Willdan Group (NASDAQ:WLDN) Releases Quarterly Earnings Results, Beats Expectations By $0.77 EPS

Willdan Group (NASDAQ:WLDN) released its earnings results on Thursday. The construction company reported $2.07 EPS for the quarter, topping analysts’ consensus estimates of $1.30 by $0.77, FiscalAI reports. The business had revenue of $231.03 million during the quarter, compared to analysts’ expectations of $102.27 million. Willdan Group had a net margin of 8.24% and a return on equity of 23.36%. Willdan Group updated its FY 2026 guidance to 5.000-5.150 EPS.

Here are the key takeaways from Willdan Group’s conference call:

• Record second-quarter results: Contract revenue rose 33% to $231 million, net revenue increased 23% to $117 million, and adjusted EBITDA grew 51% to a record $33 million. Adjusted EPS increased 38% to $2.07, while GAAP EPS rose 53% to $1.58.
• Management raised its full-year 2026 outlook to $415 million-$430 million in net revenue, $103 million-$107 million in adjusted EBITDA, and $5.00-$5.15 in adjusted diluted EPS. The company expects approximately 25% adjusted EBITDA margins for the full year, up from 21.8% in 2025.
• Commercial expansion, particularly data-center electricity demand, is becoming a major growth driver and now represents about one-quarter of the business. The Burton acquisition is performing well, with early cross-selling wins and added capabilities in HVAC, energy controls, and commercial energy procurement.
• Willdan reported a broad pipeline of large, complex projects, including a $110 million LADWP solar streetlight expansion, a $53 million City College of New York upgrade, and battery storage, microgrid, biogas, and substation projects. The LADWP work is expected to ramp through late 2026 and into early 2027, although timing remains uncertain.
• Cash generation and liquidity remain strong, with $62 million of trailing-12-month free cash flow, 0.3x net debt-to-adjusted EBITDA, and $165 million of available liquidity. However, the 179D tax benefit expired for new projects at the end of June; management expects a second-half tax rate of roughly 15%-20%, though accumulated deferred tax assets should continue to support cash flow.

Willdan Group Trading Up 17.0%

NASDAQ:WLDN traded up $12.55 on Friday, reaching $86.24. The company’s stock had a trading volume of 663,665 shares, compared to its average volume of 349,294. Willdan Group has a 12-month low of $64.67 and a 12-month high of $137.00. The stock has a 50 day moving average price of $81.40 and a 200 day moving average price of $89.87. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 23.25 and a beta of 1.14. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.15.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Zacks Research cut Willdan Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Willdan Group in a research report on Tuesday, July 21st. Wall Street Zen downgraded Willdan Group from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Finally, Wedbush began coverage on Willdan Group in a report on Thursday, April 9th. They issued an “outperform” rating and a $110.00 price objective on the stock. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Willdan Group has a consensus rating of “Hold” and a consensus price target of $117.50.

Insider Activity

In related news, CEO Michael A. Bieber sold 56,676 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $91.58, for a total transaction of $5,190,388.08. Following the completion of the sale, the chief executive officer directly owned 249,525 shares of the company’s stock, valued at approximately $22,851,499.50. This trade represents a 18.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Willdan Group

Hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada lifted its stake in Willdan Group by 3.2% during the 1st quarter. Royal Bank of Canada now owns 76,990 shares of the construction company’s stock worth $3,134,000 after acquiring an additional 2,386 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Willdan Group by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,530 shares of the construction company’s stock worth $307,000 after purchasing an additional 312 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Willdan Group by 35.1% during the first quarter. Goldman Sachs Group Inc. now owns 214,421 shares of the construction company’s stock worth $8,731,000 after purchasing an additional 55,704 shares in the last quarter. Jane Street Group LLC boosted its stake in shares of Willdan Group by 205.9% in the first quarter. Jane Street Group LLC now owns 25,302 shares of the construction company’s stock valued at $1,030,000 after purchasing an additional 17,031 shares during the period. Finally, JPMorgan Chase & Co. boosted its stake in shares of Willdan Group by 10.9% in the second quarter. JPMorgan Chase & Co. now owns 87,234 shares of the construction company’s stock valued at $5,453,000 after purchasing an additional 8,602 shares during the period. Hedge funds and other institutional investors own 72.29% of the company’s stock.

More Willdan Group News

Here are the key news stories impacting Willdan Group this week:

• Positive Sentiment: Q2 results substantially beat estimates: Willdan reported $231.0 million in contract revenue, up 33.2% year over year, while net revenue increased 23.5% to $117.2 million. Net income rose 57.7% to $24.3 million. GAAP diluted EPS was $1.58, and adjusted diluted EPS was $2.07, exceeding consensus estimates near $1.30. Willdan Group Reports Second Quarter Results
• Positive Sentiment: Profitability and cash flow strengthened: Adjusted EBITDA increased 50.6% to $33.0 million, and operating cash flow reportedly reached $43.9 million. The company generated this growth with relatively modest capital spending, supporting its financial flexibility. Willdan Group Q2 2026 Earnings
• Positive Sentiment: FY 2026 EPS guidance was raised or reaffirmed above expectations: Management projected adjusted EPS of $5.00-$5.15, compared with an analyst consensus of approximately $4.77. This gives investors a favorable outlook for continued earnings growth. Willdan Group Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Revenue guidance comparisons are unclear: Willdan issued fiscal-year revenue guidance of $415 million-$430 million, but the reported analyst comparison of $715 million appears inconsistent with the company’s use of contract revenue versus net revenue. Investors may need clarification on the applicable revenue measure.
• Negative Sentiment: Insider selling remains a potential overhang: Quiver reported five insider sales and no purchases over the past six months, including CEO Michael A. Bieber’s sale of 66,667 shares. Institutional positioning was mixed, with 125 investors adding shares and 136 reducing positions.

About Willdan Group

Willdan Group, Inc provides energy efficiency, infrastructure engineering, and technical consulting services to a diverse range of public and private sector clients. The company works with utilities, municipalities, state and federal agencies, and commercial enterprises to design, implement, and manage programs that promote sustainable energy use, grid modernization, and resilient infrastructure. Willdan’s offerings span program design and implementation, energy audits, measurement and verification, and project management for both new construction and retrofit initiatives.

Core services include energy advisory and engineering solutions, including feasibility studies, facility commissioning and retro-commissioning, $0 down financing for energy projects, and demand response program development.