Revenue: As of FY2027 Q1, the actual value is USD 155.11 M, missing the estimate of USD 206.2 M.EPS: As of FY2027 Q1, the actual value is USD 0.55.EBIT: As of FY2027 Q1, the actual value is USD 8.127 M.<h3>Consolidated Performance (Three Months Ended April 3, 2026 vs. April 4, 2025)</h3><ul><li>Contract Revenue: Willdan Group, Inc.’s consolidated contract revenue increased by $2.7 million, or 1.8%, to $155.1 million, compared to $152.4 million in the prior year period. Excluding the impact of one fewer week in Q1 2026, contract revenue grew by 9.6%.</li><li>Gross Profit: Gross profit rose by 9.5% to $63.2 million, achieving a gross margin of 40.7%, up from $57.7 million (37.8% gross margin) in the previous year.</li><li>Income from Operations: Operating income increased by 3.6% to $7.3 million, compared to $7.0 million in the prior year period. Excluding the impact of the additional week in Q1 2025, operating income increased by 11.6%.</li><li>Net Income: Net income was $8.5 million, an 82.0% increase from $4.7 million in the prior year period.</li><li>General and Administrative (G&amp;A) Expenses: G&amp;A expenses increased by $5.2 million, or 10.3%, to $55.9 million.</li><li>Interest Expense, Net: Total other expense, net, decreased by $1.8 million, or -97.8%, primarily due to lower interest expense and the absence of a one-time charge from a facility lease modification.</li><li>Income Tax Expense (Benefit): The company recorded an income tax benefit of -$1.3 million, with an effective tax benefit rate of -17.6%, compared to an income tax expense of $0.5 million (9.7% effective tax expense rate) in the prior year.</li></ul><h3>Segment-Specific Performance (Three Months Ended April 3, 2026 vs. April 4, 2025)</h3><h4>Energy Segment</h4><ul><li>Contract Revenue: Increased by $1.7 million, or 1.4%, to $128.0 million, driven by increased productivity and revenues from the acquisition of Alternative Power Generation, Inc. (APG).</li><li>Direct Costs of Contract Revenue: Decreased by $3.5 million, or -4.3%.</li><li>Gross Profit: $48.9 million.</li><li>EBITDA: $12.6 million.</li><li>Segment Profit before Income Tax: $7.7 million.</li><li>Net Income: $9.0 million.</li><li>Segment Assets: $399.8 million as of April 3, 2026, compared to $349.7 million as of April 4, 2025.</li></ul><h4>Engineering and Consulting Segment</h4><ul><li>Contract Revenue: Increased by $1.0 million, or 3.9%, to $27.1 million, due to higher demand for services and incremental revenues from acquisitions.</li><li>Direct Costs of Contract Revenue: Increased by $0.8 million, or 6.3%.</li><li>Gross Profit: $14.3 million.</li><li>EBITDA: $3.7 million.</li><li>Segment Profit before Income Tax: $3.1 million.</li><li>Net Income: $3.7 million.</li><li>Segment Assets: $46.4 million as of April 3, 2026, compared to $41.6 million as of April 4, 2025.</li></ul><h3>Other Key Financial and Operational Metrics</h3><h4>Contract Types (Three Months Ended April 3, 2026)</h4><ul><li>Time-and-materials: $30.9 million (20% of total contract revenue), with $12.7 million from Energy and $18.2 million from Engineering &amp; Consulting.</li><li>Unit-based: $56.7 million (36% of total contract revenue), with $49.6 million from Energy and $7.1 million from Engineering &amp; Consulting.</li><li>Fixed price: $67.5 million (44% of total contract revenue), with $65.7 million from Energy and $1.9 million from Engineering &amp; Consulting.</li></ul><h4>Client Types (Three Months Ended April 3, 2026)</h4><ul><li>Commercial: $21.2 million, with $19.4 million from Energy and $1.8 million from Engineering &amp; Consulting.</li><li>Government: $69.0 million, with $43.8 million from Energy and $25.2 million from Engineering &amp; Consulting.</li><li>Utilities: $64.8 million, with $64.7 million from Energy and $0.1 million from Engineering &amp; Consulting.</li></ul><h4>Customer Concentration (Three Months Ended April 3, 2026)</h4><ul><li>The top 10 customers accounted for 49.1% of consolidated contract revenue, down from 53.8% in the prior year period.</li><li>No individual customer accounted for more than 10% of consolidated contract revenue in the current period.</li><li>The Energy segment derived 22.4% of its revenue from Southern California Edison and New York Power Authority.</li></ul><h4>Geographical Concentration (Three Months Ended April 3, 2026)</h4><ul><li>California clients accounted for 46.0% of consolidated contract revenue, up from 39.8% in the prior year period.</li><li>New York clients accounted for 19.4% of consolidated contract revenue, down from 21.7% in the prior year period.</li></ul><h4>Cash Flow (Three Months Ended April 3, 2026 vs. April 4, 2025)</h4><ul><li>Operating Activities: Cash flows used in operating activities were -$24.4 million, compared to cash flows provided by operating activities of $3.3 million in the prior year period.</li><li>Investing Activities: Cash flows used in investing activities were -$2.6 million, significantly lower than -$34.8 million in the prior year, with current usage mainly for software development and equipment purchases.</li><li>Financing Activities: Cash flows used in financing activities were -$5.4 million, compared to -$4.3 million in the prior year, including -$8.8 million for withholding taxes on stock grants and -$2.8 million for contingent consideration payments.</li></ul><h4>Liquidity and Debt</h4><ul><li>As of April 3, 2026, Willdan Group, Inc. had $28.3 million in unrestricted cash and cash equivalents.</li><li>Outstanding debt included a $48.1 million Term Loan A (TLA) and no borrowed amounts on its $100.0 million Revolving Credit Facility.</li><li>A $50.0 million Delayed Draw Term Loan is available until May 2027, and the company was in compliance with all debt covenants.</li><li>On April 29, 2026, Willdan Group, Inc. borrowed $30.0 million under its revolving credit facility to fund a portion of the Burton acquisition.</li></ul><h4>Contractual Obligations (As of April 3, 2026)</h4><ul><li>Total Debt: $47.9 million (net of issuance costs), with $2.5 million due in less than 1 year.</li><li>Interest Payments on Debt Outstanding: $9.8 million total, with $2.5 million due in less than 1 year.</li><li>Operating Leases: $19.1 million total, with $4.7 million due in less than 1 year.</li><li>Finance Leases: $2.5 million total, with $1.3 million due in less than 1 year.</li></ul><h4>Contingent Consideration</h4><ul><li>As of April 3, 2026, contingent consideration payable was $18.5 million related to the acquisitions of Enica, APG, and Compass.</li><li>Willdan Group, Inc. is contingently obligated to pay up to $6.0 million for Enica, up to $18.0 million for APG, and up to $1.0 million for Compass based on financial targets.</li></ul><h3>Future Outlook and Strategy</h3>Willdan Group, Inc. is focused on enhancing its energy and infrastructure solutions and expanding into new markets through strategic acquisitions, such as Compass Municipal Advisors, LLC. and Burton Energy Group, LLC., leveraging operational synergies. The company aims to design and deliver comprehensive solutions by focusing on power grid resiliency, efficiency, and reliability in its Energy segment, and addressing sustainability and growth in civil infrastructure through its Engineering &amp; Consulting segment. Willdan Group, Inc. also implements risk mitigation strategies for potential impacts from inflation and federal policies by using fixed-price purchase orders and incorporating cost escalation factors into proposals.

Willdan | 10-Q: FY2027 Q1 Revenue Misses Estimate at USD 155.11 M