Earnings release
Page 1
Exhibit 99.1 W WILLDAN Willdan Group Reports Second Quarter Results ANAHEIM , Calif . –August 6 , 2026 – Willdan Group , Inc. ( “ Willdan ” ) ( Nasdaq : WLDN ) today announced its financial results for the second quarter ended July 3 , 2026 . Second Quarter 2026 Highlightsa • Contract revenue of $ 231.0 million , up 33.2 % . Net revenue of $ 117.2 million , up 23.5 % . Net income of $ 24.3 million , up 57.7 % . Adjusted EBITDA of $ 33.0 million , up 50.6 % . GAAP Diluted EPS of $ 1.58 , up 53.4 % . Adjusted Diluted EPS of $ 2.07 , up 38.0 % . The first half of fiscal 2026 had one fewer week than the first half of fiscal 2025 , thus normalized results are also presented . Six Months Year to Date 2026 Highlightsa • Contract revenue of $ 386.1 million , up 18.5 % ( up 23.1 % normalized ) . Net revenue of $ 209.7 million , up 16.3 % ( up 20.8 % normalized ) . Net income of $ 32.9 million , up 63.4 % ( up 69.7 % normalized ) . Adjusted EBITDA of $ 51.1 million , up 40.6 % ( up 46.0 % normalized ) . GAAP Diluted EPS of $ 2.13 , up 56.6 % . Adjusted Diluted EPS of $ 2.98 , up 39.3 % . Executive Management Comments " We delivered strong performance in the second quarter of 2026 , ” said Mike Bieber , Willdan's President and Chief Executive Officer . " Net revenue grew 23 % year over year , including 18 % organic growth , reflecting strong demand for our energy solutions . Margin expansion was driven by favorable business mix , operating leverage , and growth in our commercial business . We see compelling long - term opportunities from customers investing to meet growing electricity demand while improving grid reliability , resiliency , and affordability . Reflecting our strong performance and confidence in the opportunities ahead , we are raising our FY2026 financial targets . " Fiscal Year 2026 Financial Targets Net Revenueb between $ 415 million and $ 430 million . Adjusted EBITDAb between $ 103 million and $ 107 million . Adjusted Diluted EPSb between $ 5.00 per share and $ 5.15 per share . Assumes 15.9 million diluted shares , 0 % effective tax rate , and no future acquisitions . Long - Term Financial Goals Revenue and Net Revenue 15 % -20 % annual growth including acquisitions . Annual Adjusted EBITDA to Net Revenue margin in the high 20s % . a . As compared to the same period of fiscal year 2025 . Normalized to reflect the 26 - week first quarter of fiscal 2026 versus the 27 - week first quarter of fiscal 2025 . b . See " Use of Non - GAAP Financial Measures " below .
Page 2
2 Second Quarter 2026 Conference Call Willdan will be hosting a conference call to discuss its second 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/qyujt8ei/. 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 Group, Inc. is a technical services company focused on energy and infrastructure solutions. The Company’s solutions include energy planning and analytics, consulting, software, public finance, engineering, and program implementation. Willdan serves utilities, state and local governments, and commercial customers in the United States and Canada. 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 2026 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2026, 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 45.7% and 44.7% of contract revenue for the six months ended July 3, 2026 and July 4, 2025, respectively, and 46.5% of contract revenue for the fiscal year 2025. “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.
Page 3
3 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 2026 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2026, 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. “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 2026, 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 2026, 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 electricity demand, the expected benefits of the acquisition of Burton Energy Group, LLC., and financial targets for fiscal year 2026 and long term financial goals. 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 realize the full amount of our backlog; 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.
Page 4
4 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 January 2, 2026, 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.
