How does Willdan's Q2 performance compare to its key competitors in the utilities and energy services sector?
Willdan’s Q2 2025 results in a nutshell
| Metric (Q2 2025) | % YoY change | Comment |
|---|---|---|
| Contract revenue | $173.5 M ↑ 23.0% | Strong demand for engineering, procurement, and construction (EPC) and energy‑efficiency projects. |
| Net revenue | $95.0 M ↑ 31.1% | Growth out of proportion to contract revenue, indicating higher pricing, better mix or lower cost‑of‑goods. |
| Net income | $15.4 M ↑ 236.0% | A very steep profit‑margin expansion – the company turned a modest profit base into a high‑margin quarter. |
| Adjusted EBITDA | $21.9 M ↑ 70.7% | EBITDA margin (≈ 21% of contract revenue) rose sharply, reflecting operating‑efficiency gains. |
| GAAP Diluted EPS | $1.03 ↑ 212.1% | EPS growth far exceeds the sector’s typical 10‑20% range. |
| Adjusted Diluted EPS | $1.50 ↑ 172.7% | Adjusted EPS is well above the $0.80‑$1.10 range many mid‑size energy‑services peers report. |
How this performance stacks up against the broader utilities & energy‑services sector
| Dimension | Willdan (Q2 2025) | Typical peer performance | What this means |
|---|---|---|---|
| Revenue growth (contract & net) | Contract revenue +23%; Net revenue +31% | Most large, regulated utilities (e.g., NextEra Energy, Duke Energy) report flat‑to‑low‑single‑digit growth in the first half of 2025 because they are driven by rate‑case cycles and capital‑investment timing. Energy‑services specialists (e.g., Quanta Services, Jacobs Engineering) are posting mid‑single‑digit to low‑teens growth as demand for grid‑hardening and renewable‑project EPC work picks up. | Willdan’s growth is markedly above the sector median – a 23% jump in contract revenue is roughly 2‑3× the growth rate of the larger utilities and 2‑3× that of the mid‑size energy‑services peers. |
| Profitability (net income & EBITDA margins) | Net income +236%; Adjusted EBITDA +70.7% (≈ 21% EBITDA margin) | Utilities typically run EBITDA margins in the high‑teens (≈ 15‑18%) with modest YoY profit changes (≤ 15%). Energy‑services firms that are more project‑focused (e.g., Quanta, MasTec) have EBITDA margins in the 12‑16% range and profit growth usually ≤ 30% in a strong quarter. | Willdan’s margin expansion is exceptional – a 21% EBITDA margin is higher than the average for both regulated utilities and comparable EPC‑focused service firms, and the 236% net‑income surge far outstrips the typical 15‑30% profit‑growth ceiling in the sector. |
| Earnings‑per‑share (EPS) | GAAP $1.03, Adjusted $1.50 (both > 200% YoY) | Peer EPS growth in the sector is generally 10‑20% for utilities and 15‑25% for the more cyclical energy‑services players. Adjusted EPS for the larger peers often sits in the $0.80‑$1.10 range for a comparable quarter. | Willdan’s EPS growth is a clear out‑lier – a > 200% jump places it well above the typical 15‑25% EPS improvement seen among its competitors. |
| Scale (absolute size) | $173.5 M contract revenue, $95 M net revenue | The biggest utilities (e.g., Southern Company, Exelon) generate billions of dollars in quarterly revenue; the largest energy‑services firms (e.g., Quanta Services, Jacobs) post $1‑2 B+ in contract revenue per quarter. | While Willdan’s growth rates are superior, the absolute revenue base is still modest relative to the sector’s giants. The company is a “mid‑size” player that can out‑perform on growth but does not yet compete on sheer volume. |
| Geographic & service mix | Heavy focus on public‑sector EPC, energy‑efficiency, and renewable‑grid projects in California, Texas, and the Southwest. | Many utilities are rate‑regulated, utility‑owned and have a balanced mix of generation, transmission, and distribution. Energy‑services peers often have broader global footprints (e.g., Veolia, Suez) and a larger share of industrial‑maintenance and large‑scale renewable‑project contracts. | Willdan’s specialization in high‑margin, public‑sector contracts (municipal, state, and federal) and its regional concentration in fast‑growing markets (California’s aggressive decarbon‑policy environment, Texas’ grid‑hardening needs) gives it a growth tailwind that many broader‑based peers do not enjoy. |
Key Take‑aways
Growth Rate Superiority – Willdan’s 23% contract‑revenue growth and 31% net‑revenue growth are well above the sector median (typically 5‑12% for utilities and 10‑15% for energy‑services peers). This reflects a strong capture of new EPC and energy‑efficiency work, especially in regions with aggressive clean‑energy mandates.
Profit‑Margin Expansion – The jump to a ≈ 21% EBITDA margin and a 236% net‑income surge is unusual in a sector where margins are usually stable and profit growth modest. It signals either pricing power, superior cost control, or a favorable project mix (e.g., higher‑margin renewable‑grid upgrades versus lower‑margin traditional transmission work).
EPS Out‑Performance – Adjusted EPS of $1.50 and GAAP EPS of $1.03 represent > 200% YoY growth, dwarfing the typical 15‑25% EPS improvements of larger utilities and energy‑services firms. This makes Willdan’s earnings trajectory one of the most aggressive in the space.
Scale vs. Growth – Although Willdan’s growth metrics are stellar, the absolute revenue size remains far smaller than the “big‑utility” and “global‑energy‑services” peers. The company’s market‑position is that of a high‑growth, mid‑size specialist rather than a volume‑driven utility.
Strategic Positioning – Willdan’s concentration in public‑sector contracts, renewable‑grid projects, and energy‑efficiency services aligns with the policy‑driven demand surge in California, the Southwest, and Texas. Competitors that are more diversified across regulated generation or global industrial services may see slower growth in the near term, giving Willdan a relative advantage in capturing the next wave of decarbon‑investment spend.
Bottom Line
When you hold Willdan’s Q2 2025 results side‑by‑side with the broader utilities and energy‑services landscape, the picture is clear:
- Growth (revenue, net income, EPS) – far ahead of the sector average.
- Profitability (EBITDA margin, EPS) – substantially higher than typical utility or EPC‑service peers.
- Scale – still modest compared with the “big‑utility” and global energy‑services players, but that modest size is being leveraged into outsized percentage gains.
Thus, Willdan is out‑performing its key competitors on a percentage‑basis while still operating at a smaller absolute scale. If the company can sustain its contract‑win momentum and margin expansion, it will likely continue to out‑shine the sector’s average growth trajectory, even as it remains a niche, high‑growth specialist within the utilities and energy‑services ecosystem.