Willdan's Q2 Revenue Jumps to $100.5M, Net Income Up 41%

TL;DR

WLDN is crushing it with strong revenue and profit growth, making it a solid buy for infrastructure and energy plays.

AI Summary

Willdan Group, Inc. reported a robust financial performance for the three months ended July 4, 2025, with revenue reaching $100.5 million, marking a significant increase from $92.3 million in the prior-year period. Net income also saw a substantial rise to $5.8 million, up from $4.1 million in the same quarter last year, reflecting improved operational efficiency. The company's Engineering & Consulting Services segment contributed $65.2 million in revenue, while the Energy segment generated $35.3 million. Key business changes include continued expansion in their energy efficiency programs and infrastructure projects, driven by strong demand in both public and private sectors. Risks highlighted include potential fluctuations in government funding for public sector projects and competitive pressures in the engineering and energy consulting markets. Strategically, Willdan is focused on leveraging its expertise in sustainable infrastructure and energy solutions to capture market share, as evidenced by its strong backlog and new contract wins.

Why It Matters

Willdan's strong Q2 performance, with revenue up 8.9% and net income surging 41.5%, signals robust demand for its engineering and energy consulting services, particularly in sustainable infrastructure. This growth could attract investors seeking exposure to the burgeoning green economy and infrastructure spending, potentially boosting WLDN's stock price. For employees, it suggests job security and potential expansion opportunities within a growing company. Customers benefit from Willdan's expanding capacity and expertise in critical areas like energy efficiency. In a competitive landscape, Willdan's ability to secure and execute large-scale projects, such as those with public utilities, positions it favorably against rivals like AECOM and Jacobs Engineering.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's reliance on government contracts and public utility projects, which can be subject to funding uncertainties and political shifts. While the company reported strong revenue of $100.5 million, a significant portion is derived from these potentially volatile sources. Additionally, the competitive nature of the engineering and energy consulting sectors could impact future contract wins and profit margins.

Analyst Insight

Investors should consider initiating or increasing positions in WLDN, given its strong Q2 financial performance and strategic focus on high-demand sectors like sustainable infrastructure and energy efficiency. Monitor future government spending and infrastructure legislation, as these will be key drivers for Willdan's continued growth.

Financial Highlights

revenue

$100.5M

net Income

$5.8M

revenue Growth

+8.9%

Revenue Breakdown

Key Numbers

• $100.5M — Total Revenue (Increased from $92.3 million in the prior-year period for the three months ended July 4, 2025.)
• $5.8M — Net Income (Increased from $4.1 million in the prior-year period for the three months ended July 4, 2025.)
• 8.9% — Revenue Growth (Percentage increase in total revenue for the three months ended July 4, 2025, compared to the prior year.)
• 41.5% — Net Income Growth (Percentage increase in net income for the three months ended July 4, 2025, compared to the prior year.)
• $65.2M — Engineering & Consulting Services Revenue (Revenue generated by the Engineering & Consulting Services segment for the three months ended July 4, 2025.)
• $35.3M — Energy Segment Revenue (Revenue generated by the Energy segment for the three months ended July 4, 2025.)

Key Players & Entities

• Willdan Group, Inc. (company) — filer of the 10-Q
• Alpha Inspections Inc. (company) — acquired entity mentioned in the filing
• AECOM (company) — competitor in the engineering sector
• Jacobs Engineering (company) — competitor in the engineering sector
• SEC (regulator) — recipient of the 10-Q filing
• Bloomberg (company) — financial news outlet

FAQ

Risk Factors

• Fluctuations in Government Funding [medium — regulatory]: The company's reliance on public sector projects exposes it to risks associated with potential fluctuations in government funding. Changes in budget allocations or policy priorities could impact the demand for its services.
• Competitive Pressures [medium — market]: Willdan operates in competitive markets for engineering and energy consulting. Intense competition could lead to pricing pressures and affect market share, potentially impacting revenue and profitability.

Industry Context

Willdan Group operates in the engineering services and energy consulting sectors, which are experiencing strong demand driven by infrastructure development and the push for energy efficiency. The competitive landscape includes numerous firms vying for contracts in both public and private sectors.

Regulatory Implications

The company's performance is subject to regulations governing public sector contracts and energy efficiency programs. Changes in environmental regulations or government funding policies could create both opportunities and challenges.

What Investors Should Do

1. Monitor government funding trends for public sector projects, as this is a key revenue driver and a stated risk.
2. Assess competitive dynamics within the engineering and energy consulting markets to understand potential margin pressures.
3. Evaluate the company's ability to capitalize on the growing demand for sustainable infrastructure and energy solutions, as indicated by its backlog and contract wins.

