Willdan (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
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Rating:75Outperform
Price Target:
$99.00
▲(27.28% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals (strong growth, profitability and lower leverage) and a notably positive earnings update with raised full-year guidance. Offsetting factors are weaker recent free-cash-flow momentum, mixed longer-term technicals (below 100/200-day averages with negative MACD), and a relatively high P/E with no dividend yield provided.
Positive Factors
Accelerating revenue and margin recovery
Sustained multi-year top-line acceleration and positive margins indicate the business has moved from loss-making to consistently profitable operations. That durability supports reinvestment, bidding competitiveness on multi-year public and utility contracts, and a stronger earnings base over 2–6 months.
Negative Factors
Free cash flow weakness and timing volatility
A steep FCF decline and noted quarterly operating cash timing shortfalls signal working‑capital and client payment sensitivity. Durable execution and cash collection are critical for funding growth and repaying temporary revolver draws; volatility constrains free‑cash reuse for M&A or capex.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and margin recovery
Sustained multi-year top-line acceleration and positive margins indicate the business has moved from loss-making to consistently profitable operations. That durability supports reinvestment, bidding competitiveness on multi-year public and utility contracts, and a stronger earnings base over 2–6 months.
Read all positive factors
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.39B
Dividend YieldN/A
Average Volume (3M)463.30K
Price to Earnings (P/E)34.7
Beta (1Y)0.83
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. Volume702,073
30 Day Avg. Volume463,295
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 Cap0.99
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit5.29
Enterprise Value/Ebitda21.03
Forecast
1Y Price Target
$130.00Price Target Upside67.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.58
Revenue Forecast (FY)$399.47M
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 comprehens...
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-serv...
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).
Read all updates
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 | 65.73M | 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
90.76
Negative
102.28
Negative
98.48
Negative
Market Momentum
-2.90
Negative
41.72
Neutral
27.87
Neutral
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 79.19, below the 50-day MA of 90.76, and below the 200-day MA of 98.48, indicating a bearish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.28B | 23.43 | 22.14% | ― | 13.14% | 317.43% | |
75 Outperform | $1.39B | 34.71 | 19.38% | ― | 14.87% | 121.85% | |
65 Neutral | $545.54M | -31.60 | 4.14% | ― | 13.27% | 297.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $865.35M | 52.39 | 17.86% | ― | 22.45% | -3.60% | |
58 Neutral | $1.75B | -18.44 | 2.94% | ― | 8.57% | -42.26% |
* Industrials Sector Average
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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.