Willdan Group (WLDN) Q1 2026 earnings summary

Executive summary

• Achieved a strong start to 2026 with broad-based growth, margin expansion, and robust year-over-year increases in revenue and profitability, supported by the Burton Energy Group acquisition expanding commercial sector exposure and addressable market.

• Net income surged 82% year-over-year to $8.5 million, or 96% normalized, driven by higher operating income and lower interest expense.

• Completed the acquisition of Burton Energy Group, expected to be accretive in 2026, and Compass Municipal Advisors, expanding capabilities and recurring revenue.

• Secured major contract wins, including a $100M extension with Southern California Edison and new projects in New York and Puerto Rico.

• Raised full-year 2026 guidance for net revenue, adjusted EBITDA, and adjusted EPS, reflecting strong core business and acquisition contributions.

Financial highlights

• Q1 contract revenue was $155.1M, up 1.8% year-over-year (10% normalized), with net revenue up 8.3% (17% normalized), and adjusted EBITDA up 25.4% to $18.1M (35% normalized).

• Gross profit increased to $63.2M, with gross margin expanding to 40.7% from 37.8% year-over-year.

• Net income rose to $8.5M, or $0.55 per diluted share GAAP; adjusted EPS up 44% to $0.91.

• Free cash flow for Q1 was ($26M), with trailing twelve months at $43M; cash and cash equivalents at quarter-end were $28.3M.

• G&A expenses increased due to higher amortization and stock compensation; interest expense declined due to lower leverage.

Outlook and guidance

• Raised 2026 guidance: net revenue $410M–$425M, adjusted EBITDA $100M–$105M, adjusted EPS $4.90–$5.05.

• Long-term adjusted EBITDA margin target increased to high 20s percent of net revenue.

• Long-term annual revenue and net revenue growth targeted at 15–20% including acquisitions.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, credit facilities, and operating cash flows.

• Expect strong cash flows, aided by $28M in deferred tax assets and low leverage.