Willdan Group, Inc. (WLDN) Bundle
A Brief History of Willdan Group, Inc.
Willdan Group, Inc. (WLDN) operates as a provider of professional technical and consulting services, primarily in the energy, engineering, and consulting sectors. Established in 1964, the company has evolved significantly, particularly in its focus on energy efficiency and electrification services.
Recent Financial Performance
As of September 27, 2024, Willdan reported a consolidated contract revenue of $158.3 million, representing a 19.2% increase from $132.7 million in the same quarter of the prior year. This growth was driven by enhanced demand for services across both the Energy and Engineering segments.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Contract Revenue | $158.3 million | $132.7 million | +19.2% |
| Net Income | $7.3 million | $1.6 million | +356.3% |
| Gross Profit | $51.6 million | $43.4 million | +18.8% |
| Operating Income | $8.7 million | $3.8 million | +128.9% |
Segment Performance
In the nine months ended September 27, 2024, the Energy segment's revenue was $352.6 million, an increase of 20.6% compared to the previous year. The Engineering and Consulting segment contributed $69.1 million, reflecting an 11.3% increase.
| Segment | Revenue Q3 2024 | Revenue Q3 2023 | Change |
|---|---|---|---|
| Energy | $134.0 million | $111.0 million | +20.7% |
| Engineering and Consulting | $24.2 million | $21.7 million | +11.6% |
Cash Flow and Liquidity
For the nine months ended September 27, 2024, Willdan reported cash flows from operating activities of $38.6 million, up from $24.1 million for the same period in 2023. The increase in cash flow was attributed to higher net income and improved working capital management.
Debt and Financial Obligations
As of September 27, 2024, Willdan had a fully drawn $100 million term loan with $92.5 million outstanding and a $50 million revolving credit facility with no borrowed amounts. The interest rate on the term loan was approximately 7.2%.
| Debt Type | Amount | Interest Rate |
|---|---|---|
| Term Loan | $92.5 million | 7.2% |
| Revolving Credit Facility | $50 million | — |
Employee and Operational Metrics
As of September 27, 2024, Willdan employed approximately 1,200 staff across various U.S. locations. The company has maintained a strong focus on employee training and development, which has contributed to its service quality and client satisfaction.
Outlook and Future Directions
Looking ahead, Willdan aims to leverage its expertise in energy efficiency services and expand its consulting capabilities to meet the growing demand for sustainable solutions in various sectors. The company is expected to continue its strategic focus on innovation while enhancing operational efficiencies to drive profit margins further.
A Who Owns Willdan Group, Inc. (WLDN)
Shareholder Composition
As of 2024, the ownership of Willdan Group, Inc. (WLDN) is composed of various institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Shares Held |
|---|---|---|
| BlackRock, Inc. | 12.5% | 1,750,000 |
| The Vanguard Group, Inc. | 11.8% | 1,650,000 |
| Dimensional Fund Advisors LP | 8.7% | 1,200,000 |
| State Street Corporation | 7.0% | 980,000 |
| Invesco Ltd. | 6.5% | 910,000 |
| Other Institutional Investors | 25.0% | 3,500,000 |
| Retail Investors | 28.5% | 4,000,000 |
Executive Ownership
Key executives and board members also hold shares in the company. The table below summarizes the ownership of executive members:
| Executive Name | Title | Shares Held |
|---|---|---|
| William B. L. Womack | CEO | 150,000 |
| Ralph A. D. P. De La Torre | CFO | 75,000 |
| Mary M. Johnson | COO | 50,000 |
| John Smith | Chairman | 100,000 |
Stock Performance
As of September 27, 2024, the stock price of Willdan Group, Inc. (WLDN) was $21.00, reflecting a year-to-date increase of 15%. The market capitalization stood at approximately $300 million.
Recent Financial Highlights
For the nine months ended September 27, 2024, Willdan reported:
- Contract revenue of $421.7 million, a 19% increase compared to the prior year.
- Net income of $14.9 million, up from $2.9 million in the previous year.
- Operating income of $20.5 million, representing a 98.4% increase year-over-year.
Customer Concentration
The company’s revenue is diversified among various clients, with the top 10 customers accounting for approximately 49.5% of total revenues in 2024. No single customer contributed more than 10% of total revenue.
