ANAHEIM, Calif. - Willdan Group , Inc. (NASDAQ: NASDAQ:WLDN), a professional technical and consulting services provider, has acquired substantially all the assets of Enica Engineering, a firm specializing in energy and building automation solutions for mission-critical services. This strategic move, effective as of October 23, is expected to bolster Willdan's portfolio of energy services and expand its reach in the commercial sector.
Enica Engineering, founded in 2010 and operating in the Northeast United States, has established a strong presence in the life sciences sector, offering its expertise to pharmaceutical and biotech companies, private higher education institutions, and surgical hospitals. The firm is known for its specialized energy and automation engineering services and is projected to generate around $10 million in revenue for 2024. Willdan anticipates that the acquisition will be accretive to its earnings by 2025.
Reed Berinato, Co-Founder and Principal Engineer of Enica, expressed enthusiasm about leveraging Willdan's national presence to bring their specialized services to a broader customer base. Mike Bieber, CEO of Willdan, highlighted the value of Enica's technical knowledge and established client relationships in enhancing Willdan's expansion efforts across the country.
Willdan, with a range of services including electric grid solutions, energy efficiency and sustainability, and municipal financial consulting, aims to strengthen its position in the market through this acquisition. The company's ability to integrate Enica's assets and expertise is expected to play a critical role in its growth strategy.
The details of the transaction were not disclosed, and while Willdan has expressed confidence in the positive impact of the acquisition, the company acknowledges the forward-looking nature of these statements and the inherent risks and uncertainties involved. As with any business strategy, Willdan's actual results may differ from expectations due to various factors, including market competition and project completion timelines.
This expansion is part of Willdan's ongoing efforts to provide comprehensive solutions to its clients, which include utilities, government agencies, and private industry. The information regarding the acquisition is based on a press release statement from Willdan Group, Inc.
In other recent news, Willdan Group has been making significant strides in the energy efficiency sector. The company's Q2 results for the fiscal year 2024 showed a substantial increase in both GAAP and adjusted earnings per share, which more than doubled year-over-year. Contract revenue also saw an 18% organic increase, with adjusted EBITDA growing by 56% compared to the previous year.
In terms of strategic growth, Willdan secured a $102 million energy project with the Clark County School District, projected to result in $170 million in lifetime energy savings and a $700,000 reduction in annual operations and maintenance costs. Additionally, the company has expanded its commercial work in the data center market, securing major contracts with Meta (NASDAQ:META) and the state of Virginia.
A Wedbush analyst recently initiated coverage of Willdan with an Outperform rating, reflecting confidence in the company's growth potential and its strategic position within the market. As for future expectations, Willdan anticipates full-year net revenue to be between $280 million and $290 million, adjusted EBITDA between $50 million and $52 million, and adjusted diluted earnings per share between $2 and $2.10. These recent developments underscore Willdan Group's strong financial performance and strategic growth initiatives.
InvestingPro Insights
Willdan Group's acquisition of Enica Engineering aligns well with the company's strong financial performance and growth trajectory. According to InvestingPro data, Willdan has demonstrated impressive revenue growth of 20.94% over the last twelve months as of Q2 2024, with quarterly revenue growth of 18.41% in Q2 2024. This robust growth is likely to be further bolstered by the integration of Enica's assets and expertise.
The acquisition's focus on expanding Willdan's presence in the commercial sector, particularly in life sciences, is timely given the company's current financial health. InvestingPro Tips indicate that Willdan operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a solid foundation for this strategic expansion.
Investors should note that Willdan's stock has shown remarkable performance, with a 150.08% price total return over the past year. This strong market performance, coupled with the company's growth initiatives, may justify its relatively high P/E ratio of 35.31. However, it's worth mentioning that Willdan does not pay a dividend to shareholders, as per InvestingPro Tips.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Willdan Group, providing further insights into the company's financial outlook and market position.
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