10-K - Willdan Group, Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Willdan Group, Inc. reported strong financial performance for fiscal year 2025, ending January 2, 2026. Contract revenue increased 20.5% year-over-year to $681.6 million, driven by increased demand in both the Energy and Engineering & Consulting segments. Gross profit rose 26.1% to $255.7 million, with gross margin expanding to 37.5% from 35.8% in the prior year. Operating income grew 40.8% to $44.1 million, and net income more than doubled to $52.6 million, significantly aided by a $12.6 million income tax benefit. The company generated $80.1 million in operating cash flow, ending the period with $65.9 million in cash and cash equivalents and total assets of $544.2 million. Key growth drivers included acquisitions (Enica, APG, Alpha) and higher demand for energy efficiency, electrification, and construction management services.

Key Takeaways

1Revenue grew 20.5% YoY to $681.6M, driven by both Energy (+21.7%) and Engineering & Consulting (+14.1%) segments.

2Net income more than doubled to $52.6M, significantly aided by a $12.6M income tax benefit.

3Operating cash flow was strong at $80.1M, supporting acquisitions and debt repayment.

4Gross margin expanded to 37.5% from 35.8%, reflecting favorable revenue mix changes.

5The company completed three acquisitions in FY2025: Alternative Power Generation, Alpha Inspections, and Compass Municipal Advisors.

Key Financial Metrics

EPS

$3.63

$1.63 prior year

Revenue

$681.6M

+20.5%

Net Income

$52.6M

+132.9%

Gross Margin

37.5%

35.8% prior year

Gross Profit

$255.7M

+26.1%

free cash flow

$34.5M

Operating Income

$44.1M

+40.8%

operating margin

6.5%

Business Segments

EnergyGrowth driven by construction management, utility programs, and acquisitions (Enica, APG).

$576.1M+21.7% YoY

Engineering and ConsultingGrowth from increased client demand and acquisition of Alpha.

$105.5M+14.1% YoY