Willdan Group (NASDAQ:WLDN) Announces 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 company 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 Stock Performance

Willdan Group stock traded up $12.55 during midday trading on Friday, hitting $86.24. 663,665 shares of the company were exchanged, compared to its average volume of 349,294. The business has a fifty day simple moving average of $81.40 and a two-hundred day simple moving average of $89.87. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.68 and a current ratio of 1.68. The firm has a market capitalization of $1.30 billion, a PE ratio of 23.25 and a beta of 1.14. Willdan Group has a fifty-two week low of $64.67 and a fifty-two week high of $137.00.

Analysts Set New Price Targets

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

Insider Transactions at Willdan Group

In other Willdan Group news, CEO Michael A. Bieber sold 56,676 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $91.58, for a total value of $5,190,388.08. Following the sale, the chief executive officer owned 249,525 shares in the company, valued at approximately $22,851,499.50. This represents a 18.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Willdan Group

Several large investors have recently made changes to their positions in WLDN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Willdan Group by 1.1% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,615 shares of the construction company’s stock worth $476,000 after buying an additional 85 shares during the last quarter. Mariner LLC lifted its holdings in Willdan Group by 2.0% in the fourth quarter. Mariner LLC now owns 6,062 shares of the construction company’s stock valued at $629,000 after acquiring an additional 118 shares during the last quarter. Engineers Gate Manager LP lifted its holdings in Willdan Group by 3.3% in the second quarter. Engineers Gate Manager LP now owns 6,925 shares of the construction company’s stock valued at $433,000 after acquiring an additional 222 shares during the last quarter. Transamerica Financial Advisors LLC grew its position in Willdan Group by 203.3% in the fourth quarter. Transamerica Financial Advisors LLC now owns 364 shares of the construction company’s stock worth $38,000 after acquiring an additional 244 shares during the period. Finally, Osaic Holdings Inc. grew its position in Willdan Group by 2.2% in the fourth quarter. Osaic Holdings Inc. now owns 15,761 shares of the construction company’s stock worth $1,634,000 after acquiring an additional 346 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

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.

Willdan Group Company Profile

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.