Willdan Group (J2A) Q3 2026 Earnings Report

The call was strongly positive, supported by double-digit revenue and EBITDA growth, record nine-month results, expanding margins, major contract wins, the completed Mantis acquisition, raised 2026 targets, and preliminary 2027 targets for continued double-digit growth. The main negatives were lower year-to-date operating cash flow, higher G&A and non-cash expenses, a higher tax rate that reduced GAAP earnings and kept Adjusted EPS roughly flat, and increased leverage following the Mantis acquisition. Overall, the highlights significantly outweighed the lowlights.

For full year 2026, Willdan now expects net revenue of $435 million-$445 million, Adjusted EBITDA of $109 million-$111 million, and Adjusted Diluted EPS of $5.15-$5.25, assuming approximately 15.9 million diluted shares, a 0% effective tax rate for the year on GAAP earnings, Mantis from October 30, and no further acquisitions. Preliminary 2027 targets call for $1 billion in contract revenue, implying about 19% annual growth, more than a half billion dollars in net revenue, and more than $140 million in EBITDA, representing more than 25% annual growth and continued margin improvement over 2026; revenue is expected to be about equal thirds, a third, a third, a third across the three customer segments, with 90-plus percent focused on energy and a low double-digit type organic growth business. Willdan expects free cash flow to exceed 70% of Adjusted EBITDA, described more than $100 million in cash flow as a fair starting point for 2027, and expects to report a net leverage ratio below 2.0 times the Adjusted EBITDA by the end of the third quarter of 2027, with the possibility of reaching that goal in the second quarter.