Key Takeaways
Willdan Group Inc. (NASDAQ: WLDN) surged nearly 19% after reporting record first-quarter profit and raising its full-year financial targets, citing margin expansion and the recent acquisition of Burton Energy Group.
"We had a strong start to 2026, continuing the momentum we've been building with solid execution and expanding margins across the business," Chief Executive Officer Michael Bieber said on the company's earnings call.
The energy and infrastructure consulting firm reported a 44% year-over-year increase in adjusted diluted earnings per share to $0.91, beating expectations. Normalized net revenue grew 17% to $92 million, while adjusted EBITDA rose 35% to $18.1 million, representing a record 19.6% of net revenue for a first quarter.
The results prompted Willdan to increase its full-year 2026 guidance. The company now projects net revenues of $410 million to $425 million, adjusted EBITDA of $100 million to $105 million, and adjusted diluted EPS between $4.90 and $5.05. Management also raised its long-term adjusted EBITDA margin goal to the "high 20s" percent range, up from a previous target of 20 percent.
A key driver of the revised outlook is the acquisition of Burton Energy Group, which closed at the beginning of May. Burton, which generated approximately $15 million in net revenue and $7 million in EBITDA in 2025, is expected to be accretive to Willdan's margins and earnings this year. Bieber highlighted that the deal accelerates Willdan's push into the commercial sector, which is projected to account for 25% of total revenue in 2026, up from just 7% in 2024.
"We're one of the few strategic buyers out there in this marketplace," Bieber told analyst Craig Irwin of ROTH Capital Partners, noting that some companies prefer selling to a strategic partner like Willdan over private equity.
Beyond the acquisition, the company pointed to several large contract wins, including a $100 million extension with Southern California Edison and a new $27 million decarbonization program in New York City. The APG business unit, which focuses on data center power projects, is expected to "more than double" or "approach tripling" its revenue this year, according to management.
The strong performance and guidance increase suggest management is confident that demand for energy efficiency, grid modernization, and data center power services will continue to accelerate. Investors will watch the integration of Burton Energy Group and the ramp-up of large contracts, like the one with Los Angeles Water & Power, in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
