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Willdan Group (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
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Select Model
Rating:76Outperform
Price Target:
$114.00
▲(12.98% Upside)
Willdan Group's strong financial performance and positive earnings call are the primary drivers of its high score. The company's robust revenue growth, improved profitability, and strategic acquisitions contribute to a positive outlook. Technical indicators support a bullish trend, although the high valuation and absence of a dividend yield are potential concerns. Effective management of growth risks and acquisition integration will be crucial for sustaining momentum.
Positive Factors
Revenue Growth
Consistent double-digit revenue growth showcases strong market demand and effective business strategies, reinforcing long-term growth potential.
Cash Generation
Robust cash generation enhances financial flexibility, supporting strategic investments and acquisitions, crucial for sustained growth.
Strong Pipeline
A strong project pipeline ensures future revenue streams and market presence, underpinning long-term business stability and expansion.
Negative Factors
Growth Management Risks
Rapid growth can strain resources and impact project quality, posing risks to operational efficiency and client satisfaction.
Acquisition Challenges
Integration of large acquisitions can divert focus and resources, potentially disrupting ongoing operations and cross-selling efforts.
High Valuation Risk
High valuation may limit upside potential and attract scrutiny, impacting investor sentiment and long-term investment appeal.
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend YieldN/A
Average Volume (3M)254.77K
Price to Earnings (P/E)36.2
Beta (1Y)0.69
Revenue Growth12.90%
EPS Growth72.61%
CountryUS
Employees1,761
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.21
Shares Outstanding14,749,882
10 Day Avg. Volume242,454
30 Day Avg. Volume254,772
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)2.26
Price to Sales (P/S)0.94
P/FCF Ratio8.34
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit5.74
Enterprise Value/Ebitda22.27
Forecast
1Y Price Target
$128.50Price Target Upside27.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.65
Revenue Forecast (FY)$352.97M
Willdan Group Business Overview & Revenue Model
Company DescriptionWilldan Group, Inc. is a provider of professional technical and consulting services, primarily serving the energy, public, and infrastructure sectors. The company specializes in energy efficiency, renewable energy, and sustainability consulting, as well as engineering and planning services. Willdan's core products and services include energy audits, demand-side management, engineering design, and project management, aimed at helping clients improve their operational efficiency and reduce costs.
How the Company Makes MoneyWilldan Group generates revenue through a diversified model that includes service fees for consulting and engineering projects, performance-based incentives from energy efficiency programs, and grants and contracts from government entities. The company often partners with utilities, municipalities, and regulatory agencies to deliver energy efficiency programs, which creates a steady stream of income. In addition, Willdan's expertise in regulatory compliance and infrastructure improvement contributes to its revenue through contracts with municipalities and public agencies. The mix of project-based work and recurring revenue from energy efficiency programs helps stabilize earnings and provide growth opportunities.
Willdan Group Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call depicted a strong financial performance with significant revenue growth, record profitability, and successful acquisitions contributing to a positive outlook. The company raised its financial targets, driven by a robust pipeline and strategic wins. However, there were discussions on managing risk associated with rapid growth and the complexity of integrating larger acquisitions.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenue grew by 26% year-over-year, with a 20% organic growth rate, marking the fourth consecutive year of double-digit organic growth.
Record Profitability
Gross profit grew 30% to $67.1 million, and adjusted EBITDA increased 53% to $23.1 million, achieving a record quarterly performance.
Successful Acquisitions
The APG acquisition is performing well, contributing significantly to new contracts and expected to drive over 50% growth by 2026.
Strong Pipeline and Contract Wins
Secured a $97 million project in California and several substation projects in Oregon, Georgia, Texas, and Utah, demonstrating strong pipeline conversion.
Positive Financial Outlook
Raised financial targets for 2025, expecting net revenue between $360 million and $365 million, and adjusted EBITDA between $77 million and $78 million.
Negative Updates
High Growth Risk Management
Concerns were raised about managing rapid growth and ensuring sufficient staffing and resources to maintain quality and project execution.
Potential Acquisition Challenges
Discussion on the complexity and resource allocation challenges in handling larger acquisitions without impacting ongoing cross-selling efforts.
