Willdan Group (WLDN) Q3 2025 earnings summary

Executive summary

• Achieved record-setting Q3 2025 results with net revenue up 26% year-over-year and organic growth at 20%, driven by strong demand across utilities, commercial, and government segments, and supported by recent acquisitions.

• Net income for Q3 2025 was $13.7 million, up 86.8% year-over-year; gross margin improved to 36.9% from 32.6% in Q3 2024.

• Margins expanded alongside significant investments for future growth, with reduced net debt to $16.0 million and robust liquidity.

• Raised full-year 2025 financial targets for net revenue, adjusted EBITDA, and adjusted EPS due to continued strong performance and robust contract pipeline.

• Completed acquisitions of APG, Alpha Inspections, and Enica Engineering, contributing to revenue and operational synergies.

Financial highlights

• Q3 2025 contract revenue was $182 million, up 15% year-over-year; net revenue reached $95 million, up 26%; gross profit grew 30% to $67.1 million.

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

• Nine-month contract revenue was $508 million (+20%), net revenue $275 million (+27%), adjusted EBITDA $59.5 million (+52%), and adjusted diluted EPS $3.34 (+97%).

• Net income for nine months was $33.8 million, up 127.4% year-over-year.

• Cash and cash equivalents at period end were $33.1 million; total available liquidity at quarter end was $183 million.

Outlook and guidance

• Full-year 2025 net revenue expected between $360–$365 million; adjusted EBITDA $77–$78 million; adjusted diluted EPS $4.10–$4.20, based on a 10% tax benefit and 15.2 million shares outstanding.

• Guidance excludes impact of future acquisitions.

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