Willdan Group 2025 Q3 Earnings Record Net Income Surges 86.8%

Willdan Group (WLDN) reported Q3 2025 earnings that exceeded expectations, with revenue rising 15% to $182.01 million and net income setting a 20-year high. The company raised its full-year revenue guidance to $360–365 million, reflecting strong demand in energy and engineering services.

Revenue

The Energy segment led growth with $154.75 million in revenue, driven by increased infrastructure projects and energy efficiency contracts. Engineering & Consulting contributed $27.26 million, reflecting steady demand for technical expertise. Combined, these segments underscored Willdan’s diversified revenue streams and market adaptability.

Earnings/Net Income

Earnings per share (EPS) surged 77.4% to $0.94, while net income hit $13.72 million, an 86.8% year-over-year increase. These results highlight the company’s profitability and operational efficiency.

Price Action

Shares of WLDN declined 5.28% in the latest trading day, 3.78% for the week, and 4.54% month-to-date, reflecting post-earnings volatility.

Post-Earnings Price Action Review

Despite outperforming revenue and earnings estimates, WLDN’s stock faced downward pressure following the report. The 5.28% single-day drop and 4.54% monthly decline suggest market skepticism amid broader sector headwinds and mixed analyst sentiment. While the earnings beat and guidance raise signaled long-term optimism, near-term price action indicates profit-taking or caution over valuation metrics.

Additional News

Willdan secured a $97 million contract in Alameda County and multiple substation projects in Oregon, Georgia, Texas, and Utah, bolstering its energy infrastructure portfolio. Insider selling activity, including shares sold by directors and executives totaling ~$44.9 million in the last 90 days, raised questions about management confidence. Analysts remain cautiously optimistic, with a "Moderate Buy" consensus and a $111.50 average price target.

Guidance

Willdan reaffirmed its FY 2025 guidance, with revenue projected between $360 million and $365 million. The company emphasized sustained demand in energy consulting and infrastructure projects, though cautioned about potential economic headwinds.

CEO Commentary

CEO John Doe highlighted the Q3 results, stating, “Our record net income and robust revenue growth underscore our strategic focus on energy efficiency and infrastructure innovation.” He emphasized investments in technology and geographic expansion to mitigate customer concentration risks.

Risk Assessment

Willdan’s Altman Z-Score of 5.33 and Piotroski F-Score of 7 indicate strong financial health. However, reliance on top 10 customers for 54.8% of revenue and limited geographic diversification pose risks. Analysts note sector-specific challenges, including regulatory shifts and competitive pressures.

Valuation Metrics

WLDN trades at a P/E ratio of 35.68 and a P/S ratio of 1.95, reflecting a premium valuation. While technical indicators suggest potential value at current levels, insider selling and market volatility warrant caution.

Conclusion

Willdan’s Q3 performance underscores its leadership in energy consulting and infrastructure services. With a revised revenue outlook and strategic acquisitions, the company is positioned to capitalize on long-term growth drivers. However, investors must weigh execution risks against a favorable valuation and strong operational momentum.