Page 5
5 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) (Unaudited) July 3, January 2, 2026 2026 Assets Current assets: Cash and cash equivalents $ 34,870 $ 65,919 Restricted cash 4,349 — Accounts receivable, net of allowance for doubtful accounts of $266 and $340 at July 3, 2026 and January 2, 2026, respectively 84,250 64,604 Contract assets 134,433 107,296 Other receivables 1,668 6,330 Prepaid expenses and other current assets 10,296 7,528 Total current assets 269,866 251,677 Equipment and leasehold improvements, net 29,595 31,491 Goodwill 212,169 179,530 Right-of-use assets 18,173 16,600 Other intangible assets, net 68,933 35,521 Other assets 1,891 2,762 Deferred income taxes, net 34,248 26,630 Total assets $ 634,875 $ 544,211 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 62,916 $ 45,628 Accrued liabilities 79,156 82,434 Contingent consideration payable 15,792 3,732 Contract liabilities 30,271 21,565 Notes payable 2,500 2,500 Finance lease obligations 1,102 1,225 Lease liability 4,927 4,670 Total current liabilities 196,664 161,754 Contingent consideration payable, less current portion 7,015 16,651 Notes payable, less current portion 64,745 45,962 Finance lease obligations, less current portion 935 1,162 Lease liability, less current portion 14,982 13,762 Other noncurrent liabilities 69 69 Total liabilities 284,410 239,360 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; 15,197 and 14,762 shares issued and outstanding at July 3, 2026 and January 2, 2026, respectively 152 148 Additional paid-in capital 227,805 215,269 Accumulated other comprehensive income (loss) (71) (270) Retained earnings 122,579 89,704 Total stockholders’ equity 350,465 304,851 Total liabilities and stockholders’ equity $ 634,875 $ 544,211
Page 6
6 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended July 3, July 4, July 3, July 4, 2026 2025 2026 2025 Contract revenue $ 231,028 $ 173,473 $ 386,142 $ 325,859 Direct costs of contract revenue (inclusive of directly related depreciation and amortization): Salaries and wages 29,788 26,643 59,064 54,320 Subcontractor services and other direct costs 113,786 78,505 176,468 145,553 Total direct costs of contract revenue 143,574 105,148 235,532 199,873 Gross profit 87,454 68,325 150,610 125,986 General and administrative expenses: Salaries and wages, payroll taxes and employee benefits 40,467 32,576 73,468 63,684 Facilities and facility related 2,535 2,369 4,893 4,993 Stock-based compensation 4,811 3,182 8,503 5,608 Depreciation and amortization 6,971 5,504 12,417 9,944 Other 12,936 12,878 24,303 22,905 Total general and administrative expenses 67,720 56,509 123,584 107,134 Income (Loss) from operations 19,734 11,816 27,026 18,852 Other income (expense): Interest expense, net (1,086) (2,186) (1,921) (3,988) Other, net 439 551 1,234 510 Total other expense, net (647) (1,635) (687) (3,478) Income (Loss) before income taxes 19,087 10,181 26,339 15,374 Income tax (benefit) expense (5,258) (5,255) (6,536) (4,749) Net income (loss) 24,345 15,436 32,875 20,123 Other comprehensive income (loss): Unrealized gain (loss) on derivative contracts, net of tax 80 188 199 3 Comprehensive income (loss) $ 24,425 $ 15,624 $ 33,074 $ 20,126 Earnings (Loss) per share: Basic $ 1.62 $ 1.07 $ 2.21 $ 1.41 Diluted $ 1.58 $ 1.03 $ 2.13 $ 1.36 Weighted-average shares outstanding: Basic 15,043 14,444 14,891 14,298 Diluted 15,423 14,917 15,404 14,778
Page 7
7 WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Six Months Ended July 3, July 4, 2026 2025 Cash flows from operating activities: Net income (loss) $ 32,875 $ 20,123 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 12,417 9,944 Other non-cash items (218) 657 Deferred income taxes, net (7,618) (4,332) (Gain) loss on sale/disposal of equipment (43) (23) Provision for doubtful accounts 25 279 Stock-based compensation 8,503 5,608 Accretion and fair value adjustments of contingent consideration 1,828 1,254 Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable (12,143) 16,898 Contract assets (27,117) (18,062) Other receivables 4,651 (2,346) Prepaid expenses and other current assets 3,265 (1,376) Other assets 895 (888) Accounts payable 7,150 4,569 Accrued liabilities (6,628) (1,662) Contract liabilities 1,862 (2,364) Right-of-use assets (189) 445 Net cash (used in) provided by operating activities 19,515 28,724 Cash flows from investing activities: Purchase of equipment, software, and leasehold improvements (3,671) (4,517) Proceeds from sale of equipment 51 28 Cash paid for acquisitions, net of cash acquired (50,467) (35,140) Net cash (used in) provided by investing activities (54,087) (39,629) Cash flows from financing activities: Payments on contingent consideration (8,807) — Receipt of restricted cash 7,242 — Payment on restricted cash (2,893) — Payments on notes payable — (137) Payments on debt issuance costs — (332) Payments made to retire prior credit agreement — (90,000) Borrowing to fund new credit agreement — 88,414 Borrowing under revolving credit facility 30,000 — Payments under revolving credit facility (10,000) — Principal payments on outstanding debt (1,250) (28,414) Principal payments on finance leases (885) (737) Proceeds from stock option exercise 1,593 1,909 Proceeds from sales of common stock under employee stock purchase plan 1,921 1,485 Cash used to pay taxes on stock grants (9,049) (3,093) Net cash (used in) provided by financing activities 7,872 (30,905) Net increase (decrease) in cash, cash equivalents and restricted cash (26,700) (41,810) Cash, cash equivalents and restricted cash at beginning of period 65,919 74,158 Cash, cash equivalents and restricted cash at end of period $ 39,219 $ 32,348 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 2,032 $ 3,915 Income taxes 1,265 2,471 Supplemental disclosures of noncash investing and financing activities: Issuance of common stock related to business acquisitions $ 9,572 $ 5,557 Contingent consideration related to business acquisitions 9,394 12,040 Other working capital adjustment 1,336 — Equipment acquired under finance leases 535 855
Page 8
8 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure) Three Months Ended Six Months Ended July 3, July 4, July 3, July 4, 2026 2025 2026 2025 Consolidated Contract revenue $ 231,028 $ 173,473 $ 386,142 $ 325,859 Subcontractor services and other direct costs 113,786 78,505 176,468 145,553 Net Revenue $ 117,242 $ 94,968 $ 209,674 $ 180,306 Energy segment Contract revenue $ 202,589 $ 146,749 $ 330,557 $ 272,997 Subcontractor services and other direct costs 111,411 76,794 172,399 142,874 Net Revenue $ 91,178 $ 69,955 $ 158,158 $ 130,123 Engineering and Consulting segment Contract revenue $ 28,439 $ 26,724 $ 55,585 $ 52,862 Subcontractor services and other direct costs 2,375 1,711 4,069 2,679 Net Revenue $ 26,064 $ 25,013 $ 51,516 $ 50,183
Page 9
9 Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure) Three Months Ended Six Months Ended July 3, July 4, July 3, July 4, 2026 2025 2026 2025 Net income (loss) $ 24,345 $ 15,436 $ 32,875 $ 20,123 Interest expense 1,086 2,186 1,921 3,988 Income tax expense (benefit) (5,258) (5,255) (6,536) (4,749) Stock-based compensation 4,811 3,182 8,503 5,608 Interest accretion (1) 925 875 1,828 1,254 Depreciation and amortization 6,971 5,504 12,417 9,944 Transaction costs (2) 156 — 156 219 (Gain) Loss on sale of equipment (21) (6) (43) (23) Adjusted EBITDA $ 33,015 $ 21,922 $ 51,121 $ 36,364 (1) Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. (2) Transaction costs represents acquisition and acquisition related costs.
Page 10
10 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 Six Months Ended July 3, July 4, July 3, July 4, 2026 2025 2026 2025 Net income (loss) $ 24,345 $ 15,436 $ 32,875 $ 20,123 Adjustment for stock-based compensation 4,811 3,182 8,503 5,608 Tax effect of stock-based compensation (1,084) (528) (1,916) (930) Adjustment for intangible amortization 3,909 3,419 6,327 5,899 Tax effect of intangible amortization (881) (568) (1,425) (979) Adjustment for interest accretion (1) 925 875 1,828 1,254 Tax effect of interest accretion (1) (208) (145) (412) (208) Adjustment for refinancing costs — 789 — 789 Tax effect of refinancing costs — (131) — (131) Adjustment for transaction costs (2) 156 — 156 219 Tax effect of transaction costs (2) (35) — (35) (36) Adjusted Net Income (Loss) $ 31,938 $ 22,329 $ 45,901 $ 31,608 Diluted weighted-average shares outstanding 15,423 14,917 15,404 14,778 Diluted earnings (loss) per share $ 1.58 $ 1.03 $ 2.13 $ 1.36 Impact of adjustment: Stock-based compensation per share 0.31 0.21 0.55 0.38 Tax effect of stock-based compensation per share (0.07) (0.03) (0.12) (0.06) Intangible amortization per share 0.25 0.23 0.41 0.40 Tax effect of intangible amortization per share (0.06) (0.03) (0.09) (0.06) Interest accretion per share (1) 0.06 0.06 0.12 0.08 Tax effect of interest accretion per share (1) (0.01) (0.01) (0.03) (0.01) Refinancing costs per share — 0.05 — 0.05 Tax effect of refinancing cost per share — (0.01) — (0.01) Transaction costs per share (2) 0.01 — 0.01 0.01 Tax effect of transaction costs per share (2) — — — — Adjusted Diluted EPS $ 2.07 $ 1.50 $ 2.98 $ 2.14 (1) Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration. (2) Transaction costs represents acquisition and acquisition related costs.
Page 11
11 Contact: Willdan Group, Inc. Al Kaschalk Vice President Tel: 310-922-5643 akaschalk@willdan.com