WLDN

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:30 p.m. ET President and Chief Executive Officer - Mike Bieber Executive Vice President and Chief Financial Officer - Kim Early Vice President - Al Kaschalk Operator: Greetings. Welcome to the Willdan Group second quarter fiscal year 2026 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Al Kaschalk. Thank you. You may begin. Al Kaschalk: Thank you, Cleo. Good afternoon, everyone, and welcome to Willdan Group's second quarter 2026 earnings call. Joining our call today are Mike Bieber, President and CEO, and Kim Early, Executive Vice President and CFO. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides, all of which are available on our website. Please note that year-over-year commentary or variances on revenue, adjusted EBITDA, and adjusted EPS discussed during our prepared remarks are on an actual basis unless otherwise specified. We will make forward-looking statements about our performance. These statements are based on how we see things today. While we may elect to update these forward-looking statements at some time in the future, we do not undertake any obligation to do so. As described in our SEC filings, actual results may differ materially due to risks and uncertainties. With that, I'll hand the call over to Mike, who will begin on slide two. Mike Bieber: Thanks, Al, and good afternoon to everyone on the call. We had a very strong second quarter, capping a strong first half and continuing the momentum we've built across the business. Demand remains healthy. Execution was strong, and we delivered significant growth in both revenue and profitability. In the second quarter, contract revenue increased 33% year-over-year to $231 million. Net revenue grew 23% to $117 million, and adjusted EBITDA increased 51% to a record $33 million in the quarter. GAAP earnings per share increased 53%, even faster, to $1.58, and adjusted earnings per share increased 38% to $2.07. All those growth metrics are on top of strong performance we had a year ago. Overall, the business is performing well. We're seeing strength across all of our customer groups, but commercial demand, in particular, is accelerating and expanding our addressable market. AI is adding to electric load growth and is also improving Willdan's productivity to help us solve clients' more complex problems. With a strong first half behind us and good visibility into the remainder of the year, we're raising our full-year financial targets. On slide three. When I became CEO at the beginning of 2024, I talked about our strategy to significantly increase our presence in the commercial market. We believed then that a broader customer base would add stability, create new growth opportunities, and support higher margins. That strategy has worked well, and commercial revenue has now added a third leg to the stool. It's currently about a quarter of our business and is helping create more balanced, consistent results. Importantly, this growth complements our strong utility and government business. The largest part of our commercial revenue is for electricity at data centers and is the fastest-growing part of Willdan. As another data point, revenue from our APG acquisition, which is commercially focused, is projected to nearly triple this year over last, to roughly $75 million. The commercial market also gives us another channel to deploy our engineering, software, procurement, and energy management capabilities. We believe that broadens our addressable market and strengthens Willdan's long-term growth profile. On slide four. This slide shows how that diversification is taking shape across our customers, contracts, and services. We now serve a broader mix of utilities, public agencies, and commercial clients. We balance recurring program work with project-based engagements, and our services now span advisory, engineering, software, implementation, and ongoing energy management. This balance matters because it reduces our dependence on any single customer type or service line, allows us to participate across more of the energy investment life cycle, and positions us to pursue larger and more complex opportunities. Burton Energy is a good example of how we're extending that strategy. On the next slide five. Burton is performing well right out of the gate. It had the characteristics we look for in all acquisitions: a strong management team, differentiated capabilities, strong client relationships, and meaningful cross-selling opportunities with the rest of the company. Since closing on May 4th, we've focused on converting to Willdan's ERP system, customer continuity, and cross-sell. We're pleased with the early progress, including new customer relationships with Walgreens, Carter's, and Five Below, all since May. Burton adds significant expertise in building HVAC and energy controls technology. It also adds a new line of business in commercial energy procurement. Burton is already involved in two Willdan utility programs, and we're particularly optimistic about cross-selling Burton's commercial experience with Willdan's broader technical capabilities. Next on slide six. We've had another strong stretch of contract wins, and here are six notable examples since our last earnings call. For the Los Angeles Department of Water and Power, LADWP, we were awarded a $110 million solar streetlight contract expansion through the existing commercial direct install program. This project combines energy efficiency, resiliency, and public infrastructure. It removes streetlight load from the LADWP power grid, providing additional capacity while also increasing public safety. We hope that programs like this could be launched in major metro areas across the country. We're also awarded a $53 million central plant upgrade for the City College of New York. Energy projects like these are core competencies of Willdan's, especially for the municipal utility, school, and hospital, or MUSH market. Since the last call, we were awarded a new five-year, $49 million energy efficiency contract with the Southern California Regional Energy Network, or SoCalREN, supporting the public sector on resiliency. The California RENs are assuming a larger role from traditional investor-owned utilities in the energy efficiency space. And we have a number of future opportunities with the RENs that are even larger in scope and funding than this contract. We were also awarded a $31 million renewable biogas cogeneration and microgrid project, a $15 million battery energy storage project in Texas, and a $6 million substation project in Illinois. Taken together, these wins demonstrate three trends we're seeing. Customers trust us with larger projects, the customer base continues to broaden, and the solutions we deliver are becoming more complex. Each quarter, we try to step back and look at the broader forces shaping electricity markets and Willdan's opportunity. On the next slide seven, electricity providers are confronting several major challenges at the same time. Load growth due to rapidly changing or rapidly growing demand, continued pressure on affordability rates, and an increasing need for reliability. These challenges are closely connected, and they're intertwined. Utilities are being asked to add capacity, modernize