Willdan Group Q3 Earnings Announcement

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11/06/2025 – 04:08 PM

ANAHEIM, Calif. — Willdan Group, Inc. (Nasdaq: WLDN) today reported robust financial results for its third quarter ended October 3, 2025, signaling continued strong performance and a promising outlook for the company.

Key Takeaways from Willdan’s Q3 2025 Performance:

• Revenue Surge: Contract revenue reached $182.0 million, marking a significant 15.0% increase. Net revenue, a key metric excluding subcontractor services, climbed even higher to $95.0 million, up by an impressive 25.5%.
• Profitability Gains: Net income soared to $13.7 million, reflecting an 86.8% jump, while adjusted EBITDA reached $23.1 million, a substantial 52.5% rise.
• Earnings Per Share (EPS) Growth: GAAP diluted EPS advanced by 76.5% to $0.90, and adjusted diluted EPS increased by 65.8% to $1.21.

Year-to-Date Highlights (Nine Months Ending October 3, 2025):

• Revenue Expansion: Contract revenue aggregated to $507.9 million, a jump of 20.4%. Net revenue also experienced significant growth of 26.8%, reaching $275.3 million.
• Profitability Leap: Net income dramatically rose to $33.8 million, up by 127.4%. Adjusted EBITDA saw a commendable rise to $59.5 million, a 52.4% increase, showcasing enhanced operational efficiency.
• EPS Acceleration: Diluted EPS under GAAP more than doubled to $2.26, a 115.2% increase, while adjusted diluted EPS increased by an impressive 96.5% to $3.34.

CEO’s Perspective:

Mike Bieber, Willdan’s President and CEO, expressed enthusiasm about the company’s sustained momentum. “We delivered another quarter of excellent performance, driven by a 20% organic growth in net revenue and continued expansion in operating margins,” Bieber stated. He further noted that the company’s net debt significantly decreased to $16.0 million in Q3, reflecting solid financial discipline.

Bieber attributed Willdan’s success to the “strength and diversity of our business, consistent execution, and growing electricity demand driven by data centers and electrification,” which positions the company at the forefront of current technology and market trends.

Financial Targets Raised for Fiscal Year 2025:

Bolstered by these strong results, Willdan is elevating its financial targets for the full fiscal year 2025. The company now anticipates:

• Net revenue between $360 million and $365 million.
• Adjusted EBITDA between $77 million and $78 million.
• Adjusted diluted EPS between $4.10 and $4.20 per share, based on an estimated 15.2 million diluted shares.

These projections assume a 10% effective tax rate benefit and exclude potential future acquisitions.

Strategic Analysis:

Willdan’s impressive performance can be attributed to its strategic focus on high-growth sectors, including:

• Data Center Infrastructure: With the proliferation of cloud computing and AI, data centers are expanding rapidly, creating significant demand for energy-efficient infrastructure solutions that Willdan provides.
• Electrification Initiatives: Rising investment in EV infrastructure and renewable energy projects fuels the demand for Willdan’s expertise in grid modernization, energy efficiency enhancements, and sustainable energy solutions.
• Integrated Service Offerings: Willdan’s comprehensive service suite spans electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting offer diversification that buffers against the volatility in individual markets or sectors.

The company’s reliance on non-GAAP measures such as net revenue and adjusted EBITDA showcases a strategy to provide investors with a deeper understanding of operational performance, excluding transient factors that can obscure underlying trends.

Balance Sheet Highlights:

From a balance sheet perspective, Willdan maintains a robust financial foundation. Key figures include:

• Total Assets: $507.9 million as of October 3, 2025, up from $464.9 million at the end of 2024.
• Total Liabilities: $224.8 million, showing a strategic decrease compared to $230.5 million at the end of 2024.
• Stockholders’ Equity: $283.1 million, an increase from $234.3 million, reflecting enhanced financial health.

Looking Ahead:

Willdan’s strategic positioning in the energy and infrastructure sectors, combined with its upwardly revised guidance, suggests continued growth and profitability. The company’s focus on innovation, adaptation to evolving industry needs, and sound financial management practices places it favorably in a market landscape increasingly oriented towards reliable and sustainable infrastructure solutions.

About Author

Jam

Jan, a seasoned journalist, specializes in major corporations' stock industry and the IT tech internet field. With years of experience, she's known for dissecting global tech giants' stock moves, analyzing financial impacts and industry trends. Jan excels at simplifying complex data and tech concepts, and her work appears in renowned financial and tech publications.