Willdan Group, Inc. (WLDN) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

that we believe diversification would add long-term stability and would provide Wilden with the opportunity to earn higher margins. These pie charts show that in 2024, commercial revenue was 7% of our business. Two years later, on a full-year pro forma basis after Burton, commercial revenue is expected to be about 25% of revenue this year. The diversification has also contributed to our higher margins and to the reset of of our long-term margin targets that Kim will present in a few slides. On slide five. This chart shows that Burton is headquartered outside Atlanta, Georgia, and helps fill in Wildan's presence in the Southeastern and Midwestern states. With Burton, Wildan now has active projects in all 50 states. We now have permanent offices in 26 of the 50 states, plus a presence in Puerto Rico and Canada. Next on slide six. We've used this triangle diagram before to show that in problem solving, upfront analysis of a client's problem leads to the engineering of a solution, and then to the program management of the solution implementation. Burton's services fall into all three categories. Burton often starts with the study of a client's energy usage, energy costs, and carbon generation. That usually results in the design of a program that helps lower cost, improve resilience, and achieve a client's unique objectives. Burton will usually manage the teams of contractors that will address a client's energy usage to achieve that client's objectives. Each of these phases of work is usually conducted through multi-year contracts that lead to the long-term client engagements of more than 10 years. On slide seven. We've had another solid stretch of contract wins, and here are a few examples since our last earnings call. For Southern California Edison, SCE, we received a t...