Willdan Group Inc (NASDAQ:WLDN) Stock Rises on Strong Q3 Earnings Beat and Raised 2025 Outlook

Willdan Group Inc (NASDAQ:WLDN) reported financial results for the third quarter that significantly exceeded analyst expectations, prompting a notable upward movement in its stock price during after-hours trading.

Earnings and Revenue Performance Versus Estimates

The company’s performance for the quarter ended October 3, 2025, demonstrated considerable strength, with both top-line and bottom-line results coming in well ahead of market forecasts.

• Earnings Per Share (EPS): The company reported Adjusted Diluted EPS of $1.21. This substantially outpaced the analyst consensus estimate of $0.85.
• Revenue: Willdan posted net revenue of $95.0 million for the quarter. This figure also surpassed the estimated revenue of $88.0 million, indicating robust demand for its services.

The strong quarterly results were part of a broader positive trend for the first nine months of the fiscal year, with the company reporting a net income of $33.8 million, an increase of over 127% compared to the same period in 2024.

Market Reaction

The market responded favorably to the earnings beat. Following the release, Willdan's stock experienced an after-market price increase of approximately 9.1%. This positive movement suggests investor confidence was bolstered by the company's ability to exceed profitability and revenue targets, potentially marking a reversal from the stock's performance over the preceding weeks.

Management Commentary and Raised Outlook

In the earnings release, President and CEO Mike Bieber attributed the strong quarter to "the strength and diversity of our business, consistent execution, and growing electricity demand driven by data centers and electrification." He also highlighted a 20% organic growth in net revenue and a reduction in net debt to $16.0 million.

Bolstered by this performance, management raised its financial targets for the full 2025 fiscal year. The updated guidance now includes:

• Net revenue between $360 million and $365 million.
• Adjusted EBITDA between $77 million and $78 million.
• Adjusted Diluted EPS between $4.10 and $4.20 per share.

This outlook appears ambitious when compared to the current analyst estimates for the full year, which include sales of approximately $360.0 million, suggesting the company is projecting its strong momentum to continue.

Press Release Summary

The core announcement detailed a quarter of robust growth across key financial metrics. Beyond the earnings and revenue beats, notable highlights from the report include:

• A 25.5% year-over-year increase in net revenue.
• A 86.8% surge in net income, reaching $13.7 million.
• Adjusted EBITDA of $23.1 million, up 52.5% from the prior year.
• The company's balance sheet showed growth in total assets and stockholders' equity compared to the end of fiscal year 2024.

For a detailed breakdown of future earnings estimates and historical performance, review the earnings and estimates data for WLDN.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.