Willdan Group (WLDN) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with contract revenue of $155.1 million, up 1.8% reported and 9.6% normalized year-over-year, and net revenue of $92.4 million, up 8.3% reported and 16.6% normalized.

• Net income surged 82% year-over-year to $8.5 million, or 96% normalized, driven by higher operating income and lower interest expense.

• Adjusted EBITDA grew 25.4% to $18.1 million, or 35% normalized, with margin expansion and improved visibility for the remainder of 2026.

• Closed the acquisition of Burton Energy Group post-quarter, expanding commercial sector exposure, recurring revenue base, and energy management capabilities.

• Raised full-year 2026 guidance for net revenue, adjusted EBITDA, and adjusted EPS, with a higher margin target and improved outlook.

Financial highlights

• Q1 contract revenue: $155.1M (up 1.8% reported, 9.6% normalized year-over-year); net revenue: $92.4M (up 8.3% reported, 16.6% normalized).

• Adjusted EBITDA: $18.1M (up 25.4% reported, 35% normalized), representing 19.6% of net revenue.

• Adjusted EPS: $0.91 (up 44.4% year-over-year); GAAP EPS: $0.55 (up 72%).

• Gross margin expanded to 40.7% from 37.8% year-over-year; gross profit was $63.2M.

• Free cash flow for Q1 was ($26M), with trailing twelve months at $43M.

Outlook and guidance

• Raised 2026 net revenue guidance to $410M–$425M.

• Adjusted EBITDA guidance increased to $100M–$105M.

• Adjusted diluted EPS guidance raised to $4.90–$5.05.

• Long-term adjusted EBITDA margin target set in the high 20s percent of net revenue.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, credit facilities, and operating cash flows.