Willdan Group reported Q3 2025 results on November 6, 2025, showing contract revenue of $182.0 million—a 15% year‑over‑year increase—and net revenue of $95 million, which beat the consensus estimate of $85.15 million by $9.85 million (an 11.5% beat). Net debt fell to $16.0 million, underscoring a stronger balance sheet as the company continues to execute on its electrification and data‑center projects.
The earnings beat was driven by robust demand in the company’s core Energy segment, which accounts for roughly 85% of revenue, and by a surge in data‑center projects that lifted net revenue organic growth to 20%. Adjusted diluted earnings per share reached $1.21, surpassing the Zacks consensus estimate of $0.81 by $0.40 (a 49% surprise). The strong performance reflects disciplined cost management, an advantageous mix of high‑margin energy contracts, and operational leverage that helped the company maintain profitability even as it expanded its project pipeline.
Operating margin expanded to an adjusted EBITDA margin of 24%, up from 21% in the prior quarter. The margin lift was largely attributable to a higher proportion of high‑margin energy services, improved pricing power in the data‑center segment, and effective cost controls that offset the increased spending on new electrification projects. The company’s management highlighted that the combination of a diversified portfolio and consistent execution underpinned the margin improvement.
Willdan raised its full‑year 2025 guidance, lifting revenue expectations to $360 million–$365 million, adjusted EBITDA to $77 million–$78 million, and adjusted diluted EPS to $4.10–$4.20. The upward revision signals management’s confidence in the continued strength of its pipeline, the resilience of demand for energy‑efficiency and grid‑planning services, and the company’s ability to sustain high operating leverage as it scales its electrification initiatives.
Investors reacted negatively to the results, citing valuation concerns and questions about the sustainability of the company’s growth trajectory. The market’s cautious stance reflects a broader skepticism about high‑growth, high‑valuation firms in the energy transition space, even when they deliver strong quarterly performance.
Willdan’s Q3 2025 results reinforce its position as a leading provider of electrification and grid‑planning services. With a solid balance sheet, a growing data‑center customer base, and a raised guidance that reflects confidence in its pipeline, the company is well positioned to capitalize on the accelerating energy transition and the expanding data‑center market in the coming quarters.
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