Willdan Group (WLDN) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025 with over 20% growth in contract and net revenue, driven by energy segment strength, expanding demand from data centers and AI-related infrastructure, and three strategic acquisitions.

• Adjusted EBITDA grew 40% year-over-year to $79.5M, with margins surpassing the 20% target for the first time; net income more than doubled to $52.6M.

• Positioned at the center of growing energy and infrastructure markets, supported by rising electricity demand and data center expansion.

• Notable contract wins include major municipal, campus, and data center energy projects.

• Positioned for continued expansion with a robust capital base and broadened range of solutions.

Financial highlights

• FY 2025 contract revenue reached $682M, up 21% year-over-year; net revenue was $365M, up 23% (17% organic, 6% acquisition-driven).

• Q4 2025 contract revenue increased 21% to $174M; net revenue up 13% to $89.5M.

• Gross profit rose 26.1% to $256M; gross margin expanded to 37.5% from 35.8% year-over-year.

• Adjusted EPS more than doubled to $4.89; GAAP EPS at $3.49, aided by significant tax benefits from Section 179D.

• Free cash flow for FY 2025 was $71M ($4.69 per share); unrestricted cash of $66M and net positive cash position of $17M at year-end.

Outlook and guidance

• 2026 guidance: net revenue of $390–$405M, adjusted EBITDA of $85–$90M, adjusted EPS of $4.50–$4.70, assuming no future acquisitions and a 10% effective tax rate.

• Margins expected to remain above 20% in 2026; adjusted EBITDA margin projected at 21.8%.

• Robust M&A pipeline and strong balance sheet position company for continued strategic growth.