Willdan Group Inc (WLDN) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Willdan Group first quarter fiscal year 2025 financial results conference call.(Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Willdan Group 2025 財年第一季財務業績電話會議。 （操作員指示）提醒一下，本次會議正在錄製中。

Now I'd like to turn the conference over to Al Kaschalk. Thank you. You may begin.

現在我想將會議交給 Al Kaschalk。謝謝。你可以開始了。

Thank you, Matt. Good afternoon, everyone, and welcome to Willdan Group's first quarter 2025 earnings call. Joining our call today are Mike Bieber, President and Chief Executive Officer; and Kim Early. Executive Vice President and Chief Financial Officer.

謝謝你，馬特。大家下午好，歡迎參加 Willdan Group 2025 年第一季財報電話會議。今天參加我們電話會議的有總裁兼執行長 Mike Bieber；和金厄利。執行副總裁兼財務長。

Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides, all of which are available on our website.

我們的電話會議評論將包括 GAAP 和非 GAAP 財務結果。您可以在今天的新聞稿和簡報幻燈片中找到 GAAP 和非 GAAP 指標之間的對賬，所有這些內容均可在我們的網站上找到。

Please note that year-over-year commentary on variances -- or variances on revenue adjusted EBITDA and adjusted EPS discussed during our prepared remarks are on an organic basis. We will make forward-looking statements about our performance. These statements are based on how we see things today. While we may elect to update these forward-looking statements at some point in the future, we do not undertake any obligation to do so, as described in our SEC filings, and actual results may differ materially due to risks and uncertainties.

請注意，我們在準備好的評論中討論的同比差異或收入調整後 EBITDA 和調整後 EPS 的差異都是基於有機基礎的。我們將對我們的業績做出前瞻性的陳述。這些陳述是基於我們今天對事物的看法。雖然我們可能選擇在未來某個時間點更新這些前瞻性陳述，但我們不承擔任何義務，正如我們向美國證券交易委員會提交的文件中所述，並且實際結果可能因風險和不確定性而存在重大差異。

With that, I will hand the call over to Mike, who will begin on slide 2.

說完這些，我會把電話交給 Mike，他從第二張投影片開始講解。

Thanks, Al. We had a strong start to 2025, delivering record first quarter results for revenue, adjusted EBITDA and EPS. We surpassed both analyst expectations and our internal forecast. Contracted net revenue each grew 24% year-over-year. Adjusted EBITDA rose 31%. GAAP diluted EPS increased 52%. And adjusted diluted EPS was up 58%. These comparisons were all against a strong Q1 last year.

謝謝，艾爾。我們在 2025 年取得了強勁開局，第一季的營收、調整後 EBITDA 和 EPS 均創下紀錄。我們超出了分析師的預期和我們的內部預測。合約淨收入較去年同期成長24%。調整後EBITDA成長31%。GAAP 稀釋每股收益成長 52%。調整後的稀釋每股收益成長了 58%。這些比較都是針對去年第一季的強勁表現進行的。

Performance was strong across all business lines, driven by consistent execution. In the quarter, we completed two more acquisitions that expanded our geography and our electrical engineering capabilities. As electric load increases, Willdan's differentiated capabilities and consistent execution position us well for long-term growth.

在持續執行的推動下，所有業務線均表現強勁。本季度，我們完成了另外兩項收購，擴大了我們的業務範圍和電氣工程能力。隨著電力負荷的增加，Willdan 的差異化能力和一致的執行力為我們實現長期成長奠定了良好的基礎。

Earlier this week, we expanded our credit facility from $150 million to $200 million, a key milestone to scale our business.

本週早些時候，我們將信貸額度從 1.5 億美元擴大到 2 億美元，這是我們業務擴展的一個重要里程碑。

Turning to slide 3. Willdan delivers a broad range of energy and infrastructure solutions to utilities, customers and state and local governments. Calculated on a pro forma basis for 2025, our commercial customers are forecasted to comprise 15% of our revenue, double the percentage of last year.

