What does Willdan Group do and what are its main business segments?

What guidance did Willdan Group's management provide for the next earnings period?

What factors drove the changes in Willdan Group's revenue and profit?

What is the market's earnings forecast for Willdan Group next quarter?

What were the key takeaways from Willdan Group's earnings call?

What is the revenue and EPS growth rate for Willdan Group year over year?

What were the key takeaways from Willdan Group’s earnings call?

Did Willdan Group beat or miss consensus estimates last quarter?

- **Record Growth**: Q3 net revenue $95M (+26% YoY), Adjusted EBITDA $23.1M (+53% YoY). Full-year targets raised to $360-365M net revenue.
- **Data Center Dominance**: 15% of work tied to AI-driven data center load growth. APG acquisition won $14M project within months of integration.
- **Financial Strength**: 12-month free cash flow $65M, 0.2x leverage ratio, and $183M liquidity.
- **Strategic Wins**: $97M Alameda County project, $21.7M Oregon/Georgia substations, and $14M Texas solar storage project.
- **Pipeline Confidence**: 2026 outlook supported by cross-selling efficiency and $100M+ acquisition readiness.

**【Management Opening Remarks】**
- CEO Mike Bieber and CFO Kim Early presented Q3 2025 results, highlighting record revenue growth and margin expansion. The call emphasized organic growth, strategic acquisitions (e.g., APG), and strong free cash flow conversion.

**【CEO Commentary】**
- **Revenue Growth**: Net revenue up 26% YoY to $95M, with 20% organic growth driven by utility programs and commercial data center projects. APG acquisition contributed 6% of growth.
- **Market Position**: 85% of revenue from Energy segment, 15% from Engineering/Consulting. Data center load growth (AI-driven) is a key demand driver, with Willdan helping hyperscalers navigate energy constraints.
- **Utility & Government Work**: 41% of revenue from long-term utility contracts (3-5 years), 44% from government projects funded by user fees and bonds.
- **Strategic Wins**: Q3 wins include $97M Alameda County project, $21.7M Oregon/Georgia substations, and $14M Texas solar storage project. APG-led projects accounted for 4/5 of new wins.
- **Future Outlook**: 2026 pipeline remains strong, with focus on cross-selling capabilities and strategic acquisitions. CEO raised full-year targets to $360-365M net revenue and $77-78M EBITDA.

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP EPS $0.90 (+77%), Adjusted EPS $1.21 (+66%). Adjusted EBITDA $23.1M (24% margin, +53% YoY). Free cash flow $34M for 9 months.
- **Year-to-Date Performance**: Net revenue $275M (+27%), Adjusted EBITDA $59.5M (+52%). 12-month free cash flow $65M ($4.34/share). Leverage ratio 0.2x, with $183M liquidity.
- **Full-Year Guidance Update**: Raised 2025 targets to $360-365M net revenue, $77-78M EBITDA, and $4.10-4.20 EPS.

**【Q&A Highlights】**
- **Demand Drivers**: Rising electricity prices, data center load growth (AI/hyperscalers), and utility infrastructure modernization. Willdan's upfront consulting work informs project pipeline.
- **Workforce Management**: 1,800+ employees with 0 senior management turnover. Cross-selling efficiency mitigates risks of rapid growth. Fixed-price contracts are planned months in advance to ensure staffing.
- **Acquisition Strategy**: Open to $100M+ acquisitions with strategic fit. APG integration exemplifies successful cross-collaboration (e.g., $14M Texas project won post-acquisition).
- **New York Contract**: Multiple large opportunities in negotiation, expected to drive 2026 growth.


Willdan Group, Inc. (WLDN) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: 31% revenue growth, 23% organic, driven by data center projects and utility programs. Adjusted EBITDA up 71% to $21.9M.
- **New Software Differentiator**: Proprietary tool wins $36M+ data center projects, enabling end-to-end energy solutions.
- **2025 Targets Raised**: Net revenue $340-350M, EPS $3.50-3.65, supported by 80% EBITDA-to-cash conversion.
- **Tax Rate Risk**: Potential 2027+ tax rate increase to 20% if 179D credit expires.
- **Pipeline Strength**: $330M LADWP program ramping, new RINs in CA, and NYPA expansion fuel 2026 growth.

**【CEO Summary Section】**
- Q2 2025 net revenue grew 31% YoY to $95 million, driven by 23% organic growth and 8% acquisitive growth. Energy segment revenue rose 25%, while Engineering & Consulting increased 16%.
- New proprietary software tool launched to help clients site data centers, minimizing interconnect times and costs. Key wins include $36M Phoenix data center project, $20M NYPA contracts, and $17M Sunnyvale data center project.
- 2026 outlook positive due to expanding pipeline, including LADWP program ramp and new utility programs. Cross-selling with recent APG acquisition is driving organic growth.

**【CFO Financial Commentary】**
- Q2 2025: Adjusted EBITDA $21.9M (23% of net revenue), up 71% YoY. Adjusted EPS $1.50, up 125% YoY. GAAP EPS $1.03, up 236% YoY. Free cash flow $24M for first half.
- Full year 2025 targets raised: Net revenue $340-350M, Adjusted EBITDA $70-73M, Adjusted EPS $3.50-3.65.
- Balance sheet: $28M net debt, $172M total liquidity. 80% EBITDA-to-cash conversion rate.

