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Willdan Wins $4.5M Bellflower Contract, Boosts Local Presence
WLDNWilldan(WLDN) ZACKS·2024-11-22 17:06

Core Insights - Willdan Group, Inc. has secured a three-year contract worth 4.5millionwiththeCityofBellflower,CA,enhancingitspresenceinLosAngelesCountyandshowcasingitscapabilityindeliveringessentialmunicipalservices[1][2].CompanyDevelopments−CEOMikeBieberexpressedgratitudeforthecontract,highlightingitsroleinexpandingWilldan′soperationsinLosAngelesCountyandthecompany′scommitmenttomeetingthecity′scurrentandfutureneeds[2].−TheCityofBellflower,withapopulationofnearly80,000and4,000businesses,prioritizeshigh−qualitygovernanceandservices,whichalignswithWilldan′sexpertiseandcollaborativeapproach[2].StrategicFocus−TheBellflowercontractalignswithWilldan′sstrategicfocusonexpandingrecurringrevenuethroughlong−termmunicipalpartnerships,aimingtodeepenitsregionalpresencewhileleveragingitsreputationforefficientmunicipalservices[3].−Willdanreporteddouble−digitorganicgrowthinmunicipalprojects,indicatingarobustoutlookacrossstateandlocalgovernmentclients[3].FinancialPerformance−Inthethirdquarterof2024,Willdanexperienceda384.5 million with the City of Bellflower, CA, enhancing its presence in Los Angeles County and showcasing its capability in delivering essential municipal services [1][2]. Company Developments - CEO Mike Bieber expressed gratitude for the contract, highlighting its role in expanding Willdan's operations in Los Angeles County and the company's commitment to meeting the city's current and future needs [2]. - The City of Bellflower, with a population of nearly 80,000 and 4,000 businesses, prioritizes high-quality governance and services, which aligns with Willdan's expertise and collaborative approach [2]. Strategic Focus - The Bellflower contract aligns with Willdan's strategic focus on expanding recurring revenue through long-term municipal partnerships, aiming to deepen its regional presence while leveraging its reputation for efficient municipal services [3]. - Willdan reported double-digit organic growth in municipal projects, indicating a robust outlook across state and local government clients [3]. Financial Performance - In the third quarter of 2024, Willdan experienced a 38% increase in adjusted EBITDA to 39.1 million, driven by growth in municipal engineering, project management, and utility program management revenues [4]. - Adjusted earnings per share (EPS) grew by 79% to 1.70,supportedbyreducednetinterestexpensesandalowereffectivetaxrate[4].StockPerformance−Willdan′sshareshaveincreasedby107.31.70, supported by reduced net interest expenses and a lower effective tax rate [4]. Stock Performance - Willdan's shares have increased by 107.3% over the past year, significantly outperforming the industry average of 0.9% [5]. - The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year growth of 28.6%, with recent estimates rising from 2.1 to $2.25, reflecting analysts' optimism [5].