Willdan Group Reports 23% Revenue Growth to $173.5 Million in Latest Quarter

Willdan Group, Inc. reported significant financial growth in its latest quarterly results, with contract revenue reaching $173.5 million for the three months ended July 4, 2025, a 23% increase from $141.0 million in the same period last year. The company's net income also saw a substantial rise, climbing to $15.4 million, compared to $4.6 million in the prior year, reflecting a 236% increase. This growth was attributed to heightened demand for services across both its Energy and Engineering and Consulting segments, bolstered by recent acquisitions.

In the first half of fiscal 2025, Willdan's total contract revenue increased by 23.7% to $325.9 million, up from $263.5 million in the previous year. The Energy segment alone contributed $273.0 million, a 24.9% increase, driven by increased demand for energy efficiency and electrification services. The Engineering and Consulting segment also performed well, generating $52.9 million, a 17.8% increase, largely due to the integration of Alpha Inspections, Inc. and other service expansions.

Operationally, Willdan has expanded its workforce and capabilities, with general and administrative expenses rising by 26.9% to $107.1 million in the first half of 2025, primarily due to increased staffing from acquisitions and higher incentive compensation. The company’s employee headcount has grown as it integrates new acquisitions, which include Alternative Power Generation, Inc. and Alpha Inspections, Inc. The total number of employees is not disclosed, but the company noted that the increase in personnel is aligned with its growth strategy.

The company has also made strategic moves in its financing structure, entering into an Amended and Restated Credit Agreement that provides for a $100 million revolving credit facility and a $50 million delayed draw term loan, both maturing in May 2030. As of July 4, 2025, Willdan had $32.3 million in cash and cash equivalents, alongside a fully drawn $50 million term loan. The company anticipates that these financial resources will support its operational needs and growth initiatives over the next year.

Looking ahead, Willdan Group remains optimistic about its growth trajectory, driven by ongoing demand for its services and the successful integration of recent acquisitions. The company is focused on leveraging its expanded capabilities to enhance service delivery and capture additional market share in the energy services sector, which accounted for 84% of its consolidated revenue in fiscal 2024.