We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Willdan's Deal Pipeline Power 2026 EPS Growth Ahead?
Read MoreHide Full Article
Key Takeaways
Willdan posted 66% Q3 EPS growth as contract revenue rose 15% and EBITDA climbed 53%.
WLDN's record backlog and APG wins are expected to drive more than 50% unit growth in 2026.
WLDN cut net debt to $16M, keeping leverage at 0.2x EBITDA to fund new acquisitions.
Willdan Group (WLDN - Free Report) is closing 2025 with strong momentum, and the key investor question is whether its expanding deal pipeline can translate into another year of solid EPS growth in 2026.
Third-quarter 2025 results show clear operating leverage. Contract revenue rose 15% year over year to $182 million, while net revenue climbed 26% year over year to $95 million. Adjusted EBITDA increased 53% year over year to $23.1 million, and adjusted diluted EPS jumped 66% year over year to $1.21. For the first nine months, adjusted EPS nearly doubled to $3.34, reflecting margin expansion and disciplined cost control.
The earnings call highlighted a “strong pipeline of opportunities” being converted into contracts, with momentum heading into 2026. Recent wins include a two-year, $97 million Alameda County project and multiple substation awards tied to solar and storage, many led by the APG acquisition. Management noted that APG has already won a record backlog and is expected to drive more than 50% growth for that unit in 2026.
The pipeline is underpinned by structural demand. Utilities, commercial customers and governments are responding to electricity load growth from data centers, electrification and grid modernization. Willdan’s Energy segment, which represents roughly 85% of revenue, is well positioned to benefit.
With net debt reduced to just $16 million and leverage at 0.2x adjusted EBITDA, the company also retains financial flexibility to pursue further bolt-on acquisitions. The pending Compass Municipal Advisors deal, which was expected to close Jan. 1, 2026, should expand its municipal advisory footprint.
While execution risk and project timing remain variables, the combination of record backlog, rising infrastructure demand and disciplined balance sheet management suggests Willdan’s deal pipeline could meaningfully support 2026 EPS growth.
Competitive Landscape Shaped by ICF International and Tetra Tech
Two relevant peers in Willdan’s energy and infrastructure consulting space are ICF International (ICFI - Free Report) and Tetra Tech (TTEK - Free Report) . Both ICF International and Tetra Tech compete for utility advisory work, grid modernization programs and government-funded energy projects that are central to Willdan’s 2026 growth thesis.
ICF International has a strong footprint in utility consulting and energy efficiency program management. The company benefits from large federal and state contracts that provide visibility and recurring revenue streams. At the same time, ICF International’s diversified exposure to public health, disaster recovery and digital modernization means energy is one of several growth pillars rather than the sole focus.
Tetra Tech is a major engineering and consulting firm with deep capabilities in power, water and environmental services. The company competes for substation, transmission and infrastructure modernization assignments similar to those targeted by Willdan. Tetra Tech’s global scale and technical depth allow it to pursue large, complex projects.
Both ICF International and Tetra Tech underscore the competitive backdrop. Still, Willdan’s concentrated exposure to data center-driven electricity demand may offer a sharper earnings catalyst.
WLDN Stock’s Price Performance & Valuation Trend
Shares of this California-based company have lost 6.5% in the past six months compared with the Zacks Business - Services industry’s 22.9% decrease. It has lagged the S&P 500 Index, as shown below.
WLDN’s Share Price Performance
Image Source: Zacks Investment Research
WLDN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.86, as shown in the chart below.
WLDN’s Valuation
Image Source: Zacks Investment Research
Earnings Estimate Revision for WLDN
WLDN’s earnings estimates for fiscal 2026 have remained unchanged over the past 60 days. However, the estimated figures for fiscal 2026 imply year-over-year growth of 9.6%.
View the Zacks #1 Rank List
Image: Bigstock
Can Willdan's Deal Pipeline Power 2026 EPS Growth Ahead?
Key Takeaways
Willdan Group (WLDN - Free Report) is closing 2025 with strong momentum, and the key investor question is whether its expanding deal pipeline can translate into another year of solid EPS growth in 2026.
Third-quarter 2025 results show clear operating leverage. Contract revenue rose 15% year over year to $182 million, while net revenue climbed 26% year over year to $95 million. Adjusted EBITDA increased 53% year over year to $23.1 million, and adjusted diluted EPS jumped 66% year over year to $1.21. For the first nine months, adjusted EPS nearly doubled to $3.34, reflecting margin expansion and disciplined cost control.
The earnings call highlighted a “strong pipeline of opportunities” being converted into contracts, with momentum heading into 2026. Recent wins include a two-year, $97 million Alameda County project and multiple substation awards tied to solar and storage, many led by the APG acquisition. Management noted that APG has already won a record backlog and is expected to drive more than 50% growth for that unit in 2026.
The pipeline is underpinned by structural demand. Utilities, commercial customers and governments are responding to electricity load growth from data centers, electrification and grid modernization. Willdan’s Energy segment, which represents roughly 85% of revenue, is well positioned to benefit.
With net debt reduced to just $16 million and leverage at 0.2x adjusted EBITDA, the company also retains financial flexibility to pursue further bolt-on acquisitions. The pending Compass Municipal Advisors deal, which was expected to close Jan. 1, 2026, should expand its municipal advisory footprint.
While execution risk and project timing remain variables, the combination of record backlog, rising infrastructure demand and disciplined balance sheet management suggests Willdan’s deal pipeline could meaningfully support 2026 EPS growth.
Competitive Landscape Shaped by ICF International and Tetra Tech
Two relevant peers in Willdan’s energy and infrastructure consulting space are ICF International (ICFI - Free Report) and Tetra Tech (TTEK - Free Report) . Both ICF International and Tetra Tech compete for utility advisory work, grid modernization programs and government-funded energy projects that are central to Willdan’s 2026 growth thesis.
ICF International has a strong footprint in utility consulting and energy efficiency program management. The company benefits from large federal and state contracts that provide visibility and recurring revenue streams. At the same time, ICF International’s diversified exposure to public health, disaster recovery and digital modernization means energy is one of several growth pillars rather than the sole focus.
Tetra Tech is a major engineering and consulting firm with deep capabilities in power, water and environmental services. The company competes for substation, transmission and infrastructure modernization assignments similar to those targeted by Willdan. Tetra Tech’s global scale and technical depth allow it to pursue large, complex projects.
Both ICF International and Tetra Tech underscore the competitive backdrop. Still, Willdan’s concentrated exposure to data center-driven electricity demand may offer a sharper earnings catalyst.
WLDN Stock’s Price Performance & Valuation Trend
Shares of this California-based company have lost 6.5% in the past six months compared with the Zacks Business - Services industry’s 22.9% decrease. It has lagged the S&P 500 Index, as shown below.
WLDN’s Share Price Performance
Image Source: Zacks Investment Research
WLDN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.86, as shown in the chart below.
WLDN’s Valuation
Image Source: Zacks Investment Research
Earnings Estimate Revision for WLDN
WLDN’s earnings estimates for fiscal 2026 have remained unchanged over the past 60 days. However, the estimated figures for fiscal 2026 imply year-over-year growth of 9.6%.
Image Source: Zacks Investment Research
Willdan stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.