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Is WLDN a good stock to buy? We came across a bullish thesis on Willdan Group, Inc. on InfoArb Sheets’s Substack. In this article, we will summarize the bulls’ thesis on WLDN. Willdan Group, Inc.'s share was trading at $92.68 as of June 17th. WLDN’s trailing and forward P/E were 25.28 and 19.19 respectively according to Yahoo Finance.

Charts

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services through engineering, program management, policy advisory, and software and data analytics primarily in the United States. The company is in a strong growth and margin expansion phase driven by rising electricity demand, data center-related power infrastructure, and a strategic shift toward higher-margin commercial customers following the Burton Energy acquisition.

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Burton is reshaping the revenue mix, lifting commercial exposure toward roughly a quarter of the business and improving profitability due to faster, higher-value project execution compared with traditional government contracts. At the same time, APG is emerging as a critical but underappreciated growth engine, with rapid scaling in data center power-block work and battery storage solutions that could more than double and potentially approach tripling in the near term, signaling meaningful upside optionality that is not yet fully reflected in expectations.

Q1 2026 results reinforce this acceleration, with normalized net revenue growth of 16.6% and Adjusted EBITDA growth of 35%, highlighting strong operating leverage and improving productivity. Management is also signaling confidence in margin expansion toward the mid-20s in 2026 with a long-term path into the high-20s, reinforcing a re-rating opportunity as the business quality improves.

The balance sheet remains a strength with low leverage, supporting continued acquisitions and strategic flexibility. Additional catalysts include LADWP ramp contributions, cross-selling from Burton, and growing exposure to AI-driven grid constraints. Overall, Willdan is transitioning from a traditional utility services provider into a higher-quality energy infrastructure compounder with expanding margins, accelerating demand, and embedded growth levers that could materially re-rate valuation as execution continues.

Previously, we covered a bullish thesis on Willdan Group, Inc. (WLDN) by Aditya in January 2025, which highlighted energy efficiency, decarbonization, grid modernization, software analytics, and undervaluation with peer multiple upside. WLDN’s stock price has appreciated by approximately 153.22% since our coverage. InfoArb Sheets shares a similar view but emphasizes Burton-driven margin expansion, APG data center growth, and re-rating via operating leverage and earnings acceleration.

Willdan Group, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held WLDN at the end of the first quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of WLDN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WLDN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.