Willdan Strengthens Infrastructure Advisory With Compass Deal

Willdan Group, Inc. WLDN recently announced that its subsidiary, Willdan Financial Services, will acquire Compass Municipal Advisors, LLC. Compass is a registered independent municipal advisory firm headquartered in the Southeastern United States. The deal is set to complete on Jan. 1, 2026.

Compass brings a decade-plus track record in helping local governments fund and modernize aging infrastructure while preparing for population expansion. Its expertise in financial and capital planning, debt management and investment advisory aligns closely with Willdan’s mission to assist public entities in making data-driven, fiscally sound decisions. By integrating Compass, Willdan gains access to new regional markets, particularly in South Carolina and Kentucky, while reinforcing its advisory capabilities in high-demand areas such as water systems, transportation upgrades and municipal facilities.

Leadership from both companies emphasized cultural alignment and shared purpose, noting that the combined platform will offer expanded resources, greater analytical depth and a broader suite of services for public agencies. The acquisition signals a strengthening growth pathway for Willdan — expanding recurring advisory work, increasing cross-selling potential with engineering and energy services, and positioning the company to benefit from ongoing national infrastructure investment trends.

Following the news, shares of WLDN gained 4.5% during trading hours on Friday.

Strategic Acquisitions Strengthen Growth Outlook

Willdan has continued to advance its inorganic growth strategy in 2025 through targeted acquisitions designed to broaden its service offerings, deepen sector expertise and expand its addressable market across high-growth infrastructure and energy transition verticals.

In January 2025, the company acquired Alpha Inspections, Inc., a provider of municipal services such as building inspections and plan reviews. Integrated into Willdan’s Engineering and Consulting segment, Alpha strengthens the firm’s ability to support local governments with regulatory compliance, permitting and construction oversight. This move enhances Willdan’s municipal footprint and reinforces its role as a trusted partner for cities undertaking infrastructure upgrades and development projects.

On March 3, 2025, Willdan further expanded its capabilities with the purchase of Alternative Power Generation, Inc. (“APG”). APG delivers customized electric power solutions for EV charging infrastructure, solar installations, AI data centers, microgrids, battery energy storage systems and substations. Its consulting, engineering, procurement and construction management services align directly with fast-growing energy transition markets. APG contributed $4.8 million in revenues during the third quarter and $14.6 million year to date, along with modest operating income over nine months, highlighting both near-term contribution and longer-term potential as integration progresses.

Together, these acquisitions demonstrate Willdan’s inorganic growth strategy focused on scaling high-demand capabilities, expanding geographically and positioning itself in emerging infrastructure and clean-energy segments. By acquiring specialized firms with established expertise, Willdan is enhancing its competitive positioning and building a more diversified revenue base aligned with structural industry trends.

WLDN’s Share Price Performance

Shares of Willdan have surged 91.7% in the past six months, outperforming the Zacks Business - Services industry’s 22.3% decline. The company is benefiting from recent acquisitions and strong executions that enhance its capabilities and support margin improvement. These additions have strengthened Willdan’s competitive position and are expected to help sustain its long-term growth strategy.

WLDN’s Zacks Rank & Other Key Picks

Currently, Willdan sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other top-ranked stocks from the Business Services sector include UL Solutions Inc. ULS, COHERENT CORP. COHR and Xylem Inc. XYL.

UL Solutions presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 18.6%, on average. ULS stock has surged 71.6% year to date.

The Zacks Consensus Estimate for ULS’ 2025 sales and earnings per share (EPS) indicates growth of 5.9% and 12.9%, respectively, from the year-ago period’s levels.

COHERENT carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 15.2%, on average. COHR stock has gained 59.1% year to date.

The Zacks Consensus Estimate for COHR’s 2025 sales and EPS indicates growth of 15.2% and 42.2%, respectively, from the prior-year levels.

Xylem has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 8.7%, on average. XYL stock has jumped 21.1% year to date.

The Zacks Consensus Estimate for XYL’s 2025 sales and EPS indicates growth of 5.2% and 17.8%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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