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Willdan Surges 27.7% in Three Months: How to Play the Stock Now?
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Key Takeaways
Willdan's Energy segment drove growth in the first nine months of 2025, with contract revenues up 20%.
WLDN is benefiting from rising data center power demand, boosting planning and engineering services.
Willdan's APG acquisition expanded power engineering capabilities, supporting backlog growth into 2026.
Shares of Willdan Group, Inc. ((WLDN - Free Report) ) have surged 27.7% in the past three months, outperforming the Zacks Business - Services industry’s 2.1% fall. The S&P 500 rose 6.2% over the same timeframe.
This California-based professional, technical and consulting service provider is seeing strong momentum as demand for energy transition and infrastructure modernization continues to rise. Growing electricity load from data centers and electrification is supporting activity across energy consulting, power engineering and program management. Backed by a solid pipeline and increasing contract conversions, the company enters the next phase of growth with improved visibility and steady execution support.
WLDN Stock Outperforms Industry
Image Source: Zacks Investment Research
Willdan stock has outperformed some other players, including APi Group ((APG - Free Report) ), ABM Industries ((ABM - Free Report) ) and Bowman Consulting Group ((BWMN - Free Report) ). In the same time frame, shares of APi Group have gained 22.8%, while ABM Industries and Bowman Consulting Group have fallen 2.1% and 15.8%, respectively. Let us look at the factors driving this performance.
Energy Transition and Data Center Demand Drive Growth
Willdan continues to benefit from accelerating electricity demand tied to data centers, electrification and infrastructure modernization. The company’s Energy segment, which represents the majority of revenues, is supported by utilities, commercial customers and government clients navigating rising load requirements and grid constraints. Increasing power usage by hyperscalers and AI-driven data centers is creating demand for planning, engineering and program management services, where Willdan has established technical depth.
During the first nine months of 2025, contract revenues increased 20% year over year to $508 million, while net revenues rose 27% to $275 million. Management highlighted strong execution across energy efficiency, power engineering and consulting programs, supported by long-term utility contracts typically lasting three to five years. As utilities increasingly view energy efficiency as a power resource, Willdan expects program size and complexity to continue expanding, supporting sustained demand and visibility into 2026 and beyond.
APG Acquisition Expands Power Engineering Capabilities
Willdan’s acquisition of Alternative Power Generation, Inc. or APG has strengthened its exposure to high-voltage power engineering and data center infrastructure. APG supports hyperscalers and commercial customers with substation design, interconnection and grid-related solutions, positioning the combined platform to address increasingly complex power requirements. Management emphasized that electricity load growth studies and upfront consulting often lead directly into downstream engineering and construction-related work.
Early integration trends appear favorable. APG has already secured a record backlog and it expects the business to deliver more than 50% growth in 2026. Collaboration between APG and Willdan’s broader consulting, engineering and energy optimization teams is improving cross-selling effectiveness and resource utilization. This integrated model allows Willdan to participate across the full lifecycle of energy infrastructure projects, from planning through execution, strengthening its competitive position as data center development accelerates.
Strong Pipeline and Contract Conversions Support Visibility
The company enters 2026 with a solid pipeline of opportunities and a demonstrated ability to convert large programs into awarded contracts. Recent wins span energy efficiency upgrades, substations and infrastructure projects across multiple states, reflecting broad-based demand from public and private clients. These projects often originate as consulting or planning engagements, allowing the company to assess risk, staffing and execution requirements well before construction phases begin.
Management highlighted that many large awards are developed over extended periods, improving forecasting accuracy and operational readiness. This approach reduces execution risk and supports margin discipline as projects scale. With continued strength across utilities, municipalities and commercial energy customers, Willdan expects its pipeline to remain active, supporting steady contract flow and improved revenue visibility as projects progress into 2026.
Earnings Estimate Trend of WLDN
Willdan’s earnings estimate for 2026 has remained unchanged in the past 60 days at $4.53 per share. This indicates expected earnings growth of 9.6% year over year on projected revenue growth of 4.8%.
Image Source: Zacks Investment Research
Headwinds That Could Weigh on Willdan’s Performance
Despite the strong growth backdrop, Willdan faces some near-term risks that could temper performance. A large portion of demand is tied to public-sector budgets, utility programs and infrastructure spending, which can be affected by funding timing, regulatory changes or project delays. Rapid growth also increases execution complexity, requiring continued discipline in staffing, project selection and risk management to protect margins. In addition, heightened exposure to data center and energy-transition work could introduce volatility if customer investment decisions slow or project timelines shift. These factors may create periods of uneven performance even as long-term fundamentals remain supportive.
Taking a Look at Willdan Stock’s Valuation
From a valuation standpoint, the company is currently trading at a premium relative to the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.87X, as evidenced by the chart below.
Image Source: Zacks Investment Research
Furthermore, WLDN stock appears overvalued compared with peer companies, with APi Group, ABM Industries and Bowman Consulting Group having a forward P/E of 25.73X, 10.74X and 21.17X, respectively.
How to Play WLDN Stock?
Willdan continues to benefit from strong execution across energy transition, data center-related demand and infrastructure modernization, supported by a growing pipeline and improving project visibility. The APG acquisition has expanded power engineering capabilities, while steady contract conversions and disciplined execution strengthen Willdan’s long-term growth profile in 2026.
However, near-term risks tied to public-sector funding cycles, execution complexity and elevated exposure to data center-related projects could lead to periods of volatility. In addition, the stock’s premium valuation relative to peers may limit upside potential in the short term.
