Willdan's Q4 Earnings & Revenues Top Estimates, Stock Down

Willdan Group, Inc. WLDN reported fourth-quarter fiscal 2025 (ended Jan. 2, 2026) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. On the other hand, the top and bottom lines increased year over year.

Willdan delivered a solid fourth-quarter performance supported by high demand within its energy segment and effective operational scaling. Additionally, strategic acquisitions, specifically in the data center and substation sectors, expanded their capabilities, while strong free cash flow generation improved the balance sheet to a net cash position.

However, results were partially offset by higher general and administrative expenses. The increase reflects continued investments in talent and technology, performance-based incentive compensation and acquisition-related integration costs, in line with elevated project volumes and expanded operations.

Following the release, WLDN stock declined 13% in the after-hours yesterday.

Inside WLDN’s Q4 Headlines

Willdan reported adjusted earnings per share (EPS) of $1.57, which surpassed the Zacks Consensus Estimate of 79 cents by 98.7%. In the year-ago quarter, it reported an adjusted EPS of 75 cents.

Willdan Group, Inc. Price, Consensus and EPS Surprise

Willdan Group, Inc. price-consensus-eps-surprise-chart | Willdan Group, Inc. Quote

Net revenues of $89.5 million beat the consensus mark of $87 million by 2.4% and increased 12.9% year over year. Also, contract revenues rose 20.6% year over year to $173.7 million.

Gross profit of $62.6 million grew year over year from $55 million. The adjusted EBITDA in the quarter increased 13.2% from the prior-year period to $17.7 million.

Willdan’s Segmental Discussion

Energy Segment: This segment’s contract revenues increased year over year to $148.3 million from $120.7 million.

Subcontractor services and other direct costs were $82.8 million, up from $64 million reported in the year-ago quarter. As a result, net revenues grew 15.7% year over year to $65.5 million.

Engineering and Consulting Segment: The segmental contract revenues increased year over year to $25.4 million from $23.4 million.

Subcontractor services and other direct costs during the quarter were $1.4 million, up from $0.7 million reported in the year-ago quarter. Additionally, net revenues were $24 million, up 6% year over year.

Willdan’s FY25 Highlights

For the fiscal year 2025, Willdan reported net revenues of $364.8 million, up 23.1% from the fiscal 2024 level.

The annual gross profit was $255.7 million, up from $202.8 million reported in the prior year.

The adjusted EBITDA of $79.5 million was up 40.2% from the fiscal 2024 level.

The adjusted EPS of $4.89 grew 101.2% from $2.43 reported a year ago.

Financial Details of WLDN

As of Dec. 27, 2025, Willdan had cash and cash equivalents of $65.9 million, up from $74.2 million at fiscal 2024-end. Finance lease obligations (less current portion) were $1.2 million as of fiscal 2025-end, up from $1.1 million at the end of fiscal 2024.

In fiscal 2025, net cash provided by operating activities was $80.1 million, up from $72.1 million reported last year.

WLDN Unveils FY26 Outlook

For fiscal 2026, Willdan expects net revenues between $390 million and $405 million. Adjusted EBITDA is anticipated to be between $85 million and $90 million.

The company expects adjusted EPS to be within the range of $4.50-$4.70.

WLDN’s Zacks Rank & Key Picks

Willdan currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Business Services sector:

Dave Inc. DAVE flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 74.7%, on average. DAVE stock has declined 11.7% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAVE’s 2026 sales and EPS indicates growth of 18.5% and 5.9%, respectively, from the prior-year levels.

APi Group Corporation APG presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.6%, on average. Api Group stock has surged 25.7% in the past six months.

The Zacks Consensus Estimate for APG’s 2026 sales and EPS indicates growth of 6.9% and 12.8%, respectively, from the year-ago period’s levels.

Coherent Corp. COHR has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 7.7%, on average. COHR stock has soared 162.8% in the past six months.

The Zacks Consensus Estimate for COHR’s fiscal 2026 sales and EPS indicates growth of 19.4% and 52.4%, respectively, from the prior-year levels.

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

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