Executive Summary & Highlights Second Quarter & Six Months 2025 Performance Highlights Willdan Group achieved strong Q2 and H1 2025 financial results, showing significant YoY growth in contract revenue, net revenue, Adjusted EBITDA, and EPS Second Quarter 2025 Performance Overview | Metric | Value (Millions USD) | YoY Growth (%) | | :--------------------- | :--------------- | :--------- | | Contract Revenue | $173.5 | 23.0% | | Net Revenue | $95.0 | 31.1% | | Net Income | $15.4 | 236.0% | | Adjusted EBITDA | $21.9 | 70.7% | | GAAP Diluted EPS | $1.03 | 212.1% | | Adjusted Diluted EPS | $1.50 | 172.7% | First Half 2025 Performance Overview | Metric | Value (Millions USD) | YoY Growth (%) | | :--------------------- | :--------------- | :--------- | | Contract Revenue | $325.9 | 23.7% | | Net Revenue | $180.3 | 27.5% | | Net Income | $20.1 | 167.0% | | Adjusted EBITDA | $36.4 | 52.3% | | GAAP Diluted EPS | $1.36 | 151.9% | | Adjusted Diluted EPS | $2.14 | 125.3% | Fiscal Year 2025 Financial Targets (Revised) Willdan Group raised its FY2025 financial targets for net revenue, Adjusted EBITDA, and Adjusted Diluted EPS, reflecting strong H1 performance and a positive market outlook Revised Fiscal Year 2025 Financial Targets | Metric | Target Range (Millions USD) | | :-------------------- | :---------------------- | | Net Revenue | $340 - $350 | | Adjusted EBITDA | $70 - $73 | | Adjusted Diluted EPS | $3.50 - $3.65 per share | Executive Management Comments Willdan's CEO Mike Bieber attributed strong H1 performance to project execution, new contracts, and acquisitions, noting market investment driven by data center growth and electrification trends - The company achieved strong first-half performance, with double-digit revenue and Adjusted EBITDA growth in Q2, and triple-digit EPS growth3 - Performance reflects a combination of sustained core project execution, new contract wins, and successful strategic acquisitions3 - Growing data center power loads and broader electrification trends are accelerating demand for reliable power and resilient grid infrastructure, driving market investments3 Company Overview About Willdan Group, Inc. Willdan Group, Inc. provides national professional, technical, and consulting services to utilities, government, and private industry, focusing on grid solutions, energy efficiency, and engineering - Willdan is a national provider of professional, technical, and consulting services9 - Services are provided to utilities, government agencies, and private industry9 - Service offerings include grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial advisory9 Financial Statements Condensed Consolidated Balance Sheets Willdan's total assets increased to $484.85 million by July 4, 2025, driven by contract assets, goodwill, and other intangibles, with declining liabilities and significantly increased stockholders' equity Key Balance Sheet Items (July 4, 2025 vs. December 27, 2024) | Item | July 4, 2025 (Thousands USD) | December 27, 2024 (Thousands USD) | Change (Thousands USD) | | :-------------------------------- | :-------------------------- | :--------------------------- | :----- | | Cash and cash equivalents | $32,348 | $74,158 | -$41,810 | | Accounts receivable, net | $55,416 | $65,557 | -$10,141 | | Contract assets | $107,055 | $88,528 | +$18,527 | | Total current assets | $205,822 | $235,524 | -$29,702 | | Goodwill | $182,376 | $140,991 | +$41,385 | | Other intangible assets, net | $34,119 | $29,414 | +$4,705 | | Total assets | $484,851 | $464,863 | +$19,988 | | Accounts payable | $42,455 | $33,766 | +$8,689 | | Notes payable (current & non-current) | $59,679 | $89,487 | -$29,808 | | Total liabilities | $218,916 | $230,520 | -$11,604 | | Total stockholders' equity | $265,935 | $234,343 | +$31,592 | Condensed Consolidated Statements of Comprehensive Income (Loss) Q2 2025 contract revenue grew 23.0% to $173.47 million, with net income surging 236.0% to $15.44 million, reflecting strong operating leverage and a significant income tax benefit Key Comprehensive Income Statement Data for Q2 2025 (vs. Q2 2024) | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | YoY Change (Thousands USD) | YoY Growth (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Contract revenue | $173,473 | $140,996 | +$32,477 | 23.0% | | Gross profit | $68,325 | $48,804 | +$19,521 | 40.0% | | Income from operations | $11,816 | $6,448 | +$5,368 | 83.2% | | Income tax (benefit) expense | $(5,255) | $720 | -$5,975 | -829.9% | | Net income (loss) | $15,436 | $4,594 | +$10,842 | 236.0% | | Diluted EPS | $1.03 | $0.33 | +$0.70 | 212.1% | Key Comprehensive Income Statement Data for H1 2025 (vs. H1 2024) | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | YoY Change (Thousands USD) | YoY Growth (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Contract revenue | $325,859 | $263,485 | +$62,374 | 23.7% | | Gross profit | $125,986 | $96,222 | +$29,764 | 30.9% | | Income from operations | $18,852 | $11,809 | +$7,043 | 59.6% | | Income tax (benefit) expense | $(4,749) | $1,706 | -$6,455 | -378.4% | | Net income (loss) | $20,123 | $7,536 | +$12,587 | 167.0% | | Diluted EPS | $1.36 | $0.54 | +$0.82 | 151.9% | Condensed Consolidated Statements of Cash Flows H1 2025 net cash from operations was $28.72 million, with significant cash used in investing ($39.63 million for acquisitions) and financing ($30.91 million for debt refinancing) Key Cash Flow Statement Data for H1 2025 (vs. H1 2024) | Cash Flow Activity | 2025 (Thousands USD) | 2024 (Thousands USD) | Change (Thousands USD) | | :-------------------------------------- | :------------------ | :------------------ | :----- | | Net cash provided by operating activities | $28,724 | $27,838 | +$886 | | Net cash used in investing activities | $(39,629) | $(4,102) | -$35,527 | | Cash paid for acquisitions, net of cash acquired | $(35,140) | $0 | -$35,140 | | Net cash used in financing activities | $(30,905) | $(2,866) | -$28,039 | | Net increase (decrease) in cash | $(41,810) | $20,870 | -$62,680 | | Cash, cash equivalents and restricted cash at end of period | $32,348 | $44,267 | -$11,919 | Non-GAAP Financial Measures & Reconciliations Use of Non-GAAP Financial Measures (Definitions) Willdan uses non-GAAP measures (Net Revenue, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS) to clarify core business trends and operating performance by excluding variable or non-operating costs - Net Revenue is defined as contract revenue less subcontractor services and other direct costs, primarily measuring the work performed by Willdan employees10 - Adjusted EBITDA is defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, transaction costs, and gain on sale of equipment, used to measure operating performance irrespective of financing methods, capital structure, and non-operating expenses11 - Adjusted Net Income and Adjusted Diluted EPS are defined as net income plus stock-based compensation, intangible asset amortization, interest accretion, and transaction costs (all tax-effected), used to more accurately assess operating performance by excluding certain non-operating expenses1314 - These non-GAAP measures have limitations and should be considered as supplemental to, not a substitute for or superior to, GAAP financial results16 Reconciliation of GAAP Revenue to Net Revenue GAAP contract revenue is reconciled to non-GAAP net revenue, with consolidated net revenue reaching $94.97 million in Q2 2025 (up 31.1% YoY) and $180.31 million for H1 (up 27.5% YoY) Consolidated Revenue Reconciliation (Q2 2025 vs. Q2 2024) | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | YoY Change (Thousands USD) | | :---------------------------------- | :------------------ | :------------------ | :--------- | | Contract revenue | $173,473 | $140,996 | +$32,477 | | Subcontractor services and other direct costs | $78,505 | $68,545 | +$9,960 | | Net Revenue | $94,968 | $72,451 | +$22,517 | Consolidated Revenue Reconciliation (H1 2025 vs. H1 2024) | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | YoY Change (Thousands USD) | | :---------------------------------- | :------------------ | :------------------ | :--------- | | Contract revenue | $325,859 | $263,485 | +$62,374 | | Subcontractor services and other direct costs | $145,553 | $122,104 | +$23,449 | | Net Revenue | $180,306 | $141,381 | +$38,925 | - Energy segment net revenue for Q2 2025 was $69.955 million, up from $50.296 million in Q2 202426 - Engineering and Consulting segment net revenue for Q2 2025 was $25.013 