Willdan Group (NasdaqGM:WLDN) Q4 2025 Earnings call February 26, 2026 05:30 PM ET Company ParticipantsAl Kaschalk - VP of Investor RelationsKim Early - EVP and CFOMike Bieber - CEOConference Call ParticipantsCraig Irwin - Managing Director and Senior Research AnalystTim Moore - Managing Director and Senior Research AnalystOperatorGreetings, welcome to the Willdan Group Fourth Quarter and Fiscal Year 2025 financial results conference call. At this time, all participants are in a listen-only mode. The questio ...

Financial Data and Key Metrics Changes - For Q4 2025, contract revenue increased by 21% to $174 million, and net revenue grew by 13% to $89.5 million. Adjusted EBITDA also increased by 13% to $20 million for the quarter [17] - For the full fiscal year 2025, consolidated contract revenue grew by 21% to $682 million, and net revenue grew by 23% to $365 million. Adjusted EBITDA increased by 40% year-over-year to $79.5 million [18][20] - Net income more than doubled to $52.6 million for the year, translating to $3.49 per diluted share on a GAAP basis, compared to $22.6 million or $1.58 per share in 2024 [20] Business Line Data and Key Metrics Changes - Approximately 85% of revenue comes from the energy segment, with the remaining 15% from engineering and consulting. Utility customers represent about 41% of revenue, while state and local governments account for approximately 48% [6][8] - Organic net revenue growth was 17%, driven largely by expansion with existing customers [4] - The average contract size has continued to grow, with significant contracts awarded, including a $112 million energy efficiency program for the City of San Diego [11] Market Data and Key Metrics Changes - Electric load growth has returned to the U.S. after about 15 years of stagnation, driven by AI and data centers, which are accelerating electricity demand [4] - There is currently an estimated 35 gigawatts of active data center construction in the U.S., indicating sustained growth in electricity demand [13] - Virginia and several rural states are experiencing rapid growth in energy demand from data centers, which aligns with the company's strengths in power system engineering and grid modernization [13] Company Strategy and Development Direction - The company plans to increase capabilities through key hires and acquisitions, with a robust acquisition pipeline entering 2026 [16] - Willdan aims to diversify its offerings to commercial customers, particularly in the data center market, which is seen as a fertile business environment [7][43] - The company is positioned at the center of growing energy and infrastructure markets, with a focus on energy efficiency and grid modernization [14][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted that utilities are facing challenges with falling reserve margins and increasing demand for electricity, which is driving the need for energy efficiency programs [34] - The company expects margins to continue to exceed 20%, reflecting operational improvements and a shift up the value scale [31] - The guidance for 2026 anticipates net revenue in the range of $390 million to $405 million, with adjusted EBITDA between $85 million and $90 million [23] Other Important Information - The company generated $71 million in free cash flow and ended the year with a net positive cash position of $17 million, marking the first time since 2017 [21] - The effective tax rate benefit was 31.4% due to tax deductions from energy efficiency incentives, significantly impacting net income [20] Q&A Session Summary Question: EPS guidance for 2026 is below last year's, can you explain the assumptions for Section 179D? - Management noted that the Section 179D provision is set to expire at the end of June 2026, limiting the ability to carry benefits through the year [27][29] Question: What operational changes are contributing to EBITDA growth? - Management indicated that margins are expected to remain above 20%, with structural changes allowing for higher pricing and better cost absorption as the company scales [31][32] Question: Is there potential for continued requests for accelerated project completion from utility customers? - Management confirmed that utilities are under pressure to meet electricity demand, leading to increased requests for energy efficiency programs [34] Question: Will the Los Angeles Department of Water and Power contract contribute meaningfully in Q1? - Management stated that while the contribution was small in Q4, a material increase is expected in Q1, with significant ramp-up in Q2 [38][39] Question: Can data center revenue double in 2026? - Management clarified that the expectation is for the APG acquisition related to data centers to more than double, contributing to long-term growth [41]

MONTREAL, Feb. 25, 2026 (GLOBE NEWSWIRE) -- WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”), one of the world's leading professional services firms, today announced financial results for the fourth quarter and year ended December 31, 2025. In 2025, WSP delivered net revenues and adjusted EBITDA at or exceeding the high end of Management's revised outlook ranges(1). 2025 also marked historical record level achievements in several other metrics, including backlog at $17 billion, free cash flow(2) at $ ...