the grid, and improve reliability while limiting the impact on customer rates. That requires more sophisticated planning, investment, and execution. Demand is already straining generation and grid capacity in certain circumstances and locations, while data center development is adding permitting and interconnection pressure in several markets. At the same time, substantial capital needs are placing pressure on rates and utility returns, making energy efficiency and distributed resources increasingly valuable. Extreme weather and wildfires are also raising outage risk and disrupting grid operations, especially in the Western U.S. This environment aligns well with Willdan's capabilities. We help customers evaluate trade-offs, plan investments, improve efficiency, and implement solutions across the grid and behind the meter. The next big question is: how are the customers responding? On slide eight. Utilities and hyperscalers alike are responding with the increased investment in large-scale battery storage. Battery storage is important because it adds flexibility to the power system. It can help manage peak demand, support intermittent renewable generation, improve resiliency, and provide backup power for critical facilities. Batteries are also rapidly dispatchable power available to the grid in milliseconds and ideally suited to AI learning model electricity load spikes. These batteries complement, and sometimes they can replace the need for gas peaker plants, which require 5-15 minutes to spool up compared to the milliseconds for batteries. We're seeing a growing pipeline of battery storage opportunities, often as part of larger projects that combine planning, engineering, controls, renewable generation, and microgrid capabilities. That increasingly complex multidisciplinary work is a good fit for us. Finally, on slide nine. As we've mentioned, the largest growth in electricity demand is due to data centers. This growth is occurring throughout the U.S. Speed to power is the primary factor determining where data centers will be located. Accordingly, there are a lot of opportunities in Texas, and Willdan already has a number of projects underway there. Several studies have shown that to date, data center load growth has reduced the public's electricity bills. However, more grid investment will be required to accommodate future AI load growth. Willdan is involved in studies across the country that inform these decisions and help ensure data centers continue to pay their fair share. We believe the convergence of power load growth, affordability, and reliability will create opportunities for Willdan for years to come. We do seem to be right now at the right place at the right time. I'm very pleased with our performance throughout the first half of 2026. Good job to the Willdan team. Tim, now over to you. Kim Early: Thanks, Mike, and good afternoon, everyone. We delivered another quarter of strong financial performance, driven by healthy underlying demand, disciplined execution, and continued growth across all our markets. Another quarter of record profitability, strong cash flows, and a healthy balance sheet positions us well to capitalize on the opportunities ahead. Turning to our second quarter results on slide 11. Contract revenue increased 33% year-over-year to $231 million, while net revenue grew 23% to $117 million. While our Burton acquisition contributed strongly to the growth, the organic growth rate and net revenue was 18% year-over-year, reflecting the higher revenues from data centers, battery storage projects, and the continued health of our utility and municipal infrastructure businesses. Higher volume and strong execution drove gross profit dollars up 28% year-over-year. The gross margin declined 150 basis points, reflecting a shift in the mix of revenues toward performance engineering and commercial project revenue, which carry a heavier load of equipment and subcontractors. Despite the lower gross margin, adjusted EBITDA increased 51% to a record $33 million from the quarter, representing a record 28.2% adjusted EBITDA margin on net revenue. This 28.2% is the highest quarterly margin in the company's history. Note that while our commercial projects often carry a lower gross margin, they also carry a lower overhead rate and resulting higher adjusted EBITDA margin on net revenue. Also note that G&A expenses increased 20% year-over-year, but declined to 29.3% of contract revenue versus 32.6% in the second quarter of 2025. While salary and benefit costs grew consistent with the acquisitions and the growth core revenues, stock compensation expense increased 51% as a result of higher stock prices compared to a year ago, and non-cash charges for the amortization of intangibles derived from acquisitions grew by 27%. Interest expense was 50% lower than a year ago, reflecting the lower leverage in our strong cash flows. Netting all of the above, pre-tax income grew by 88% to $19.1 million for the second quarter of 2026, compared to $10.2 million in the year ago period. We recognized a $5.3 million tax benefit for the quarter. On the bottom line, net income increased 58% to $24.3 million, or $1.58 per diluted share on a GAAP basis, compared to $15.4 million or $1.03 per diluted shares in the prior year. Adjusted earnings per share increased 38% to $2.07 per share this quarter, compared to $1.50 a year ago. It was a very good quarter. Turning to our year-to-date results on slide 12. For the first half of 2026, contract revenue is up 19% to $386 million year-over-year, while net revenue increased 16% to $210 million. Excluding the impact of the extra week in the first half of 2025, contract revenue increased 23% and net revenue increased 21%. First half gross margin increased 30 basis points year-over-year to 39.0%, reflecting strong operating performance across the business. Adjusted EBITDA rose 41% to $51.1 million or 24.4% of net revenue for the six months, and adjusted earnings per share grew 39% to $2.98 per share. GAAP earnings per share for the first half was $2.13, up 57% from $1.36. All are record numbers for the six-month period. To provide a broader perspective beyond quarterly variability, let's turn to slide 13. While quarterly results can be influenced by the timing of various project phases, acquisitions, and revenue mix, our trailing 12-month results better illustrate the underlying earnings power and sustained growth of the business. Over the past 12 months, contract revenue and net revenue each increased 18% to $742 million and $394 million, respectively. Adjusted EBITDA grew 36%, twice as fast as revenues to $94.3 million. Adjusted earnings per share increased 60% to $5.76. Earnings have been growing faster than revenues due to increased productivity and project management and continuing operating leverage as G&A costs are growing more slowly than revenue and AI adoption aids efficiency. On slide 14, I'd like to remind you of the long-term adjusted EBITDA margin target we introduced last quarter. We continue to see a clear path to achieving margins in the high 20% range as larger and more complex projects, growth in our commercial business, AI-enabled productivity, and the scalability of our operating platform support continued margin expansion over