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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on WLDN

Willdan Group's recent performance was driven by robust earnings growth, strategic acquisitions, and strong execution in energy solutions and infrastructure consulting. The company's Q3 2025 results showed contract revenue up 15%, net revenue up 25.5%, and net income up 86.8%. The acquisition of Compass Municipal Advisors expanded its advisory reach and bolstered high-demand service capabilities. With a PEG ratio suggesting undervaluation and analyst EPS targets indicating upside potential, Willdan's growth is fueled by demand from AI, data centers, and grid upgrades. Its EBITDA margin above 20% and FCF yield around 4.35% further support its growth prospects.

1.c. Company Highlights

2. Willdan Group's Strong Q3 FY25 Results Exceed Expectations

Willdan Group reported a robust third quarter, with net revenue growing 26% year-over-year, driven by a 20% organic growth rate. The company's adjusted diluted earnings per share came in at $1.21, surpassing estimates of $0.81. The strong financial performance was accompanied by expanding margins, with significant investments in data centers and electrification. The company's ability to execute and deliver results positions it well for long-term growth.

Publication Date: Nov -24

📋 Highlights
  • 26% YoY Net Revenue Growth: Exceeded expectations with $360-365M full-year revenue guidance.
  • 20% Organic Growth Rate: Driven by data center electrification investments and strategic acquisitions.
  • $77–$78M Adjusted EBITDA: Raised full-year target alongside $4.10–$4.20 diluted EPS range.
  • 1,800+ Workforce: Strong hiring capacity with minimal growth impediments identified.
  • $100M+ New York Contracts: Potential State of NY deals remain in negotiation to fuel 2026 growth.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by a combination of organic growth and recent acquisitions. The 20% organic growth rate is a testament to Willdan's strong capabilities and execution. As Mike Bieber noted, "We spend a lot of time managing risk as we grow organically at 20-plus percent." This focus on risk management has enabled the company to expand its margins while investing in future growth opportunities.

Strong Pipeline and Acquisition Opportunities

Willdan's pipeline of opportunities remains solid, with recent acquisitions contributing to growth. The company has a strong pipeline of strategic acquisition opportunities and is well-positioned to pursue targeted acquisitions and expand capabilities in strategic markets. The acquisition of APG is executing well, with the company winning exciting projects, particularly in data centers.

Valuation and Growth Expectations

With a P/E Ratio of 34.19 and an EV/EBITDA of 23.64, the market is pricing in a certain level of growth expectations. Analysts estimate next year's revenue growth at 6.7%. Given the company's strong track record of execution and its ability to expand margins, it is likely that Willdan will continue to outperform expectations. The company's ROE of 16.15% and ROIC of 12.94% also suggest a strong ability to generate returns on capital.

Outlook and Conclusion

Willdan raised its full-year financial targets, with net revenue expected to be between $360 million and $365 million. The company's strong performance and growth prospects position it well for long-term success. With a solid pipeline of opportunities and a strong employee base, Willdan is well-equipped to continue delivering strong results and driving growth in the future.

3. NewsRoom

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Willdan Group: Why I'm Buying This Overlooked Grid Consultant

Dec -04

Source: seekingalpha.com

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Are Business Services Stocks Lagging Willdan Group (WLDN) This Year?

Dec -02

Source: zacks.com

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Healthcare Services Group (NASDAQ:HCSG) versus Willdan Group (NASDAQ:WLDN) Head to Head Analysis

Nov -30

Source: defenseworld.net

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Willdan Strengthens Infrastructure Advisory With Compass Deal

Nov -24

Source: zacks.com

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Itex (OTCMKTS:ITEX) vs. Willdan Group (NASDAQ:WLDN) Head-To-Head Analysis

Nov -23

Source: defenseworld.net

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Willdan Expands Financial Services With Acquisition of Compass Municipal Advisors

Nov -21

Source: businesswire.com

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Bailard Inc. Has $444,000 Stock Holdings in Willdan Group, Inc. $WLDN

Nov -15

Source: defenseworld.net

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Willdan to Design and Implement $97 Million in Energy and Infrastructure Upgrades for Alameda County

Nov -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Energy

Expected Growth: 3.5%

Willdan Group, Inc.'s 3.5% energy segment growth is driven by increasing demand for energy efficiency and renewable energy solutions, government incentives and regulations, and rising energy costs. Additionally, the company's expertise in grid modernization, energy storage, and electric vehicle infrastructure also contribute to its growth.

Engineering & Consulting

Expected Growth: 4.5%

Willdan Group's Engineering & Consulting segment growth of 4.5% is driven by increasing demand for energy efficiency and renewable energy solutions, expansion of existing contracts, and strategic acquisitions. Additionally, growing investments in grid modernization and infrastructure development are contributing to the segment's growth.

7. Detailed Products

Energy Efficiency Services

Willdan provides energy-efficient solutions to reduce energy consumption and greenhouse gas emissions for commercial, industrial, and government clients.

Sustainability and Resilience Services

Willdan offers sustainability and resilience services to help clients develop and implement sustainable practices and mitigate climate-related risks.

Engineering and Consulting Services

Willdan provides engineering and consulting services to support the design, development, and implementation of energy-efficient and sustainable infrastructure projects.

Grid Modernization Services

Willdan offers grid modernization services to help utilities and grid operators upgrade their infrastructure to support the integration of renewable energy sources and improve grid resilience.

Data Analytics and Software Services

Willdan provides data analytics and software services to help clients optimize energy efficiency, reduce energy costs, and improve operational performance.

8. Willdan Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Willdan Group, Inc. is medium due to the availability of alternative energy-efficient solutions and services.

Bargaining Power Of Customers

The bargaining power of customers for Willdan Group, Inc. is low due to the company's strong relationships with its clients and the customized nature of its services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Willdan Group, Inc. is medium due to the company's dependence on a few key suppliers for its energy-efficient solutions.

Threat Of New Entrants

The threat of new entrants for Willdan Group, Inc. is high due to the growing demand for energy-efficient solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Willdan Group, Inc. is high due to the competitive nature of the energy-efficient solutions industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.04%
Debt Cost 11.02%
Equity Weight 65.96%
Equity Cost 11.26%
WACC 11.18%
Leverage 51.62%

11. Quality Control: Willdan Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Matrix Service

A-Score: 4.9/10

Value: 8.4

Growth: 4.8

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

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Willdan

A-Score: 4.8/10

Value: 2.1

Growth: 7.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Tutor Perini

A-Score: 4.6/10

Value: 5.9

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

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Orion Holdings

A-Score: 4.4/10

Value: 5.2

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

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NV5 Global

A-Score: 4.3/10

Value: 4.1

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

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Limbach Holdings

A-Score: 4.2/10

Value: 1.7

Growth: 8.0

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

104.3$

Current Price

104.3$

Potential

-0.00%

Expected Cash-Flows