Company Guidance
During the Willdan Group's third-quarter fiscal year 2025 earnings call, the company reported a robust performance, exceeding expectations across key financial metrics. Net revenue grew by 26% year-over-year, driven by an impressive 20% organic growth rate. This marked the fourth consecutive year of double-digit organic growth for Willdan. The company's contract revenue increased by 15% to $182 million, while the net revenue reached $95 million. Gross profit saw a substantial rise of 30% to $67.1 million, and pre-tax income surged by 91% to a record $14.3 million. Adjusted EBITDA reached a new quarterly high of $23.1 million, with a margin of 24% of net revenue, up 53% from the previous year. GAAP diluted earnings per share increased by 77% to $0.90, while adjusted EPS rose by 66% to $1.21. Willdan's strategic acquisitions, specifically APG, contributed to this growth, with a reported organic growth rate of 21% year-to-date. The company raised its full-year financial targets, projecting net revenue between $360 million and $365 million and adjusted EBITDA of $77 million to $78 million. Willdan's balance sheet remains strong, ending the quarter with $16 million in net debt and $183 million in total available liquidity, providing the flexibility to pursue further acquisitions and strategic market expansions.Willdan Group Financial Statement Overview
Summary
Willdan Group demonstrates strong financial performance with robust profitability, efficient operations, and excellent cash flow generation. The company has effectively managed its leverage while maintaining growth, positioning itself well within the industry.Income Statement
Willdan Group has shown a strong improvement in its income statement metrics. The TTM Gross Profit Margin is healthy at 37.02%, and the Net Profit Margin has improved to 5.60%, indicating better cost management and profitability. Revenue Growth Rate is positive at 5.45% TTM, showing consistent growth. EBIT and EBITDA margins have also improved, reflecting operational efficiency.78
Positive
Balance Sheet
The balance sheet shows a stable financial position with a Debt-to-Equity Ratio of 0.28 TTM, indicating manageable leverage. Return on Equity has improved to 14.50% TTM, showcasing effective use of equity. The Equity Ratio stands at 54.83%, reflecting a solid equity base relative to assets.72
Positive
Cash Flow
Cash flow metrics are strong, with a significant Free Cash Flow Growth Rate of 61.67% TTM, indicating robust cash generation. The Operating Cash Flow to Net Income Ratio is 2.08, and the Free Cash Flow to Net Income Ratio is 1.82, both suggesting strong cash flow relative to earnings.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 651.93M | 565.80M | 510.10M | 429.14M | 353.75M | 390.98M |
| Gross Profit | 248.03M | 202.78M | 179.77M | 143.58M | 135.87M | 129.39M |
| EBITDA | 63.92M | 49.23M | 40.44M | 11.37M | 8.61M | 4.14M |
| Net Income | 41.53M | 22.57M | 10.93M | -8.45M | -8.42M | -14.50M |
Balance Sheet | ||||||
| Total Assets | 507.93M | 464.86M | 415.59M | 409.67M | 394.42M | 403.02M |
| Cash, Cash Equivalents and Short-Term Investments | 33.11M | 74.16M | 23.40M | 8.81M | 11.22M | 28.41M |
| Total Debt | 67.88M | 107.75M | 114.10M | 123.39M | 118.23M | 135.15M |
| Total Liabilities | 224.83M | 230.52M | 215.74M | 228.17M | 215.20M | 233.86M |
| Stockholders Equity | 283.09M | 234.34M | 199.84M | 181.50M | 179.22M | 169.16M |
Cash Flow | ||||||
| Free Cash Flow | 65.10M | 63.66M | 29.29M | -169.00K | 1.30M | 41.95M |
| Operating Cash Flow | 74.37M | 72.07M | 39.21M | 9.43M | 9.80M | 47.02M |
| Investing Cash Flow | -50.02M | -15.74M | -11.46M | -9.53M | -8.45M | -5.06M |
| Financing Cash Flow | -44.34M | -5.57M | -23.84M | -2.32M | -18.53M | -19.01M |
Willdan Group Technical Analysis
Positive
100.90
Price Trends
95.30
Positive
96.09
Positive
70.91
Positive
Market Momentum
1.30
Negative
58.88
Neutral
85.96
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 100.9 is above the 20-day moving average (MA) of 94.74, above the 50-day MA of 95.30, and above the 200-day MA of 70.91, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.96 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.49B | 36.22 | 16.38% | ― | 12.90% | 72.61% | |
76 Outperform | $860.87M | 10.68 | 17.37% | ― | 12.53% | 35.68% | |
74 Outperform | $3.48B | 36.24 | 16.22% | ― | -0.64% | 168.51% | |
68 Neutral | $822.60M | 23.35 | 22.61% | ― | 16.56% | 35.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.83B | 29.40 | 6.31% | ― | 12.22% | 17.41% | |
59 Neutral | $628.56M | 38.05 | 6.31% | ― | 16.73% | ― |
* Industrials Sector Average
WLDN
Willdan Group
100.90
57.51
132.54%
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LMB
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BWMN
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36.18
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35.76%
Willdan Group Corporate Events
Willdan Group Reports Strong Third Quarter Growth
Nov 7, 2025
Willdan Group, Inc. is a nationwide provider of professional, technical, and consulting services, primarily serving utilities, government agencies, and private industries with a focus on energy efficiency, sustainability, and engineering solutions.
Willdan’s Earnings Call Highlights Strong Growth
Aug 13, 2025
Willdan’s Recent Earnings Call Reflects Strong Financial Performance
Willdan Group Reports Strong Q2 2025 Results
Aug 8, 2025
Willdan Group, Inc. is a nationwide provider of professional, technical, and consulting services, primarily serving utilities, government agencies, and private industries with a focus on electric grid solutions, energy efficiency, and sustainability.
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.