Willdan Group

WLDN

Market cap $1.43B

Willdan won a contract with LADWP worth $330 million. This contract, however, has not started contributing revenue yet and is expected to contribute meaningfully in the second half of 2026. The Burton buyout, which was completed on May 4, would give Willdan access to numerous commercial clients. As per my DCF analysis, the WLDN stock is undervalued by roughly 18%. You should consider jumping in given the potential tailwinds.

The average of price targets set by Wall Street analysts indicates a potential upside of 39% in Willdan (WLDN). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Willdan Group NASDAQ: WLDN reported a stronger-than-expected start to fiscal 2026, with executives citing margin expansion, improved productivity and rising demand for energy services as key drivers behind a raised full-year outlook.

Willdan Group is positioned to benefit from surging power demand driven by AI data centers, offering grid optimization and efficiency solutions. Q1 2026 results showed 17% YoY revenue growth to $92M and gross margin expansion to 40.7%, with adjusted EPS up 44% to $0.91. Management anticipates further margin improvement through cost efficiencies and a revenue mix shift toward higher-margin clients, enhancing profitability.

The commercial sector now comprises 25% of Willdan's contract revenues, enabling accelerated growth and richer margins. The Burton acquisition also brings high-margin, multi-year, recurring energy management revenues, expanding their commercial offerings. Despite the recent acquisitions, WLDN continues to report a healthy balance sheet, underscoring their ability to sustainably fund their M&A driven growth opportunities.

Willdan Group, Inc. (WLDN) Q1 2026 Earnings Call Transcript

Willdan delivered a strong Q1 beat, raised EPS guidance by 8%, and continues to outpace peers in both revenue and earnings growth. WLDN's business is anchored in energy consulting, with robust organic and inorganic growth, highlighted by the accretive Burton Energy Group acquisition. Despite superior growth and EBITDA margins, WLDN trades at a significant discount to peers, presenting a 41% upside to a $107/share target.

Willdan Group (WLDN) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.63 per share a year ago.

ANAHEIM, Calif.--(BUSINESS WIRE)---- $WLDN--Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today announced its financial results for the first quarter ended April 3, 2026. The first quarter of fiscal 2026 had one fewer week than the first quarter of fiscal 2025, thus normalized results are also presented. First Quarter 2026 Highlightsa Contract revenue of $155.1 million, up 1.8% (up 9.6% normalized). Net revenueb of $92.4 million, up 8.3% (up 16.6% normalized). Net income of $8.5 million, up 82.0% (up 96.

ANAHEIM, Calif.--(BUSINESS WIRE)---- $WLDN--Willdan Group, Inc. (NASDAQ: WLDN) announced today that on May 4, it acquired 100% of the membership interests of Burton Energy Group, LLC (Burton), an energy management consulting and solutions provider headquartered near Atlanta, Georgia. Burton provides cost-effective, data-driven energy management, energy procurement, energy efficiency, and turnkey asset replacement services to multi-site commercial clients, which include monitoring over 60,000 client sites.