Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 7 of last 7 quarters
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Willdan's accelerating commercial revenue, driven by data center electricity demand, underscores the scale of AI-driven load growth and the need for grid investment. The company's expanding battery storage pipeline and cross-selling with Burton position it to capture more of the AI infrastructure buildout, from planning to implementation.
Willdan delivered a record second quarter with contract revenue up 33% to $231M and adjusted EBITDA up 51% to $33M, driven by strength across utility, government, and commercial segments. The Burton acquisition, closed May 4, contributed and is on track to nearly triple revenue to ~$75M this year. Notable contract wins included a $110M LADWP solar streetlight expansion, a $53M central plant upgrade for City College of New York, and a $49M SoCalREN energy efficiency contract. The company raised full-year guidance and highlighted accelerating commercial demand, particularly for data center electricity, and a growing pipeline of battery storage projects.
Management raised full-year 2026 targets: net revenue of $415M–$430M, adjusted EBITDA of $103M–$107M, and adjusted EPS of $5.00–$5.15. They expect adjusted EBITDA margin of ~25% for the year, up from 21.8% in 2025, as estimated, though Q2's 28.2% margin is not expected to hold due to revenue acceleration into Q2. The LADWP ramp is the key variable, with full run-rate not expected until early 2027. Management reiterated a long-term path to high-20% adjusted EBITDA margins, driven by commercial growth, AI-enabled productivity, and operating leverage. They expect strong cash conversion (>70% of EBITDA to FCF) and continued M&A activity.
“We had a very strong second quarter, capping a strong first half and continuing the momentum we've built across the business. Demand remains healthy. Execution was strong, and we delivered significant growth in both revenue and profitability.”
on Quarterly performance
“We do seem to be right now at the right place at the right time.”
on Market positioning
“We continue to see a clear path to achieving margins in the high 20% range as larger and more complex projects, growth in our commercial business, AI-enabled productivity, and the scalability of our operating platform support continued margin expansion over time.”
on Margin outlook
Can you talk about the ramp of the LADWP project in the second quarter, how that plays out in the back half of the year? Secondly, how the new project extension win kind of just changes the overall outlook for the project?
The project was already ramping up from the beginning of the year and won't hit full run rate until early next year. The $110M expansion has authorization to proceed on half. It will ramp through Q3, into Q4, and early 2027. The contribution is uncertain, so guidance was conservative. LADWP could become our largest customer in 2027.
What kind of directs the geographic diversification? Is it mostly data centers driven and battery storage?
We've set up permanent hubs in Florida, Georgia, North Carolina, Kentucky, and Texas in the last 18 months. Data centers are being built across the country, giving us first-time projects in New Mexico, Montana, and Utah, and allowing us to hire in regions where we previously had less presence.
Can you break down the guidance a little bit further? Is there kind of a lack of visibility, or is there anything that you can really touch on about the guidance?
The biggest variable is how quickly LADWP ramps over the next six months. We guided conservatively because work could slip into early 2027. Q3 and Q4 should be similar to Q2, though Q2 benefited from some acceleration of utility program work. We're being appropriately conservative.