time. Our adjusted EBITDA margin was 28.2% for Q2, demonstrating the goal is achievable given the right mix of revenues. The quarter also reflects some acceleration of revenues that will impact the second half of the year, and thus, we do not expect that margin to hold throughout the year. Nonetheless, 2026 will show a significant expansion of the adjusted EBITDA margin to an estimated 25% for the year, up from 21.8% in 2025. We continue to see opportunities to further expand margins as we grow and realize the synergistic benefits of collaboration with our newer acquisitions. Turning from earnings to cash generation and the balance sheet on slide 15. Cash flow provided from operating activities was $71 million over the last 12 months, with $62 million in free cash flow, or $4.04 per share. We continue to expect strong cash flow from operations and believe we can convert more than 70% of adjusted EBITDA into free cash flow on an annual basis. Those future cash flows will continue to be aided by the $34 million in deferred tax assets on our balance sheet generated by the 179D deductions and other tax benefits. The 179D provision may have sunset at the end of June, but we'll continue to enjoy the cash flow benefit of those incentives for years to come. We ended the quarter with $33 million in net debt and a net debt to trailing 12-month adjusted EBITDA ratio of 0.3 times, modestly higher, excuse me, modestly higher than the year-end after deploying $50 million in cash for recent acquisitions. We repaid $10 million of the $30 million drawn under our revolver in May for the Burton acquisition and thus had $80 million available at quarter end under our $100 million revolver. We also had $50 million available, but undrawn from our delayed draw term facility and $35 million in cash, giving us $165 million in total available liquidity at quarter end. Given our expected earnings for the remainder of the year, and absent any further acquisitions, we would expect the revolver to be fully repaid by year-end and continuing to provide us low leverage and high liquidity with significant capacity to support continued organic growth and strategic acquisitions. We continue to explore opportunities to expand the depth and breadth of our services and accelerate growth through acquisition. Now to slide 16. Based on our strong performance for the year, we're raising our full year 2026 financial targets. We now expect net revenue to be in the range of $415 million to $430 million, adjusted EBITDA in the range of $103 million to $107 million, and adjusted diluted earnings per share between $5 and $5.15. This outlook assumes approximately 15.9 million diluted shares outstanding at year-end and a 0% effective tax rate for the year. Taken together, we believe these results demonstrate the strength of our operating model and reinforce our confidence in both the near-term outlook and long-term growth strategy. Before we open the call for questions, I'd like to close on slide 17 with a few thoughts that reinforce why we remain confident in our outlook. We're on track to deliver another year of double-digit growth, supported by continued margin expansion and strong cash flows. We're excited by the commercial expansion, collaboration, and momentum we're seeing from our recent acquisitions of APG, Compass, and Burton, which continue to broaden our growth opportunities while complementing our strong utility franchise. We're also increasingly leveraging AI across the business to enhance productivity and deliver more complex customer solutions, and we believe we're still in the early stages of realizing its long-term potential. Finally, our balance sheet remains a competitive advantage. With low leverage and significant liquidity, we're well positioned to continue to invest in organic growth, pursue strategic acquisitions, and create long-term shareholder value. With that, I'll turn the call back to the operator, and we'd be happy to take your questions. Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions. Our first question is from Craig Irwin with Roth Capital Partners. Please proceed with your question. Andrew: Hey, guys. It's Andrew on for Craig. Congrats on the strong results. First question from me. Can you talk about the ramp of the LADWP project in the second quarter, how that plays out in the back half of the year? Secondly, how the new project extension win kind of just changes the overall outlook for the project? Mike Bieber: Sure. Well, the project was already ramping up from the beginning of this year, we said it wasn't going to hit full run rate until probably early next year. We got this expansion of the existing contract, another $110 million. We already have authorization to proceed on half of that $110 million. The big question is, as you mentioned, how does it ramp up? We probably could have been even more aggressive with our outlook if we knew the answer to that. It is going to ramp up through the Q3, the balance of Q3, we think run into Q4 and probably the early part of 2027. We don't really know at this point. It's too early to tell exactly what the Q3 contribution is going to be. We were appropriately conservative, but it's a great outlook and there may even be more opportunity behind this for further expansion. That contract's going to ramp up and could be our largest customer in 2027. It's looking like it might be. Andrew: Great. Well, appreciate the color there. Second from me, just on the Burton cross-selling opportunities. Are you guys kind of seeing traction in both directions, or is this something where you're taking an approach and going in one direction, selling Willdan services to their clients or vice versa? Mike Bieber: Yeah, no. With Burton, it's definitely bidirectional. We've been in to see several of their large clients, there's opportunities to provide new Willdan services to some of those existing relationships. I've been a part of some of those discussions. Likewise, we've already brought Burton into two utility programs on the East Coast and the West Coast because they have specific HVAC capabilities we didn't have before. It's going both ways, and it looks good early on. Andrew: Great. Well, thanks for taking my questions. Congrats on the continued progress. Operator: Thank you. Our next question is from Tim Moore with Clear Street. Please proceed with your question. Tim Moore: Thanks. Congratulations on the continued organic growth and the acquisition integration success. That is coming along quite nicely as the Los Angeles solar retrofit win expansion. That was good to hear the commentary because I always ask about the ramp up in Los Angeles every quarter. Actually, I have a geographic diversification question for you. California is your backyard, you've been in New York for a long time. You're going more into Texas and Florida, APG stuff. Just kind of curious, what kind of directs the geographic diversification? Is it mostly data centers driven and battery storage? If you can just give us a little color on maybe how you expand in a different state that's not New York or California. Mike Bieber: Sure. Great question. We just finished our ops meeting talking about that. We've set up permanent offices and really hubs that we'll operate from in Florida, now Georgia, North