Willdan Group (NASDAQ:WLDN) Issues Quarterly Earnings Results

Key Points

• Willdan exceeded earnings expectations: The company reported quarterly EPS of $1.83, beating the $1.30 consensus estimate, while contract revenue rose 33% to $231 million and adjusted EBITDA increased 51% to a record $33 million.
• Full-year 2026 guidance was raised to $415 million-$430 million in net revenue, $103 million-$107 million in adjusted EBITDA, and $5.00-$5.15 in adjusted diluted EPS, with expected adjusted EBITDA margins of about 25%.
• Commercial expansion and data-center electricity demand are key growth drivers, supported by a strong project pipeline and the Burton acquisition. Despite solid liquidity and free cash flow, analysts maintain a consensus “Hold” rating with a $117.50 price target.

Willdan Group (NASDAQ:WLDN - Get Free Report) released its earnings results on Thursday. The construction company reported $1.83 earnings per share for the quarter, beating the consensus estimate of $1.30 by $0.53, Zacks reports. Willdan Group had a net margin of 8.24% and a return on equity of 23.36%. Willdan Group updated its FY 2026 guidance to 5.000-5.150 EPS.

Here are the key takeaways from Willdan Group's conference call:

• Record second-quarter results: Contract revenue rose 33% to $231 million, net revenue increased 23% to $117 million, and adjusted EBITDA grew 51% to a record $33 million. Adjusted EPS increased 38% to $2.07, while GAAP EPS rose 53% to $1.58.
• Management raised its full-year 2026 outlook to $415 million-$430 million in net revenue, $103 million-$107 million in adjusted EBITDA, and $5.00-$5.15 in adjusted diluted EPS. The company expects approximately 25% adjusted EBITDA margins for the full year, up from 21.8% in 2025.
• Commercial expansion, particularly data-center electricity demand, is becoming a major growth driver and now represents about one-quarter of the business. The Burton acquisition is performing well, with early cross-selling wins and added capabilities in HVAC, energy controls, and commercial energy procurement.
• Willdan reported a broad pipeline of large, complex projects, including a $110 million LADWP solar streetlight expansion, a $53 million City College of New York upgrade, and battery storage, microgrid, biogas, and substation projects. The LADWP work is expected to ramp through late 2026 and into early 2027, although timing remains uncertain.
• Cash generation and liquidity remain strong, with $62 million of trailing-12-month free cash flow, 0.3x net debt-to-adjusted EBITDA, and $165 million of available liquidity. However, the 179D tax benefit expired for new projects at the end of June; management expects a second-half tax rate of roughly 15%-20%, though accumulated deferred tax assets should continue to support cash flow.

Willdan Group Stock Performance

WLDN stock traded down $0.44 during mid-day trading on Thursday, reaching $73.69. The company had a trading volume of 337,585 shares, compared to its average volume of 263,260. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $1.11 billion, a P/E ratio of 19.86 and a beta of 1.14. Willdan Group has a one year low of $64.67 and a one year high of $137.00. The stock's 50-day simple moving average is $81.40 and its two-hundred day simple moving average is $89.87.

Analysts Set New Price Targets

Several research analysts have recently commented on WLDN shares. Wedbush initiated coverage on shares of Willdan Group in a report on Thursday, April 9th. They issued an "outperform" rating and a $110.00 price target for the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Willdan Group in a research note on Tuesday, July 21st. Wall Street Zen cut shares of Willdan Group from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Finally, Zacks Research downgraded Willdan Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 28th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $117.50.

Insider Activity

In other news, CEO Michael A. Bieber sold 56,676 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $91.58, for a total transaction of $5,190,388.08. Following the completion of the transaction, the chief executive officer owned 249,525 shares in the company, valued at approximately $22,851,499.50. This represents a 18.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Transamerica Financial Advisors LLC increased its stake in shares of Willdan Group by 203.3% in the fourth quarter. Transamerica Financial Advisors LLC now owns 364 shares of the construction company's stock valued at $38,000 after purchasing an additional 244 shares during the period. NewEdge Advisors LLC bought a new stake in shares of Willdan Group during the third quarter valued at approximately $48,000. Raymond James Financial Inc. acquired a new position in shares of Willdan Group during the second quarter worth approximately $80,000. Sunbelt Securities Inc. acquired a new position in shares of Willdan Group during the fourth quarter worth approximately $83,000. Finally, Tower Research Capital LLC TRC grew its holdings in Willdan Group by 238.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,763 shares of the construction company's stock worth $110,000 after buying an additional 1,242 shares in the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

About Willdan Group

Willdan Group, Inc provides energy efficiency, infrastructure engineering, and technical consulting services to a diverse range of public and private sector clients. The company works with utilities, municipalities, state and federal agencies, and commercial enterprises to design, implement, and manage programs that promote sustainable energy use, grid modernization, and resilient infrastructure. Willdan's offerings span program design and implementation, energy audits, measurement and verification, and project management for both new construction and retrofit initiatives.

Core services include energy advisory and engineering solutions, including feasibility studies, facility commissioning and retro-commissioning, $0 down financing for energy projects, and demand response program development.

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