Highlights

  • Contract revenue for the quarter ended July 3, 2026 was $231.0 million, and net income was $24.3 million, or $1.58 per diluted share.
  • Gross profit was $87.5 million, a gross margin of 37.9%, compared with 39.4% in the second quarter of 2025.
  • Willdan acquired Burton Energy Group on May 4, 2026, and held $34.9 million of unrestricted cash and $67,500 thousand of total debt.
  • Management guided full year 2026 net revenue of $415 million to $430 million and adjusted EBITDA of $103 million to $107 million.

Willdan Group, Inc. (NASDAQ: WLDN) shares were trading at USD 73.68 on October 27, 2026, up 2.48%, with a relative volume at time of 6.24. The engineering and consulting services provider filed its 10-Q for the quarter ended July 3, 2026 on August 7, completed the Burton Energy Group acquisition on May 4, and held its second quarter earnings call in August with full year 2026 guidance.

Willdan is incorporated in Delaware and lists its principal executive offices at 2401 East Katella Avenue in Anaheim, California. It provides professional, technical and consulting services to utilities, private industry and public agencies, through an Energy segment and an Engineering and Consulting segment. The Energy segment covers power grid resiliency, efficiency and reliability. The company reports on 52 or 53 week fiscal years ending on the Friday closest to December 31.

Second Quarter Results

For the 13 weeks ended July 3, 2026, contract revenue was $231.0 million, which the company stated was an increase of $57.6 million, or 33.2%, from the second quarter of 2025. Energy segment contract revenue increased $55.9 million, or 38.1%, including incremental revenue from Burton. Engineering and Consulting segment contract revenue increased $1.7 million, or 6.4%.

Net income was $24.3 million, compared with $15.4 million, and diluted earnings per share were $1.58, compared with $1.03. Income tax was a benefit of $5,258 thousand, compared with a benefit of $5,255 thousand a year earlier. Management cited net revenue of $117.2 million and adjusted EBITDA, a non-GAAP measure, of $33.0 million, and adjusted diluted EPS of $2.07, also non-GAAP.

Gross profit was $87.5 million, up 28%. Gross margin declined to 37.9% from 39.4%, which the 10-Q attributes to the change in revenue mix, including the addition of Burton. Subcontractor services and other direct costs rose to 49.3% of contract revenue from 45.3%, primarily due to a higher mix of construction management revenues.

Liquidity, Debt and Acquisitions

For the six months ended July 3, 2026, net cash provided by operating activities was $19,515 thousand, compared with $28,724 thousand a year earlier. Cash paid for acquisitions, net of cash acquired, was $50,467 thousand. The company held $34.9 million of unrestricted cash and cash equivalents at July 3, 2026.

Total debt was $67,500 thousand, compared with $48,750 thousand at January 2, 2026. It included a $47.5 million outstanding term loan and $20.0 million outstanding on a $100 million revolving credit facility. An undrawn $50.0 million delayed draw term loan must be drawn before May 2027, and the credit facilities mature on May 5, 2030. Borrowings bore interest at an annual rate of 5.3%. The company stated it believes its sources of liquidity will be sufficient for at least the next 12 months.

The Burton acquisition, a provider of energy management and energy efficiency consulting, closed on May 4, 2026, with net assets acquired of $72,194 thousand.

Outlook and Disclosed Risks

On the August call, management guided full year 2026 net revenue of $415 million to $430 million, adjusted EBITDA of $103 million to $107 million with an estimated margin of approximately 25%, and adjusted diluted EPS of $5.00 to $5.15, assuming 15.9 million diluted shares and a 0% effective tax rate.

Management said the 28.2% second quarter adjusted EBITDA margin reflects some acceleration of revenues that will affect the second half, and that it does not expect that margin to hold throughout the year. It also said a federal tax deduction expires at the end of June, which will result in an income tax rate of 15% to 20% in the second half. The 10-Q lists its top ten customers at 51.7% of consolidated contract revenue for the quarter. Management noted that salary inflation remains a factor for experienced talent. These statements are forward-looking and subject to change.