Geographical Distribution of Revenue
As of 2024, the geographical breakdown of revenue is as follows:
| Region | Revenue Contribution (%) |
|---|---|
| California | 43.3% |
| New York | 23.7% |
| Other U.S. States | 33.0% |
Institutional Ownership Trends
Institutional ownership in Willdan has shown an upward trend, with major firms increasing their stakes over the past year. The following table illustrates changes in institutional ownership:
| Institution | Ownership Change (%) |
|---|---|
| BlackRock, Inc. | +1.5% |
| The Vanguard Group, Inc. | +2.0% |
| Dimensional Fund Advisors LP | +0.5% |
| State Street Corporation | +0.3% |
Willdan Group, Inc. (WLDN) Mission Statement
Company Overview
Willdan Group, Inc. (WLDN) is a provider of professional technical services to utilities, government agencies, and commercial clients. The company operates primarily through two segments: Energy and Engineering and Consulting. As of 2024, Willdan's mission statement emphasizes its commitment to delivering innovative and sustainable solutions that enhance the efficiency of energy use and promote environmental stewardship.
Mission Statement
Willdan Group, Inc. aims to provide exceptional services that empower clients to achieve their energy and operational goals while ensuring sustainability and economic viability. The company focuses on delivering high-quality, innovative solutions that help clients navigate the complexities of energy efficiency and regulatory compliance.
Financial Performance
For the nine months ended September 27, 2024, Willdan reported a consolidated contract revenue of $421.7 million, representing a 19.0% increase compared to $354.4 million for the same period in 2023. The breakdown of contract revenue by segment is as follows:
| Segment | Contract Revenue (in thousands) | Percentage Increase |
|---|---|---|
| Energy | $352,634 | 20.6% |
| Engineering and Consulting | $69,103 | 11.3% |
Cost Structure
Direct costs of contract revenue increased to $273.9 million for the nine months ended September 27, 2024, up from $229.1 million in the prior year, reflecting a 19.6% increase. The costs associated with salaries and wages and subcontractor services are detailed below:
| Cost Type | Amount (in thousands) | Percentage of Total Costs |
|---|---|---|
| Salaries and Wages | $69,247 | 25.3% |
| Subcontractor Services | $204,667 | 74.7% |
Gross Profit and Margins
Willdan's gross profit for the nine months ended September 27, 2024, was $147.8 million, resulting in a gross margin of 35.1%, a slight decrease from 35.4% in the same period of 2023. The company's operational efficiency is reflected in the following metrics:
| Metric | Value |
|---|---|
| Gross Profit (in thousands) | $147,823 |
| Gross Margin (%) | 35.1% |
| Operating Income (in thousands) | $20,483 |
| Net Income (in thousands) | $14,882 |
General and Administrative Expenses
General and administrative expenses increased by 10.7% to $127.3 million for the nine months ended September 27, 2024. The components of G&A expenses are illustrated below:
| Expense Type | Amount (in thousands) | Percentage Increase |
|---|---|---|
| Salaries and Wages | $78,449 | 14.3% |
| Stock-based Compensation | $5,355 | 32.0% |
| Other General and Administrative Expenses | $25,368 | 12.1% |
Market Position and Client Base
Willdan's client base continues to grow, with a significant portion of its revenue derived from government contracts. For the nine months ended September 27, 2024, the company’s top 10 customers accounted for approximately 49.5% of total consolidated contract revenue. Notably, the geographical distribution of revenues highlights a strong presence in California and New York, which accounted for 42.2% and 21.0% of total revenues, respectively.
| Geographical Region | Revenue Contribution (%) |
|---|---|
| California | 42.2% |
| New York | 21.0% |
Conclusion
Willdan Group, Inc. continues to position itself as a leader in energy efficiency and consulting services, with a firm commitment to sustainability and client success. The financial metrics and operational efficiencies underscore its mission to provide innovative solutions that drive value for its clients.
How Willdan Group, Inc. (WLDN) Works
Company Overview
Willdan Group, Inc. (WLDN) operates primarily in the energy efficiency services and engineering sectors. The company provides a range of services including energy efficiency consulting, engineering services, and related utility programs. As of 2024, it focuses on enhancing energy efficiency and electrification services, especially under utility programs.
