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Willdan Group (WLDN)
NASDAQ:WLDN
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Willdan Group (WLDN) AI Stock Analysis

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WLDN

Willdan Group

(NASDAQ:WLDN)

Rating:74Outperform
Price Target:
$89.00
▲(12.22%Upside)
The overall stock score of 74 reflects Willdan Group's strong financial performance and positive earnings call results, which indicate robust growth and strategic positioning in the market. However, the high valuation metrics and technical indicators suggesting overbought conditions slightly temper the outlook.

Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)

Willdan Group Business Overview & Revenue Model

Company DescriptionWilldan Group, Inc. is a leading nationwide provider of technical and consulting services to utilities, government agencies, and private industry. The company specializes in energy efficiency and sustainability, engineering and planning, and financial and economic consulting. Willdan serves a diverse range of sectors, including energy, infrastructure, and public sector clients, delivering solutions that enhance operational efficiency and sustainability.
How the Company Makes MoneyWilldan Group makes money primarily by providing consulting and technical services across its various sectors. The company's revenue model is based on service contracts with clients, often structured as fixed-price, cost-plus, or time-and-materials contracts. A significant portion of its revenue comes from energy efficiency services, where it partners with utilities and government agencies to design and implement energy-saving programs. These programs often involve retrofitting existing structures and optimizing energy systems, resulting in utility incentives or government funding. Additionally, Willdan earns revenue from engineering and consulting services related to infrastructure projects and financial consulting for public sector entities. The company's strategic partnerships with utilities and government bodies, coupled with its expertise in energy and infrastructure, are key factors contributing to its earnings.

Willdan Group Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 95.54%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 with record results and strategic growth through acquisitions and contract wins. Despite potential risks related to tariffs and equipment costs, the company's strong financial performance and raised guidance indicate a positive outlook.
Q1-2025 Updates
Positive Updates
Record First Quarter Results
Willdan Group delivered record first quarter results for revenue, adjusted EBITDA, and EPS, surpassing both analyst expectations and internal forecasts. Contract and net revenue each grew 24% year-over-year, adjusted EBITDA rose 31%, GAAP diluted EPS increased 52%, and adjusted diluted EPS was up 58%.
Strategic Acquisitions and Credit Facility Expansion
Completed two acquisitions expanding geography and capabilities, and expanded the credit facility from $152 million to $200 million, extending maturity by five years.
Strong Sector Performance and Contract Wins
Performance was strong across all business lines, with significant contract wins including a $330 million five-year contract with the Los Angeles Department of Water and Power, and other notable contracts with California Public Utility Commission and National Grid in Massachusetts.
Sustainability Report and GHG Emission Reduction
Released a 2024 sustainability report highlighting progress, including helping clients avoid about 100 times the GHG emissions the company emits.
Increased Financial Targets for 2025
Based on strong performance, Willdan raised 2025 financial targets: net revenue of $325 million to $335 million, adjusted EBITDA of $65 million to $68 million, and adjusted diluted EPS of $2.75 to $2.90.
Negative Updates
Tariff and Equipment Price Risks
Potential impact from tariffs and price escalation in specialized equipment could affect project costs and timelines.
Timing of Los Angeles Department of Water and Power Contract
There is a gap in revenue from the LADWP contract in the first half of the year, with significant contributions not expected until the fourth quarter.
Company Guidance
In the first quarter of fiscal year 2025, Willdan Group reported record financial results, with contract and net revenue each increasing by 24% year-over-year. The company achieved a 31% rise in adjusted EBITDA and a 52% increase in GAAP diluted EPS, with adjusted diluted EPS up by 58%. Willdan's revenue composition is projected to include 15% from commercial customers, 44% from state and local governments, and 41% from utilities in 2025. The company completed two acquisitions, contributing $6 million to the quarter's contract revenue. Despite potential tariff risks, Willdan remains confident, reflecting a robust pipeline and increasing demand for energy and infrastructure solutions. The company raised its 2025 financial targets, expecting 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, citing strong performance and strategic acquisitions.

