Willdan Group, Inc. (NASDAQ: WLDN)

Willdan Group, Inc. is a provider of professional, technical and consulting services to utilities, private industry, and public agencies at all levels of government, helping organizations improve efficiency, resiliency, and sustainability in energy and infrastructure through engineering, program management, policy advisory, and software and data analytics.

The company generates revenue by delivering a wide range of services that fall into two main categories. In the Energy segment it provides energy efficiency audits, program design and implementation, direct customer support, turnkey facility improvements, demand reduction, grid optimization, performance contracting, alternative financing, measurement and verification, and advanced software and data analytics for long term planning. In the Engineering and Consulting segment it offers civil engineering and construction management, building and safety services, city engineering and planning support, geotechnical and materials testing, traffic and transportation engineering, water resources engineering, district administration, financial consulting, and federal compliance support. These services are sold primarily to utilities, government agencies, school districts, special districts, hospitals, hotels, and a broad array of commercial and industrial enterprises.

The company operates through the following segments: Energy and Engineering and Consulting.

• Energy: This segment provides specialized energy solutions including comprehensive energy efficiency audits, feasibility analyses, program design and administration, marketing and customer outreach, project origination, implementation, training, retro commissioning, data management and reporting, measurement and verification services, construction management, demand reduction, grid optimization, performance contracting, alternative financing mechanisms, and advanced software and data analytics tools for long term planning to utilities, private industry, and public agencies.

• Engineering and Consulting: This segment delivers civil engineering and construction management, building and safety services that range from managing municipal building departments to providing plan review and field inspections, city engineering and planning support, geotechnical and materials testing, traffic and transportation engineering, water resources engineering including hydraulic modeling and storm water management, district administration for special districts such as community facilities and assessment districts, financial consulting involving fee and rate studies, utility system appraisals, and economic development planning, and federal compliance services that support bonded debt reporting for municipalities and other public entities.

Willdan holds a strong position in the fragmented energy services and engineering consulting markets, competing with numerous regional and national firms that offer similar technical capabilities. The company differentiates itself through a reputation for dependability, deep technical expertise across multiple disciplines, a broad and scalable service offering, and long standing relationships with a diverse client base. These competitive advantages enable Willdan to win qualifications based selections and to secure repeat work from utilities, government agencies, and private sector clients.

The company serves a diverse client base that includes investor owned and municipal utilities, state and local government agencies, school districts, special districts, hospitals, hotels, and a wide range of commercial and industrial enterprises. Notable customers that have accounted for a significant portion of revenue include Clark County School District and Southern California Edison, while other long term relationships exist with the Los Angeles Department of Water and Power, Consolidated Edison, Duke Energy, and various municipal corporations across California, New York, and Nevada.