Willdan's Q4 2024 Earnings Call: Navigating Contradictions on Federal Policy, Funding Mechanisms, and AI Integration

These are the key contradictions discussed in Willdan's latest 2024 Q4 earnings call, specifically including: Federal Policy Impact and Growth Expectations, Funding and Accountability for RENs, and Software Cross-Selling and APG's Integration:



Record Financial Performance:
- Willdan Group reported a strong finish to the fiscal year 2024, with contract revenue up 11% year-over-year and adjusted EBITDA up 24%.
- GAAP EPS nearly doubled year-over-year, and adjusted EPS increased by 39%.
- This growth was driven by execution and performance across all business lines.

Expansion into the Commercial Technology Sector:
- Willdan's commercial customers now make up 15% of revenue, doubling the percentage from the previous year.
- The company's strategic acquisitions, including Enica and APG, have strengthened its capabilities in serving commercial technology clients.

Strong Cash Flow and Acquisitions:
- Willdan generated $4.49 per share of free cash flow in 2024, enhanced by its latest acquisition of Alternative Power Generation, Inc. (APG).
- The acquisition expanded Willdan's utility scale electrical engineering expertise to better serve the growing commercial data center market.

Regulatory and Utility Work:
- Double-digit percent increases in building solutions activities, utility programs, and municipal civil engineering services contributed to the company's growth.
- This was driven by strong demand in California and New York for additional sources of electricity and energy efficiency programs.