Willdan Group (WLDN) Q3 2025 earnings summary

Executive summary

• Achieved record-setting Q3 2025 results with contract revenue up 15% and net revenue up 26%, driven by strong execution, double-digit organic growth, and robust demand across utilities, government, and commercial segments.

• Net income for Q3 2025 was $13.7 million, up 86.8% year-over-year; adjusted EBITDA increased 52.5% to $23.1 million.

• Recent acquisitions, including APG, Alpha Inspections, and Enica Engineering, are integrating well and contributing to backlog, revenue, and operational synergies.

• Gross margin improved to 36.9% in Q3 2025 from 32.6% in Q3 2024, reflecting favorable revenue mix and operational leverage.

• Employee count surpassed 1,800, with zero senior management turnover in over two years.

Financial highlights

• Q3 2025 contract revenue was $182 million (up 15% year-over-year); net revenue $95 million (up 26%); net income $13.7 million (up 86.8%).

• Adjusted EBITDA for Q3 2025 was $23.1 million (24% margin), up 53% year-over-year; adjusted EPS was $1.21, up 66%.

• For the nine months ended October 3, 2025: contract revenue $508 million (up 20%), net revenue $275 million (up 27%), adjusted EBITDA $59.5 million (up 52%), adjusted diluted EPS $3.34 (up 97%).

• Gross profit for Q3 2025 was $67.1 million, up 30% year-over-year; operating income increased 71.3% to $14.9 million.

• Free cash flow per share TTM was $4.34; total liquidity at $183 million, including $100 million in cash.

Outlook and guidance

• Raised full-year 2025 guidance: net revenue $360–$365 million, adjusted EBITDA $77–$78 million, adjusted EPS $4.10–$4.20; assumes 15.2 million diluted shares and 10% effective tax rate benefit.

• Expects to exceed 20% adjusted EBITDA margin for 2025; pipeline remains strong into 2026, with optimism for large contract wins in New York.

• Sufficient liquidity and available credit facilities to support operations and growth initiatives for at least the next 12 months.