Willdan Group Inc., an engineering firm specializing in electricity, for almost 20 years didn’t get much traction on Wall Street.
That all began to change two years ago as demand for AI data centers exploded, causing its stock to soar nine-fold from about $13 a share to almost $120 last week with a $1.6 billion market cap.
The company kept up the high-voltage pace with its latest earnings report released on Aug. 7.
For the second quarter ended July 4, Willdan reported contract revenue grew 23% to $173.5 million; net revenue, which excludes subcontract services and other direct costs, grew an even more impressive 31% to $95 million. To top it off, the company increased its 2025 financial targets.
Shares jumped 28% to $113.65 in the trading session the day after the report (Nasdaq: WLDN).
“Demand for our services is expanding across our end markets,” Chief Executive Mike Bieber told analysts on a conference call.
“The shift towards electrification coupled with the resurgence in domestic manufacturing and the explosive growth of AI-driven data centers create strong tailwinds for Willdan.”
The Anaheim-based company is Orange County’s largest publicly traded engineering firm.
It ranks No. 3 on the Business Journal’s annual list of engineering firms, with an estimated $123.3 million in OC billings for the year ended June 30, 2025.
Data Centers
The company, established in 1964, is a combination of the first names of founders William Stookey and Dan Heil, both now deceased. The company originally focused on providing engineering services to California cities.
Tom Brisbin, who was named to the top role a year after Willdan went public in 2006, led the company to $510 million in contract revenue in 2023, his final year as CEO. During his tenure, the stock went from as low as $1 in 2012 to as high as $34 in 2018, making it a mystical 34 bagger. By 2023, it sank below $15.
Bieber initially joined Willdan in 2014, following an 18-year career at fellow engineering firm Tetra Tech Inc. in Irvine. Two years later, he was promoted to president and in 2023, he was named CEO to replace Brisbin.
Nowadays, Willdan’s work can range from helping manage electricity usage at data centers to aiding technology clients navigate energy constraints to building energy programs for cities. The firm works with utility companies, local and state government agencies and both commercial and private customers.
“With electric load growth expected to increase over the next decade, driven by data centers and electrification, Willdan’s differentiated capabilities position us well to sustain long-term growth,” Bieber told analysts on the second quarter earnings call.
Record First Half of 2025
The firm says the electricity sector is growing a lot.
“Electricity demand in the U.S. is projected to grow by 50% between now and 2050, and we’re already seeing the front edge of that demand emerge through multiyear infrastructure investments, grid modernization, and private sector-funded electricity for data center load,” Bieber told analysts.
Bieber attributed the second quarter net revenue increase to a 23% organic growth rate and 8% acquisitive growth during the three-month period. Chief Financial Officer Creighton (Kim) Early also noted that “recent acquisitions contributed $11 million to the contract revenue in the quarter.”
“When we bring in a new group, a new acquisition, that can catalyze a lot of cross-selling between the new acquisition’s capabilities and our legacy clients, and that’s what’s happening in part,” Bieber said about its organic growth rate.
“These results reflect a combination of consistent execution in our core programs, new contract wins, and successful strategic acquisitions.”
Second-quarter net income more than tripled to $15 million compared to a year ago.
CFO Early added that “growth was broad-based across both segments,” pointing to funding acceleration in utility programs within the energy sector and its consulting division’s “continuing municipal demand, geographic expansion, and new contract wins.”
“Q2 results marked the tenth consecutive quarter of significant year-over-year improvement, continuing the trend that began in early 2023,” Early told analysts.
The year-to-date performance led Willdan to increase its 2025 revenue forecast to net revenue between $340 million and $350 million for the year, up from the $325 million to $335 million prediction made in May. It boosted its adjusted profit prediction by $5 million to $70 million to $73 million.
Analyst firm Wedbush raised its price target from $85 to $120 following the report.
“We believe the company is well-positioned to further capitalize on the AI Revolution with elevated data center demand driving significant electricity load growth leading to a strong pipeline of opportunities for WLDN moving forward,” analyst Daniel Ives wrote in a note to investors.
Clear Street, which initiated coverage of Willdan last November, said the firm exceeded its forecasts.
“We raise our price target to $88 from $75 to reflect the higher guidance for this year, strong execution and firepower for highly accretive acquisitions,” analyst Tim Moore said.
“Q2 was solid across the board and forms the foundation for a strong second half and an even stronger 2026,” Bieber said.
Healthy Demand Among Client Bases
Its longest-running client of 50 years is the city of Paramount, which regularly contracts with Willdan for city engineering services. The firm is also contracted with the cities of Elk Grove and Westlake Village.
“The energy segment makes up about 85% of our revenue while our legacy engineering and consulting work makes up about 15%,” Bieber said on the August earnings call.
Demand remains healthy across all its customer segments, according to the CEO.
“Work for state and local governments makes up 44% of revenue and continues to grow organically at a double-digit pace,” he added. Willdan’s utility business makes up about 41% of revenue.
And new contracts continue to roll in from across the U.S.
Since Willdan’s last earnings call, the firm has added at least six new projects to its plate, from a $36 million project to provide consulting, engineering and construction management for a confidential data center developer in Phoenix to a $1 million project with Illinois’ Commerce Commission to evaluate the state’s electricity resource adequacy under new load conditions.
Willdan’s largest contract to date, a $330-million program for the Los Angeles Department of Water and Power (LADWP), also renewed in July.
“Based on our pipeline of new opportunities and program expansions, we feel good about the outlook for 2026,” Bieber said.
