Willdan Group

WLDN

Market cap $1.11B

ANAHEIM, Calif.--(BUSINESS WIRE)---- $WLDN--Willdan Group, Inc. (NASDAQ: WLDN) announced today that they have been selected by Encina Wastewater Authority (Encina) for a $31 million design-build contract to deliver a renewable cogeneration project. This project will use renewable biogas generated from wastewater treatment to produce on-site electricity and support resilient plant operations. This high-efficiency renewable energy system will include a new biogas conditioning system, low-emission generator.

Willdan is rated Buy with a $117 price target, driven by beat-and-raise Q1 results and robust secular tailwinds in grid modernization and AI data centers. WLDN delivered a Q1 adjusted EBITDA margin of 19.6%, up 270 bps YoY, with management guiding to a high-20s% long-term margin target and FY26 adjusted EPS of $4.90–$5.05. Burton Energy's acquisition diversifies the revenue mix, boosts commercial exposure to 25%, and is accretive to 2026 margins and earnings.

ANAHEIM, Calif.--(BUSINESS WIRE)---- $WLDN--Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN), today announced that it will release its financial results for the second quarter 2026 after the close of the stock market on Thursday, August 6, 2026. Following the release, Willdan will host its investor conference call at 5:30 p.m. EST / 2:30 p.m. PST. An online, real-time audio webcast of the quarterly investor conference call will be available on Willdan's website at: Willdan Group Q2 2026 Investor Conference.

Willdan Group is capitalizing on grid investment, energy efficiency, and data-center power demand, driving robust growth and margin expansion. WLDN's margin reset, with a high-20s adjusted EBITDA margin target, is supported by a shift toward higher-margin commercial and data center projects. Recent acquisitions—Burton Energy and APG—add recurring revenue, national scale, and exposure to AI-driven data center infrastructure demand.

The Zacks Business Services industry is poised to prosper on rising demand and growing technology adoption. ULS, WLDN and ZIP appear well-positioned to ride on the demand strength.

As of June 29, SA Quant's portfolio of Top 10 Stocks for 2026 has significantly outperformed the market, up nearly 70% vs. the S&P 500's 8.3%. Four of the 10 stocks have delivered triple-digit returns, with standout performances from Micron and AMD, up 267% and 156%, respectively, since they were selected on January 6, 2026. Eight of the ten stocks carry Strong Buy Quant Ratings, and the entire basket continues to exhibit solid growth and earnings revisions.

Willdan Group has demonstrated benchmark-like performance, returning 7% versus the S&P 500's 8% over the past six months. I'm increasingly bullish on WLDN due to its undervaluation, compressed multiple, and improving top and bottom-line fundamentals. WLDN's business performance is strengthening, with guidance raised despite recent volatility and a double-miss.

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.