Willdan revenue rises 17.9% to $214.5 million in third quarter

Key Facts

Willdan Group reported results on November 5 for the third quarter ended October 2, 2026, with contract revenue of $214.5 million, up 17.9% year over year. Net revenue was $112.2 million, up 18.1%, while adjusted EBITDA rose 22.4% to $28.3 million. By contrast, net income fell to $11.9 million, down 13.6% from the same period in 2025. CEO Mike Bieber said net revenue grew 18% and the adjusted EBITDA margin widened to 25.2% during the quarter. The results present a mixed picture, with revenue and operating performance improving while net income and GAAP earnings per share declined.

Diluted earnings per share under generally accepted accounting principles were $0.76, down 15.6% year over year. Adjusted diluted earnings per share were $1.20, down 0.8% from the year-earlier period. The divergence separates the two profitability measures reported for the quarter, with adjusted earnings per share falling far less than net income. The company also reported an adjusted EBITDA margin of 25.2%, with the adjusted measure rising 22.4%. The figures reflect expanding activity alongside pressure on net profit and GAAP earnings per share during the quarter.

For the first nine months of fiscal 2026, net income was $44.7 million, up 32.2%, while adjusted EBITDA reached $79.4 million, up 33.5%. The company noted, however, that the nine-month period in 2026 was one week shorter than the corresponding period in 2025. These results over a longer period provide a different context from the third quarter alone, when net income declined year over year. In the second quarter, ended July 3, 2026, net revenue rose 23.5% and adjusted EBITDA increased 50.6% year over year. Both measures grew faster in that quarter than in the third quarter, according to the figures published for each period.

Willdan raised its fiscal 2026 targets to net revenue of $435 million to $445 million, adjusted EBITDA of $109 million to $111 million, and adjusted diluted earnings per share of $5.15 to $5.25. In August, the company had set targets of $415 million to $430 million for net revenue and $103 million to $107 million for adjusted EBITDA. The update raises both target ranges compared with the previous guidance, as well as the adjusted earnings-per-share target. These are management targets for the current fiscal year, not achieved results. For fiscal 2027, the company provided preliminary indicators targeting contract revenue of more than $1 billion, net revenue of more than $0.5 billion, and adjusted EBITDA of more than $140 million.

The company said its official fiscal 2027 outlook would be issued in late February. On October 30, it completed its acquisition of Mantis Innovation for $285 million in cash, after the antitrust waiting period expired. Mantis provides energy and facilities management solutions for commercial and industrial customers, broadening the range of services Willdan offers in the field. When it announced the deal in September, Willdan projected Mantis would generate net revenue of $120 million in 2026. It also said at the time that the deal was expected to boost earnings in 2027, a forecast made before actual results and not revenue already generated by the acquired company.

On November 5, Willdan announced limited notices to proceed for substation engineering work and battery storage projects adding 643 megawatts of capacity. The CEO said the awards reflect expanding investment in energy infrastructure. On the same day, the company was listed among providers in the New York Power Authority's Energy Services Program, which includes 26 providers. Work under the program is awarded as needed through contracts with a 10-year term. In trading, the company's shares closed at $74.2 on November 4, then at $70.85 on November 5, the day results were announced.