Is Willdan's Commercial Expansion Fueling Its Next Growth Phase?

Willdan Group, Inc. WLDN delivered a strong finish to fiscal 2025, highlighting how expanding opportunities in the commercial market, particularly data centers, could shape its next phase of growth. Commercial customers accounted for roughly 11% of revenues in 2025, with much of that tied to data center-related work. The surge in Artificial Intelligence applications is driving significant electricity demand, creating opportunities for companies that can help plan, design and optimize power infrastructure.

In fiscal 2025, Willdan’s contract revenues rose 20.5% year over year to $681.6 million, with net revenues increasing 23.1% to $364.8 million. Adjusted EBITDA climbed 40.2% to $79.5 million from the past year, reflecting strong execution and a favorable project mix. Adjusted earnings per share (EPS) grew year over year by a whopping 101.2% to $4.89.

Given the expanding commercial segment, WLDN is positioning itself to benefit from this trend moving into 2026. Through its consulting, engineering and program management services, the company supports data center developers with site analysis, substation design and energy efficiency optimization. Management expects activity tied to data centers, particularly through its acquired power engineering capabilities, to more than double in 2026. Looking ahead, Willdan expects 2026 net revenues between $390 million and $405 million and adjusted EBITDA of $85-$90 million. While adjusted EPS guidance of $4.50-$4.70 reflects normalization of tax benefits, the company anticipates margins will remain above its 20% target.

With strong demand across utilities, government and commercial markets, Willdan’s expanding role in powering digital infrastructure could become a key catalyst for sustained growth.

Willdan Rides AI Power Demand Amid Engineering Heavyweights

Willdan competes with large infrastructure consultants such as Jacobs Solutions, Inc. J and AECOM ACM in the rapidly expanding data-center infrastructure market, where AI and cloud computing are driving unprecedented power demand and digital infrastructure investments.

Jacobs and AECOM operate at a much larger global scale, providing end-to-end engineering, architecture and construction management services for hyperscale data centers worldwide. Jacobs brings decades of mission-critical design experience and integrated planning, engineering and commissioning capabilities. AECOM offers lifecycle services, from site selection and design to construction management, across dozens of countries, enabling rapid deployment of large digital-infrastructure projects.

Market dynamics favor all three firms as AI-driven computing demand accelerates electricity consumption and infrastructure spending. However, WLDN’s utility-centric expertise and energy-efficiency programs position it to capture growth in power-constrained markets, while Jacobs and AECOM retain advantages in global scale and mega-project delivery for hyperscale data-center campuses.

WLDN Stock’s Price Performance & Valuation Trend

Shares of this California-based provider of engineering, energy and consulting services have surged 108.3% in the past year, outperforming the Zacks Business - Services industry, the broader Business Services sector and the S&P 500 Index.

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WLDN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 18.28, as shown in the chart below.

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Earnings Estimate Revision for WLDN

WLDN’s earnings estimates for fiscal 2026 have moved upward over the past 30 days. However, the revised estimate for fiscal 2026 implies a year-over-year decline of 6.8%.

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Willdan stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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