翻到幻燈片 3。Willdan 為公用事業、客戶以及州和地方政府提供廣泛的能源和基礎設施解決方案。根據 2025 年的預測，我們的商業客戶預計將占我們收入的 15%，是去年的兩倍。

State and local government customers are forecasted to be 44%, while utilities are forecasted to be around 41% of our revenue. Demand remains healthy across all customer groups. Our commercial work is increasingly centered around electricity usage at data centers, where AI-driven load growth is creating significant demand.

預計州和地方政府客戶將占我們收入的 44%，而公用事業客戶預計將占我們收入的 41% 左右。所有客戶群的需求依然保持健康。我們的商業工作越來越多地集中在資料中心的電力使用上，其中人工智慧驅動的負載成長正在產生巨大的需求。

Willdan is helping technology clients navigate energy constraints, optimize infrastructure and meet aggressive power requirements. We see strong momentum in this area and intend to pursue acquisitions that further expand our capabilities and relationships with commercial customers.

Willdan 正在幫助技術客戶克服能源限制、優化基礎設施並滿足嚴格的電力需求。我們看到該領域的強勁發展勢頭，並打算進行收購以進一步擴大我們的能力和與商業客戶的關係。

Our utility business continues to perform well. Most of our utility contracts are multiyear in nature, funded by rate payer fees, and continue to provide a strong foundation of recurring revenue.

我們的公用事業業務繼續表現良好。我們的大部分公用事業合約都是多年期的，由納稅人的費用資助，並繼續提供堅實的經常性收入基礎。

On the public sector side, our work for state and local governments continues to grow organically at a double-digit pace. Demand remains solid and the outlook is positive. It's worth noting that Willdan has minimal exposure to direct federal contracts or federally funded programs.

在公共部門方面，我們為州和地方政府所做的工作繼續以兩位數的速度有機增長。需求依然強勁，前景樂觀。值得注意的是，威爾丹很少接觸直接的聯邦合約或聯邦資助的計畫。

As a result, recent federal spending cuts have had little impact on our backlog and near-term visibility, just like I said last quarter. Most of our public sector work is funded through user fees and municipal bonds, which have remained stable.

因此，正如我上個季度所說的那樣，最近的聯邦支出削減對我們的積壓和近期可見性影響不大。我們的公共部門工作資金大多來自使用費和市政債券，這些資金一直保持穩定。

Last week, we released our 2024 Sustainability Report, highlighting meaningful progress. Notably, we helped clients avoid about 100 times the GHG emissions that the company emits. Our energy segment makes up more than 80% of our revenue, while the legacy part of our business makes up the remainder.

上週，我們發布了 2024 年永續發展報告，強調了有意義的進展。值得注意的是，我們幫助客戶避免了公司排放的溫室氣體排放量的約 100 倍。我們的能源部門占我們收入的 80% 以上，而我們業務的遺留部分佔剩餘部分。

We work out of 55 offices across North America and ended the quarter with 1,770 employees, primarily scientists, engineers and technical professionals.

我們在北美設有 55 個辦事處，本季末有 1,770 名員工，主要是科學家、工程師和技術專業人員。

On slide 4. Our upfront policy and data analytics work informs Willdan's strategy and helps us navigate market change. In our upfront work, we are seeing particular demand for integrated resource planning and asset valuation on projects associated with data center electricity mode. Those market changes have led us to acquisitions that provide solutions to these clients.

在第 4 張投影片上。我們的前期政策和數據分析工作為 Willdan 的策略提供了信息，並幫助我們應對市場變化。在我們的前期工作中，我們看到與資料中心電力模式相關的專案對綜合資源規劃和資產評估的特殊需求。這些市場變化促使我們進行收購，為這些客戶提供解決方案。

In engineering, we saw strong execution and growth, particularly with municipal customers. In program management, we performed above our plan on utility programs and building energy programs for cities.

在工程領域，我們看到了強勁的執行力和成長，尤其是市政客戶。在專案管理方面，我們在城市公用事業專案和建築能源專案方面的表現超越了計劃。

Putting this model to work, for the last 25 years, we've performed upfront financial planning and on-call civil engineering work from the City of Fairfield, California. Then in Q1, we were awarded a new $30 million program management, energy savings and modernization contract, that provides the EV charging stations, solar arrays, central plant and other electric infrastructure upgrades.

