Willdan Group Reports 15% Revenue Growth to $182M in Latest Quarter

Willdan Group, Inc. reported significant financial growth in its latest quarterly results, with contract revenue reaching $182.0 million for the three months ended October 3, 2025, a 15% increase from $158.3 million in the same period last year. The company's net income also saw a substantial rise, climbing to $13.7 million, or $0.94 per share, compared to $7.3 million, or $0.53 per share, in the prior year. For the nine-month period, total contract revenue increased by 20.4% to $507.9 million, while net income surged to $33.8 million from $14.9 million.

The growth in revenue was driven by increased demand across both of Willdan's segments: Energy and Engineering and Consulting. The Energy segment alone contributed $154.8 million in revenue, up 15.5% year-over-year, largely due to heightened demand for energy efficiency services and the impact of recent acquisitions, including Alternative Power Generation, Inc. and Enica Engineering, PLLC. The Engineering and Consulting segment also experienced growth, with revenues increasing by 12.5% to $27.3 million, attributed to rising service demand and contributions from the acquisition of Alpha Inspections, Inc.

Operationally, Willdan's direct costs of contract revenue rose to $114.9 million, reflecting a 7.8% increase, while gross profit improved by 30% to $67.1 million, resulting in a gross margin of 36.9%. General and administrative expenses also increased, totaling $52.2 million, a 21.7% rise from the previous year, primarily due to higher salaries and wages, stock-based compensation, and other operational costs. The company reported an operating income of $14.9 million, marking a 71.3% increase compared to the prior year.

In terms of strategic developments, Willdan has been active in expanding its capabilities through acquisitions, which have contributed to its revenue growth. The company has also focused on integrating these acquisitions into its operations, enhancing its service offerings in energy solutions and consulting. As of October 3, 2025, Willdan had a total of $33.1 million in cash and cash equivalents, alongside a fully drawn $50 million term loan, positioning the company well for future growth and operational needs.

Looking ahead, Willdan anticipates continued growth driven by strong demand for its services, particularly in energy efficiency and infrastructure projects. The company remains focused on leveraging its recent acquisitions to enhance its market position and expand its service offerings, while managing operational costs effectively to sustain profitability.