Willdan Group (WLDN) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 342.49K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.93
• Revenue Growth: 12.90%
• EPS Growth: 72.61%
• Country: US
• Employees: 1,761
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.57
• Shares Outstanding: 14,796,110
• 10 Day Avg. Volume: 354,988
• 30 Day Avg. Volume: 342,493
• PEG Ratio: 0.24
• Price to Book (P/B): 5.06
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 21.82
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 4.38
• Enterprise Value/Ebitda: 17.37
• 1Y Price Target: $141.67
• Price Target Upside: 88.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.41
• Revenue Forecast (FY): $399.47M

• Rating: 67 Neutral
• Price Target: $85.00 ▲(13.06% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

Score is supported by strong financial momentum (profitability, cash generation, and deleveraging) and a generally positive earnings call with modest growth guidance. It is held back primarily by weak technicals (price below key moving averages and negative MACD) and a P/E that looks somewhat elevated without a dividend yield provided.

Positive Factors

Strong free cash flow generation

Consistent, material free cash flow provides durable financial flexibility: it funds organic investment, M&A, debt reduction and shareholder returns while lowering refinancing risk. High FCF relative to net income indicates earnings quality and resilience through project cycles.

Improved balance sheet and deleveraging

Marked deleveraging and stronger equity position reduce interest exposure and raise financial firepower to bid on larger programmatic contracts and pursue strategic acquisitions. A lower leverage profile improves shock absorption in cyclical contract timing environments.

Multi-year revenue growth and margin expansion

Sustained top-line growth alongside expanded gross and adjusted EBITDA margins indicates successful shift to higher-value services, better pricing and scale benefits. This structural improvement supports durable profitability and higher return on capital across future contract portfolios.

Negative Factors

Section 179D tax incentive uncertainty

Reliance on a sizeable, time‑sensitive tax deduction creates meaningful EPS volatility: management expects lower 2026 EPS largely due to reduced 179D benefits. Until legislative clarity or alternative tax planning is secured, after‑tax profitability and cash taxes remain structurally uncertain.

Working-capital and cash-flow cyclicality

Project timing and receivables/backlog convertibility have driven volatile cash flows historically. This structural sensitivity can strain liquidity or force short-term financing during large program ramps, limiting ability to smooth investments or pursue opportunistic M&A when cycles turn.

Execution and integration risk on ramps and acquisitions

Growth via large program wins and acquisitions raises structural execution risk: integration costs and slower-than-expected program ramps can compress margins and defer revenue. Data center build uncertainty further risks backlog conversion and the sustainability of recent commercial growth.

Willdan Group Business Overview & Revenue Model

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.

How the Company Makes Money

Willdan primarily makes money by delivering professional services under contracts with government entities (e.g., cities, counties, and other public agencies), utilities, and commercial/industrial clients. Its revenue model is largely fee-for-service, earned through: (1) project-based engagements (e.g., engineering, design, and technical consulting deliverables) that are billed on fixed-fee, time-and-materials, or other negotiated contract terms depending on scope; and (2) programmatic services—especially in energy-related work—where Willdan designs, implements, and administers energy efficiency, demand-side management, electrification, and related programs on behalf of utilities or public agencies, earning revenue for program management, implementation, field services, measurement/verification, and other administrative/technical functions. The company’s earnings are influenced by its ability to win and renew multi-year contracts, execute work efficiently (labor utilization and subcontractor management), and maintain relationships with utility and public-sector customers whose budgets, regulatory priorities, and procurement cycles can drive demand for its services. null

Willdan Group Financial Statement Overview

Summary

Strong multi-year turnaround with rising revenue, materially improved profitability, reduced leverage, and robust recent free cash flow. Key risks are historical cyclicality and cash flow volatility tied to project timing.

Income Statement

The company has delivered a clear multi-year turnaround: revenue rose steadily from $429M (2022) to $682M (2026 annual), and profitability improved materially with net income up to $52.6M (2026) from losses in 2021–2022. Margins also strengthened, with net margin improving to ~7.7% (2026) and gross margin holding in the mid-to-high 30% range. The main weakness is that profitability is still somewhat cyclical historically (losses as recently as 2022), and operating profitability metrics show some inconsistency across years (including an anomalous 0.0 EBIT margin in the 2026 dataset).

Balance Sheet

Balance sheet quality improved meaningfully as leverage came down: debt-to-equity declined from ~0.68 (2022) and ~0.57 (2023) to ~0.23 (2026), while equity expanded to ~$305M (2026) alongside asset growth to ~$544M. Returns also improved, with return on equity rising to ~17% (2026) from negative levels in 2021–2022. The key risk is the company’s prior period leverage and negative return profile, which suggests sensitivity if operating conditions weaken, although the recent trajectory is strongly positive.

Cash Flow

Cash generation is a key strength: operating cash flow increased to ~$80M (2026) and free cash flow reached ~$71M, with free cash flow running at ~88% of net income in both 2024 and 2026—supporting earnings quality. Free cash flow growth is also positive in the latest period. The main weakness is volatility: free cash flow was slightly negative in 2022 and operating cash flow has fluctuated materially over the cycle, indicating working-capital and project timing can meaningfully impact cash results.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	681.55M	565.80M	510.10M	429.14M	353.75M
Gross Profit	255.68M	202.78M	179.77M	143.58M	135.87M
EBITDA	64.43M	49.23M	40.44M	11.37M	8.61M
Net Income	52.56M	22.57M	10.93M	-8.45M	-8.42M
Balance Sheet
Total Assets	544.21M	464.86M	415.59M	409.67M	394.42M
Cash, Cash Equivalents and Short-Term Investments	65.92M	74.16M	23.40M	8.81M	11.22M
Total Debt	69.28M	107.75M	114.10M	123.39M	118.23M
Total Liabilities	239.36M	230.52M	215.74M	228.17M	215.20M
Stockholders Equity	304.85M	234.34M	199.84M	181.50M	179.22M
Cash Flow
Free Cash Flow	70.70M	63.66M	29.29M	-169.00K	1.30M
Operating Cash Flow	80.08M	72.07M	39.21M	9.43M	9.80M
Investing Cash Flow	-45.63M	-15.74M	-11.46M	-9.53M	-8.45M
Financing Cash Flow	-42.69M	-5.57M	-23.84M	-2.32M	-18.53M

Willdan Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDN, the sentiment is Negative. The current price of 75.18 is below the 20-day moving average (MA) of 92.48, below the 50-day MA of 110.59, and below the 200-day MA of 96.30, indicating a bearish trend. The MACD of -9.99 indicates Positive momentum. The RSI at 24.37 is Positive, neither overbought nor oversold. The STOCH value of 11.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLDN.

Willdan Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	76 Outperform	$1.13B	11.94	14.83%	―	12.53%	35.68%
MYRG	76 Outperform	$4.14B	28.92	19.65%	―	-0.64%	168.51%
LMB	72 Outperform	$884.60M	18.61	22.04%	―	16.56%	35.80%
WLDN	67 Neutral	$1.11B	29.35	19.12%	―	12.90%	72.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BWMN	61 Neutral	$457.20M	44.33	4.94%	―	16.73%	―
AMRC	52 Neutral	$1.41B	34.84	4.24%	―	12.22%	17.41%