Willdan Group’s Record Earnings and Strategic Growth in 2025

Willdan ((WLDN)) has held its Q1 earnings call. Read on for the main highlights of the call.

Willdan Group’s recent earnings call showcased a robust start to 2025, marked by record-breaking results and strategic growth initiatives. The company reported significant financial achievements, underscoring a positive sentiment despite potential risks related to tariffs and equipment costs. The raised guidance further emphasizes the optimistic outlook for the coming year.

Record First Quarter Results

Willdan Group delivered exceptional first quarter results, surpassing both analyst expectations and internal forecasts. The company achieved a 24% year-over-year growth in contract and net revenue, while adjusted EBITDA rose by 31%. Additionally, GAAP diluted EPS increased by 52%, and adjusted diluted EPS was up by 58%, highlighting the company’s strong financial performance.

Strategic Acquisitions and Credit Facility Expansion

The company completed two strategic acquisitions, expanding its geographical reach and capabilities. Furthermore, Willdan expanded its credit facility from $152 million to $200 million, extending its maturity by five years, thereby enhancing its financial flexibility.

Strong Sector Performance and Contract Wins

Willdan demonstrated strong performance across all business lines, securing significant contract wins. Notably, the company secured a $330 million five-year contract with the Los Angeles Department of Water and Power, alongside other important contracts with the California Public Utility Commission and National Grid in Massachusetts.

Sustainability Report and GHG Emission Reduction

In its 2024 sustainability report, Willdan highlighted its progress in sustainability efforts, including helping clients avoid approximately 100 times the greenhouse gas emissions the company emits, showcasing its commitment to environmental responsibility.

Increased Financial Targets for 2025

Reflecting its strong performance, Willdan raised its financial targets for 2025. The company now expects net revenue between $325 million and $335 million, adjusted EBITDA of $65 million to $68 million, and adjusted diluted EPS of $2.75 to $2.90.

Tariff and Equipment Price Risks

The company acknowledged potential risks from tariffs and price escalation in specialized equipment, which could impact project costs and timelines. However, Willdan remains confident in its ability to manage these challenges.

Timing of Los Angeles Department of Water and Power Contract

There is a noted gap in revenue from the LADWP contract in the first half of the year, with significant contributions expected in the fourth quarter, indicating a strategic timing in revenue realization.

Forward-Looking Guidance

Willdan’s forward-looking guidance reflects confidence in continued growth, with projections of significant revenue contributions from commercial customers, state and local governments, and utilities. The company remains optimistic about its robust pipeline and increasing demand for energy and infrastructure solutions, supported by strategic acquisitions.

In conclusion, Willdan Group’s earnings call paints a picture of a company on a strong growth trajectory, buoyed by record financial results and strategic initiatives. Despite potential risks, the company’s raised guidance and strategic acquisitions underscore a positive outlook for 2025, making it an attractive prospect for investors and stakeholders.