MONTREAL, Feb. 24, 2026 (GLOBE NEWSWIRE) -- WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”), one of the world’s leading professional services firms, proudly completes its previously announced acquisition of TRC Companies (“TRC”), a premier U.S. Power & Energy brand delivering end-to-end solutions that support the full infrastructure lifecycle (the “Acquisition”). With more than 55 years of history, TRC and its team of approximately 8,000 professionals have established the company as a leader and tru ...

Core Insights - Willdan Group, Inc. (WLDN) is recognized as a strong performer in the Business Services sector, but its valuation is under increased scrutiny due to its forward P/E ratio of 23.75X, significantly higher than the industry average of 15.53X, raising questions about the sustainability of its growth fundamentals [1][3][23] Valuation and Market Performance - WLDN's shares have appreciated by 20.6% over the past six months, outperforming the broader industry and the S&P 500, which gained approximately 11% during the same period [3] - As of February 5, the stock was trading at $107.46, below its 52-week high of $137 and above its low of $30.43, indicating a significant rerating by investors [3] - The stock is currently trading below its 50-day moving average but above its 200-day moving average, suggesting a phase of consolidation after a strong performance [4] Financial Performance - In Q3 of fiscal 2025, WLDN reported a 15% growth in contract revenue and a 26% increase in net revenue, driven by approximately 20% organic growth and 6% from acquisitions [10] - Adjusted EBITDA rose by 53% and adjusted EPS increased by 66% year over year, reflecting operational efficiencies and cost control [10] - Management has raised 2025 targets, projecting net revenue of $360–$365 million, adjusted EBITDA of $77–$78 million, and adjusted EPS of $4.10–$4.20, indicating confidence in the visibility of current contracts [11] Growth Drivers - Approximately 85% of WLDN's revenue is derived from energy-related services, with a diversified client base including utilities, state and local governments, and commercial customers [12][14] - The company benefits from long-term utility programs and government projects that provide recurring revenue streams [14] - A significant long-term growth catalyst is the accelerating electric load growth driven by data centers and electrification, with upfront load-growth studies increasing organically by around 50% [15] - Strategic acquisitions have expanded WLDN's capabilities and geographic reach, while maintaining a conservative balance sheet with net debt of about $16 million [16] Competitive Landscape - WLDN competes with firms like ICF International, Tetra Tech, and Jacobs Solutions, each with varying strengths in energy efficiency and infrastructure consulting [20][22] - ICF International has a broader market mix, while Tetra Tech benefits from global scale but may lack flexibility in niche markets where WLDN excels [20][21] - Jacobs Solutions operates at a higher end of the market but may not be as agile in specialized energy efficiency programs compared to WLDN [22] Earnings Estimates - The Zacks Consensus Estimate for 2026 EPS remains stable at $4.53, indicating a year-over-year growth of 9.6%, while revenue is expected to grow by 4.8% [8] - The stability in earnings expectations supports the current valuation, but future upside will depend more on execution than on estimate revisions [8][19]

Non-GAAP Financial Measures and Operating Metrics To supplement the financial results presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. These measures are not, and should not be viewed as, substitutes for GAAP financial measures. More information about these non-GAAP financial measures and reconciliations of these non-GAAP ...

Jacobs Fiscal 2026 First Quarter Results February 3, 2026 DISCLAIMER Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," " ...