million, up from $22.155 million in Q2 202426 Reconciliation of GAAP Net Income to Adjusted EBITDA Willdan's Adjusted EBITDA for Q2 2025 was $21.92 million (up 70.7% YoY) and $36.36 million for H1 (up 52.3% YoY), adjusted from GAAP net income for non-operating items Adjusted EBITDA Reconciliation (Q2 2025 vs. Q2 2024) | Item | 2025 (Thousands USD) | 2024 (Thousands USD) | | :-------------------------- | :------------------ | :------------------ | | Net income (loss) | $15,436 | $4,594 | | Interest expense | $2,186 | $1,960 | | Income tax expense (benefit) | $(5,255) | $720 | | Stock-based compensation | $3,182 | $1,945 | | Depreciation and amortization | $5,504 | $3,629 | | Adjusted EBITDA | $21,922 | $12,844 | Adjusted EBITDA Reconciliation (H1 2025 vs. H1 2024) | Item | 2025 (Thousands USD) | 2024 (Thousands USD) | | :-------------------------- | :------------------ | :------------------ | | Net income (loss) | $20,123 | $7,536 | | Interest expense | $3,988 | $4,097 | | Income tax expense (benefit) | $(4,749) | $1,706 | | Stock-based compensation | $5,608 | $3,335 | | Depreciation and amortization | $9,944 | $7,221 | | Adjusted EBITDA | $36,364 | $23,878 | Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS Q2 2025 Adjusted Net Income was $22.33 million and Adjusted Diluted EPS was $1.50, exceeding GAAP figures after tax-effected adjustments, with H1 2025 also strong at $31.61 million and $2.14 respectively Adjusted Net Income and Diluted EPS (Q2 2025 vs. Q2 2024) | Item | 2025 (Thousands USD / Per Share) | 2024 (Thousands USD / Per Share) | | :---------------------------------- | :---------------------------- | :---------------------------- | | Net income (loss) | $15,436 | $4,594 | | Adjusted Net Income (Loss) | $22,329 | $7,681 | | Diluted earnings (loss) per share | $1.03 | $0.33 | | Adjusted Diluted EPS | $1.50 | $0.55 | Adjusted Net Income and Diluted EPS (H1 2025 vs. H1 2024) | Item | 2025 (Thousands USD / Per Share) | 2024 (Thousands USD / Per Share) | | :---------------------------------- | :---------------------------- | :---------------------------- | | Net income (loss) | $20,123 | $7,536 | | Adjusted Net Income (Loss) | $31,608 | $13,307 | | Diluted earnings (loss) per share | $1.36 | $0.54 | | Adjusted Diluted EPS | $2.14 | $0.95 | Additional Information Forward Looking Statements This cautionary statement indicates that forward-looking statements are subject to risks, where actual results may differ materially due to factors like project completion, market competition, client reliance, economic changes, debt, supply chain, and acquisition integration - Statements concerning intentions, hopes, beliefs, expectations, predictions, estimates, goals, plans, or future projections are forward-looking statements17 - Actual results could differ materially from any forward-looking statements17 - Important factors that could cause actual results to differ include: the ability to complete projects on time, successfully compete in the energy services market, reliance on top ten clients, changes in state, local, and regional economies and government budgets, ability to win new contracts and renew existing ones, ability to repay debt principal and interest, manage supply chain constraints, labor shortages, rising interest rates, and inflation, ability to obtain financing and refinancing, successfully integrate acquisitions and execute growth strategies, and attract and retain management, technical, and administrative talent17 Second Quarter 2025 Conference Call Willdan held a conference call on August 7, 2025, at 5:30 PM ET/2:30 PM PT to discuss Q2 financial results, accessible via dial-in and webcast, with a replay available online - The conference call was held on August 7, 2025, at 5:30 PM ET/2:30 PM PT8 - Dial-in information: 877-407-2988 (or 201-389-0923)8 - Webcast link: https://edge.media-server.com/mmc/p/5eb7tfiv/, replay link: **https://ir.willdangroup.com/events-presentations**[8](index=8&type=chunk) Contact Information Investors can contact Al Kaschalk, Vice President of Willdan Group, Inc., for additional information - Contact Person: Al Kaschalk, Vice President, Willdan Group, Inc34 - Phone: 310-922-564334 - Email: akaschalk@willdan.com34
Willdan(WLDN) - 2025 Q2 - Quarterly Results