Carolina, Kentucky, and Texas. Those are all new locations in the last 18 months. You are absolutely right. From a project perspective, these data centers are being built around the country. For the first time, we're performing projects in New Mexico and Montana, some in Utah. The data centers are all over the country, coast to coast. It's giving us the opportunity to gain experience and hire people around the country where we didn't have as much of a presence, especially in sort of the breadbasket, the middle part of the country, those Midwestern states. Tim Moore: No, that's really helpful color. No, thanks for naming all those other states and those hubs. It's really interesting. My only other question was really around consultants and talent allocation. I know you had a lot of consultants this year. Can you kind of just maybe talk to us a little bit about how you make the trade-off if you have to on accepting a new project or advisory for a new customer that's not a data center customer versus kind of servicing your current long-tenured customers. If you're getting to the point where you have some labor shortages, which you might not, I'm just kind of curious. Mike Bieber: Yeah. On the study sector, we actually have a group that is focused on commercial customers within our study practice. It's run by a person named Kush Patel, and he focuses exclusively on commercial customers. The utility customers have separate teams. They do cross-collaborate. They sit in the same office. They're separate teams studying slightly different problems. We have not seen what I'll call labor shortages on either of those areas. Labor is tight. I'll say that for the experienced superstar, prices are certainly going up, salaries are going up. We continue to hire. Tim Moore: That's great. That's really helpful insight and good to hear about no labor shortages and your continued cross-selling. That's it for my questions. Thank you. Operator: Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our next question comes from Steven Wahrhaftig with Wedbush Securities. Please proceed with your question. Steven Wahrhaftig: All right. Good evening, guys. Thanks for taking the questions. Congrats on the quarter. I kind of want to talk first about the guide itself, just because we know that you like to be a little bit conservative with the metrics whenever it comes to either the net revenue or the EBITDA or EPS. It seems like these numbers are a little bit overly conservative. I mean, this quarter you beat by about $50 million on the top line, beat on EBITDA by about $10 million, and then the EPS was a pretty significant beat, but the raise in the guide wasn't that sizable. Can you break down the guidance a little bit further? Is there kind of a lack of visibility, or is there anything that you can really touch on about the guidance? Mike Bieber: Yes, Steven, and by the way, congratulations for taking over as our lead analyst over at Wedbush. Steven Wahrhaftig: Thank you. Mike Bieber: We scratched our head on this one a little bit because we don't know how quickly LADWP will ramp up over the next six months. That was the biggest variable that we looked at. We have a couple other projects also that really drive the answer to that question. You're right, we did guide towards the more conservative area, but it looks really good. Whether we get the work done over the next six months or in the first part of 2027, all are possible. It's probably going to happen that way, and it looks really good. It's a good pipeline of work. Kim, do you want to talk to the spread between Q3, Q2, I'm thinking? Kim Early: Yeah. Q3 and Q4 are probably going to look something similar to Q2. Q2 did benefit to some extent that we had some stronger outperformance, and we'll call it acceleration, out of a couple of our utility programs. We were making good progress on some of our performance contracting activities that we originally forecasted would drag into the third and fourth quarter. I think we're seeing a little bit of acceleration into the second quarter. The third and fourth quarters should both be fairly robust. May not be quite as strong as what Q2 was. They're both going to remain good. As Mike said, we're being somewhat conservative because we still have a lot of variables there. Steven Wahrhaftig: Okay. Got it. Thank you for the color. Then just talking a little bit more about the tax line, just because, Kim, you mentioned that the 179D is going to be something that you benefit from for the foreseeable future. I think you mentioned a few years on the transcript. When we're thinking about the guidance for the tax rate, a 0% guidance would imply that the second half of the year is going to see a tax rate of around 20% from an income tax expense perspective. Can you break that down a little bit more? Because in the first quarter, we actually saw that move in the right direction from that 10% initial guide to 0%. Why not guide it to closer to another negative 10% if you're going to continue to see those benefits? Kim Early: Yeah. Well, from a P&L standpoint, that benefit expires at the end of June. We'll get a little bit of carryover because it does apply to projects that were started before the end of June, but it won't apply to any other projects from that point forward. You're right, the second half of the year is going to have a positive income tax expense. We have to recognize all of the potential in the quarter that we've got it in terms of the 179D credit this quarter. But in the second half of the year, it's going to be a tax rate somewhere between 15% and 20%. The tax benefits we're saying that are going to carry forward is from a cash standpoint. We're out of the ability to carry it back, but it does carry forward. We won't be sending any checks to the government anytime soon because we've got that significant deferred tax balance there. Steven Wahrhaftig: Okay. Appreciate the time, guys. Operator: This now concludes our question-and-answer session. I would like to turn the floor back over to Mike Bieber for closing comments. Mike Bieber: Great. Well, thank you for your interest in Willdan, and we'll speak to you next quarter. Thank you. