Willdan Group (WLDN) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with contract revenue rising 10.9% to $565.8M and net income more than doubling to $22.6M, surpassing consensus estimates and internal expectations.

• Adjusted EBITDA increased 24.2% to $56.8M, and cash flow from operations surged 83.8% to $72.1M for the year.

• Expanded technical capabilities and market reach through three acquisitions, including Alternative Power Generation, enhancing offerings for commercial data centers and utility-scale electrical engineering.

• Diversified customer mix, with commercial clients now representing 15% of revenue, state and local governments 44%, and utilities 41%.

• Fourth quarter 2024 contract revenue declined 7.5% year-over-year, but cash flow from operations more than doubled to $33.5M.

Financial highlights

• Contract revenue rose 11% year-over-year to $566 million; net revenue up 10% to $296 million, with nearly all growth organic.

• Adjusted EBITDA increased 24% to $56.8 million; adjusted EPS up 39% to $2.43; GAAP EPS nearly doubled to $1.58.

• Gross profit grew 13% to $203 million, with gross margin expanding to 35.8%.

• Free cash flow reached $64 million ($4.49 per share), and cash flow from operations totaled $72 million.

• Cash and cash equivalents at year-end were $74.2M, up from $23.4M a year earlier.

Outlook and guidance

• 2025 guidance: net revenue of $320–$330 million, adjusted EBITDA of $63–$67 million, and adjusted EPS of $2.70–$2.85, all above current consensus estimates.

• Targets assume a 16% tax rate and 15.1 million shares outstanding, excluding future acquisitions.

• Anticipates continued robust demand from all customer segments, with commercial data center work expected to be the fastest-growing area.