Willdan Group Announces 2024 Financial Results and 2025 Outlook
Willdan Group, Inc., has released its financial results for the fourth quarter and fiscal year ended December 27, 2024, along with its outlook for 2025. The company reported strong financial performance, reflecting continued growth, strategic acquisitions, and a robust market position.
Overview of Financial Performance in 2024
Willdan closed 2024 on a high note, delivering double-digit organic growth across key metrics and strengthening its market presence through strategic acquisitions. The company’s President and CEO, Mike Bieber, emphasized the company’s strong liquidity position, expanding service capabilities, and growing opportunities within the energy and infrastructure sectors.
Fiscal Year 2024 Highlights
Willdan achieved significant revenue and earnings growth in 2024, demonstrating resilience and adaptability in a rapidly evolving market. Key financial metrics include:
- Contract revenue reached $565.8 million, marking a 10.9% increase from the previous year.
- Net revenue stood at $296.3 million, up 9.9% from 2023.
- Net income rose to $22.6 million, a significant increase from $10.9 million in 2023.
- Adjusted EBITDA increased 24.2%, reaching $56.8 million.
- GAAP diluted earnings per share (EPS) grew 97.5%, rising from $0.80 in 2023 to $1.58 in 2024.
- Adjusted diluted EPS saw an increase of 38.9%, reaching $2.43.
- Cash flow from operations surged 83.8% to $72.1 million.
These figures highlight Willdan’s ability to execute its strategic growth plans while maintaining strong financial discipline.
Fourth Quarter 2024 Performance
Despite an overall strong fiscal year, the fourth quarter presented a mixed performance, with some key metrics showing slight declines. However, the company’s cash flow growth and stable earnings indicate a solid operational foundation.
- Contract revenue came in at $144.1 million, reflecting a 7.5% decline compared to Q4 2023.
- Net revenue decreased 1.9% to $79.3 million.
- Net income for the quarter was $7.7 million, down 4.3% from Q4 2023.
- Adjusted EBITDA was $17.7 million, a 1.4% increase.
- GAAP diluted EPS dropped 8.6% to $0.53.
- Adjusted diluted EPS fell 6.3% to $0.75.
- Cash flow from operations for the quarter was $33.5 million, a remarkable 121.6% increase compared to Q4 2023.
Despite the quarter-over-quarter revenue dip, Willdan’s strong cash flow performance indicates a well-managed operational model that continues to yield positive long-term results.
CEO Commentary and Business Outlook
Mike Bieber, President and Chief Executive Officer of Willdan, expressed optimism about the company’s trajectory, citing strong performance in 2024 and a promising start to 2025. He noted, “The fourth quarter capped an outstanding year for Willdan, with double-digit full-year organic growth across key metrics and our resumption of strategic acquisitions. We are in a strong liquidity position and have significant opportunities to fund strategic expansion.”
Willdan has strategically expanded its capabilities, particularly in electrical engineering and management consulting for substations supporting data centers and renewable energy. The recent acquisition of Alternative Power Generation, Inc., a provider of customized electric power solutions, is expected to enhance Willdan’s service offerings in the energy sector. Bieber emphasized that rising electricity demand and increasing costs continue to create growth opportunities for the company.
Fiscal Year 2025 Financial Targets
Looking ahead, Willdan has set ambitious targets for fiscal year 2025, focusing on revenue growth, profitability, and operational efficiency. The company’s financial outlook for 2025 includes:
- Net revenue projected to range between $320 million and $330 million.
- Adjusted EBITDA expected to be between $63 million and $67 million.
- Adjusted diluted EPS forecasted to be between $2.70 and $2.85.
- Assumptions: 15.1 million diluted shares outstanding, a 16% effective tax rate, and no additional acquisitions factored into the guidance.
Growth Drivers and Market Positioning
Several factors contribute to Willdan’s strong growth outlook for 2025:
- Strategic Acquisitions: The company is actively expanding its capabilities through acquisitions, enhancing its expertise in energy efficiency, infrastructure consulting, and engineering services.
- Rising Demand for Energy Solutions: Increasing electricity consumption, grid modernization initiatives, and the shift toward renewable energy provide opportunities for Willdan’s power and energy solutions.
- Strong Liquidity and Cash Flow: With a solid cash flow position, the company is well-equipped to invest in future growth while maintaining financial stability.
- Government and Utility Contracts: Willdan continues to secure contracts with federal and state agencies, positioning itself as a key player in infrastructure development and energy consulting.
- Technology and Innovation: The company’s focus on integrating advanced technology into its service offerings strengthens its market competitiveness.
