Willdan Group, Inc.’s (WLDN) long-standing relationship with the City of Fairfield stems from its continuous support through engineering, special district and federal compliance, financial services and electrification strategies.Underscoring this strategic long-term relationship, Willdan has announced a new $30 million energy savings performance contract for the City of Fairfield. Per the contract, the company’s work scope will ensure the expansion of the energy and infrastructure modernization services for ...

Willdan Group, Inc.’s (WLDN) efficient service execution and seamless performance across all its business lines are boding well for its contract win trend. Holding to this aspect, recently the company’s backlog witnessed a boost from a new contract in Paramount, CA.Recently, the company received a $17.7 million contract to offer engineering and construction supervision services for Paramount Unified School District (or USD). Per the contract, WLDN will oversight 2.2 megawatts of solar arrays and 44 level tw ...

Group 1 - Willdan Group (WLDN) has outperformed the Business Services sector with a year-to-date return of approximately 4.9%, while the sector has returned an average of -1.6% [4] - The Zacks Rank for Willdan Group is currently 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a consensus estimate for full-year earnings increasing by 20.1% over the past quarter [3] - Willdan Group belongs to the Business - Services industry, which includes 25 stocks and is currently ranked 145 in the Zacks Industry Rank, with the industry gaining about 2.8% year-to-date, further highlighting WLDN's strong performance [5] Group 2 - Another stock in the Business Services sector, Wartsila (WRTBY), has also outperformed the sector with a year-to-date return of 11.1% and has a Zacks Rank of 2 (Buy) [4][5] - The Business Services sector consists of 290 individual stocks and holds a Zacks Sector Rank of 8, indicating its relative performance compared to other sectors [2] - Investors should continue to monitor both Willdan Group and Wartsila for potential sustained strong performance in the Business Services sector [6]

Willdan Group, Inc. (WLDN) reported mixed fourth-quarter fiscal 2024 (ended Dec. 27, 2024) results, with adjusted earnings surpassing the Zacks Consensus Estimate while contract revenues missed the same. On the other hand, the top and the bottom lines tumbled year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The top line declined year over year due to soft contributions from the Energy segment, which is the largest revenue contributor of the company. The downtick was part ...

Willdan Group, Inc. (NASDAQ:WLDN) Q4 2024 Earnings Conference Call March 6, 2025 5:30 PM ET Company Participants Al Kaschalk - Vice President, Investor Relations Mike Bieber - President & Chief Executive Officer Kim Early - Executive Vice President & Chief Financial Officer Conference Call Participants Craig Irwin - ROTH Capital Partners Tim Moore - Clear Street Operator Greetings, and welcome to the Willdan Group, Inc. Fourth Quarter and Full Year 2024 Financial Results Conference Call. At this time, all p ...

Company Performance - Willdan Group (WLDN) reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $0.80 per share a year ago, representing an earnings surprise of 31.58% [1] - The company posted revenues of $144.06 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 5.16%, and down from $155.68 million year-over-year [2] - Over the last four quarters, Willdan has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Market Outlook - Willdan shares have declined approximately 18.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.7% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.44 on revenues of $131.05 million, and $2.35 on revenues of $597.3 million for the current fiscal year [7] Industry Context - The Business - Services industry, to which Willdan belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Willdan's stock performance [5]

WILLDAN GROUP, INC. Q4 FY24 Earnings Call NASDAQ: WLDN March 6, 2025 Mike Bieber, President & CEO Kim Early, Executive Vice President & CFO Saf e Harbor Stateme nt – Sta tement s in t hi s pre sentat ion that are not purel y hi storic al, are forwa rd -looking sta tement s that invol ve risks a nd unc erta inti es wit hin the mea ni ng of t he P ri va te Se curiti es L it igat ion Re form Ac t of 1 995 . Will da n' s ac tual re sul ts coul d di ffer mate ri all y from those i n any s uc h forward -lookin g ...

