Willdan Group (WLDN) Q3 2026 earnings summary

Executive summary

• Q3 contract revenue was $214.5M, up 17.9%, and net revenue was $112.2M, up 18.1%; Adjusted EBITDA rose 22.4% to $28.3M.

• Q3 net income fell 13.6% to $11.9M and GAAP diluted EPS declined to $0.76; nine-month net income rose 32.2% to $44.7M.

• Record nine-month results supported higher FY2026 targets and preliminary FY2027 targets for continued double-digit growth.

• Mantis closed October 30, adding commercial and industrial energy-management capabilities and expected to be accretive to 2027 earnings.

Financial highlights

• Q3 gross profit was $82.5M versus $67.1M; operating income was $16.3M versus $14.9M.

• Q3 Adjusted EBITDA was $28.3M versus $23.1M; Adjusted diluted EPS was $1.20 versus $1.21.

• Nine-month contract revenue rose 18.3% to $600.7M and net revenue increased 16.9% to $321.8M; normalized growth was 21.3% and 19.9%, respectively.

• Nine-month Adjusted EBITDA increased 33.5% to $79.4M; Adjusted diluted EPS rose 25.1% to $4.18 and GAAP diluted EPS rose 27.9% to $2.89.

• TTM contract revenue was $774M, net revenue $411M, Adjusted EBITDA $99.5M and Adjusted EPS $5.75.

Outlook and guidance

• FY2026 targets: net revenue of $435M–$445M, Adjusted EBITDA of $109M–$111M and Adjusted diluted EPS of $5.15–$5.25; includes Mantis and assumes no future acquisitions.

• FY2026 targets assume 15.9M diluted shares and a 0% effective tax rate on GAAP earnings.

• Preliminary FY2027 targets: contract revenue above $1B, net revenue above $500M and Adjusted EBITDA above $140M, assuming no future acquisitions.

• Preliminary FY2027 growth targets versus FY2026E are >19% for contract revenue, >14% for net revenue and >27% for Adjusted EBITDA; full guidance is planned for late February.

• Management expects low-double-digit organic growth to continue and targets net leverage below 2.0x by Q3 2027, potentially Q2.