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Willdan Group (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
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Select Model
Rating:75Outperform
Price Target:
$151.00
▲(12.69% Upside)
The score is driven primarily by solid financial performance (profitability, cash flow strength, and low leverage) and a highly positive earnings call with raised guidance and record results. These positives are partially offset by a stretched technical setup (overbought RSI/Stoch) and a high valuation multiple (P/E 48.09).
Positive Factors
Cash generation
Very strong free cash flow growth and high cash conversion indicate durable internal funding for reinvestment, debt reduction, and acquisitions. This improves flexibility to pursue strategic growth and cushions margins during project timing variability over the next several quarters.
Public-sector contract pipeline
Large, multi-year public-sector performance contracts create predictable revenue streams and recurring implementation work. Securing a $97M county energy/infra contract reinforces scale in core markets and supports sustained backlog, cross-selling, and long-term client relationships.
M&A driving capability expansion
Successful acquisitions that materially add contracts and capabilities show a repeatable inorganic growth playbook. When integrated well, M&A accelerates market entry, diversifies service set, and boosts revenue visibility—supporting durable expansion if integration remains controlled.
Negative Factors
Execution risk from rapid growth
Rapid organic and acquisitive growth strains staffing, project management and quality controls. Persistent execution gaps could erode margins, delay revenue recognition, and damage municipal relationships; these integration and resourcing risks can impair sustainable profitability.
EBIT margin softness
A decline in EBIT margin points to pressure on operating efficiency despite revenue gains. If not addressed via pricing, productivity or scale benefits, weaker operating margins could limit cash available for reinvestment and make earnings more sensitive to project cost variability.
Dependence on government and utility funding
Heavy exposure to public-sector and utility-funded programs ties revenue to budget cycles, regulatory priorities and grant availability. Structural funding shifts or policy changes can reduce new award flow and create multi-quarter volatility in bookings and cash timing.
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend YieldN/A
Average Volume (3M)230.16K
Price to Earnings (P/E)48.1
Beta (1Y)0.76
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. Volume338,718
30 Day Avg. Volume230,157
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 Cap0.75
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit5.74
Enterprise Value/Ebitda22.27
Forecast
1Y Price Target
$138.33Price Target Upside3.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.39
Revenue Forecast (FY)$388.67M
Willdan Group Business Overview & Revenue Model
Company DescriptionWilldan 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 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
133.99
Price Trends
104.42
Positive
101.74
Positive
82.52
Positive
Market Momentum
6.51
Negative
76.80
Negative
97.21
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 133.99 is above the 20-day moving average (MA) of 113.93, above the 50-day MA of 104.42, and above the 200-day MA of 82.52, indicating a bullish trend. The MACD of 6.51 indicates Negative momentum. The RSI at 76.80 is Negative, neither overbought nor oversold. The STOCH value of 97.21 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $931.59M | 13.03 | 17.37% | ― | 12.53% | 35.68% | |
76 Outperform | $3.56B | 39.45 | 16.22% | ― | -0.64% | 168.51% | |
75 Outperform | $1.91B | 48.09 | 16.38% | ― | 12.90% | 72.61% | |
73 Outperform | $975.49M | 28.61 | 22.61% | ― | 16.56% | 35.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.62B | 26.53 | 6.31% | ― | 12.22% | 17.41% | |
57 Neutral | $630.82M | 38.02 | 6.31% | ― | 16.73% | ― |
* Industrials Sector Average
WLDN
Willdan Group
133.99
96.00
252.70%
AMRC
Ameresco
31.32
6.63
26.85%
GLDD
Great Lakes Dredge & Dock
15.44
3.42
28.45%
MYRG
MYR Group
244.19
96.32
65.14%
LMB
Limbach Holdings
86.67
-7.74
-8.20%
BWMN
Bowman Consulting Group
36.15
10.79
42.55%
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.