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes record performance to the successful execution of a 'three-legged stool' strategy, diversifying revenue across utility, government, and a rapidly expanding commercial segment. Commercial demand is accelerating, now representing approximately 25% of total business, which management believes adds stability and supports higher margins. The data center market is identified as the fastest-growing revenue driver, specifically regarding electricity load growth and speed-to-power requirements. Operational productivity is being enhanced by AI adoption, which management states is helping solve more complex client problems while improving internal efficiency. Strategic acquisitions like Burton Energy are providing immediate cross-selling opportunities in HVAC and energy controls, particularly within the retail sector. The company is seeing a shift toward larger, more complex multidisciplinary projects that combine engineering, software, and energy management capabilities. Management notes that California Regional Energy Networks (RENs) are assuming a larger role from traditional investor-owned utilities, creating a pipeline of high-value opportunities. Full-year 2026 guidance was raised based on strong first-half visibility, though management remains conservative regarding the exact ramp-up timing of the $110 million LADWP contract expansion. Adjusted EBITDA margins are expected to expand significantly to approximately 25% for the full year 2026, up from 21.8% in 2025, supported by AI-enabled productivity and scalability. Management anticipates the commercial business will continue to provide a lower overhead rate, which supports higher adjusted EBITDA margins despite carrying lower gross margins. The company expects to fully repay its revolver by year-end, absent further acquisitions, maintaining a low-leverage balance sheet to support future M&A. Future cash flows will be supported by $34 million in deferred tax assets, ensuring the company will not need to make significant cash tax payments for several years. The 179D tax provision sunset at the end of June 2026, which will result in a positive income tax expense rate of 15% to 20% in the second half of the year. Gross margins declined 150 basis points due to a revenue mix shift toward performance engineering and commercial projects involving more equipment and subcontractors. Management highlighted 'speed to power' as the primary competitive factor for data center location, driving geographic expansion into Texas and the Midwest. Stock-based compensation increased 51% year-over-year, primarily driven by the appreciation of the company's stock price. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has authorization to proceed on half of the $110 million expansion and expects it to ramp through Q3 and Q4, potentially becoming the largest customer in 2027. The conservative guidance reflects uncertainty regarding exactly how much of this work will be completed in the next six months versus early 2027. Willdan has established new hubs in Florida, Georgia, North Carolina, Kentucky, and Texas over the last 18 months to follow data center and battery storage demand. Data center projects are pulling the company into new territories like New Mexico, Montana, and Utah, expanding their footprint into the 'breadbasket' of the U.S. While the P&L benefit expired in June, the cash flow benefit persists through $34 million in deferred tax assets that will carry forward for years. The second half of 2026 will see a normalized tax rate between 15% and 20% as the immediate credit recognition concludes.

Interested in Willdan Group, Inc.? Here are five stocks we like better. Record Q2 results: Contract revenue rose 33% year over year to $231 million, while adjusted EBITDA increased 51% to a record $33 million and adjusted EPS climbed 38% to $2.07. Commercial and data-center growth are accelerating: Commercial work now represents about one-quarter of revenue, driven by data centers, battery storage and the APG and Burton Energy acquisitions. Willdan also secured major projects, including a $110 million solar streetlight expansion for LADWP. 2026 outlook raised: The company now expects net revenue of $415 million to $430 million, adjusted EBITDA of $103 million to $107 million and adjusted diluted EPS of $5.00 to $5.15. Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Willdan Group (NASDAQ:WLDN) reported record second-quarter profitability as revenue growth in commercial energy work, including data centers and battery storage projects, complemented continued demand from utility and municipal customers. Contract revenue rose 33% year over year to $231 million in the second quarter of 2026, while net revenue increased 23% to $117 million, President and CEO Mike Bieber said on the company’s earnings call. Adjusted EBITDA climbed 51% to a quarterly record of $33 million, and adjusted earnings per share rose 38% to $2.07. GAAP diluted earnings per share increased 53% to $1.58. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Companies Quietly Essential to Data Center and AI Operations Bieber said commercial revenue now represents about one-quarter of the company’s business, providing what he described as a “third leg to the stool” alongside its established utility and government operations. The company’s largest commercial revenue source is electricity-related work at data centers, which Bieber called Willdan’s fastest-growing area. Willdan said its commercially focused APG acquisition is projected to generate roughly $75 million in revenue this year, nearly triple its contribution in the prior year. The company said commercial expansion gives it another route to deploy engineering, software, procurement and energy-management capabilities while broadening its addressable market. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The recently acquired Burton Energy business has also begun contributing to that strategy. Since Willdan closed the acquisition on May 4, the company has focused on transitioning Burton to its enterprise resource planning system, maintaining customer continuity and developing cross-selling opportunities. Bieber said Burton has established new customer relationships with Walgreens, Carter’s and Five Below since May. Burton brings expertise in building HVAC systems, energy controls technology and commercial energy procurement. It has also joined two Willdan utility programs, according to management. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling During the question-and-answer session, Bieber said cross-selling with Burton is occurring in both directions. Willdan has met with several of Burton’s larger customers to discuss additional company services, while Burton’s HVAC capabilities have been introduced to utility programs on the East and West coasts. Willdan highlighted several recent contract awards, including a $110 million expansion of its solar streetlight work for the Los Angeles Department of Water and Power. The expansion was awarded through an existing commercial direct-install program, and Willdan has authorization to proceed on about half of the newly awarded amount, Bieber said. The solar streetlight project is expected to ramp through the third and fourth quarters and potentially into early 2027. Bieber said the timing remains uncertain but added that LADWP could become Willdan’s largest customer in 2027. The project is intended to remove streetlight load from the utility’s power grid while supporting resiliency and public safety. Other recently announced wins included: A $53 million central plant upgrade for the City College of New York. A five-year, $49 million energy-efficiency contract with Southern California Regional Energy Network. A $31 million renewable biogas cogeneration and microgrid project. A $15 million battery energy storage project in Texas. A $6 million substation project in Illinois. Bieber said these awards reflect customers’ willingness to entrust Willdan with larger and more complex projects across a wider range of customer types. He also cited increasing demand for battery storage, which can help manage peak demand, support renewable generation, improve resiliency and provide backup power for critical facilities. Data center development remains a key driver of electricity demand, management said. Bieber