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Willdan Group
(NASDAQ:WLDN)
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Rating:75Outperform
Price Target:
$89.00
▲(14.43% Upside)
Action:Reiterated
Date:06/19/26
Overall score is driven primarily by strong financial performance (profitability and growth improvement plus materially reduced leverage). The earnings call further supports the outlook via raised guidance and strong EBITDA/margin trends, while the score is tempered by weaker recent free-cash-flow momentum and a mixed/neutral technical picture; valuation appears moderate with no dividend yield support.
Positive Factors
Revenue and Margin Turnaround
TTM revenue near $684M with ~40% growth and a return to positive net margin (~8.2%) reflects durable demand for Willdan’s services. Sustained top‑line expansion plus regained profitability supports reinvestment, scale economics, and lowers business risk over the medium term.
Negative Factors
Weaker Free Cash Flow Momentum
A sharp ~38.7% decline in TTM free cash flow and a quarter of negative OCF (timing‑related) reduce the company’s internal funding capacity. Slower FCF growth can constrain capex, integration spend, or the pace of organic scaling and may increase sensitivity to working‑capital swings.
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Positive Factors
Negative Factors
Revenue and Margin Turnaround
TTM revenue near $684M with ~40% growth and a return to positive net margin (~8.2%) reflects durable demand for Willdan’s services. Sustained top‑line expansion plus regained profitability supports reinvestment, scale economics, and lowers business risk over the medium term.
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Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)432.20K
Price to Earnings (P/E)20.2
Beta (1Y)0.85
Revenue Growth14.87%
EPS Growth121.85%
CountryUS
Employees1,761
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.87
Shares Outstanding15,110,606
10 Day Avg. Volume323,121
30 Day Avg. Volume432,198
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)5.06
Price to Sales (P/S)2.26
P/FCF Ratio21.82
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda22.15
Forecast
1Y Price Target
$130.00Price Target Upside67.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.91
Revenue Forecast (FY)$412.87M
Willdan Group Business Overview & Revenue Model
Company Description
Willdan Group, Inc., including its various subsidiaries, offers a wide array of expert, technical, and advisory services, primarily concentrating its operations within the United States. The company's business activities are structured into two ma...
How the Company Makes Money
Willdan makes money by delivering contracted professional services and managed programs for government entities, utilities, and commercial clients. Its revenue is primarily generated from (1) project-based and time-and-materials consulting/enginee...
Willdan Group Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: double-digit normalized revenue growth, record adjusted EBITDA, margin expansion, upgraded guidance, and strategic M&A (Burton, APG) that materially expand commercial exposure and recurring revenue. The primary negatives are short-term operating cash timing volatility, higher G&A from acquisitions and compensation, a temporary revolver draw to fund Burton, and timing/ramping risk on certain large contracts and niche hiring needs. Overall the positives are substantial and appear to outweigh the manageable near-term risks.Positive Updates
Revenue Growth (Normalized)
Contract revenue rose to $155.0M (2% YoY) and net revenue to $92.0M (8% YoY). Excluding an extra week in Q1 2025, contract revenue grew ~10% YoY and net revenue grew ~17% YoY, indicating solid underlying top-line momentum.
Negative Updates
Quarterly Operating Cash Use and Timing Volatility
Operating cash flow was negative $24M in the quarter versus positive $3M a year ago. Management attributes the shortfall largely to timing (one client payment); trailing 12-month operating cash flow remains positive $52M. Free cash flow used ~$1.71 per share in the quarter (trailing 12-month free cash flow $2.81 per share).
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Q1-2026 Updates
Positive
Negative
Revenue Growth (Normalized)
Contract revenue rose to $155.0M (2% YoY) and net revenue to $92.0M (8% YoY). Excluding an extra week in Q1 2025, contract revenue grew ~10% YoY and net revenue grew ~17% YoY, indicating solid underlying top-line momentum.
