Willdan Group (WLDN) investor relations material

Executive summary

• Achieved record Q2 2025 results with contract revenue up 23%–23.0% and net revenue up 31%–31.1% year-over-year, exceeding expectations and driven by strong demand across all business lines and recent acquisitions.

• Net income surged 236% to $15.4M, with adjusted EBITDA up 70.7% to $21.9M, and gross margin improved to 39.4% from 34.6% last year.

• Performance was strong in both Energy and Engineering and Consulting segments, supported by commercial, utility, and government demand.

• Raised full-year financial targets based on robust pipeline, execution, and electrification/data center trends.

• Operating income rose 83.3% year-over-year to $11.8M for Q2 2025.

Financial highlights

• Q2 2025 contract revenue: $173.5M (+23% YoY); net revenue: $95M (+31% YoY); gross profit grew 40% to $68.3M; gross margin 39.4%.

• Adjusted EBITDA reached $21.9M (23% of net revenue), up 70.7% year-over-year.

• Adjusted EPS more than doubled to $1.50 from $0.55; GAAP EPS was $1.03, up from $0.33.

• Six-month revenue increased 23.7% year-over-year to $325.9M; net income rose to $20.1M from $7.5M.

• Cash flow from operations was $28.7M for the first half of 2025; cash and equivalents at period end: $32.3M.

Outlook and guidance

• Full-year 2025 net revenue expected between $340M–$350M; adjusted EBITDA $70M–$73M; adjusted diluted EPS $3.50–$3.65.

• Q3 adjusted EBITDA expected similar to Q2; Q4 slightly less than Q3.

• Guidance assumes 15.1M diluted shares, 15% effective tax rate, and no future acquisitions.

• Management expects continued strong demand in both segments, supported by acquisitions and robust utility/government spending.

• Sufficient liquidity is anticipated for at least the next 12 months, with available borrowing capacity and cash on hand.