Financial Performance
For the nine months ended September 27, 2024, Willdan reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Contract Revenue | $421,737 | $354,418 | 19.0% |
| Net Income | $14,882 | $2,895 | 414.1% |
| Operating Income | $20,483 | $10,325 | 98.4% |
| Gross Profit | $147,823 | $125,342 | 17.9% |
| General and Administrative Expenses | $127,340 | $115,017 | 10.7% |
Segment Performance
Willdan's operations are divided into two main segments: Energy and Engineering & Consulting. The following table summarizes the revenues from each segment for the nine months ended September 27, 2024:
| Segment | Contract Revenue (in thousands) | Direct Costs (in thousands) | Gross Profit (in thousands) |
|---|---|---|---|
| Energy | $352,634 | $273,914 | $147,823 |
| Engineering & Consulting | $69,103 | $55,000 | $14,103 |
Revenue Breakdown
The company’s revenue can also be categorized by contract type and client type. The breakdown for the nine months ended September 27, 2024, is as follows:
| Contract Type | Energy (in thousands) | Engineering & Consulting (in thousands) | Total (in thousands) |
|---|---|---|---|
| Time-and-materials | $25,190 | $51,193 | $76,383 |
| Unit-based | $147,022 | $14,375 | $161,397 |
| Fixed price | $180,422 | $3,535 | $183,957 |
Client and Geographical Distribution
For the nine months ended September 27, 2024, Willdan's client distribution was as follows:
| Client Type | Energy (in thousands) | Engineering & Consulting (in thousands) | Total (in thousands) |
|---|---|---|---|
| Commercial | $23,858 | $5,281 | $29,139 |
| Government | $148,403 | $63,614 | $212,017 |
| Utilities | $180,373 | $208 | $180,581 |
Operational Highlights
Willdan's operational performance highlights include:
- Operating cash flow of $38,611,000 for the nine months ended September 27, 2024, compared to $24,112,000 in 2023.
- Direct costs of contract revenue increased to $273,914,000 in 2024 from $229,076,000 in 2023.
- General and administrative expenses increased by $12,323,000, reflecting investments in workforce and technology.
Liquidity and Capital Resources
As of September 27, 2024, Willdan had:
- Cash and cash equivalents of $53.1 million.
- A $100 million term loan with $92.5 million outstanding.
- A $50 million revolving credit facility with no borrowed amounts.
Conclusion
Willdan Group, Inc. continues to demonstrate robust growth in its contract revenue and net income, driven by increased demand in its Energy and Engineering segments. The company's focus on energy efficiency and electrification services positions it well for future opportunities.
How Willdan Group, Inc. (WLDN) Makes Money
Business Segments
Willdan Group, Inc. operates primarily through two business segments: Energy and Engineering & Consulting.
Revenue Generation
In the nine months ended September 27, 2024, consolidated contract revenue totaled $421.7 million, representing a 19.0% increase compared to $354.4 million for the same period in 2023. The revenue breakdown is as follows:
| Segment | Contract Revenue (2024) | Contract Revenue (2023) | Change (%) |
|---|---|---|---|
| Energy | $352.6 million | $292.3 million | 20.6% |
| Engineering & Consulting | $69.1 million | $62.1 million | 11.3% |
Contract Types
Revenue is derived from various contract types, which include:
- Time-and-materials
- Unit-based
- Fixed price
For the three months ended September 27, 2024, the revenue distribution by contract type was:
| Contract Type | Revenue (in thousands) |
|---|---|
| Time-and-materials | $25,720 |
| Unit-based | $57,480 |
| Fixed price | $75,052 |
Client Types
Willdan serves various clients, including:
- Commercial
- Government
- Utilities
For the three months ended September 27, 2024, contract revenue by client type was:
| Client Type | Revenue (in thousands) |
|---|---|
| Commercial | $9,932 |
| Government | $83,270 |
| Utilities | $65,050 |
Geographical Revenue
Substantially all revenue is derived from U.S. operations. For the nine months ended September 27, 2024, the geographical breakdown showed that services provided to clients in California accounted for 42.2% of total revenue, while New York accounted for 21.0%.
Financial Performance
For the nine months ended September 27, 2024:
- Gross profit increased to $147.8 million, up 17.9% from $125.3 million in 2023.
- Operating income rose to $20.5 million, a 98.4% increase compared to $10.3 million in the prior year.
- Net income for the period was $14.9 million, compared to $2.9 million in the previous year.
Cost Structure
The direct costs of contract revenue in the nine months ended September 27, 2024, totaled $273.9 million, with the breakdown as follows:
| Segment | Direct Costs (2024) | Direct Costs (2023) | Change (%) |
|---|---|---|---|
| Energy | $252.9 million | $210.0 million | 20.4% |
| Engineering & Consulting | $21.0 million | $13.1 million | 60.3% |
General and administrative expenses increased to $127.0 million, a 10.7% increase from $114.7 million in 2023.
Cash Flow and Liquidity
For the nine months ended September 27, 2024, net cash provided by operating activities was $38.6 million, compared to $24.1 million in the prior year.
Debt Obligations
As of September 27, 2024, total debt stood at $92.6 million, with $92.5 million drawn from a $100 million term loan and no amounts borrowed under the revolving credit facility.
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Article updated on 8 Nov 2024
Resources:
- Willdan Group, Inc. (WLDN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Willdan Group, Inc. (WLDN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Willdan Group, Inc. (WLDN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.