Willdan Group Financial Statement Overview

Summary
Willdan Group exhibits a strong financial performance across all statements. The income statement reflects robust growth and improved profitability. The balance sheet shows a healthy leverage position and effective equity utilization. Cash flows are well-managed, with strong free cash flow growth supporting operational and strategic flexibility.
Income Statement
85
Very Positive
The income statement shows strong revenue growth with a 5.29% increase in the TTM period compared to the previous year. Gross profit margins are healthy at approximately 34.52%, and net profit margins have improved to 4.08% in TTM, indicating better cost management. EBIT and EBITDA margins at 5.54% and 7.82% respectively, reflect improved operational efficiency, contributing to a robust financial performance.
Balance Sheet
75
Positive
The company maintains a solid balance sheet with a moderate debt-to-equity ratio of 0.42, suggesting a balanced capital structure. ROE is strong at 9.90%, indicating effective utilization of equity capital. The equity ratio stands at 52.10%, highlighting financial stability, though there is room for improvement by reducing debt levels further.
Cash Flow
80
Positive
The cash flow statement reveals a significant improvement in free cash flow, growing by 35.53% in the TTM period. The operating cash flow to net income ratio of 1.99 indicates strong cash generation relative to net income. Free cash flow to net income ratio of 1.63 further underscores the company's good cash management practices, supporting future growth initiatives.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Mar 2021
Income Statement
Total Revenue565.80M510.10M429.14M353.75M390.98M
Gross Profit202.78M179.77M143.58M135.87M129.39M
EBITDA49.23M40.44M11.37M8.61M4.14M
Net Income22.57M10.93M-8.45M-8.42M-14.50M
Balance Sheet
Total Assets464.86M415.59M409.67M394.42M410.32M
Cash, Cash Equivalents and Short-Term Investments74.16M23.40M8.81M11.22M28.41M
Total Debt107.75M114.10M123.39M118.23M135.15M
Total Liabilities230.52M215.74M228.17M215.20M241.16M
Stockholders Equity234.34M199.84M181.50M179.22M169.16M
Cash Flow
Free Cash Flow63.66M29.29M-169.00K1.30M41.95M
Operating Cash Flow72.07M39.21M9.43M9.80M47.02M
Investing Cash Flow-15.74M-11.46M-9.53M-8.45M-5.06M
Financing Cash Flow-5.57M-23.84M8.36M-18.53M-19.01M

Willdan Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.31
Price Trends
50DMA
61.23
Positive
100DMA
50.18
Positive
200DMA
45.20
Positive
Market Momentum
MACD
5.89
Negative
RSI
86.52
Negative
STOCH
83.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDN, the sentiment is Positive. The current price of 79.31 is above the 20-day moving average (MA) of 72.38, above the 50-day MA of 61.23, and above the 200-day MA of 45.20, indicating a bullish trend. The MACD of 5.89 indicates Negative momentum. The RSI at 86.52 is Negative, neither overbought nor oversold. The STOCH value of 83.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLDN.

Willdan Group Risk Analysis

Willdan Group disclosed 43 risk factors in its most recent earnings report. Willdan Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Willdan Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$774.36M11.1615.67%28.03%80.90%
75
Outperform
$1.45B44.8323.37%3.62%28.02%
74
Outperform
$1.15B46.9810.78%12.40%81.98%
71
Outperform
$585.06M229.241.25%21.78%
67
Neutral
$1.03B19.325.64%30.13%-7.60%
65
Neutral
$11.08B15.705.19%2.15%3.13%-24.94%
63
Neutral
$405.60M-14.26%-0.29%-6.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WLDN
Willdan Group
80.53
47.33
142.56%
AMRC
Ameresco
19.61
-11.89
-37.75%
GLDD
Great Lakes Dredge & Dock
11.40
1.98
21.02%
MTRX
Matrix Service Company
15.09
4.71
45.38%
LMB
Limbach Holdings
124.11
63.98
106.40%
BWMN
Bowman Consulting Group
33.95
-0.06
-0.18%

Willdan Group Corporate Events

Executive/Board ChangesShareholder Meetings
Willdan Group Holds Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 12, 2025, Willdan Group, Inc. held its Annual Meeting of Stockholders, where several key proposals were voted on. The stockholders elected seven directors, ratified Crowe LLP as the independent accounting firm for 2025, approved executive compensation, determined a one-year frequency for future advisory votes on executive compensation, and approved amendments to the 2008 Performance Incentive Plan. The meeting achieved a quorum with 83.06% of shares represented.

The most recent analyst rating on (WLDN) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Willdan Group stock, see the WLDN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025