Willdan Group (WLDN) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 results with contract revenue of $152.4 million, up 24.4% year-over-year, driven by strong demand, new contract wins, and contributions from three acquisitions.

• Net income increased 59.3% to $4.7 million, with GAAP diluted EPS up to $0.32 and adjusted diluted EPS up 58%.

• Adjusted EBITDA rose 30.9% to $14.4 million, with growth supported by both Energy and Engineering and Consulting segments.

• Performance was fueled by data center and electrification trends, steady core program funding, and expanded geographic and engineering capabilities.

• Organic revenue growth was 12% after normalizing for an extra week in the quarter.

Financial highlights

• Q1 contract revenue reached $152.4 million, net revenue was $85.3 million, and gross profit increased to $57.7 million.

• Adjusted EBITDA margin was 9.5% of contract revenue, and operating income rose 31.2% to $7.0 million.

• GAAP diluted EPS was $0.32, adjusted diluted EPS was $0.63, and adjusted net income was $9.3 million.

• Cash and equivalents at quarter-end were $38.4 million, down from $74.2 million at year-end due to acquisition spending.

• Free cash flow over the trailing 12 months was $40 million ($2.74 per share).

Outlook and guidance

• Fiscal 2025 guidance raised: net revenue of $325–$335 million, adjusted EBITDA of $65–$68 million, and adjusted diluted EPS of $2.75–$2.90.

• Guidance assumes 15.1 million diluted shares, 16% tax rate, and excludes future acquisitions.

• Management expects continued strong demand in both segments, supported by acquisitions and expanded credit facilities.