Willdan Group, Inc. (WLDN Quick QuoteWLDN - Free Report) landed a substantial contract from a New England utility to bolster numerous energy efficiency initiatives.

Valued at an estimated $30-50 million spanning three years, this deal signifies a notable growth opportunity for Willdan. The program targets a diverse range of energy consumers, from small businesses to municipal infrastructure, marking a significant expansion of Willdan's footprint in New England.

Willdan's selection for this contract underscores its strategic planning capabilities and technical expertise. This contract reflects New England utility’s approach to investing in its facilities and taking a substantial step toward a greener and more sustainable future.

Share Price Performance

The company has been providing affordable solutions to reduce the amount of electricity and natural gas. For 2023, consolidated contract revenues grew 18.9%, while net revenues grew 19%.

Notably, in the fourth quarter of 2023, Willdan witnessed remarkable growth in contract revenue, which surged 37% compared with the previous year, reaching a record high of $155.7 million. Net revenues also soared 25% to an unprecedented $80.8 million. This remarkable uptick was primarily driven by seizing exceptional opportunities to surpass target quantities in utility programs, resulting in an additional $20 million in contract revenues and a $3 million boost in adjusted EBITDA for the quarter. Moreover, the quarter showcased significant year-over-year increases across all service lines, reflecting robust demand for energy and municipal services.
 

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Over the past six months, WLDN’s shares have lost 5.6%, against the Zacks Engineering - R and D Services industry’s 16.8% rise. That said, the Zacks Consensus Estimate for earnings per share (EPS) estimates for 2024 indicates 19.2% year-over-year growth.

As companies and organizations continue to prioritize sustainability, Willdan's expertise in energy efficiency and renewable energy solutions positions them as a key player in the evolving landscape of environmentally responsible investments. With this latest contract, Willdan is not only enhancing its reputation but also contributing to a more sustainable future for New England.

Zacks Rank

Willdan currently carries a Zacks Rank #3 (Hold).

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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.