Contract Revenue and Recognition - Contract revenue is recognized based on the percentage of completion method, primarily for fixed price contracts, which involves a high degree of subcontracted fixed price effort[279]. - The Company recognizes revenue primarily over time, with fixed price contracts using the percentage-of-completion method based on direct costs incurred to date[383]. - Approximately 2.0% to 3.0% of the Company's consolidated contract revenue may come from segmented contracts with multiple performance obligations[386]. - The company evaluates whether contracts should be combined or segmented, which can affect revenue and profit recognition[295]. - The company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method[303]. - Adjustments in estimated profit on contracts are recognized under the cumulative catch-up method, impacting profit in the period identified[394]. Financial Performance - Contract revenue for fiscal year 2024 increased to $565,798, up 10.9% from $510,095 in 2023[354]. - Gross profit rose to $202,782 in 2024, representing a 12.8% increase from $179,767 in 2023[354]. - Net income for 2024 was $22,570, a significant increase compared to $10,926 in 2023, marking a 106.5% growth[354]. - Earnings per share (EPS) for 2024 was $1.63, up from $0.82 in 2023, reflecting a 98.8% increase[354]. - The company reported a comprehensive income of $22,920 for 2024, compared to $10,262 in 2023, representing a 123.5% increase[354]. - Cash flows from operating activities for 2024 were $72,073, compared to $39,214 in 2023, indicating an increase of 83.8%[357]. Assets and Liabilities - As of December 27, 2024, total assets increased to $464.86 million from $415.59 million as of December 29, 2023, representing a growth of approximately 11.5%[352]. - Cash and cash equivalents rose significantly to $74.16 million, up from $23.40 million, indicating a substantial increase of approximately 216.5%[352]. - Accounts receivable decreased to $65.56 million from $69.68 million, reflecting a decline of about 5.4%[352]. - Total current liabilities increased to $137.68 million from $114.68 million, marking an increase of approximately 20.0%[352]. - Stockholders' equity grew to $234.34 million from $199.85 million, an increase of approximately 17.3%[352]. - The allowance for doubtful accounts increased from $866,000 to $1.31 million, reflecting a rise of approximately 51.0%[352]. Debt and Interest Rate Management - The company has $90.0 million outstanding under its Term Loan, with no borrowed amounts under its Revolving Credit Facility as of December 27, 2024[331]. - A one percentage point increase in the effective interest rate would change the company's annual interest expense by approximately $0.4 million in fiscal year 2024[332]. - The company is subject to interest rate risk due to its Term Loan and borrowings under its Revolving Credit Facility, which bear interest at variable rates[331]. - The company entered into an interest rate swap agreement for a notional amount of $50.0 million, fixing the variable interest rate at 4.77% until September 29, 2026[334]. - The Company’s composite annual interest rate, excluding upfront fees and issuance cost amortization, was 6.4% as of December 27, 2024[461]. Acquisitions and Goodwill - During fiscal year 2024, the company acquired substantially all of the assets of Enica, with fair value estimates to be finalized within twelve months[319]. - Goodwill increased to $140.99 million from $131.14 million, representing a growth of approximately 7.4%[352]. - Goodwill is tested for impairment annually, with losses recognized if the carrying amount exceeds fair value[411]. - The Company measures goodwill as the excess of consideration transferred over the net identifiable assets acquired and liabilities assumed at the acquisition date[418]. Operational Challenges - The company has experienced higher costs of materials and delays in the supply chain, although historically operations have not been materially impacted by inflation[276]. - Significant price increases in equipment and supply chain disruptions could materially impact results of operations and financial condition[277]. - Contracts may be subject to renegotiation upon renewal, which could impact profitability, particularly with major clients[283]. General and Administrative Expenses - General and administrative expenses include costs related to marketing, management, and administrative personnel, as well as facility costs and professional services[287]. - Total general and administrative expenses increased to $171,429 in 2024, up 8.7% from $157,693 in 2023[354]. - Stock-based compensation expense for 2024 was $7,388, up from $5,323 in 2023, reflecting an increase of 38.8%[354]. Compliance and Reporting - The Company has a structured approach to revenue recognition, ensuring compliance with ASC 606 and accurately reflecting performance obligations[380]. - The Company adopted ASU 2023-07 for segment reporting effective for its fiscal year 2024, enhancing disclosures related to significant segment expenses[434]. - The Company performs ongoing assessments to determine the primary beneficiary of variable interest entities, ensuring compliance with ASC 810[372].

