Willdan Group, Inc. (WLDN) has been making waves in the engineering and construction sector, demonstrating consistent growth and stability despite challenges in the energy sector. As an investor, you might be wondering what key factors contribute to this success and whether it's a good time to consider adding WLDN to your portfolio. Let's dive into the bull case for Willdan Group, Inc.



1. Diversified Revenue Streams: Willdan Group operates through two main segments: Energy and Engineering and Consulting. This diversification helps mitigate risks associated with relying on a single revenue source. In the three months ended September 27, 2024, the Energy segment contributed 84.7% of total revenue, while the Engineering and Consulting segment contributed 15.3%. This balance ensures a steady revenue stream even if one segment faces temporary setbacks.
2. Strong Organic Growth: Willdan Group has demonstrated consistent organic growth in both segments. For the three months ended September 27, 2024, consolidated contract revenue increased by $25.5 million, or 19.2%, compared to the same period in 2023. The Energy segment's revenue rose by $23.0 million, or 20.7%, while the Engineering and Consulting segment saw an increase of $2.5 million, or 11.6%.
3. Strategic Acquisitions: Willdan Group has expanded its commercial energy consulting business through strategic acquisitions, such as the acquisition of Enica Engineering. This acquisition is expected to be accretive to 2025 margins, earnings, and EPS, further driving growth and stability.
4. Geographic Expansion: The company has experienced strong geographic expansion in Florida and Texas, with significant growth in municipal engineering and project management revenues. This expansion opens up new markets and increases the company's overall revenue base.
5. Adaptability to Market Trends: Willdan Group has successfully adapted to market trends, such as the growing demand for energy efficiency services and advanced technologies like AI. This adaptability ensures that the company remains relevant and competitive in the face of changing market conditions.



In conclusion, Willdan Group, Inc. (WLDN) presents a compelling bull case with its consistent growth, diversification, strategic acquisitions, geographic expansion, and adaptability to market trends. As an investor, you should consider adding WLDN to your watchlist and monitor its progress closely. Keep an eye on the company's earnings reports and any new developments to make an informed decision about whether to invest in this promising stock.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long WLDN.