Willdan Group (WLDN) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with contract revenue up 33.2% and net revenue up 23.5% year-over-year, driven by robust demand, commercial expansion, and recent acquisitions including APG, Burton, and Compass.

• Net income rose 57.7% to $24.3 million, and adjusted EBITDA increased 51% to $33.0 million, reflecting margin expansion from favorable business mix and operating leverage.

• Commercial demand, especially from data centers, is accelerating and now comprises about 25% of the business, balancing the revenue base.

• AI adoption is enhancing productivity and enabling more complex solutions.

• Diversification across utilities, public agencies, and commercial clients is reducing dependence on any single customer type.

Financial highlights

• Q2 2026 contract revenue: $231.0 million (+33.2% YoY); net revenue: $117.2 million (+23.5% YoY); adjusted EBITDA: $33.0 million (+51% YoY); net income: $24.3 million (+57.7% YoY); GAAP EPS: $1.58 (+53.4% YoY); adjusted EPS: $2.07 (+38% YoY).

• Six months YTD 2026 contract revenue: $386.1 million (+18.5% YoY); net income: $32.9 million (+63.4% YoY); adjusted EBITDA: $51.1 million (+41% YoY).

• TTM Q2 2026 contract revenue: $742 million (+18% YoY); net revenue: $394 million (+18% YoY); adjusted EBITDA: $94.3 million (+36% YoY); adjusted EPS: $5.76 (+60% YoY).

• Q2 2026 gross margin: $87.5 million (37.9%); operating margin: 8.5%; net margin: 10.5%.

• Cash flow from operations for six months: $19.5 million; cash and equivalents at period end: $39.2 million.

Outlook and guidance

• FY2026 net revenue target raised to $415–$430 million; adjusted EBITDA target $103–$107 million; adjusted diluted EPS guidance $5.00–$5.15 per share.

• Expect adjusted EBITDA margin to expand to 25% for 2026, up from 21.8% in 2025.

• Long-term goals: 15–20% annual revenue/net revenue growth (including acquisitions); adjusted EBITDA margin in high 20s%.

• Guidance remains conservative due to ramp-up uncertainty in major contracts, especially LADWP.

• Full-year effective tax benefit expected to be 0%.