ANAHEIM, Calif. - Willdan Group , Inc. (NASDAQ: NASDAQ:WLDN) has been awarded a four-year contract by the City of Seattle to support the Seattle City Light Energy Design Assistance Program. The program aims to guide new multifamily and commercial buildings toward more energy-efficient designs. In addition to providing technical assistance, Willdan will collaborate with local women- and minority-owned businesses, offering them access to its NEO® software, an energy modeling tool to aid in building design.
Seattle City Light's Program Manager, Patrick Campbell, emphasized the importance of designing future buildings with electrification and energy efficiency in mind to align with the city's vision of a shared energy future. Mike Bieber, CEO of Willdan, noted the significance of the city's early adoption of energy modeling to promote decarbonization and stated that Willdan's technology-enabled approach assists utilities in meeting construction demands while adhering to energy goals and regulations.
Seattle City Light, a public utility serving approximately 501,000 customers, is known for its commitment to energy efficiency, renewable resources, and environmental stewardship. It was the first utility to achieve 100% net carbon neutrality in 2005. Willdan, a provider of professional and technical services, offers solutions in electric grid, energy efficiency, sustainability, and municipal financial consulting.
The information for this article is based on a press release statement. The press release also includes forward-looking statements regarding future results and performance, with the caution that actual results may differ due to various risk factors.
In other recent news, Willdan Group has seen significant developments in its financial performance and strategic growth. The company's Q2 results for the fiscal year 2024 showed a substantial increase in both GAAP and adjusted earnings per share, which more than doubled year-over-year. Contract revenue also saw an 18% organic increase, with adjusted EBITDA growing by 56% compared to the previous year. Following these robust results, Willdan revised its full-year financial targets upward.
In terms of its strategic growth, Willdan secured a $102 million energy project with the Clark County School District. This initiative, which is the second phase of energy efficiency projects that Willdan will execute for the district, is expected to result in $170 million in lifetime energy savings and a $700,000 reduction in annual operations and maintenance costs. Additionally, the company has expanded its commercial work in the data center market, securing major contracts with Meta (NASDAQ:META), the state of Virginia, and various utilities.
A Wedbush analyst recently initiated coverage of Willdan with an Outperform rating and a price target of $51.00, highlighting the company's significant role in clean technology and its contribution to over 80% of its annual revenues. The new price target suggests confidence in the company's potential for growth and its strategic position within the market.
In terms of future expectations, Willdan anticipates full-year net revenue to be between $280 million and $290 million, adjusted EBITDA between $50 million and $52 million, and adjusted diluted earnings per share between $2 and $2.10. These recent developments underscore Willdan Group's strong financial performance and strategic growth initiatives.
InvestingPro Insights
Willdan Group's recent contract win with Seattle City Light aligns well with the company's strong financial performance and market position. According to InvestingPro data, Willdan's revenue growth stands at an impressive 20.94% for the last twelve months as of Q2 2023, indicating a robust demand for its services. This growth is further reflected in the company's stock performance, with a remarkable 120.42% price total return over the past year.
InvestingPro Tips highlight that Willdan operates with a moderate level of debt and has liquid assets exceeding short-term obligations, suggesting financial stability as it takes on new projects like the Seattle contract. The company's ability to secure such contracts may be contributing to the expectation that net income will grow this year, another key InvestingPro Tip.
The energy efficiency and sustainability focus of the Seattle project resonates with Willdan's core business, which is reflected in its strong market performance. With a price-to-earnings ratio of 34.14, Willdan is trading at a high earnings multiple, potentially indicating investor confidence in its growth prospects and the value of contracts like the one with Seattle City Light.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for Willdan Group, providing a comprehensive view of the company's financial health and market position.
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