Willdan Group Posts 40% EBITDA Jump, Guides 2026 EPS of $4.50–$4.70
Willdan Group’s fiscal 2025 adjusted EBITDA rose 40% to $79.5 million with a 21.8% margin, supported by 23% net revenue growth to $365 million and $71 million free cash flow. Management forecasted 2026 adjusted EPS of $4.50–$4.70, citing Section 179D expiration and shift in project mix reducing tax incentives.
1. Fiscal 2025 Financial Highlights
Willdan reported contract revenue of $682 million, a 21% increase year-over-year, net revenue up 23% to $365 million, and adjusted EBITDA rising 40% to $79.5 million with a margin of 21.8%. The company generated $71 million of free cash flow and ended the year with $17 million net cash.
2. 2026 Guidance and Tax Impact
Management guided 2026 adjusted EPS to $4.50–$4.70, below the 2025 adjusted $4.89 per share. This reflects the expected expiration of the Section 179D tax incentive in June and a shift toward projects with lower available 179D benefits.
3. Growth Drivers and Segment Mix
Energy work accounted for 85% of revenue, with utilities, government and commercial customers driving demand. Net revenue growth included 17% organic expansion and 6% from acquisitions, notably APG, which is projected to double its contribution in 2026 on the back of increased data center and grid modernization projects.
4. Major Contract Wins
Recent awards include a $112 million City of San Diego energy efficiency program, a $49 million microgrid project at Mt. San Antonio College, and a $38 million Phoenix data center substation, highlighting a ramp-up in large-scale, multi-year energy and infrastructure engagements.