Financial Highlights and Outlook Willdan Group reported strong Q1 2025 results with double-digit growth, driven by new contracts and acquisitions, leading to raised FY2025 financial targets First Quarter 2025 Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | % Change YoY | | :--- | :--- | :--- | | Contract Revenue | $152.4 million | +24.4% | | Net Revenue (Non-GAAP) | $85.3 million | +23.8% | | Net Income | $4.7 million | +59.3% | | Adjusted EBITDA (Non-GAAP) | $14.4 million | +30.9% | | GAAP Diluted EPS | $0.32 | +52.4% | | Adjusted Diluted EPS (Non-GAAP) | $0.63 | +57.5% | - Management attributes growth to new wins, program funding, and acquisitions, with 12% organic revenue growth normalized for an extra week, driven by increasing electricity demand from data centers and electrification3 Raised Fiscal Year 2025 Financial Targets | Metric | Updated FY2025 Guidance | | :--- | :--- | | Net Revenue (Non-GAAP) | $325 million - $335 million | | Adjusted EBITDA (Non-GAAP) | $65 million - $68 million | | Adjusted Diluted EPS (Non-GAAP) | $2.75 - $2.90 per share | Financial Statements This section presents Willdan Group's unaudited condensed consolidated financial statements for Q1 2025, detailing financial position and performance Condensed Consolidated Balance Sheets As of April 4, 2025, Willdan's total assets increased to $471.2 million, driven by acquisitions, while total liabilities slightly decreased Key Balance Sheet Items (in thousands) | Account | April 4, 2025 | December 27, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $38,364 | $74,158 | | Goodwill | $173,922 | $140,991 | | Total assets | $471,158 | $464,863 | | Total liabilities | $225,642 | $230,520 | | Total stockholders' equity | $245,516 | $234,343 | Condensed Consolidated Statements of Comprehensive Income In Q1 2025, contract revenue increased 24.4% to $152.4 million, with net income significantly rising 59.3% to $4.7 million Q1 Income Statement Comparison (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Contract Revenue | $152,386 | $122,489 | | Gross Profit | $57,661 | $47,418 | | Income from Operations | $7,036 | $5,361 | | Net Income | $4,687 | $2,942 | | Diluted EPS | $0.32 | $0.21 | Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash from operating activities sharply decreased to $3.3 million, while investing activities used $34.8 million for acquisitions, resulting in a $35.8 million net cash decrease Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $3,311 | $26,949 | | Net cash from investing activities | ($34,764) | ($1,952) | | Net cash from financing activities | ($4,341) | ($1,469) | | Net (decrease) increase in cash | ($35,794) | $23,528 | - The primary use of cash in investing activities was $32.5 million for acquisitions, net of cash acquired21 Non-GAAP Financial Measures and Reconciliations This section details Willdan's non-GAAP financial measures, including Net Revenue, Adjusted EBITDA, and Adjusted EPS, with reconciliations to GAAP - Net Revenue is defined as contract revenue minus subcontractor services and other direct costs, which management believes better measures the work performed by Willdan's employees10 - Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS are used by management to evaluate operating performance without regard to financing methods, capital structure, and certain non-operating expenses1114 Reconciliation of GAAP Revenue to Net Revenue In Q1 2025, consolidated Net Revenue increased 23.8% to $85.3 million, derived by subtracting subcontractor costs from GAAP contract revenue Net Revenue Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Contract revenue | $152,386 | $122,489 | | Less: Subcontractor services and other direct costs | (67,048) | (53,559) | | Net Revenue | $85,338 | $68,930 | Reconciliation of GAAP Net Income to Adjusted EBITDA Adjusted EBITDA for Q1 2025 increased 30.9% to $14.4 million, reconciled from Net Income by adding back various non-operating expenses Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $4,687 | $2,942 | | Adjustments (Interest, Taxes, D&A, etc.) | $9,755 | $8,092 | | Adjusted EBITDA | $14,442 | $11,034 | Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS For Q1 2025, Adjusted Net Income reached $9.3 million, resulting in an Adjusted Diluted EPS of $0.63, a 57.5% increase, after adjustments Adjusted Net Income and Adjusted Diluted EPS Reconciliation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (in thousands) | $4,687 | $2,942 | | Adjusted Net Income (in thousands) | $9,288 | $5,551 | | Diluted EPS | $0.32 | $0.21 | | Adjusted Diluted EPS | $0.63 | $0.40 | Other Information This section provides investor conference call details, a corporate overview of Willdan's services, and cautionary language on forward-looking statements - Willdan will host a conference call to discuss its Q1 results at 5:30 p.m. Eastern / 2:30 p.m. Pacific on May 8, 20258 - The company's service offerings include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting9 - The report includes a forward-looking statements disclaimer, highlighting risks such as competition, reliance on top clients, and the ability to integrate acquisitions, which could cause actual results to differ from expectations17
Willdan(WLDN) - 2025 Q1 - Quarterly Results