Earnings release
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Exhibit 99.1 Willdan Group Reports First Quarter Results ANAHEIM, Calif. –May 8, 2025 – Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today announced its financial results for the first quarter ended April 4, 2025. First Quarter 2025 Highlightsa ●Contract revenue of $152.4 million, up 24.4%. ●Net revenueb of $85.3 million, up 23.8%. ●Net income of $4.7 million, up 59.3%. ●Adjusted EBITDAb of $14.4 million, up 30.9%. ●GAAP Diluted EPS of $0.32, up 52.4%. ●Adjusted Diluted EPSb of $0.63, up 57.5%. Executive Management Comments “We exceeded analyst expectations in the first quarter, delivering double-digit growth across our key metrics,” said Mike Bieber, Willdan’s President and Chief Executive Officer. “New wins, steady funding in our core programs, and three strategic acquisitions are driving our broad-based growth. Data centers and electrification are increasing demand for electricity and fueling investment in reliable power and resilient grid infrastructure. Normalized for the extra week in this year’s first quarter, we delivered 12% organic revenue growth. With record first quarter performance, we are raising each of our fiscal year 2025 financial targets.” Fiscal Year 2025 Financial Targets Willdan is raising each of its financial targets for fiscal year 2025 and now expectsc: ●Net revenueb between $325 million and $335 million. ●Adjusted EBITDAb between $65 million and $68 million. ●Adjusted Diluted EPSb between $2.75 per share and $2.90 per share. Assumes 15.1 million diluted shares, 16% effective tax rate, and no future acquisitions. a. As compared to the same period of fiscal year 2024. b. See “Use of Non-GAAP Financial Measures” below. c. These updated financial targets supersede any previously disclosed financial targets and investors should not rely on any previously disclosed financial targets, and do not include any uncompleted or future acquisitions. Graphic
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2 First Quarter 2025 Conference Call Willdan will be hosting a conference call to discuss its first quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 877-407-2988 (or 201-389-0923). The conference call will be webcast simultaneously on Willdan’s website at https://edge.media- server.com/mmc/p/m8apftij/. A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations. About Willdan Group, Inc. Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com. Use of Non-GAAP Financial Measures “Net Revenue,” defined as contract revenue as reported in accordance with U.S. generally accepted accounting principles (“GAAP”) minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with GAAP and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for fiscal year 2025 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2025, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 44.0% and 43.7% of contract revenue for the quarter ended April 4, 2025 and March 29, 2024, respectively. “Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, transaction costs, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for fiscal year 2025 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2025, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA.
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3 “Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, and transaction costs, each net of tax, is a non-GAAP financial measure. “Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, interest accretion, and transaction costs, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non- operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for fiscal year 2025, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for fiscal year 2025, which is a forward- looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively. Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS. Forward Looking Statements Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, assumptions, aims, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding broad-based growth, data centers and electrification increasing demand for electricity and fueling investment in reliable power and resilient grid infrastructure, and financial targets for fiscal year 2025. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, elevated interest rates, and elevated inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; and Willdan’s ability to attract and retain managerial, technical, and administrative talent. All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 27, 2024, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10- Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward- looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law.
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4 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) April 4, December 27, 2025 2024 Assets Current assets: Cash and cash equivalents $ 38,364$ 74,158 Restricted cash — — Accounts receivable, net of allowance for doubtful accounts of $1,510 and $1,313 at April 4, 2025 and December 27, 2024, respectively 59,692 65,557 Contract assets 89,167 88,528 Other receivables 2,596 2,302 Prepaid expenses and other current assets 7,186 4,979 Total current assets 197,005 235,524 Equipment and leasehold improvements, net 30,474 29,534 Goodwill 173,922 140,991 Right-of-use assets 12,007 14,035 Other intangible assets, net 42,418 29,414 Other assets 2,592 2,019 Deferred income taxes, net 12,740 13,346 Total assets $ 471,158$ 464,863 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 41,634$ 33,766 Accrued liabilities 39,373 62,776 Contingent consideration payable 8,500 2,500 Contract liabilities 23,128 21,556 Notes payable 2,500 10,137 Finance lease obligations 1,233 1,138 Lease liability 5,840 5,804 Total current liabilities 122,208 137,677 Contingent consideration payable 8,444 1,713 Notes payable, less current portion 84,443 79,350 Finance lease obligations, less current portion 1,471 1,379 Lease liability, less current portion 8,550 9,939 Other noncurrent liabilities 526 462 Total liabilities 225,642 230,520 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 40,000 shares authorized; 14,497 and 14,169 shares issued and outstanding at April 4, 2025 and December 27, 2024, respectively 145 142 Additional paid-in capital 204,036 197,368 Accumulated other comprehensive income (loss) (499) (314) Retained earnings 41,834 37,147 Total stockholders’ equity 245,516 234,343 Total liabilities and stockholders’ equity $ 471,158$ 464,863
