Willdan’s grid-modernization and commercial-energy expansion support substantial long-term compounding, although today’s price already reflects conservative intrinsic value.
Overview
Willdan Group (NASDAQ: WLDN) provides specialized energy, engineering, and consulting services to utilities, government agencies, commercial enterprises, and data-center customers. Energy generated approximately 85% of FY2025 contract revenue, while Engineering and Consulting contributed 15%. The company’s integrated offering spans grid solutions, energy efficiency, program management, civil engineering, and municipal finance, creating switching costs and differentiated utility relationships. **Q2 FY2026 demonstrated accelerating execution:** contract revenue rose 33.2% to $231.0 million, net revenue increased 23.5% to $117.2 million, adjusted diluted EPS grew 38.0% to $2.07, and Adjusted EBITDA rose 50.6% to $33.0 million with a record 28.2% margin on net revenue. Management raised FY2026 guidance for net revenue to $415-$430 million, Adjusted EBITDA to $103-$107 million, and adjusted EPS to $5.00-$5.15. The current $82.31 share price is approximately equal to the $82.34 DCF value, but the base 2030 scenario reaches $182.97 and the probability-weighted target is $185.05. Near-term catalysts include the $110 million LADWP solar streetlight program, Burton cross-selling, and continued grid and AI-data-center infrastructure spending.