Financial Data and Key Metrics Changes - Tetra Tech reported net revenue of $987 million for Q1 2026, an 8% increase from the prior year [5] - Operating income rose to $131 million, up 12% year-over-year [5] - Adjusted earnings per share (EPS) increased by 17% to $0.34, while GAAP EPS was reported at $0.40 [5][6] - Margins expanded by 140 basis points on a GAAP basis [4] Business Segment Data and Key Metrics Changes - The Government Services segment generated $382 million in revenue, a 5% increase, with margins of 18%, up 40 basis points [6] - The Commercial and International Group segment's revenue grew by 10% to $605 million, with margins also up 40 basis points to 13% [6][7] Market Data and Key Metrics Changes - Federal work increased by 7%, primarily driven by projects with the U.S. Army Corps of Engineers [7] - U.S. state and local markets grew by 10%, particularly in water treatment and digital water modernization [8] - International revenue accounted for 48% of total revenue, growing at a rate of 13%, with significant contributions from the U.K. and Ireland [9] Company Strategy and Development Direction - Tetra Tech focuses on water supply, treatment, flood control, and environmental stewardship, which remain in high demand [3] - The company aims to enhance its market position through strategic acquisitions and investments in technology and automation [18][25] - Recent acquisitions include Halvik and Providence, aimed at expanding consulting services in defense [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth despite challenges such as the U.S. government shutdown [3] - The company anticipates increased federal orders as clarity on budgets improves [10] - Guidance for Q2 2026 is set between $975 million and $1.025 billion, with full-year revenue guidance of $4.15 billion to $4.3 billion [29][30] Other Important Information - Tetra Tech's board approved a 12% increase in the quarterly cash dividend, marking the 47th consecutive quarterly dividend [18] - The company has a strong balance sheet with net debt at approximately $565 million, allowing for significant liquidity for future investments [15][17] Q&A Session Summary Question: Strength in Federal Business - Management noted a 7% growth in federal business, primarily due to advanced planning and strong relationships with clients like the U.S. Army Corps of Engineers [37][40] Question: International Business Performance - The U.K. and Ireland have shown strong double-digit growth, while Canada is performing well with upper single-digit growth. Australia is recovering from previous declines [41][46][48] Question: Guidance and Market Conditions - Management discussed the range of potential outcomes in guidance, considering factors like potential government shutdowns and bipartisan support for funding [58][60][64] Question: Focus on M&A - The company is looking to leverage its strong balance sheet for strategic acquisitions, with a focus on larger, transformative opportunities [66][70] Question: Recent Divestitures - Tetra Tech divested its Norway operation, which was deemed non-core, and provided details on the acquisition of Halvik and Providence [82]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for Jacobs, driven by organizational focus and strategic alignment, resulting in strong performance against a dynamic economic backdrop [23][24] - The company reported a commitment to disciplined fiscal management, which underpinned its strong results [24] Business Line Data and Key Metrics Changes - Jacobs operates with a focus on delivering services and comprehensive solutions in water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [24] - The collaboration with PA Consulting continues to drive growth and enhance Jacobs' position as a leading provider of end-to-end lifecycle solutions [24][25] Market Data and Key Metrics Changes - The company is positioned to address long-term market demands, including clean water systems, advanced pharmaceuticals, resilient transportation, and secure energy [24] - Jacobs has formalized its enterprise-wide approach to AI, which is central to scaling delivery and enhancing client value [25] Company Strategy and Development Direction - Jacobs launched a bold client-focused strategy in 2025 to tackle the world's pressing challenges, emphasizing integrated solutions and deep domain expertise [23][24] - The company aims to grow in geographies and sectors aligned with strategic opportunities, focusing on scaling AI capabilities and optimizing its relationship with PA Consulting [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic global environment shaped by climate urgency, urbanization, geopolitical complexity, and AI-driven digital acceleration as key factors influencing their strategy [23] - The ambition for fiscal 2026 is clear, with a focus on strong execution and disciplined focus to deliver future-focused solutions [27] Other Important Information - Jacobs University was launched as a global learning hub for skill building and leadership development, alongside the introduction of the Talent Work Marketplace for employee growth opportunities [26] - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [25] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [30]

Core Insights - The One Big Beautiful Bill Act, signed into law on July 4, will have significant market implications starting in January, particularly benefiting cyclical sectors outside of tech and AI [1] Beneficiary Categories Defense Beneficiaries - General Dynamics Corp (GD) is positioned for defense modernization funding under the OBBBA - L3Harris Technologies Inc (LHX) will benefit from investments in advanced defense systems - Northrop Grumman Corp (NOC) is well-placed for missile defense and space programs - Huntington Ingalls Industries (HII) is supported by naval modernization initiatives [7] Capex Incentive Beneficiaries - United Rentals Inc (URI) is set to gain from increased construction activity - Jacobs Solutions Inc (J) will benefit from infrastructure upgrades - Trimble Inc (TRMB) aligns with manufacturing investment pushes - Caterpillar Inc (CAT) benefits from accelerated depreciation incentives - Cummins Inc (CMI) is supported by R&D expensing and industrial investment [11] Small and Midsize Enterprises & Private Market Beneficiaries - Citizens Financial Group (CFG) is positioned for expanded credit demand - KeyCorp (KEY) is set for higher loan growth and tax relief for small businesses - Wells Fargo & Co (WFC) aligns with increased funding flows from OBBBA - Apollo Global Management (APO) benefits from tax-efficient deal structures [11] Consumer Beneficiaries - Ralph Lauren Corp (RL) will benefit from higher disposable income among affluent households - Ulta Beauty Inc (ULTA) is positioned for a boost in discretionary spending - Apple Inc (AAPL) benefits from increased high-income spending and a favorable tax environment - Costco (COST) is well-positioned to capture incremental consumer spending from tax relief [12][11] Energy Policy Beneficiaries - Exxon Mobil Corporation (XOM) benefits from expanded drilling rights under OBBBA - ConocoPhillips (COP) is positioned for lease expansions in Gulf and Alaska [13]