**【Q&A Highlights】**
- **Organic Growth Drivers**: 23% Q2 organic growth reflects cross-selling with APG acquisition, expanding utility programs, and municipal demand. Upfront consulting work grew 50% YoY.
- **Risk Management**: Tariff risk mitigation strategies include flexible contract terms and alternative suppliers. 2027+ tax rate may rise to 20% if Section 179D tax credit expires.
- **Pipeline Visibility**: $330M LADWP program ramping in 2026. New opportunities with NYPA, SCE, and RINs in California. Software-enabled cross-selling driving new wins.
- **Cash Flow Strength**: 45% fixed-price contracts reduce EPC risk. DSO 70 days, strong collections.


Willdan Group, Inc. (WLDN) Q2 2025 Earnings Call Transcript

- **Q1 2025 Record Results**: 24% revenue growth, 31% EBITDA expansion, 58% EPS surge vs. prior year.
- **AI-Driven Commercial Growth**: 15% of 2025 revenue from data centers, up from 7.5% in 2024. Secured $18M EV/solar contract.
- **Utility Stability & Scale**: $330M LADWP contract to become top program; 41% of revenue from recurring contracts.
- **Public Sector Resilience**: 44% of revenue from fee-funded work, growing 10%+ organically.
- **Electricity Demand Tailwind**: U.S. load set to rise 50% by 2050; Willdan positioned to capture $300B annual infrastructure spend.
- **Operational Efficiency**: 20% operating margin (vs. 15% 5 years ago) through cost control and value-added services.


**【CEO Opening Remarks】**
- **Record Q1 Performance**: Revenue, adjusted EBITDA, and EPS all hit new highs. Year-over-year growth: 24% in contracted net revenue, 31% in adjusted EBITDA, 58% in adjusted EPS.
- **Acquisition Momentum**: Completed 2 acquisitions to expand geographic reach and electrical engineering capabilities.
- **Credit Facility Expansion**: Increased from $150M to $200M to support growth.

**【Business Line Performance】**
- **Commercial Sector Growth**: Forecasts show 15% of 2025 revenue (up from 7.5% in 2024), driven by AI-driven data center electricity demand. Secured $18M solar/EV contract with Paramount Schools.
- **Utility Stability**: 41% of revenue from multi-year contracts funded by ratepayers. LADWP 5-year $330M contract expected to ramp in Q4 2025.
- **Public Sector Expansion**: 44% of revenue from state/local governments, growing organically at double-digit rates. Fairfield, CA awarded $30M EV infrastructure program.

**【Market Trends & Risks】**
- **Electric Load Growth**: U.S. demand set to rise 50% by 2050 due to electrification, reshoring, and AI. Willdan positioned to benefit from $300B annual infrastructure spend.
- **Tariff Risk Mitigation**: Implementing flexible contracts and alternative suppliers to offset potential equipment price hikes.
- **Federal Spending Impact**: Minimal exposure to federal programs; 90% of public sector work funded by user fees/bonds.

**【Financial Discipline】**
- Improved operating margin to 20% (adjusted EBITDA / net revenue), up from 15% 5 years ago. Focus on higher-value work and cost efficiency.

**【Sustainability Impact】**
- Client GHG emissions avoided: 100x Willdan's own emissions. 80% of revenue from energy solutions driving decarbonization.


Willdan (WLDN)-8 May 25-2025 Q1 Earnings call transcript

- **2024 Record Year**: 11% revenue growth, 24% EBITDA expansion, $4.49/share free cash flow.
- **APG Acquisition**: Adds $37M in data center engineering, targeting 10-15% 2025 revenue contribution.
- **Commercial Growth**: Tech sector share doubles to 15%, driven by AI-driven data center demand.
- **2025 Outlook**: $320-330M revenue, 20% EBITDA margin target, AI-powered software rollouts.
- **Policy Resilience**: <1% federal funding impact; state/local funding stability.

**【CEO Opening Remarks】**
- **Record 2024 Performance**: Contract revenue up 11%, adjusted EBITDA up 24%, GAAP EPS nearly doubled, and $4.49/share free cash flow.
- **Strategic Acquisitions**: APG acquisition adds $37M revenue, enabling end-to-end data center solutions (10-15% of 2025 revenue).
- **Customer Mix Shift**: Commercial tech revenue doubles to 15%, state/local gov 44%, utilities 41%.
- **AI-Driven Growth**: Data center load growth driving new commercial opportunities, targeting 20% EBITDA margin in 2025.

**【CFO Financial Highlights】**
- **2024 Results**: $566M contract revenue, $296M net revenue, $56.8M adjusted EBITDA, $2.43 EPS (39% YoY).
- **Cash Flow Strength**: $72M operating cash flow, $64M free cash flow, $124M liquidity.
- **2025 Guidance**: $320-330M net revenue, $63-67M EBITDA, $2.70-2.85 EPS (16% tax rate).

**【Q&A Key Takeaways】**
- **LADWP Contract**: $330M 5-year deal to ramp H2 2025, adds complex measures like heat pumps.
- **REN Programs**: State-funded, simpler contracts with time/materials terms, $15M SoCalREN and $6M CCREN wins.
- **Policy Impact**: Minimal federal admin change impact; <1% backlog affected by budget cuts.
- **Software Integration**: AI-powered LoadSEER v2 launching H1 2025, simplified for small utilities.
- **International Expansion**: No near-term Europe plans; U.S. growth focus with potential acquisitions.

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