Dec 27, 2024

Willdan Group Q4 2024 Earnings Report

Willdan Group reported a decline in revenue and net income for Q4 2024, with adjusted EBITDA showing a slight increase.

Key Takeaways

Willdan Group, Inc. reported contract revenue of $144.1 million for Q4 2024, marking a 7.5% decline from the prior year. Net income fell to $7.7 million, down 4.3%, while adjusted EBITDA increased slightly by 1.4% to $17.7 million. Adjusted diluted EPS also declined to $0.75 from $0.80 in Q4 2023. Cash flow from operations saw significant growth, increasing 121.6% to $33.5 million.

Q4 2024 revenue declined by 7.5% to $144.1 million.

Net income fell to $7.7 million, a 4.3% decrease from Q4 2023.

Adjusted EBITDA increased slightly by 1.4% to $17.7 million.

Cash flow from operations surged by 121.6% to $33.5 million.

Total Revenue
$144M
Previous year: $80.8M
+78.4%
EPS
$0.75
Previous year: $0.8
-6.3%
Adjusted EBITDA
$17.7M
Previous year: $17.5M
+1.1%
Adjusted diluted EPS
$0.75
Previous year: $0.8
-6.3%
Gross Profit
$55M
Previous year: $50.5M
+8.8%
Cash and Equivalents
$74.2M
Previous year: $23.4M
+217.0%
Free Cash Flow
$31.1M
Previous year: $12.8M
+143.9%
Total Assets
$480M
Previous year: $416M
+15.5%

Willdan Group

Willdan Group

Willdan Group Revenue by Segment

Forward Guidance

Willdan expects net revenue for FY 2025 to be between $320 million and $330 million, with adjusted EBITDA projected between $63 million and $67 million. Adjusted diluted EPS is expected to range between $2.70 and $2.85 per share, assuming 15.1 million diluted shares and a 16% effective tax rate.

Positive Outlook

  • Net revenue for FY 2025 expected to be between $320M and $330M.
  • Adjusted EBITDA guidance set between $63M and $67M.
  • Adjusted diluted EPS projected between $2.70 and $2.85 per share.
  • Company in a strong liquidity position to fund strategic acquisitions.
  • New acquisitions expanding electrical engineering and consulting capabilities.

Challenges Ahead

  • Revenue declined in Q4 2024 due to lower subcontractor services.
  • Net income saw a slight year-over-year decrease.
  • Cost pressures in subcontractor expenses continue to impact margins.
  • Competitive pressures in the industry remain a challenge.
  • Market uncertainties may affect future contract awards.

Revenue & Expenses

Visualization of income flow from segment revenue to net income