Read all positive updates
Company Guidance
Willdan raised its full‑year FY26 guidance to net revenues of $410–$425 million, adjusted EBITDA of $100–$105 million and adjusted diluted EPS of $4.90–$5.05 (assuming ~15.9 million diluted shares and a 0% effective tax rate for the year), which implies adjusted EBITDA growth of roughly 26%–32% year‑over‑year and an implied margin already potentially north of ~24% this year, while management has reset its long‑term adjusted‑EBITDA‑to‑net‑revenue target to the high‑20s; the update follows a strong Q1 (contract revenue $155M, net revenue $92M — +2% and +8% reported, +10% and +17% normalized — adjusted EBITDA $18.1M, 19.6% of net revenue) and the Burton acquisition (2025: ~$103M contract revenue, $15M net revenue, $7M EBITDA) which the company says will be accretive, and reflects healthy balance‑sheet metrics (quarter‑end $28M unrestricted cash vs. $48M term loan = 0.2x net debt/TTM adjusted EBITDA, with a $30M revolver draw post‑quarter raising leverage to ~0.6x expected to be repaid by year‑end) and a long‑term free‑cash‑flow expectation of >70% of adjusted EBITDA.Willdan Group Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 684.28M | 681.55M | 565.80M | 510.10M | 429.14M | 353.75M |
| Gross Profit | 261.18M | 255.68M | 202.78M | 179.77M | 143.58M | 135.87M |
| EBITDA | 64.86M | 64.43M | 49.23M | 40.44M | 11.37M | 8.61M |
| Net Income | 56.40M | 52.56M | 22.57M | 10.93M | -8.45M | -8.42M |
Balance Sheet | ||||||
| Total Assets | 511.68M | 544.21M | 464.86M | 415.59M | 409.67M | 394.42M |
| Cash, Cash Equivalents and Short-Term Investments | 33.57M | 65.92M | 74.16M | 23.40M | 8.81M | 11.22M |
| Total Debt | 69.45M | 69.28M | 107.75M | 114.10M | 123.39M | 118.23M |
| Total Liabilities | 201.34M | 239.36M | 230.52M | 215.74M | 228.17M | 215.20M |
| Stockholders Equity | 310.35M | 304.85M | 234.34M | 199.84M | 181.50M | 179.22M |
Cash Flow | ||||||
| Free Cash Flow | 43.31M | 70.70M | 63.66M | 29.29M | -169.00K | 1.30M |
| Operating Cash Flow | 52.41M | 80.08M | 72.07M | 39.21M | 9.43M | 9.80M |
| Investing Cash Flow | -13.45M | -45.63M | -15.74M | -11.46M | -9.53M | -8.45M |
| Financing Cash Flow | -43.76M | -42.69M | -5.57M | -23.84M | -2.32M | -18.53M |
Willdan Group Technical Analysis
Negative
77.78
Price Trends
86.56
Negative
88.37
Negative
96.54
Negative
Market Momentum
-3.21
Positive
30.69
Neutral
11.08
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 77.78 is below the 20-day moving average (MA) of 89.69, below the 50-day MA of 86.56, and below the 200-day MA of 96.54, indicating a bearish trend. The MACD of -3.21 indicates Positive momentum. The RSI at 30.69 is Neutral, neither overbought nor oversold. The STOCH value of 11.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.18B | 50.49 | 22.14% | ― | 13.14% | 317.43% | |
75 Outperform | $1.18B | 20.17 | 19.38% | ― | 14.87% | 121.85% | |
64 Neutral | $925.31M | 27.14 | 17.86% | ― | 22.45% | -3.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $501.77M | 46.23 | 4.14% | ― | 13.27% | 297.82% | |
47 Neutral | $1.40B | 44.97 | 2.94% | ― | 8.57% | -42.26% |
* Industrials Sector Average
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Willdan Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Willdan Shareholders Approve Amended Incentive Plan and Directors
Positive
Jun 18, 2026
Willdan Group, Inc. reported that on April 20, 2026, its board approved amendments to the company’s 2008 Performance Incentive Plan, subject to stockholder approval, and these changes were subsequently endorsed at the June 17, 2026 Annual Me...
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.