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5 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, except per share amounts) Three Months Ended April 4, March 29, 2025 2024 Contract revenue $ 152,386 $ 122,489 Direct costs of contract revenue (inclusive of directly related depreciation and amortization): Salaries and wages 27,677 21,512 Subcontractor services and other direct costs 67,048 53,559 Total direct costs of contract revenue 94,725 75,071 Gross profit 57,661 47,418 General and administrative expenses: Salaries and wages, payroll taxes and employee benefits 31,108 26,509 Facilities and facility related 2,624 2,445 Stock-based compensation 2,426 1,390 Depreciation and amortization 4,440 3,592 Other 10,027 8,121 Total general and administrative expenses 50,625 42,057 Income (Loss) from operations 7,036 5,361 Other income (expense): Interest expense, net (1,802) (2,137) Other, net (41) 704 Total other expense, net (1,843) (1,433) Income (Loss) before income taxes 5,193 3,928 Income tax (benefit) expense 506 986 Net income (loss) 4,687 2,942 Other comprehensive income (loss): Unrealized gain (loss) on derivative contracts, net of tax (185) 434 Comprehensive income (loss) $ 4,502 $ 3,376 Earnings (Loss) per share: Basic $ 0.33 $ 0.22 Diluted $ 0.32 $ 0.21 Weighted-average shares outstanding: Basic 14,163 13,605 Diluted 14,628 13,910
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6 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended April 4, March 29, 2025 2024 Cash flows from operating activities: Net income (loss) $ 4,687 $ 2,942 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 4,440 3,592 Other non-cash items 327 92 Deferred income taxes, net 606 1,005 (Gain) loss on sale/disposal of equipment (17) (13) Provision for doubtful accounts 246 (100) Stock-based compensation 2,426 1,390 Accretion and fair value adjustments of contingent consideration 379 — Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable 12,655 18,985 Contract assets (174) 11,476 Other receivables 877 617 Prepaid expenses and other current assets (2,207) (1,975) Other assets (569) 117 Accounts payable 3,748 1,325 Accrued liabilities (22,134) (15,740) Contract liabilities (2,654) 3,244 Right-of-use assets 675 (8) Net cash (used in) provided by operating activities 3,311 26,949 Cash flows from investing activities: Purchase of equipment, software, and leasehold improvements (2,310) (1,971) Proceeds from sale of equipment 19 19 Cash paid for acquisitions, net of cash acquired (32,473) — Net cash (used in) provided by investing activities (34,764) (1,952) Cash flows from financing activities: Payments on notes payable (137) (153) Repayments under term loan facility and line of credit (2,500) (1,875) Principal payments on finance leases (392) (345) Proceeds from stock option exercise 81 281 Proceeds from sales of common stock under employee stock purchase plan 1,485 1,402 Cash used to pay taxes on stock grants (2,878) (779) Net cash (used in) provided by financing activities (4,341) (1,469) Net increase (decrease) in cash, cash equivalents and restricted cash (35,794) 23,528 Cash, cash equivalents and restricted cash at beginning of period 74,158 23,397 Cash, cash equivalents and restricted cash at end of period $ 38,364 $ 46,925 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 1,663 $ 2,081 Income taxes 59 2 Supplemental disclosures of noncash investing and financing activities: Issuance of common stock related to business acquisitions $ 5,557 $ — Contingent consideration related to business acquisitions 12,353 — Equipment acquired under finance leases 580 198
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7 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) Three Months Ended April 4, March 29, 2025 2024 Consolidated Contract revenue $ 152,386 $ 122,489 Subcontractor services and other direct costs 67,048 53,559 Net Revenue $ 85,338 $ 68,930 Energy segment Contract revenue $ 126,248 $ 100,746 Subcontractor services and other direct costs 66,080 52,654 Net Revenue $ 60,168 $ 48,092 Engineering and Consulting segment Contract revenue $ 26,138 $ 21,743 Subcontractor services and other direct costs 968 905 Net Revenue $ 25,170 $ 20,838
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8 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) Three Months Ended April 4, March 29, 2025 2024 Net income (loss) $ 4,687 $ 2,942 Interest expense 1,802 2,137 Income tax expense (benefit) 506 986 Stock-based compensation 2,426 1,390 Interest accretion (1) 379 — Depreciation and amortization 4,440 3,592 Transaction costs (2) 219 — (Gain) Loss on sale of equipment (17) (13) Adjusted EBITDA $ 14,442 $ 11,034 (1) Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. (2) Transaction costs represents acquisition and acquisition related costs.
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9 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure) Three Months Ended April 4, March 29, 2025 2024 Net income (loss) $ 4,687 $ 2,942 Adjustment for stock-based compensation 2,426 1,390 Tax effect of stock-based compensation (398) (278) Adjustment for intangible amortization 2,480 1,871 Tax effect of intangible amortization (407) (374) Adjustment for interest accretion (1) 379 — Tax effect of interest accretion (1) (62) — Adjustment for transaction costs (2) 219 — Tax effect of transaction costs (2) (36) — Adjusted Net Income (Loss) $ 9,288 $ 5,551 Diluted weighted-average shares outstanding 14,628 13,910 Diluted earnings (loss) per share $ 0.32 $ 0.21 Impact of adjustment: Stock-based compensation per share 0.17 0.10 Tax effect of stock-based compensation per share (0.03) (0.02) Intangible amortization per share 0.16 0.14 Tax effect of intangible amortization per share (0.03) (0.03) Interest accretion per share (1) 0.03 — Tax effect of interest accretion per share (1) (0.00) — Transaction costs per share (2) 0.01 — Tax effect of transaction costs per share (2) (0.00) — Adjusted Diluted EPS $ 0.63 $ 0.40 (1) Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. (2) Transaction costs represents acquisition and acquisition related costs.
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10 Contact: Willdan Group, Inc. Al Kaschalk Vice President Tel: 310-922-5643 akaschalk@willdan.com