Willdan Shares Plunge 22% on Weak 2026 Outlook Amid Expiring Tax Incentives

Key Facts

1Willdan Group shares fell approximately 22% following mixed Q4 results and weak FY2026 guidance.

2The company guides FY2026 EPS to $4.50–$4.70, lower than the $4.89 projected for 2025.

3The guidance drop is primarily due to the sunsetting of Section 179D tax incentives, leading to tax-rate normalization.

4Operational outlook remains positive with EBITDA margins expected to stay above 20%, supported by the data center sector.

Willdan Group shares plummeted approximately 22% following the release of mixed fourth-quarter results and disappointing financial guidance for 2026. The company projected its fiscal year 2026 earnings per share (EPS) to range between $4.50 and $4.70, falling short of the $4.89 anticipated for 2025. Management attributed the downward revision primarily to the sunsetting of Section 179D tax incentives, which is expected to normalize the company's effective tax rate. Despite the tax-related headwinds, the operational outlook remains resilient, with EBITDA margins forecast to stay above the 20% threshold. Growth in the data center sector continues to provide a strategic tailwind for the company's core business operations. However, the market focused heavily on the projected decline in net earnings, leading to a significant sell-off in the stock.