為了運用這個模式，在過去的 25 年裡，我們一直在加州費爾菲爾德市進行前期財務規劃和隨叫隨到的土木工程工作。然後在第一季度，我們獲得了一份價值 3000 萬美元的新項目管理、節能和現代化合同，該合同提供電動汽車充電站、太陽能電池板、中央工廠和其他電力基礎設施升級。

On slide 5, we have a strong pipeline of opportunities that we are converting into contracts. Here are just a few examples we converted since our last conference call. I already talked about City of Fairfield, California example. Then for the Paramount Unified School District, that's another example of cross-sell. We won an $18 million design and management contract for solar arrays and EV charging stations.

在第 5 張投影片上，我們擁有大量正在轉化為合約的機會。以下僅是我們自上次電話會議以來轉換的幾個範例。我已經討論過加州費爾菲爾德市的例子。對於派拉蒙聯合學區來說，這是另一個交叉銷售的例子。我們贏得了價值 1800 萬美元的太陽能電池板和電動車充電站設計和管理合約。

For National Grid in Massachusetts, we were awarded a new $20 million multiple-work contract providing energy efficiency services to small business. And for Warner School District, we were awarded a new $11 million contract.

對於馬薩諸塞州的國家電網，我們獲得了一份價值 2000 萬美元的多項工作合同，為小型企業提供能源效率服務。我們與華納學區簽訂了一份價值 1100 萬美元的新合約。

We were also awarded an important recompete to provide the California Public Utility Commission, CPUC, with integrated resource planning and technical support. That $9.8 million award supports analysis of the resource staff necessary to achieve California ISO's requirements.

我們還贏得了一項重要的重新競爭，為加州公用事業委員會 (CPUC) 提供全面資源規劃和技術支援。這筆 980 萬美元的獎金用於支持對滿足加州 ISO 要求所需的資源人員進行分析。

On the last call, I mentioned winning the extended recompete with the Los Angeles Department of Water and Power, LADWP. The new $330 million five-year contract delivers more complex energy efficiency measures to a broader set of commercial and government clients. We don't expect significant revenue from the LADWP program until the fourth quarter of this year, but ultimately think it will become among our largest programs annually.

在上次通話中，我提到贏得了與洛杉磯水電局 (LADWP) 的延長競爭。新的價值 3.3 億美元的五年合約為更廣泛的商業和政府客戶提供了更複雜的能源效率措施。我們預計洛杉磯水電局專案直到今年第四季才會帶來可觀的收入，但最終我們認為它將成為我們每年最大的專案之一。

On slide 6. From 1970 to 2005, the US experienced several decades of sustained electric load growth, followed by 15 years of relative flatness. Today we're seeing a return to meaningful load growth, marking a structural shift in the energy landscape. This shift is creating significant new opportunities for Willdan and we believe it will be a powerful tailwind for our business in the years ahead.

在第 6 張投影片上。從1970年到2005年，美國經歷了數十年的持續電力負載成長，隨後的15年則相對穩定。今天，我們看到負載重新開始有意義的成長，這標誌著能源格局的結構性轉變。這一轉變將為 Willdan 創造重大的新機遇，我們相信，這將成為未來幾年我們業務的強勁推動力。

Key drivers include the electrification of cities, buildings and transportation, reshoring of industrial manufacturing and the rapid rise in electricity demand from data centers powering AI. Electricity demand in the US is expected to increase by 50% between now and 2050.

主要驅動因素包括城市、建築和交通的電氣化、工業製造業的回流以及為人工智慧提供動力的資料中心對電力的需求的快速增長。預計從現在到2050年，美國的電力需求將增加50%。

We spent a fair amount of effort this quarter discussing and preparing for the uncertainty created by tariff risks. This new uncertainty has had little immediate impact on Willdan. However, we and our clients are watching carefully for price increases in the specialized equipment we use on our projects. We are inserting more flexible contract terms with our customers and we are working to identify alternative product suppliers that could be cost-effective if tariff risks persist.

本季我們花費了大量精力來討論和準備應對關稅風險帶來的不確定性。這種新的不確定性對威爾丹幾乎沒有產生直接影響。然而，我們和我們的客戶正在密切關注我們專案中使用的專用設備的價格上漲。我們正在與客戶簽訂更靈活的合約條款，我們正在努力尋找在關稅風險持續存在的情況下具有成本效益的替代產品供應商。

If a recession occurs, Willdan should be better positioned the most due to our clients' funding sources. But we would not likely be immune to a broad economic slowdown.