said speed to power is a primary consideration in determining data-center locations and noted that Willdan has multiple projects underway in Texas. The company has also expanded its geographic footprint over the past 18 months, establishing hubs in Florida, Georgia, North Carolina, Kentucky and Texas. Executive Vice President and CFO Kim Early said organic net revenue growth was 18% in the quarter, excluding the contribution from Burton. The growth reflected higher revenue from data centers, battery storage projects and the company’s utility and municipal infrastructure businesses. Gross profit dollars increased 28%, although gross margin declined 150 basis points because performance engineering and commercial project revenue includes more equipment and subcontractor costs. Early said those project types tend to have lower gross margins but also carry lower overhead rates, supporting higher adjusted EBITDA margins on net revenue. Second-quarter adjusted EBITDA margin reached a company-record 28.2%, though Early said the company does not expect that margin level to continue throughout the year because the quarter benefited from revenue acceleration in some utility programs and performance-contracting work. For the first half, contract revenue increased 19% to $386 million and net revenue grew 16% to $210 million. Adjusted EBITDA rose 41% to $51.1 million, while adjusted EPS increased 39% to $2.98. On a trailing 12-month basis, adjusted EBITDA increased 36% to $94.3 million and adjusted EPS rose 60% to $5.76. Willdan generated $71 million of operating cash flow and $62 million of free cash flow over the trailing 12 months. It ended the quarter with $33 million in net debt, a net-debt-to-trailing-12-month-adjusted-EBITDA ratio of 0.3 times, and total available liquidity of $165 million, including cash and available borrowing capacity. Based on first-half performance, Willdan raised its full-year 2026 targets. The company now expects net revenue of $415 million to $430 million, adjusted EBITDA of $103 million to $107 million, and adjusted diluted EPS of $5.00 to $5.15. The outlook assumes approximately 15.9 million diluted shares outstanding at year-end and a 0% full-year effective tax rate. Early said the company expects a positive income-tax expense rate of roughly 15% to 20% in the second half after the expiration of certain 179D-related benefits, though deferred tax assets are expected to continue supporting cash flow. Management said it continues to pursue acquisitions while investing in organic growth, and cited AI adoption as a contributor to productivity and the ability to address more complex client needs. Willdan Group, Inc provides energy efficiency, infrastructure engineering, and technical consulting services to a diverse range of public and private sector clients. The company works with utilities, municipalities, state and federal agencies, and commercial enterprises to design, implement, and manage programs that promote sustainable energy use, grid modernization, and resilient infrastructure. Willdan's offerings span program design and implementation, energy audits, measurement and verification, and project management for both new construction and retrofit initiatives. Core services include energy advisory and engineering solutions, including feasibility studies, facility commissioning and retro-commissioning, $0 down financing for energy projects, and demand response program development. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Willdan Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Contract Revenue: Increased 33% year over year to $231 million in Q2 2026. Net Revenue: Grew 23% to $117 million in Q2, with organic growth of 18%. Adjusted EBITDA: Rose 51% to a record $33 million, representing a record 28.2% margin on net revenue. GAAP Earnings Per Share: Increased 53% to $1.58 in Q2. Adjusted Earnings Per Share: Increased 38% to $2.07 in Q2. Gross Margin: Declined 150 basis points in Q2 due to revenue mix shift toward performance engineering and commercial projects. Pre-Tax Income: Grew 88% to $19.1 million in Q2. Net Income: Increased 58% to $24.3 million in Q2. First-Half Contract Revenue: Up 19% to $386 million year over year. First-Half Net Revenue: Increased 16% to $210 million. First-Half Adjusted EBITDA: Rose 41% to $51.1 million, or 24.4% of net revenue. First-Half Adjusted EPS: Grew 39% to $2.98 per share. First-Half GAAP EPS: Up 57% to $2.13 per share. Trailing 12-Month Contract Revenue: Increased 18% to $742 million. Trailing 12-Month Net Revenue: Increased 18% to $394 million. Trailing 12-Month Adjusted EBITDA: Grew 36% to $94.3 million. Trailing 12-Month Adjusted EPS: Increased 60% to $5.76. Cash Flow from Operations: $71 million over the last 12 months. Free Cash Flow: $62 million, or $4.04 per share, over the last 12 months. Net Debt: $33 million at quarter end, with a net debt to adjusted EBITDA ratio of 0.3 times. Full-Year 2026 Net Revenue Target: Raised to $415 million to $430 million. Full-Year 2026 Adjusted EBITDA Target: Raised to $103 million to $107 million. Full-Year 2026 Adjusted EPS Target: Raised to $5.00 to $5.15. Warning! GuruFocus has detected 4 Warning Signs with LCTX. Is WLDN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Willdan Group Inc (NASDAQ:WLDN) delivered a record second quarter with contract revenue up 33% year-over-year to $231 million and net revenue up 23% to $117 million. Adjusted EBITDA increased 51% to a record $33 million, with a record 28.2% adjusted EBITDA margin on net revenue, the highest quarterly margin in company history. The company is successfully diversifying its customer base, with commercial revenue now representing about a quarter of the business, driven by strong demand from data centers and the APG acquisition. Willdan Group Inc (NASDAQ:WLDN) secured several significant contract wins, including a $110 million solar streetlight expansion with LADWP and a $53 million central plant upgrade for the City College of New York. The company raised its full-year 2026 financial targets, now expecting net revenue of $415 million to $430 million and adjusted EBITDA of $103 million to $107 million. Willdan Group Inc (NASDAQ:WLDN) maintains a strong balance sheet with low leverage (0.3 times net debt to adjusted EBITDA) and $165 million in total available liquidity, positioning it well for future growth and acquisitions. Gross margin declined 150 basis points in the second quarter due to a shift in revenue mix toward performance engineering and commercial project revenue, which carry a heavier load of equipment and subcontractors. The company noted that the record 28.2% adjusted EBITDA margin in Q2 is not expected to hold for the remainder of the year due to some acceleration of revenues into the quarter. Willdan Group Inc (NASDAQ:WLDN) faces uncertainty regarding the ramp-up of the LADWP project, which led to a more conservative full-year guidance despite strong Q2 performance. The 179D tax provision, which provided significant tax benefits, sunset at the end of June, resulting in an expected positive income tax expense of 15% to 20% in the second half of the year. G&A expenses increased 20% year-over-year, driven by higher stock compensation expense (up 51%) and increased non-cash charges for