Given the current setup, this Zacks Rank #3 (Hold) company is likely to deliver steady performance in the near term. Existing investors may continue to hold WLDN, while new investors could wait for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Willdan Surges 27.7% in Three Months: How to Play the Stock Now?
Key Takeaways
Shares of Willdan Group, Inc. ((WLDN - Free Report) ) have surged 27.7% in the past three months, outperforming the Zacks Business - Services industry’s 2.1% fall. The S&P 500 rose 6.2% over the same timeframe.
This California-based professional, technical and consulting service provider is seeing strong momentum as demand for energy transition and infrastructure modernization continues to rise. Growing electricity load from data centers and electrification is supporting activity across energy consulting, power engineering and program management. Backed by a solid pipeline and increasing contract conversions, the company enters the next phase of growth with improved visibility and steady execution support.
WLDN Stock Outperforms Industry
Image Source: Zacks Investment Research
Willdan stock has outperformed some other players, including APi Group ((APG - Free Report) ), ABM Industries ((ABM - Free Report) ) and Bowman Consulting Group ((BWMN - Free Report) ). In the same time frame, shares of APi Group have gained 22.8%, while ABM Industries and Bowman Consulting Group have fallen 2.1% and 15.8%, respectively. Let us look at the factors driving this performance.
Energy Transition and Data Center Demand Drive Growth
Willdan continues to benefit from accelerating electricity demand tied to data centers, electrification and infrastructure modernization. The company’s Energy segment, which represents the majority of revenues, is supported by utilities, commercial customers and government clients navigating rising load requirements and grid constraints. Increasing power usage by hyperscalers and AI-driven data centers is creating demand for planning, engineering and program management services, where Willdan has established technical depth.
During the first nine months of 2025, contract revenues increased 20% year over year to $508 million, while net revenues rose 27% to $275 million. Management highlighted strong execution across energy efficiency, power engineering and consulting programs, supported by long-term utility contracts typically lasting three to five years. As utilities increasingly view energy efficiency as a power resource, Willdan expects program size and complexity to continue expanding, supporting sustained demand and visibility into 2026 and beyond.
APG Acquisition Expands Power Engineering Capabilities
Willdan’s acquisition of Alternative Power Generation, Inc. or APG has strengthened its exposure to high-voltage power engineering and data center infrastructure. APG supports hyperscalers and commercial customers with substation design, interconnection and grid-related solutions, positioning the combined platform to address increasingly complex power requirements. Management emphasized that electricity load growth studies and upfront consulting often lead directly into downstream engineering and construction-related work.
Early integration trends appear favorable. APG has already secured a record backlog and it expects the business to deliver more than 50% growth in 2026. Collaboration between APG and Willdan’s broader consulting, engineering and energy optimization teams is improving cross-selling effectiveness and resource utilization. This integrated model allows Willdan to participate across the full lifecycle of energy infrastructure projects, from planning through execution, strengthening its competitive position as data center development accelerates.
Strong Pipeline and Contract Conversions Support Visibility
The company enters 2026 with a solid pipeline of opportunities and a demonstrated ability to convert large programs into awarded contracts. Recent wins span energy efficiency upgrades, substations and infrastructure projects across multiple states, reflecting broad-based demand from public and private clients. These projects often originate as consulting or planning engagements, allowing the company to assess risk, staffing and execution requirements well before construction phases begin.
Management highlighted that many large awards are developed over extended periods, improving forecasting accuracy and operational readiness. This approach reduces execution risk and supports margin discipline as projects scale. With continued strength across utilities, municipalities and commercial energy customers, Willdan expects its pipeline to remain active, supporting steady contract flow and improved revenue visibility as projects progress into 2026.
Earnings Estimate Trend of WLDN
Willdan’s earnings estimate for 2026 has remained unchanged in the past 60 days at $4.53 per share. This indicates expected earnings growth of 9.6% year over year on projected revenue growth of 4.8%.
Image Source: Zacks Investment Research
Headwinds That Could Weigh on Willdan’s Performance
Despite the strong growth backdrop, Willdan faces some near-term risks that could temper performance. A large portion of demand is tied to public-sector budgets, utility programs and infrastructure spending, which can be affected by funding timing, regulatory changes or project delays. Rapid growth also increases execution complexity, requiring continued discipline in staffing, project selection and risk management to protect margins. In addition, heightened exposure to data center and energy-transition work could introduce volatility if customer investment decisions slow or project timelines shift. These factors may create periods of uneven performance even as long-term fundamentals remain supportive.
Taking a Look at Willdan Stock’s Valuation
From a valuation standpoint, the company is currently trading at a premium relative to the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.87X, as evidenced by the chart below.
Image Source: Zacks Investment Research
Furthermore, WLDN stock appears overvalued compared with peer companies, with APi Group, ABM Industries and Bowman Consulting Group having a forward P/E of 25.73X, 10.74X and 21.17X, respectively.
How to Play WLDN Stock?
Willdan continues to benefit from strong execution across energy transition, data center-related demand and infrastructure modernization, supported by a growing pipeline and improving project visibility. The APG acquisition has expanded power engineering capabilities, while steady contract conversions and disciplined execution strengthen Willdan’s long-term growth profile in 2026.
However, near-term risks tied to public-sector funding cycles, execution complexity and elevated exposure to data center-related projects could lead to periods of volatility. In addition, the stock’s premium valuation relative to peers may limit upside potential in the short term.
Given the current setup, this Zacks Rank #3 (Hold) company is likely to deliver steady performance in the near term. Existing investors may continue to hold WLDN, while new investors could wait for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.