Financial Performance - Contract revenue for fiscal year 2024 was $565.8 million, an increase of 10.9% compared to the previous year[4] - Net revenue for fiscal year 2024 reached $296.3 million, up 9.9% year-over-year[4] - Net income for fiscal year 2024 was $22.6 million, significantly up from $10.9 million in the previous year[4] - Adjusted EBITDA for fiscal year 2024 was $56.8 million, reflecting a 24.2% increase[4] - GAAP diluted EPS for fiscal year 2024 was $1.58, a remarkable increase of 97.5%[4] - Cash flow from operations for fiscal year 2024 was $72.1 million, up 83.8% compared to the previous year[4] - For fiscal year 2025, the company targets net revenue between $320 million and $330 million[5] - The adjusted EBITDA target for fiscal year 2025 is set between $63 million and $67 million[5] Quarterly Performance - Contract revenue for the three months ended December 27, 2024, was $144,061 thousand, a decrease of 7.3% compared to $155,677 thousand for the same period in 2023[20] - For the three months ended December 27, 2024, Willdan Group reported a net income of $7.688 million, compared to $8.031 million for the same period in 2023, reflecting a decrease of approximately 4.3%[26] - The diluted earnings per share (EPS) for the three months ended December 27, 2024, was $0.53, down from $0.58 in the same period of 2023, a decrease of approximately 8.6%[26] Year-End Results - Gross profit for the year ended December 27, 2024, increased to $202,782 thousand, up 12.7% from $179,767 thousand in 2023[20] - Net income for the year ended December 27, 2024, was $22,570 thousand, significantly higher than $10,926 thousand in 2023, representing a year-over-year increase of 106.5%[21] - Adjusted EBITDA for the year ended December 27, 2024, reached $56,751 thousand, compared to $45,695 thousand in 2023, reflecting a growth of 24.2%[24] - Cash flows from operating activities for the year ended December 27, 2024, were $72,073 thousand, an increase from $39,214 thousand in 2023[21] - The company reported a net cash increase of $50,761 thousand for the year ended December 27, 2024, compared to a decrease of $3,912 thousand in 2023[21] Segment Performance - The Energy segment's net revenue for the year ended December 27, 2024, was $207,217 thousand, up from $190,373 thousand in 2023, marking an increase of 8.8%[23] - The Engineering and Consulting segment's net revenue for the year ended December 27, 2024, was $89,108 thousand, compared to $79,309 thousand in 2023, representing a growth of 12.3%[23] Expenses and Adjustments - Total general and administrative expenses for the year ended December 27, 2024, were $171,429 thousand, an increase from $157,693 thousand in 2023, reflecting a rise of 8.7%[20] - The company reported a basic earnings per share of $1.63 for the year ended December 27, 2024, compared to $0.82 in 2023, indicating a significant increase of 98.8%[20] - Adjusted net income for the year ended December 27, 2024, was $34.671 million, up from $23.830 million in 2023, representing an increase of about 45.5%[26] - Adjusted diluted EPS for the year ended December 27, 2024, was $2.43, compared to $1.75 in 2023, indicating an increase of around 39.1%[26] - Stock-based compensation adjustments contributed $2.033 million for the three months ended December 27, 2024, compared to $1.259 million in the same period of 2023, an increase of approximately 61.3%[26] - The tax effect of stock-based compensation for the year ended December 27, 2024, was a reduction of $1.322 million, compared to $1.003 million in 2023, reflecting an increase of about 31.9%[26] - Intangible amortization adjustments for the three months ended December 27, 2024, were $1.783 million, down from $2.199 million in the same period of 2023, a decrease of approximately 18.9%[26] - The impact of refinancing costs was recorded as $467 thousand for the year ended December 27, 2024, compared to a tax effect of $88 thousand in 2023[26] - Interest accretion adjustments contributed $153 thousand for the year ended December 27, 2024, with no corresponding amount in the previous year[26] Strategic Activities - The company has resumed strategic acquisitions, including the recent acquisition of Alternative Power Generation, Inc.[2] Shareholder Information - The diluted weighted-average shares outstanding increased to 14,509 thousand for the three months ended December 27, 2024, from 13,731 thousand in the same period of 2023, an increase of about 5.6%[26]

Group 1: Acquisition and Expansion - Willdan Group, Inc. has completed the acquisition of Alpha Inspections Inc. to enhance its capabilities and grow its presence in key regions, particularly Florida [1] - The acquisition of Enica Engineering on Oct. 25, 2024, aligns with Willdan's strategy to strengthen its market position and expand service offerings [2][3] - Enica is expected to contribute to higher margins, earnings, and earnings per share (EPS) by 2025, providing potential synergies within Willdan's Energy segment [3] Group 2: Financial Performance - Willdan's stock has gained 79.3% over the past year, significantly outperforming the Zacks Business-Services industry's growth of 9.1% [4] - The company has secured consistent contract wins, including an $11 million energy and infrastructure modernization project with the City of South Lake Tahoe, CA, aimed at reducing carbon emissions [6] Group 3: Market Position and Rankings - Willdan currently holds a Zacks Rank of 3 (Hold), indicating a stable market position [7] - Comparatively, other stocks in the Business Services sector, such as Sezzle, Inc. and SPS Commerce, Inc., have higher Zacks Ranks, indicating stronger buy signals [8][9]