amortization of intangibles from acquisitions. The company acknowledged that labor is tight, with salaries for experienced professionals increasing, which could pressure future margins. Q: Can you break down the guidance further? The quarter saw significant beats on revenue, EBITDA, and EPS, yet the raise in guidance wasn't as sizable. Is there a lack of visibility or something else to touch on?A: Mike Bieber (President and CEO) explained that the biggest variable is the uncertainty around how quickly the LADWP project will ramp up over the next six months. They guided conservatively because the work could be completed in the second half of 2026 or spill into early 2027. Kim Early (EVP and CFO) added that Q3 and Q4 should be robust and similar to Q2, though Q2 benefited from some acceleration of utility program revenues and performance contracting activities that were originally forecasted for later quarters. Q: Can you talk about the ramp of the LADWP project in Q2 and how it plays out in the back half of the year? How does the new $110 million project extension change the overall outlook?A: Mike Bieber (President and CEO) stated the project was already ramping up from the beginning of the year and wasn't expected to hit full run rate until early next year. With the $110 million expansion, they already have authorization to proceed on half of it. The ramp will continue through Q3 and into Q4 and early 2027. He noted they were "appropriately conservative" in their outlook, and LADWP could become their largest customer in 2027, with potential for further expansion beyond this contract. Q: Regarding the tax line, you mentioned 179D benefits will continue for the foreseeable future. The 0% guidance implies a ~20% tax rate in the second half. Why not guide to another negative 10% if benefits continue?A: Kim Early (EVP and CFO) clarified that from a P&L standpoint, the 179D benefit expired at the end of June, though there will be some carryover for projects started before that date. The second half will have a positive income tax expense with a rate between 15% and 20%. However, from a cash standpoint, the significant deferred tax balance means they won't be sending checks to the government anytime soon, as the benefits carry forward. Q: What directs your geographic diversification? Is it mostly data center and battery storage driven? How do you expand in states beyond California and New York?A: Mike Bieber (President and CEO) confirmed that data center development is driving geographic expansion. They've established permanent office hubs in Florida, Georgia, North Carolina, Kentucky, and Texas over the last 18 months. For the first time, they're performing projects in New Mexico, Montana, and Utah. Data centers are being built coast to coast, allowing them to gain experience and hire talent in the middle part of the country where they previously had less presence. Q: Are you seeing traction with Burton cross-selling opportunities in both directions, or is it primarily one-way?A: Mike Bieber (President and CEO) confirmed the cross-selling is bidirectional. They've visited several of Burton's large clients with opportunities to provide new Willdan services to those existing relationships. Conversely, they've already brought Burton into two utility programs on the East and West Coasts because Burton has specific HVAC capabilities Willdan didn't previously have. Early signs look good in both directions. Q: How do you make trade-offs on talent allocation between accepting new projects or advisory work for new customers versus servicing current long-tenured customers? Are you experiencing labor shortages?A: Mike Bieber (President and CEO) explained they have a dedicated group focused on commercial customers within their study practice, run by Kush Patel, while utility customers have separate teams that cross-collaborate. They haven't seen labor shortages in either area, though labor is tight. For experienced top performers, salaries are increasing, and they continue to hire. Q: Can you provide more color on the margin performance? Q2 saw a record 28.2% adjusted EBITDA margin, but you noted this won't hold throughout the year. What's the expected trajectory?A: Kim Early (EVP and CFO) explained that Q2 reflected some acceleration of revenues that will impact the second half. While the 28.2% margin demonstrates the long-term goal of high-20% margins is achievable given the right revenue mix, they expect 2026 full-year adjusted EBITDA margin of approximately 25%, up from 21.8% in 2025. The margin expansion is driven by larger, more complex projects, commercial business growth, AI-enabled productivity, and operating platform scalability. Q: What are the key drivers behind the strong organic growth, and how are recent acquisitions like APG, Compass, and Burton contributing?A: Mike Bieber (President and CEO) highlighted that commercial revenue, particularly from data centers, is now about a quarter of the business and is the fastest-growing part of Willdan. Revenue from the APG acquisition is projected to nearly triple this year to roughly $75 million. Burton Energy, acquired in May, is performing well with new customer relationships including Walgreens, Carter's, and Five Below. The acquisitions are broadening their customer base and creating cross-selling opportunities across their engineering, software, procurement, and energy management capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Willdan Group (WLDN) came out with quarterly earnings of $2.07 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +69.67%. A quarter ago, it was expected that this energy efficiency and sustainability consultant would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Willdan, which belongs to the Zacks Business - Services industry, posted revenues of $117.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 17.07%. This compares to year-ago revenues of $94.97 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Willdan shares have lost about 28.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While Willdan has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Willdan was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.41 on $109.9 million in revenues for the coming quarter and $4.94 on $413.9 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ABM Industries (ABM), is yet to report results for the quarter ended July 2026. This provider of cleaning and other maintenance services for commercial buildings, hospitals and airports is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +23.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ABM Industries' revenues are expected to be $2.3 billion, up 3.