Slide 1: Willdan Group, Inc. Q1 FY25 Earnings Call
WILLDAN GROUP, INC. Q1 FY25 Earnings Call NASDAQ: WLDN May 8, 2025 Mike Bieber, President & CEO Kim Early, Executive Vice President & CFO Saf e Harbor St at eme nt – Sta tem en t s in t hi s p re sen tat io n th at ar e n ot p ur el y hi sto r ic al, ar e fo r wa rd -lo o kin g sta tem en t s th at
Slide 2: Q1'25 Key Takeaways
Q1’25 Key Takeaways Strong start to the year Q1’25 vs. Q1’24 ▪ Contract Revenue $152M + 24% ▪ Adjusted EBITDA $14M + 31% ▪ GAAP EPS $0.32 + 52% ▪ Adjusted EPS $0.63 + 58% Closed two acquisitions Load growth and execution fuel positive long-term outlook Expanded credit facility 2
Slide 3: Willdan Provides Energy & Infrastructure Solutions
Willdan Provides Energy & Infrastructure Solutions Customer Mix* Engineering & Consulting 17% Utilities Commercial 41% 15% Energy 83% 55 25 (states plus Canada, Offices D.C. & Puerto Rico) State & Local Gov’t 1,770 44% Issued May 2, 2025 Employees (as of 04/04/25) * Expressed as % of FY2025 Proforma
Slide 4: Upfront Policy Work Informs Willdan Strategy
Upfront Policy Work Informs Willdan Strategy MODEL COLLABORATION EXAMPLE Policy, Data Analytics, & Software City of Fairfield, CA Engineering Since 2000 – Financial Planning and Civil Engineering Services 2025 – $30M energy program Program Management management contract Pr oj ec t S ize 4
Slide 5: Notable Wins
Notable Wins Since last earnings call Client Description 1. City of Fairfield, CA - $30M Energy and infrastructure modernization services 2. Paramount Unified School District - $18M Engineering and oversight for EV charging stations and solar arrays 3. National Grid - $20M Multiple-award small busin
Slide 6: Business Trends
Business Trends 50% Increase in Electricity Demand by 2050* Tariff Uncertainty Terawatt-hours (TWh) 6000 Historical Demand 2.2% ▪ Risks per year 5000 1.6% # ▪ Equipment price escalation 4000 ▪ Project delays 3000 ▪ Mitigation ...followed ...and a return 2000 by 15 years to growth ▪ More flexible con
Slide 7: Operating Margin Trends
Operating Margin Trends Adj. EBITDA Growth and Margin Improvement Net Revenue Per Employee* ($ in millions) ($ in thousands) $70.0 ~20%# 21.0% 19.2% $60.0 19.0% 16.9% 17.0% $50.0 14.5% 15.0% 13.7% $40.0 13.0% $174 $177 $30.0 10.3% $66.5E# $56.8 11.0% $139 $139 $149 $45.7 $20.0 9.0% $28.1 $27.5 $10.0
Slide 8: Q1'25 Results
Q1’25 Results ($ in millions, except for EPS) Contract Revenue Net Revenue Adjusted EBITDA Adjusted EPS $152M $14.4M $0.63 $85M +24% +31% +58% $122M +24% $11.0M $11.0M $0.40 $69M Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Broad-based demand plus operating leverage drove strong Q1 8
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow NET DEBT NET DEBT/ADJUSTED EBITDA TTM $33 increase includes cash used for acquisitions $49M 0.8x $16M 0.3x 12/27/24 04/04/25 12/27/24 04/04/25 FREE CASH FLOW TOTAL LIQUIDITY ($ in millions except FCF per share) TTM @ Q1’25 Per Share $38 $38M Cash Flow From Operations $49 $8
Slide 10: $200M Expanded Credit Facility
$200M Expanded Credit Facility ▪ Amendment to Credit Agreement executed on May 5, 2025 ▪ Revolving Credit Facility increased to $100M ▪ Term Loan A reduced to $50M ▪ New $50M Delayed Draw Term Loan established ▪ Lowered interest rate ▪ Reduced annual debt service 10
Slide 11: Increasing Financial Targets
Increasing Financial Targets* Financial Target From To Net Revenue $320-330M $325-335M Adjusted EBITDA $63-67M $65-68M Adjusted Diluted EPS $2.70-2.85 $2.75-2.90 * Financial Targets assume: ▪ No future acquisitions ▪ Full-year effective tax rate of 16% ▪ 15.1M average diluted common shares 11
Slide 12: Q&A
Q&A 12
Slide 13: Reconciliation of Contract to Net Revenue
Reconciliation of Contract to Net Revenue ($ in millions) Note: totals may not foot due to rounding FY2023 FY2024 Q1’24 Q1’25 CONSOLIDATED Contract Revenue $510.1 $565.8 $122.5 $152.4 Subcontractor services & other direct costs 240.4 269.5 53.6 67.0 Net Revenue $269.7 $296.3 $68.9 $85.4 ENERGY SEGME
Slide 14: Reconciliation GAAP Net Income to Adjusted EPS
Reconciliation GAAP Net Income to Adjusted EPS ($ & shares in millions except per share amounts) Note: totals may not foot due to rounding FY2023 FY2024 Q1’24 Q1’25 Net Income $10.9 $22.6 $2.9 $4.7 Stock-based Compensation, net of tax 4.3 6.1 1.1 2.0 Intangible Amortization, net of tax 8.2 5.9 1.5 2
Slide 15: Reconciliation GAAP Net Income to Adjusted EBITDA
Reconciliation GAAP Net Income to Adjusted EBITDA ($ in millions) Note: totals may not foot due to rounding FY2023 FY2024 Q1’24 Q1’25 Net Income $10.9 $22.6 $2.9 $4.7 Interest Expense 9.4 7.8 2.1 1.8 Income Tax Expense (Benefit) 3.7 4.1 1.0 0.5 Stock-based Compensation 5.3 7.4 1.4 2.4 Depreciation a