Willdan Group, Inc. · NASDAQ:WLDN
Willdan — Q4 2024 Earnings Presentation
17 slides from Willdan's earnings presentation, Mar 6, 2025
Slide 1: Willdan Group, Inc. Q4 FY24 Earnings Call
WILLDAN GROUP, INC. Q4 FY24 Earnings Call NASDAQ: WLDN March 6, 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 a
Slide 2: 2024 Key Takeaways
2024 Key Takeaways Strong Finish to a Record Year in 2024 FY’24 vs. FY’23 ▪ Contract Revenue $566M + 11% ▪ Adjusted EBITDA $57M + 24% ▪ GAAP EPS $1.58 + 98% ▪ Adjusted EPS $2.43 + 39% ▪ FCF/share $4.49 + 108% Expanded commercial business Load growth and execution fuel positive long-term outlook 2
Slide 3: Willdan Provides Energy & Infrastructure Solutions
Willdan Provides Energy & Infrastructure Solutions Our Customers % by proforma FY'24 Revenue 54 Commercial Offices in 9,200 GWH and Utilities 41% 15% 1,800 25 117 MM Therms Saved States Employees (including Canada, 12,500,000 District of Columbia, Metric Tons of GHG State & Local Gov’t (as of 03/06/
Slide 4: Upfront Policy Work Informs Willdan Strategy
Upfront Policy Work Informs Willdan Strategy MODEL ACQUISITIONS Policy, Data Alpha Inspections Analytics, & Software $4M/YR* Enica Engineering Engineering $10M/YR* Alternative Power Generation $37M/YR* Program Management *FY'24 Revenue Pr oj ec t S ize 4
Slide 5: Notable Wins
Notable Wins Since last earnings call Client Description 1. LADWP Commercial Energy Efficiency - $330M 5 Year expanded scope and volume 2. Los Angeles County (SoCalREN) - $15M 2 Year Commercial energy program 3. Central California Rural Regional Energy 3 Year Commercial direct install and regulatory
Slide 6: Electricity Demand Represents Opportunities
Electricity Demand Represents Opportunities ▪ Data centers ▪ Electric vehicles Existing Load ▪ Building electrification Source: “Energy and Environmental Economics (E3) Analysis", February 2025. E3 is a Willdan company. 6
Slide 7: Alpha Inspections Acquisition
Alpha Inspections Acquisition Trusted city building and safety services Complements Willdan’s Civil Engineering position in central Florida ~$4 Million in 2024 Revenue Accretive to 2025 margins, earnings, and EPS 7
Slide 8: APG Acquisition
APG Acquisition Electrical engineering & grid interconnection experts Customized solutions in commercial market ~$37 Million in 2024 Revenue Accretive to 2025 margins, earnings, and EPS Substations for data Solar / EV charging Microgrids centers & Storage renewables 8
Slide 9: Customer Mix and Margin Trend
Customer Mix and Margin Trend ($ in millions) Actual FY'24 vs. Proforma FY'24* Adj. EBITDA Growth and Margin Improvement $70.0 21.0% 19.2% ~20%# Utilities Commercial Utilities Commercial $60.0 19.0% 46% 7% 41% 15% 16.9% 17.0% $50.0 14.5% 15.0% 13.7% $40.0 13.0% $30.0 10.3% $65E# $56.8 11.0% $45.7 $2
Slide 10: Q4'24 Results
Q4’24 Results ($ in millions, except for EPS) Contract Revenue Net Revenue Adjusted EBITDA Adjusted EPS $156M $144M $144 M $0.80 $18 M $0.75 $18M $17M $81M $79 $79MM +6% +19% +29% $136M $0.63 $136 M +20% $14 $14MM $66M $66 M Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Extraordinary Q4'23 contrac
Slide 11: FY2024 Results
FY2024 Results ($ in millions, except for EPS) Contract Revenue Net Revenue Adjusted EBITDA Adjusted EPS $57M $57 M $566 M $566M $296 M $296M $2.43 $510 $510MM $270 M $270M $46 $46MM $1.75 +11% +10% +24% +39% FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 Strength in all areas 11
Slide 12: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ($ in millions) FREE CASH FLOW TOTAL LIQUIDITY Q4’23 Q4’24 FY2023 FY2024 Cash Flow From Operations $15 $33 $39 $72 $74 $124 Less: Capital Expenditures 2 2 10 8 Free Cash Flow $13 $31 $29 $64 $50 Free Cash Flow per Share $2.13 $4.49 Unused Credit Line Cash Total NET DEBT NET
Slide 13: 2025 Financial Targets
2025 Financial Targets ($ in millions, except for EPS) ▪ Net Revenue between $320-330 million ▪ Adjusted EBITDA between $63-67 million ▪ Adjusted Diluted EPS between $2.70-2.85 ▪ Financial Targets assume ▪ Full-year effective tax rate of 16% ▪ 15.1 million average diluted common shares 13
Slide 14: Q&A
Q&A 14
Slide 15: Reconciliation of Contract to Net Revenue
Reconciliation of Contract to Net Revenue ($ in millions) Note: totals may not foot due to rounding Q4’23 Q4’24 FY2023 FY2024 CONSOLIDATED Contract Revenue $155.7 $144.1 $510.1 $565.8 Subcontractor services & other direct costs 74.9 64.8 240.4 269.5 Net Revenue $80.8 $79.3 $269.7 $296.3 ENERGY SEGME
Slide 16: Reconciliation GAAP Net Income to Adjusted EPS
Reconciliation GAAP Net Income to Adjusted EPS ($ & shares in millions except per share amounts) Note: totals may not foot due to rounding Q4’23 Q4’24 FY2023 FY2024 Net Income $8.0 $7.7 $10.9 $22.6 Stock-based Compensation, net of tax 1.0 1.7 4.3 6.1 Intangible Amortization, net of tax 1.8 1.5 8.2 5
Slide 17: Reconciliation GAAP Net Income to Adjusted EBITDA
Reconciliation GAAP Net Income to Adjusted EBITDA ($ in millions) Note: totals may not foot due to rounding Q4’23 Q4’24 FY2023 FY2024 Net Income $8.0 $7.7 $10.9 $22.6 Interest Expense 2.3 1.8 9.4 7.8 Income Tax Expense (Benefit) 2.0 2.2 3.7 4.1 Stock-based Compensation 1.3 2.0 5.3 7.4 Depreciation a