Glossary

10-Q

A quarterly report filed by publicly traded companies with the SEC that provides a comprehensive overview of a company's financial performance during the quarter. (This document provides the detailed financial information and disclosures for Willdan Group, Inc. for the period ended July 4, 2025.)

Fiscal Year End

The last day of a company's accounting year, which may not coincide with the calendar year-end. (Willdan Group, Inc.'s fiscal year ends on January 2nd, meaning the reporting period of July 4, 2025, falls within its fiscal year.)

Year-Over-Year Comparison

For the three months ended July 4, 2025, Willdan Group reported a total revenue of $100.5 million, an 8.9% increase from the prior-year period. Net income saw a substantial rise of 41.5% to $5.8 million. No new significant risks were explicitly highlighted in the summary compared to the previous period, but existing risks related to government funding and competition remain relevant.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share WLDN The Nasdaq Stock Mar

Filing Documents

• wldn-20250704x10q.htm (10-Q) — 2838KB
• wldn-20250704xex31d1.htm (EX-31.1) — 11KB
• wldn-20250704xex31d2.htm (EX-31.2) — 13KB
• wldn-20250704xex32d1.htm (EX-32.1) — 13KB
• 0001558370-25-010820.txt ( ) — 12301KB
• wldn-20250704.xsd (EX-101.SCH) — 63KB
• wldn-20250704_cal.xml (EX-101.CAL) — 84KB
• wldn-20250704_def.xml (EX-101.DEF) — 242KB
• wldn-20250704_lab.xml (EX-101.LAB) — 578KB
• wldn-20250704_pre.xml (EX-101.PRE) — 467KB
• wldn-20250704x10q_htm.xml (XML) — 2741KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 56

Controls and Procedures

Item 4. Controls and Procedures 57

OTHER INFORMATION

PART II. OTHER INFORMATION 58

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 59

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 59

Other Information

Item 5. Other Information 59

Exhibits

Item 6. Exhibits 60 i Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q (this "10-Q") contains statements that constitute forward-looking statements as that term is defined by the Private Securities Litigation Reform Act of 1995, as amended. These statements concern our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition, which are subject to risks and uncertainties. All statements other than statements of historical fact included in this 10-Q are forward-looking statements. These statements may include words such as "aim," "anticipate," "assume," "believe," "can have," "could," "due," "estimate," "expect," "goal," "intend," "likely," "may," "objective," "plan," "potential," "positioned," "predict," "should," "target," "will," "would" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events or trends. For example, all statements we make relating to our plans and objectives for future operations, growth or initiatives and strategies are forward-looking statements. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management's beliefs and assumptions. We derive many of our forward-looking statements from our own operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that predicting the impact of known factors is very difficult, and we cannot anticipate all factors that could affect our actual results. All of our forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from our expectations. Importan

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET S (in thousands, except par value) (Unaudited) July 4, December 27, 2025 2024 Assets Current assets: Cash and cash equivalents $ 32,348 $ 74,158 Restricted cash — — Accounts receivable, net of allowance for doubtful accounts of $ 456 and $ 1,313 at July 4, 2025 and December 27, 2024, respectively 55,416 65,557 Contract assets 107,055 88,528 Other receivables 4,648 2,302 Prepaid expenses and other current assets 6,355 4,979 Total current assets 205,822 235,524 Equipment and leasehold improvements, net 30,901 29,534 Goodwill 182,376 140,991 Right-of-use assets 11,044 14,035 Other intangible assets, net 34,119 29,414 Other assets 2,911 2,019 Deferred income taxes, net 17,678 13,346 Total assets $ 484,851 $ 464,863 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 42,455 $ 33,766 Accrued liabilities 59,651 62,776 Contingent consideration payable 8,500 2,500 Contract liabilities 23,418 21,556 Notes payable 2,500 10,137 Finance lease obligations 1,259 1,138 Lease liability 5,723 5,804 Total current liabilities 143,506 137,677 Contingent consideration payable 9,007 1,713 Notes payable, less current portion 57,179 79,350 Finance lease obligations, less current portion 1,376 1,379 Lease liability, less current portion 7,474 9,939 Other noncurrent liabilities 374 462 Total liabilities 218,916 230,520 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.01 par value, 10,000 shares authorized, no shares issued and outstanding — — Common stock, $ 0.01 par value, 40,000 shares authorized; 14,611 and 14,169 shares issued and outstanding at July 4, 2025 and December 27, 2024, respectively 146 142 Additional paid-in c

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View this 10-Q filing on SEC EDGAR