Will Willdan Benefit as U.S. Electricity Demand Rises Again?

Willdan Group, Inc. WLDN is witnessing increasing electricity demand across the United States, driven by AI data centers, electrification and grid modernization. Utilities and municipalities are increasingly investing in efficiency programs and power infrastructure, areas where the company holds strong built expertise.

In fiscal 2025, Willdan delivered robust results, with contract revenues climbing 20.5% year over year to $681.6 million and net revenues rising 23.1% to $364.8 million. A key growth driver has been WLDN’s focus on energy-related services, which account for roughly 85% of its business. These services include energy efficiency program management, grid modernization consulting and distributed energy solutions for utilities and government agencies.

Importantly, structural demand trends appear supportive. Rapid growth in AI-driven data centers and broader electrification is increasing electricity consumption and grid complexity, prompting utilities and municipalities to deploy efficiency solutions and resiliency upgrades. Management believes these trends are expanding Willdan’s addressable market. Looking ahead, the company expects continued expansion, guiding fiscal 2026 net revenues of $390-$405 million and adjusted EBITDA of $85-$90 million.

While execution risks and policy shifts remain watchpoints, Willdan’s specialized energy efficiency capabilities and deep utility relationships position it well to benefit from America’s accelerating electricity demand and grid modernization cycle.

Willdan vs. Other Market Players

Willdan competes with industry giants AECOM ACM and Jacobs Solutions, Inc. J within the infrastructure and energy consulting ecosystem, but its positioning differs meaningfully.

AECOM and Jacobs benefit from a larger global scale, diversified end markets and strong participation in large U.S. federal infrastructure and environmental projects. Their broad capabilities in transportation, water, defense and urban infrastructure position them to capture multi-billion-dollar programs tied to government spending cycles. In contrast, Willdan competes by targeting high-growth niches such as energy efficiency programs, electrification planning and data-center power consulting.

Overall, while AECOM and Jacobs dominate large infrastructure programs, Willdan’s specialized energy expertise provides a differentiated edge in the rapidly expanding energy transition services market.

WLDN Stock’s Price Performance & Valuation Trend

Shares of this California-based company have surged 96.8% in the past year, outperforming the Zacks Business - Services industry, the broader Business Services sector and the S&P 500 Index.

WLDN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 18.18, as shown in the chart below.

Earnings Estimate Revision for WLDN

WLDN’s earnings estimates for fiscal 2026 have remained unchanged over the past 60 days. The estimated figure for fiscal 2026 implies a year-over-year decline of 7.4%.

Willdan stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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