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Willdan Group
(NASDAQ:WLDN)
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Rating:71Outperform
Price Target:
$81.00
▲(11.52% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by improved financial performance (stronger profitability, healthier balance sheet, strong ROE) and a very constructive earnings update with raised guidance and strong profitability/cash-flow commentary. These strengths are tempered by weaker intermediate-term technicals (below key moving averages with negative MACD) and only fair valuation support at a ~17.7 P/E with no dividend yield provided.
Positive Factors
Low leverage and strong ROE
Willdan's materially reduced leverage (debt-to-equity ~0.25) and strong ROE (~20.9%) provide durable financial flexibility. Lower debt supports bidding on large, multi-year public and utility programs, funds M&A and investment, and reduces interest burden, strengthening resilience across industry cycles.
Negative Factors
Volatile free cash flow conversion
Free cash flow variability in a working-capital-heavy consulting/project business poses a structural risk to funding growth and acquisitions. Even with positive FCF, swings reduce predictability for debt paydown and capital allocation, requiring conservative liquidity management and tighter working-capital controls over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong ROE
Willdan's materially reduced leverage (debt-to-equity ~0.25) and strong ROE (~20.9%) provide durable financial flexibility. Lower debt supports bidding on large, multi-year public and utility programs, funds M&A and investment, and reduces interest burden, strengthening resilience across industry cycles.
Read all positive factors
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend YieldN/A
Average Volume (3M)319.79K
Price to Earnings (P/E)17.7
Beta (1Y)0.79
Revenue Growth14.87%
EPS Growth121.85%
CountryUS
Employees1,814
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.42
Shares Outstanding15,110,606
10 Day Avg. Volume261,529
30 Day Avg. Volume319,793
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$136.67Price Target Upside88.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.92
Revenue Forecast (FY)$412.83M
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:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a decidedly positive operational and financial narrative: strong revenue growth, record adjusted EBITDA and margins, robust cash flow, successful acquisitions driving commercial expansion, and a growing pipeline of large, complex projects. Key risks discussed were margin mix pressure, higher non-cash and acquisition-related charges, timing uncertainty on the large LADWP ramp, and the expiry of a tax benefit that will raise second-half tax expense. On balance, the highlights (material revenue and profitability gains, cash generation, healthy balance sheet, and M&A momentum) outweigh the noted challenges and conservatism in guidance.Positive Updates
Strong Top-Line Growth
Contract revenue increased 33% year-over-year to $231.0M in Q2; net revenue grew 23% year-over-year to $117.0M. First half contract revenue rose 19% to $386.0M and net revenue increased 16% to $210.0M (or +23% and +21% excluding an extra week in 1H25). Trailing 12-month contract and net revenue each grew 18% to $742.0M and $394.0M, respectively.
Negative Updates
Gross Margin Compression in Q2
Gross margin declined 150 basis points in Q2 as revenue mix shifted toward performance engineering and commercial projects that carry higher equipment and subcontractor content. That mix pressure reduced gross margin even as gross profit dollars rose 28% year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Contract revenue increased 33% year-over-year to $231.0M in Q2; net revenue grew 23% year-over-year to $117.0M. First half contract revenue rose 19% to $386.0M and net revenue increased 16% to $210.0M (or +23% and +21% excluding an extra week in 1H25). Trailing 12-month contract and net revenue each grew 18% to $742.0M and $394.0M, respectively.
Read all positive updates
Company Guidance
Willdan raised its full‑year 2026 guidance to net revenue of $415–430 million, adjusted EBITDA of $103–107 million, and adjusted diluted EPS of $5.00–5.15 (assuming ~15.9 million diluted shares and a 0% effective tax rate for the year); management expects 2026 adjusted EBITDA margin to expand to roughly 25% (up from 21.8% in 2025) even though Q2 delivered a record 28.2% adjusted EBITDA margin that may not persist, and reiterated it expects to convert >70% of adjusted EBITDA into free cash flow (LTM operating cash flow $71M, free cash flow $62M or $4.04/share), finished the quarter with $33M net debt (net debt/TTM adj. EBITDA ~0.3x) and $165M total available liquidity, and cautioned the guide is conservative mainly because timing of ramp for the $110M LADWP expansion could push some revenue into early 2027.Willdan Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
81
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 741.84M | 681.55M | 565.80M | 510.10M | 429.14M | 353.75M |
| Gross Profit | 280.31M | 255.68M | 202.78M | 179.77M | 143.58M | 135.87M |
| EBITDA | 79.58M | 64.43M | 49.23M | 40.44M | 11.37M | 8.61M |
| Net Income | 65.31M | 52.56M | 22.57M | 10.93M | -8.45M | -8.42M |
Balance Sheet | ||||||
| Total Assets | 634.88M | 544.21M | 464.86M | 415.59M | 409.67M | 394.42M |
| Cash, Cash Equivalents and Short-Term Investments | 39.22M | 65.92M | 74.16M | 23.40M | 8.81M | 11.22M |
| Total Debt | 89.19M | 69.28M | 107.75M | 114.10M | 123.39M | 118.23M |
| Total Liabilities | 284.41M | 239.36M | 230.52M | 215.74M | 228.17M | 215.20M |
| Stockholders Equity | 350.46M | 304.85M | 234.34M | 199.84M | 181.50M | 179.22M |
Cash Flow | ||||||
| Free Cash Flow | 35.95M | 70.70M | 63.66M | 29.29M | -169.00K | 1.30M |
| Operating Cash Flow | 46.51M | 80.08M | 72.07M | 39.21M | 9.43M | 9.80M |
| Investing Cash Flow | -62.67M | -45.63M | -15.74M | -11.46M | -9.53M | -8.45M |
| Financing Cash Flow | -9.32M | -42.69M | -5.57M | -23.84M | -2.32M | -18.53M |
Willdan Group Technical Analysis
Positive
72.63
Price Trends
81.66
Positive
81.35
Positive
93.56
Negative
Market Momentum
-0.70
Negative
65.52
Neutral
71.47
Neutral
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 72.63 is below the 20-day moving average (MA) of 73.15, below the 50-day MA of 81.66, and below the 200-day MA of 93.56, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.04B | 17.71 | 19.38% | ― | 14.87% | 121.85% | |
69 Neutral | $5.19B | 31.35 | 24.17% | ― | 16.06% | 121.28% | |
69 Neutral | $854.74M | 25.07 | 15.56% | ― | 22.45% | -3.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $470.08M | 43.31 | 4.14% | ― | 13.27% | 297.82% | |
53 Neutral | $1.12B | 35.71 | 2.47% | ― | 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.