Willdan Group (WLDN) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with contract revenue up 33.2% to $231 million and net revenue up 23.5% to $117 million, driven by robust demand, commercial expansion, and recent acquisitions including Burton and APG.

• Adjusted EBITDA rose 51% to $33 million, and GAAP EPS increased 53% to $1.58; net income rose 57.7% to $24.3 million.

• Commercial demand, especially from data centers, is accelerating and diversifying the business mix, with AI adoption driving productivity gains.

• Recent acquisitions, notably Burton, APG, and Compass, are expanding capabilities and contributing to growth.

• Management highlighted margin expansion from favorable business mix, operating leverage, and commercial business growth.

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 (+50.6% YoY); adjusted EPS: $2.07 (+38% YoY); net income: $24.3 million (+57.7% 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).

• Trailing 12-month adjusted EBITDA up 36% to $94.3 million; adjusted EPS up 60% to $5.76.

• Q2 2026 gross margin: $87.5 million (37.9%); adjusted EBITDA margin: 28.2% of net revenue.

• Free cash flow for TTM Q2 2026 was $62 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.

• 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 like LADWP.

• No material impact from inflation or federal policy changes anticipated, but supply chain and price escalation risks remain.