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report ABM Industries Incorporated (ABM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ANAHEIM, Calif., August 06, 2026--(BUSINESS WIRE)--Willdan Group, Inc. ("Willdan") (Nasdaq: WLDN) today announced its financial results for the second quarter ended July 3, 2026. Second Quarter 2026 Highlightsa Contract revenue of $231.0 million, up 33.2%. Net revenueb of $117.2 million, up 23.5%. Net income of $24.3 million, up 57.7%. Adjusted EBITDAb of $33.0 million, up 50.6%. GAAP Diluted EPS of $1.58, up 53.4%. Adjusted Diluted EPSb of $2.07, up 38.0%. The first half of fiscal 2026 had one fewer week than the first half of fiscal 2025, thus normalized results are also presented. Six Months Year to Date 2026 Highlightsa Contract revenue of $386.1 million, up 18.5% (up 23.1% normalized). Net revenueb of $209.7 million, up 16.3% (up 20.8% normalized). Net income of $32.9 million, up 63.4% (up 69.7% normalized). Adjusted EBITDAb of $51.1 million, up 40.6% (up 46.0% normalized). GAAP Diluted EPS of $2.13, up 56.6%. Adjusted Diluted EPSb of $2.98, up 39.3%. Executive Management Comments "We delivered strong performance in the second quarter of 2026," said Mike Bieber, Willdan's President and Chief Executive Officer. "Net revenue grew 23% year over year, including 18% organic growth, reflecting strong demand for our energy solutions. Margin expansion was driven by favorable business mix, operating leverage, and growth in our commercial business. We see compelling long-term opportunities from customers investing to meet growing electricity demand while improving grid reliability, resiliency, and affordability. Reflecting our strong performance and confidence in the opportunities ahead, we are raising our FY2026 financial targets." Fiscal Year 2026 Financial Targets Net Revenueb between $415 million and $430 million. Adjusted EBITDAb between $103 million and $107 million. Adjusted Diluted EPSb between $5.00 per share and $5.15 per share. Assumes 15.9 million diluted shares, 0% effective tax rate, and no future acquisitions. Long-Term Financial Goals Revenue and Net Revenue 15%-20% annual growth including acquisitions. Annual Adjusted EBITDA to Net Revenue margin in the high 20s%. Second Quarter 2026 Conference Call Willdan will be hosting a conference call to discuss its second quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923). The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/qyujt8ei/. A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations. About Willdan Group, Inc. Willdan Group, Inc. is a technical services company focused on energy and infrastructure solutions. The Company’s solutions include energy planning and analytics, consulting, software, public finance, engineering, and program implementation. Willdan serves utilities, state and local governments, and commercial customers in the United States and Canada. For additional information, visit Willdan's website at www.willdan.com. Use of Non-GAAP Financial Measures "Net Revenue," defined as contract revenue as reported in accordance with U.S. generally accepted accounting principles ("GAAP") minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with GAAP and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for fiscal year 2026 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2026, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 45.7% and 44.7% of contract revenue for the six months ended July 3, 2026 and July 4, 2025, respectively, and 46.5% of contract revenue for the fiscal year 2025. "Adjusted EBITDA," defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, transaction costs, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for fiscal year 2026 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2026, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA. "Adjusted Net Income," defined as net income plus stock-based compensation, intangible amortization, interest accretion, and transaction costs, each net of tax, is a non-GAAP financial measure. "Adjusted Diluted EPS," defined as net income plus stock-based compensation, intangible amortization, interest accretion, and transaction costs, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2026, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for fiscal year 2026, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively. Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS. Forward Looking Statements Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, assumptions, aims, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding electricity demand, the expected benefits of the acquisition of Burton Energy Group, LLC., and financial targets for fiscal year 2026 and long term financial goals. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to realize the full amount of our backlog; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, elevated interest rates, and elevated inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended January 2, 2026, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806547571/en/ Contacts Willdan Group, Inc. Al KaschalkVice PresidentTel: [email protected]

Thomson Reuters (TRI) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.13%. A quarter ago, it was expected that this news and financial information company would post earnings of $1.21 per share when it actually produced earnings of $1.23, delivering a surprise of +1.65%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Thomson Reuters, which belongs to the Zacks Business - Services industry, posted revenues of $1.95 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.06%. This compares to year-ago revenues of $1.79 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Thomson Reuters shares have lost about 18.5% since the beginning of the year versus the S&P 500's gain of 13%. While Thomson Reuters has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Thomson Reuters was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.97 on $1.95 billion in revenues for the coming quarter and $4.44 on $8.12 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Willdan Group (WLDN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This energy efficiency and sustainability consultant is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -18.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Willdan Group's revenues are expected to be $100.15 million, up 5.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Healthcare Services (HCSG) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +60.00%. A quarter ago, it was expected that this provider of housekeeping, laundry and dietary services to health care facilities would post earnings of $0.22 per share when it actually produced earnings of $0.37, delivering a surprise of +68.18%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Healthcare Services, which belongs to the Zacks Business - Services industry, posted revenues of $470.81 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.13%. This compares to year-ago revenues of $458.49 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Healthcare Services shares have added about 29.7% since the beginning of the year versus the S&P 500's gain of 9.7%. While Healthcare Services has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Healthcare Services was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $495 million in revenues for the coming quarter and $1.01 on $1.93 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Willdan Group (WLDN), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This energy efficiency and sustainability consultant is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -18.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Willdan Group's revenues are expected to be $100.15 million, up 5.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research