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Willdan: Willdan Group's Record 2025 Performance Fueled by Energy and Data Center Growth

Willdan Group achieved a record financial performance in 2025, with contract revenue increasing 21% to $682 million and net revenue growing 23% to $365 million. The company's adjusted EBITDA grew 40% and yearly margins expanded to above 20% for the first time, driven by strong energy work. The fourth quarter saw contract revenue rise 21% to $174 million, and net revenue grow 13% to $89.5 million, with adjusted earnings per share more than doubling to $1.57. This impressive performance was fueled by a robust pipeline of opportunities, with the average contract size continuing to grow, and a strong presence in the utility and data center markets.

WLDN

USD 87.48

-1.86%

A-Score: 4.9/10

Publication date: February 27, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Revenue Growth Contract revenue grew 21% YoY to $174M (Q4) and $682M (2025), with net revenue up 13% to $89.5M (Q4) and 23% to $365M (2025).
  • Strong EBITDA and Margin Expansion Adjusted EBITDA surged 40% in 2025 to $85.5M (up from $61M in 2024), with gross margins expanding to 37.5% (from 35.8%) and EBITDA margins exceeding 20%.
  • Data Center Segment Growth Data center revenue is projected to more than double in 2026 (from APG acquisition), reaching 20% of total revenue by year-end, driven by power demand for digital infrastructure.
  • 2026 Guidance Net revenue forecasted at $390M–$405M, adjusted EBITDA of $85M–$90M, and EPS of $4.50–$4.70, with margins expected to exceed 20%.
  • Free Cash Flow and Capital Position Generated $71M in free cash flow in 2025, achieving a net cash position, with $20M in adjusted EBITDA for Q4 alone.

Segment Performance and Growth Drivers

The utility segment, representing about 41% of revenue, continued to perform well, driven by programs funded through rate payer mechanisms. The data center market, which has rapidly grown to 11% of revenue, is expected to drive future growth, with sustained demand for electricity extending through the end of the decade. The company's ability to quickly bring the right resources to customers and execute projects impeccably has enabled it to win in this segment. As Mike Bieber noted, "We're winning due to our ability to quickly bring the right resources to customers and execute projects impeccably."

Valuation and Growth Expectations

With a P/E Ratio of 24.39 and an EV/EBITDA of 20.08, the market appears to be pricing in Willdan's strong growth prospects. Analysts estimate revenue growth of 9.6% for the next year, which is slightly below the company's historical growth rate. The company's guidance for 2026 assumes no future acquisitions and includes net revenue in the range of $390 million to $405 million, adjusted EBITDA in the range of $85 million to $90 million, and adjusted earnings per share in the range of $4.50 to $4.70 per share.

Acquisition Strategy and Capital Allocation

Willdan's acquisition strategy is focused on expanding its capabilities and geographic reach, with a robust M&A pipeline to enhance scale and capabilities. The recent acquisition of Compass Municipal Advisors is expected to provide higher-margin opportunities and cross-selling opportunities with other services. The company's capital allocation priorities remain consistent, with a focus on reinvesting in the business to support organic growth and pursuing accretive acquisitions.

Willdan's A-Score