Willdan Group (J2A) AI Stock Analysis

Willdan Group

(Frankfurt:J2A)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong Revenue GrowthRapid growth across quarterly, first-half, and trailing-period measures indicates expanding demand for Willdan’s contracted services. Larger awards and broader customer coverage can improve operating scale, support workforce utilization, and strengthen the company’s position in energy and infrastructure programs over coming quarters.

Negative Factors

Gross Margin PressureThe shift toward performance engineering and commercial projects can dilute gross margin even when gross profit dollars increase. If this mix persists, Willdan may need continued productivity gains and cost control to preserve EBITDA expansion, making profitability more sensitive to contract composition.

Willdan Group (J2A) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.12B
Dividend Yield: ―
Average Volume (3M): 95
Price to Earnings (P/E): 16.6
Beta (1Y): 0.69
Revenue Growth: 10.28%
EPS Growth: 68.21%
Country: Germany
Employees: 1,814
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Willdan Group Business Overview & Revenue Model

Company Description

Willdan Group, Inc., including its various subsidiaries, offers a wide array of expert, technical, and advisory services, primarily concentrating its operations within the United States. The company's business activities are structured into two main...

Willdan Group Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:7.14%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call conveyed a decidedly positive operational and financial narrative: strong revenue growth, record adjusted EBITDA and margins, robust cash flow, successful acquisitions driving commercial expansion, and a growing pipeline of large, complex projects. Key risks discussed were margin mix pressure, higher non-cash and acquisition-related charges, timing uncertainty on the large LADWP ramp, and the expiry of a tax benefit that will raise second-half tax expense. On balance, the highlights (material revenue and profitability gains, cash generation, healthy balance sheet, and M&A momentum) outweigh the noted challenges and conservatism in guidance.

Positive Updates

Strong Top-Line Growth

Contract revenue increased 33% year-over-year to $231.0M in Q2; net revenue grew 23% year-over-year to $117.0M. First half contract revenue rose 19% to $386.0M and net revenue increased 16% to $210.0M (or +23% and +21% excluding an extra week in 1H25). Trailing 12-month contract and net revenue each grew 18% to $742.0M and $394.0M, respectively.

Negative Updates

Gross Margin Compression in Q2

Gross margin declined 150 basis points in Q2 as revenue mix shifted toward performance engineering and commercial projects that carry higher equipment and subcontractor content. That mix pressure reduced gross margin even as gross profit dollars rose 28% year-over-year.

Company Guidance

Willdan raised its full‑year 2026 guidance to net revenue of $415–430 million, adjusted EBITDA of $103–107 million, and adjusted diluted EPS of $5.00–5.15 (assuming ~15.9 million diluted shares and a 0% effective tax rate for the year); management expects 2026 adjusted EBITDA margin to expand to roughly 25% (up from 21.8% in 2025) even though Q2 delivered a record 28.2% adjusted EBITDA margin that may not persist, and reiterated it expects to convert >70% of adjusted EBITDA into free cash flow (LTM operating cash flow $71M, free cash flow $62M or $4.04/share), finished the quarter with $33M net debt (net debt/TTM adj. EBITDA ~0.3x) and $165M total available liquidity, and cautioned the guide is conservative mainly because timing of ramp for the $110M LADWP expansion could push some revenue into early 2027.

Willdan Group Risk Analysis

Willdan Group disclosed 43 risk factors in its most recent earnings report. Willdan Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Willdan Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:J2A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTEK	74Outperform	$9.90B	23.14	23.76%	0.71%	-7.61%	105.41%
J	64Neutral	$18.10B	53.87	9.81%	0.91%	20.03%	-28.63%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LGN	57Neutral	$4.20B	-59.22	-9.55%	―	69.19%	7.75%
ACM	48Neutral	$8.15B	28.66	12.54%	1.96%	-4.24%	-44.22%
AMRC	47Neutral	$1.08B	38.32	2.49%	―	8.89%	-54.65%

* Industrials Sector Average

Performance Comparison

DE:J2A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:J2A	Willdan	67.50	-12.00	-15.09%
ACM	Aecom	63.34	-65.34	-50.78%
AMRC	Ameresco, Inc.	20.31	-15.97	-44.02%
J	Jacobs Solutions Inc.	154.62	1.68	1.10%
TTEK	Tetra Tech	38.65	6.82	21.43%
LGN	Legence Corp. Class A	38.83	0.52	1.36%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Willdan Group AI Stock Analysis