Willdan Group, Inc. WLDN reported mixed fourth-quarter fiscal 2024 (ended Dec. 27, 2024) results, with adjusted earnings surpassing the Zacks Consensus Estimate while contract revenues missed the same. On the other hand, the top and the bottom lines tumbled year over year.

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The top line declined year over year due to soft contributions from the Energy segment, which is the largest revenue contributor of the company. The downtick was partially offset by increased contract revenue contributions from the Engineering and Consulting segment. The bottom line was negatively affected by high total general and administrative expenses compared with last year’s quarter.

Moving forward, WLDN aims to capitalize on the increasing electricity demand and reap the benefits from steady funding for its core programs. Also, the acquisition of Alternative Power Generation, Inc., a provider of customized electric power solutions, expands Willdan’s electrical engineering and management consulting capabilities in substations for data centers and renewables.

WLDN stock surged 29.7% during Friday’s trading hours, after it posted its earnings after market close on Thursday.

Inside WLDN’s Headlines

Willdan reported adjusted earnings per share (EPS) of 75 cents, which surpassed the Zacks Consensus Estimate of 57 cents by 31.6%. In the year-ago quarter, it reported an adjusted EPS of 80 cents.

Quarterly contract revenues of $144.1 million missed the consensus mark of $152 million by 5.2% and declined 7.5% year over year.

Gross profit of $55 million grew slightly year over year from $54.4 million. The adjusted EBITDA in the quarter increased 1.4% from the prior-year period to $17.7 million.

Willdan’s Segmental Discussion

Energy Segment: This segment’s contract revenues declined year over year to $120.7 million from $134.6 million.

Subcontractor services and other direct costs were $64.1 million, down from $74 million reported in the year-ago quarter. Net revenues were $56.6 million, down 6.6% year over year.

Engineering and Consulting Segment: The segmental contract revenues increased year over year to $23.4 million from $21 million.

Subcontractor services and other direct costs during the quarter were $0.7 million, down from $0.9 million reported in the year-ago quarter. Net revenues were $22.7 million, up 12.4% year over year.

Willdan’s Fiscal 2024 Highlights

For the fiscal year, Willdan reported contract revenues of $565.8 million, up 0.9% from the fiscal 2023 level.

The annual gross profit was $202.8 million, up from $179.8 million reported in the prior year. The adjusted EBITDA of $56.8 million was up 24.2% from the fiscal 2023 level.

The adjusted EPS of $2.43 grew 38.9% from $1.75 reported a year ago.

Financial Details of WLDN

As of Dec. 27, 2024, Willdan had cash and cash equivalents of $74.2 million, up from $23.4 million at fiscal 2023-end. Finance lease obligations (less current portion) were $1.4 million as of fiscal 2024-end, up from $1.2 million at the end of fiscal 2023.

In fiscal 2024, net cash provided by operating activities was $72.1 million, up from $39.2 million reported last year.

WLDN Unveils Fiscal 2025 Outlook

Willdan expects net revenues between $320 million and $330 million. Adjusted EBITDA is anticipated to be between $63 million and $67 million.

The company expects adjusted EPS to be within the range of $2.70-$2.85.

WLDN’s Zacks Rank & Recent Business Services Releases

Willdan currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Jacobs Solutions Inc. J started fiscal 2025 on a solid note, with its first-quarter fiscal 2025 (ended Dec. 24, 2024) adjusted earnings and revenues surpassing the Zacks Consensus Estimate.

While EPS declined due to non-recurring tax benefits from the prior year, Jacobs' adjusted EBITDA margin expanded. It continues to see robust demand in the infrastructure and life sciences sectors. Additionally, its capital return program (dividends and share buybacks) remains strong.

Lumen Technologies, Inc. LUMN reported fourth quarter of 2024 adjusted earnings (excluding special items) of nine cents per share, which significantly outpaced  the Zacks Consensus Estimate of a loss of eight cents per share. The company reported EPS of eight cents in the prior-year quarter.

Quarterly total revenues were $3.329 billion, down 5.4% year over year. This decline was mainly due to the negative impact of divestitures, commercial agreements and the sale of the CDN business. However, the metric beat the Zacks Consensus Estimate by 3.4%.

ADTRAN, Inc. ADTN reported healthy fourth-quarter 2024 results, with both the top and bottom lines beating the respective Zacks Consensus Estimates. The company recorded a top-line expansion year over year driven by solid demand trends in the Network Solutions business. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is a positive.

Network Solutions contributed $197 million in revenues compared with $180.4 million in the prior-year quarter backed by healthy demand trends in several regions. Services and Support revenues improved to $45.8 million from the year-earlier quarter’s tally of $45 million.

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