The following is a summary of the Willdan Group, Inc. (WLDN) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• Willdan Group reported Q3 contract revenue of $158 million, reflecting an increase of 19%.

• Adjusted EBITDA saw a notable rise of 50% from the previous year.

• Adjusted EPS doubled while GAAP EPS increased more than four times year-over-year.

• Nine-month contract revenue at $422 million with an adjusted EBITDA of $39.1 million marked improvements of 19% and 38% respectively.

• Net leverage ratio successfully reduced to 0.7x adjusted EBITDA.

Business Progress:

• Willdan is actively increasing its role in supporting energy efficiency and decarbonization goals across various sectors.

• Notable projects and contract wins include a multiyear $103 million contract at the Clark County School District for facility energy upgrades, a renewable energy efficiency contract with NYPA worth $9 million, and expanded contracts in the commercial energy optimization programs with SCE.

• Acquisition of Enica Engineering to boost capabilities in commercial energy consulting, projected to generate $10 million in revenue in 2024.

Opportunities:

• The rising demand for electrical power associated with data centers powered by AI, and increasing electricity consumption due to urban and transportation electrification likely to boost demand for Willdan's services.

• The expansion into high-growth states like Florida and Texas presents significant market expansion opportunities.

Risks:

• Potential fluctuations in energy policy at various government levels could influence project implementations and demand for Willdan's services. However, the company anticipates continued growth regardless of federal policy changes.

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