如果發生經濟衰退，Willdan 應該能夠憑藉我們客戶的資金來源，處於最有利的地位。但我們可能無法免受整體經濟放緩的影響。

Turning to slide 7. The graph on the left depicts the strong margin execution the team has delivered over the last five years. Several years ago, we laid out a goal of 20% operating margin, measured as adjusted EBITDA divided by net revenue. We've significantly improved our operating margin over the last five years, reflecting disciplined execution, more efficient cost absorption and a shift towards higher-value work.

翻到幻燈片 7。左側的圖表顯示了該團隊在過去五年中實現的強勁利潤執行情況。幾年前，我們制定了 20% 的營業利潤率目標，以調整後的 EBITDA 除以淨收入來衡量。過去五年來，我們的營業利潤率顯著提高，這反映了嚴格的執行、更有效的成本吸收以及向更高價值工作的轉變。

The 20% EBITDA margin in our industry represents best-in-class performance and is associated with a highly differentiated customer solution. This year, Willdan estimates that it will be around that 20% margin goal. Q1 is typically our lowest margin quarter, so we're right on track for this year.

我們行業 20% 的 EBITDA 利潤率代表著一流的業績，並與高度差異化的客戶解決方案相關。Willdan 估計今年的利潤率目標將達到 20% 左右。第一季通常是我們利潤率最低的季度，因此今年我們的業績表現良好。

On the right, and reflected over the same five-year period, we've continued to increase revenue per employee, reflecting higher productivity and the growing value that our teams are delivering to clients. This consistent improvement, alongside our expanding operating margin, underscores the scalability of our model and the strength of our operating leverage as we grow.

右側顯示的是在同一五年期間，我們繼續增加每位員工的收入，這反映了更高的生產力和我們的團隊為客戶提供的不斷增長的價值。這種持續的改進，加上我們不斷擴大的營業利潤率，凸顯了我們模式的可擴展性以及我們在發展過程中的經營槓桿的實力。

Kim, over to you.

Kim，交給你了。

Thanks, Mike, and good afternoon, everyone. On slide 8, we delivered a strong start to the year, exceeding expectations as our teams continued to execute at a high level. We also completed two additional strategic acquisitions while expanding and extending our credit facilities. With low leverage and strong liquidity, we're well positioned to invest in future growth.

謝謝，麥克，大家下午好。在第 8 張投影片上，我們今年取得了良好的開端，由於我們的團隊繼續保持高水準的執行，我們的業績超出了預期。在擴大和延長信貸服務的同時，我們也完成了另外兩項策略性收購。憑藉低槓桿率和強大的流動性，我們有能力投資未來的成長。

In the first quarter of 2025, contract revenue increased 24% year-over-year to $152 million. The acquisitions of Enica, Alpha Inspections and APG contributed $6.0 million to the contract revenue in the quarter. Net revenue also grew 24% to $85 million. The recent acquisitions brought 6% of that growth and a 14 week in the quarter represents another 6% increase, resulting in an apples-to-apples organic growth rate of 12% for net revenue in the quarter.

2025年第一季度，合約營收年增24%至1.52億美元。對 Enica、Alpha Inspections 和 APG 的收購為本季的合約收入貢獻了 600 萬美元。淨收入也成長了 24%，達到 8,500 萬美元。最近的收購帶來了 6% 的成長，而本季的第 14 週又帶來了 6% 的成長，導致本季淨收入的有機成長率達到 12%。

Contract revenue growth was strong in both of our segments. Revenue in our Energy segment rose 25%, led by double-digit increases in program and construction management activity and continued strength in utility programs. Engineering & Consulting segment revenues increased 20%, reflecting strong client demand and continued geographic expansion.

我們兩個部門的合約收入成長強勁。我們能源部門的收入成長了 25%，這主要得益於專案和施工管理活動的兩位數成長以及公用事業專案的持續強勁。工程與諮詢部門收入成長了 20%，反映出強勁的客戶需求和持續的地理擴張。

While gross profits increased 22% over the period -- over the prior year, G&A expenses increased only 20% in the quarter compared to the 24% net revenue growth, reflecting the operating leverage we've been experiencing as we grow. The year-over-year increase was primarily due to increased wage and incentive costs, consistent with the earnings growth, as well as higher stock-based compensation resulting from the increase in stock price.

