Willdan (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
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Rating:67Neutral
Price Target:
$85.00
▲(9.28% Upside)
Action:ReiteratedDate:02/28/26
Score is supported by strong financial momentum (profitability, cash generation, and deleveraging) and a generally positive earnings call with modest growth guidance. It is held back primarily by weak technicals (price below key moving averages and negative MACD) and a P/E that looks somewhat elevated without a dividend yield provided.
Positive Factors
Strong cash generation
Sustained operating cash (~$80M) and free cash flow (~$71M), with FCF running ~88% of net income, indicate high cash conversion. Durable cash generation supports organic investment, debt paydown, acquisitions and a liquidity buffer that enhances financial resilience over the medium term.
Negative Factors
Project timing & cash volatility
The project-based business produces working-capital swings and episodic FCF volatility. Timing between contract awards, recognition and cash collection can create lumpy results, complicating cash planning and elevating operational risk if multiple large projects shift or face payment delays.
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Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash (~$80M) and free cash flow (~$71M), with FCF running ~88% of net income, indicate high cash conversion. Durable cash generation supports organic investment, debt paydown, acquisitions and a liquidity buffer that enhances financial resilience over the medium term.
Read all positive factors
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.15B
Dividend YieldN/A
Average Volume (3M)290.90K
Price to Earnings (P/E)29.3
Beta (1Y)0.79
Revenue Growth20.46%
EPS Growth122.26%
CountryUS
Employees1,761
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.57
Shares Outstanding14,796,110
10 Day Avg. Volume296,678
30 Day Avg. Volume290,901
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 Cap0.86
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda15.42
Forecast
1Y Price Target
$130.00Price Target Upside67.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.41
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive operational and financial performance for fiscal 2025 — record revenue, sizable organic growth, meaningful margin expansion, robust free cash flow and a net cash position. Management highlighted a solid pipeline, large contract wins, and accelerating data-center-driven demand supported by strategic acquisitions. The primary negatives are a near-term tax incentive headwind (potential expiration of Section 179D) that reduces 2026 EPS guidance and some timing/ execution risks tied to program ramps and acquisition integration. Overall, the positives (broad-based growth, profitability, cash generation, and strategic positioning) outweigh the headwinds.Positive Updates
Record revenue and strong top-line growth
Fiscal 2025 consolidated contract revenue grew 21% to $682M and net revenue grew 23% to $365M; Q4 contract revenue +21% to $174M and Q4 net revenue +13% to $89.5M. Of the 23% net revenue growth, 17% was organic and 6% from acquisitions.
Negative Updates
Tax incentive uncertainty (Section 179D) weighing on 2026 guidance
2026 guidance assumes a materially smaller tax benefit (~10% effective tax benefit) versus the ~31.4% tax benefit realized in 2025 driven by 179D. Management notes 179D is set to expire end of June unless renewed, reducing the potential full-year tax advantage and pressuring EPS guidance.
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Q4-2025 Updates
Positive
Negative
Record revenue and strong top-line growth
Fiscal 2025 consolidated contract revenue grew 21% to $682M and net revenue grew 23% to $365M; Q4 contract revenue +21% to $174M and Q4 net revenue +13% to $89.5M. Of the 23% net revenue growth, 17% was organic and 6% from acquisitions.
Read all positive updates
Company Guidance
Willdan guided 2026 net revenue of $390–$405 million, adjusted EBITDA of $85–$90 million and adjusted adjusted EPS of $4.50–$4.70, assuming a full‑year effective tax benefit of ~10% and 15.8 million diluted shares outstanding; the guidance assumes no future acquisitions (management expects to make acquisitions and will update guidance if they occur). For context, fiscal 2025 was a record year with net revenue $365M (contract revenue $682M), adjusted EBITDA $79.5M and a 21.8% adjusted EBITDA margin (above the 20% target), adjusted EPS $4.89 (GAAP EPS $3.49), cash from operations $80M, free cash flow $71M, $66M unrestricted cash and a $17M net cash position—so 2026 targets imply modest revenue and EBITDA growth versus FY25 but a lower EPS run‑rate due primarily to a smaller 179D tax benefit.Willdan Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 681.55M | 565.80M | 510.10M | 429.14M | 353.75M |
| Gross Profit | 255.68M | 202.78M | 179.77M | 143.58M | 135.87M |
| EBITDA | 64.43M | 49.23M | 40.44M | 11.37M | 8.61M |
| Net Income | 52.56M | 22.57M | 10.93M | -8.45M | -8.42M |
Balance Sheet | |||||
| Total Assets | 544.21M | 464.86M | 415.59M | 409.67M | 394.42M |
| Cash, Cash Equivalents and Short-Term Investments | 65.92M | 74.16M | 23.40M | 8.81M | 11.22M |
| Total Debt | 69.28M | 107.75M | 114.10M | 123.39M | 118.23M |
| Total Liabilities | 239.36M | 230.52M | 215.74M | 228.17M | 215.20M |
| Stockholders Equity | 304.85M | 234.34M | 199.84M | 181.50M | 179.22M |
Cash Flow | |||||
| Free Cash Flow | 70.70M | 63.66M | 29.29M | -169.00K | 1.30M |
| Operating Cash Flow | 80.08M | 72.07M | 39.21M | 9.43M | 9.80M |
| Investing Cash Flow | -45.63M | -15.74M | -11.46M | -9.53M | -8.45M |
| Financing Cash Flow | -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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.27B | 28.92 | 19.65% | ― | 8.79% | 306.58% | |
72 Outperform | $1.12B | 18.61 | 22.04% | ― | 24.68% | 22.94% | |
67 Neutral | $1.15B | 29.35 | 19.12% | ― | 20.46% | 122.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $545.56M | 44.33 | 4.94% | ― | 14.88% | 392.87% | |
49 Neutral | $1.48B | 34.84 | 4.24% | ― | 9.16% | -22.45% |
* Industrials Sector Average
WLDN
Willdan Group
66.91
27.51
69.82%
AMRC
Ameresco
27.91
17.19
160.35%
MYRG
MYR Group
346.37
223.42
181.72%
LMB
Limbach Holdings
93.14
1.09
1.18%
BWMN
Bowman Consulting Group
31.09
9.02
40.87%
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.