Willdan Group (WLDN) remains "well-positioned" for growth as accelerated electric load demand from data centers and electrification fuels long-term trends and the company expands its opportunity pipeline into 2026, Wedbush said in a report Friday.
Willdan reported Q4 results that topped bottom line expectations and issued fiscal 2026 guidance highlighting strong demand tied to AI and data center-driven electricity growth. Revenue rose 13% year-over-year to $89.5 million, in line with estimates, and adjusted EPS of $1.57 beat consensus, aided by Section 179-D tax incentives, the report said.
Wedbush said Q4 results reflect strong execution and growing demand across "commercial and government electric load use cases," particularly tied to data centers and grid modernization. The firm cited continued momentum in power system engineering, energy efficiency and load optimization services, as an estimated 35 gigawatts of active US data center construction drives long-term electricity demand.
Earnings growth in fiscal 2026 may moderate following the expected expiration of Section 179-D tax benefits in June, but underlying demand remains strong, Wedbush said.
Wedbush maintained an outperform rating on Willdan Group and a price target of $145.
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