Willdan (WLDN) Secures $18M Puget Sound Energy Program Contract

Willdan Group, Inc. WLDN secured an $18-million contract with Puget Sound Energy (“PSE”) to continue delivering their Small Business Direct Install program. This marks the sixth consecutive time WLDN has been chosen for the initiative.

Per the contract, WLDN will undertake the direct installation of energy efficiency measures for PSE's electric and gas small business customers, with an additional focus on small lodging and agricultural businesses in the new program cycle.

Willdan, in partnership with PSE, aims to address the historical underservice of small business owners who often lack time to access utility services. The Small Business Direct Install program focuses on this segment, providing no-cost energy services and increasing awareness of available PSE rebate programs. The successful partnership between Willdan and PSE consistently reaches the most in-need customers, ensuring that energy-saving goals are met.

This contract marks a 12-year continuation of WLDN's service to PSE and its customers. The program, having expanded in size and scope, has served 12,000 businesses, delivering 112 million kWh in energy savings to date.

Price Performance

WLDN has gained 5.8% in the past year compared with the Zacks Engineering - R and D Services industry’s 24.7% rise. Although the company underperformed its industry, the demand for its services remains healthy, driven by the energy transition and the demand for municipalities.

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For the first nine months of 2023, consolidated contract revenues increased 12.2% and net revenues rose 16.6% year over year. A strong backlog and continuing demand across the broad range of services backed the upside.

For 2023, the company anticipated a net revenue growth of 10-12%, suggesting net revenues in the range of $250-$225 million. The Zacks Rank #3 (Hold) company’s 2024 earnings and sales are likely to witness growth of 19.2% and 12.1% year over year, respectively.

Key Picks

Here are some better-ranked stocks from the Zacks Construction sector:

Martin Marietta Materials, Inc. MLM sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 37.3%, on average. Shares of MLM have increased 40.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share (EPS) suggests growth of 9.2% and 13.1%, respectively, from the year-ago period’s levels.

Armstrong World Industries, Inc. AWI currently sports a Zacks Rank of 2 (Buy). AWI delivered a trailing four-quarter earnings surprise of 7.9%, on average. The stock has surged 32.2% in the past year.

The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates growth of 1.3% and 6.8%, respectively, from the previous year’s levels.

TopBuild Corp. BLD carries a Zacks Rank of #2. It has a trailing four-quarter earnings surprise of 14.3%, on average. Shares of BLD have increased 93.5% in the past year.

The Zacks Consensus Estimate for BLD’s 2024 sales and EPS indicates an increase of 7.1% and 4.9%, respectively, from the year-ago period’s levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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