bring the right resources to customers and execute projects impeccably."

Valuation and Growth Expectations

With a P/E Ratio of 24.39 and an EV/EBITDA of 20.08, the market appears to be pricing in Willdan's strong growth prospects. Analysts estimate revenue growth of 9.6% for the next year, which is slightly below the company's historical growth rate. The company's guidance for 2026 assumes no future acquisitions and includes net revenue in the range of $390 million to $405 million, adjusted EBITDA in the range of $85 million to $90 million, and adjusted earnings per share in the range of $4.50 to $4.70 per share.

Acquisition Strategy and Capital Allocation

Willdan's acquisition strategy is focused on expanding its capabilities and geographic reach, with a robust M&A pipeline to enhance scale and capabilities. The recent acquisition of Compass Municipal Advisors is expected to provide higher-margin opportunities and cross-selling opportunities with other services. The company's capital allocation priorities remain consistent, with a focus on reinvesting in the business to support organic growth and pursuing accretive acquisitions.

3. NewsRoom

Card image cap

Will Willdan Benefit as U.S. Electricity Demand Rises Again?

Mar -06

Source: zacks.com

Card image cap

Willdan Selected by Puget Sound Energy to Implement and Expand Program Offerings

Mar -04

Source: businesswire.com

Card image cap

Willdan Group: Bull Trap Plays Out - Data Center Backlog At Higher Margins

Mar -01

Source: seekingalpha.com

Card image cap

Willdan Group (NASDAQ:WLDN) Shares Gap Down – Time to Sell?

Mar -01

Source: defenseworld.net

Card image cap

Willdan: Tax Headwind, Data Center Tailwind Wins (Earnings Review)

Feb -27

Source: seekingalpha.com

Card image cap

Willdan's Q4 Earnings & Revenues Top Estimates, Stock Down

Feb -27

Source: zacks.com

Card image cap

Willdan Selected by Mt. SAC for $49 Million Distributed Energy and Resiliency Project

Feb -27

Source: businesswire.com

Card image cap

Willdan Group, Inc. (WLDN) Q4 2025 Earnings Call Transcript

Feb -27

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Energy

Expected Growth: 3.5%

Willdan Group, Inc.'s 3.5% energy segment growth is driven by increasing demand for energy efficiency and renewable energy solutions, government incentives and regulations, and rising energy costs. Additionally, the company's expertise in grid modernization, energy storage, and electric vehicle infrastructure also contribute to its growth.

Engineering & Consulting

Expected Growth: 4.5%

Willdan Group's Engineering & Consulting segment growth of 4.5% is driven by increasing demand for energy efficiency and renewable energy solutions, expansion of existing contracts, and strategic acquisitions. Additionally, growing investments in grid modernization and infrastructure development are contributing to the segment's growth.

7. Detailed Products

Energy Efficiency Services

Willdan provides energy-efficient solutions to reduce energy consumption and greenhouse gas emissions for commercial, industrial, and government clients.

Sustainability and Resilience Services

Willdan offers sustainability and resilience services to help clients develop and implement sustainable practices and mitigate climate-related risks.

Engineering and Consulting Services

Willdan provides engineering and consulting services to support the design, development, and implementation of energy-efficient and sustainable infrastructure projects.

Grid Modernization Services

Willdan offers grid modernization services to help utilities and grid operators upgrade their infrastructure to support the integration of renewable energy sources and improve grid resilience.

Data Analytics and Software Services

Willdan provides data analytics and software services to help clients optimize energy efficiency, reduce energy costs, and improve operational performance.

8. Willdan Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Willdan Group, Inc. is medium due to the availability of alternative energy-efficient solutions and services.

Bargaining Power Of Customers

The bargaining power of customers for Willdan Group, Inc. is low due to the company's strong relationships with its clients and the customized nature of its services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Willdan Group, Inc. is medium due to the company's dependence on a few key suppliers for its energy-efficient solutions.

Threat Of New Entrants

The threat of new entrants for Willdan Group, Inc. is high due to the growing demand for energy-efficient solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Willdan Group, Inc. is high due to the competitive nature of the energy-efficient solutions industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.04%
Debt Cost 11.02%
Equity Weight 65.96%
Equity Cost 11.26%
WACC 11.18%
Leverage 51.62%

11. Quality Control: Willdan Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NV5 Global

A-Score: 4.9/10

Value: 4.2

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Willdan

A-Score: 4.9/10

Value: 2.1

Growth: 7.4

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Tutor Perini

A-Score: 4.6/10

Value: 6.0

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Orion Holdings

A-Score: 4.2/10

Value: 6.0

Growth: 5.6

Quality: 4.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Matrix Service

A-Score: 4.1/10

Value: 8.7

Growth: 4.8

Quality: 4.1

Yield: 0.0

Momentum: 3.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Limbach Holdings

A-Score: 3.6/10

Value: 3.0

Growth: 8.0

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.31$

Current Price

83.31$

Potential

-0.00%

Expected Cash-Flows