雖然本季毛利比去年同期成長了 22%，但本季的一般及行政費用僅成長了 20%，而淨收入成長了 24%，這反映了我們在發展過程中所經歷的經營槓桿。年比成長主要是由於薪資和激勵成本增加，與獲利成長一致，以及股價上漲導致的股票薪酬增加。

Intangible amortization expenses increased by $600,000, reflecting the impact of our recent acquisitions, while interest expense decreased by $300,000 to $1.8 million on our reduced leverage. The growth in revenues and the disciplined cost control resulted in a 32% increase in pretax income. And the favorable 9.75% effective income tax rate resulted in net income of $4.7 million for the first quarter of 2025, up 59% from the $2.9 million Q1 2024 bottom line.

無形攤銷費用增加了 60 萬美元，反映了我們最近收購的影響，而由於我們降低槓桿率，利息費用減少了 30 萬美元，至 180 萬美元。收入的成長和嚴格的成本控制導致稅前收入增加了 32%。優惠的 9.75% 有效所得稅率使得 2025 年第一季的淨收入達到 470 萬美元，較 2024 年第一季的 290 萬美元增長 59%。

The favorable income tax rate was a result of discrete benefits from divesting of stock compensation in the quarter as well as the expected energy efficiency tax incentives. We continue to expect a full year tax rate of approximately 16%.

優惠的所得稅率是本季剝離股票薪酬帶來的單獨收益以及預期的能源效率稅收激勵措施的結果。我們繼續預計全年稅率約為16%。

Adjusted EBITDA was $14.4 million or 16.9% of net revenue, up 31% compared to $11.0 million in the first quarter of 2024. GAAP earnings per share were $0.32, up from $0.21 per share a year ago, while adjusted diluted earnings per share increased 58% to $0.63 per share compared to $0.40 a year ago. This was a record first quarter for Willdan in terms of contract revenue, net revenue, adjusted EBITDA and earnings.

調整後 EBITDA 為 1,440 萬美元，佔淨收入的 16.9%，較 2024 年第一季的 1,100 萬美元成長 31%。以美國通用會計準則計算的每股收益為 0.32 美元，高於去年的每股 0.21 美元；調整後稀釋每股收益為 0.63 美元，高於去年的每股 0.40 美元，成長 58%。這是 Willdan 第一季在合約收入、淨收入、調整後 EBITDA 和收益方面創下的新紀錄。

On slide 9, we present some key balance sheet and cash flow metrics that reflect the continued strength of our financial position. Net debt was $49 million at quarter-end after deploying $32 million in cash for two acquisitions.

在第 9 張投影片上，我們展示了一些關鍵的資產負債表和現金流指標，這些指標反映了我們財務狀況的持續強勁。在為兩筆收購投入 3,200 萬美元現金後，季度末的淨債務為 4,900 萬美元。

Total leverage was a modest 0.8 times adjusted EBITDA. Free cash flow was $40 million over the trailing 12 months or a robust $2.74 per share. We ended the quarter with $38 million in cash and access to an undrawn $50 million line of credit, resulting in total liquidity of $88 million at that time.

總槓桿比率僅為調整後 EBITDA 的 0.8 倍。過去 12 個月的自由現金流為 4,000 萬美元，即每股 2.74 美元。本季末，我們擁有 3,800 萬美元現金，並可使用 5,000 萬美元未提取的信用額度，因此當時的總流動資金為 8,800 萬美元。

Turning to slide 10. Earlier this week, we amended and restated our credit agreements, expanding it to $200 million to enhance financial flexibility, reduce costs and extend our maturity by five years. The new structure includes a $100 million revolver, under which we've drawn $38 million.

翻到第 10 張投影片。本週早些時候，我們修改並重申了我們的信貸協議，將其擴大到 2 億美元，以增強財務靈活性、降低成本並將期限延長五年。新的結構包括一筆 1 億美元的循環信貸，我們提取了 3,800 萬美元。

The new Term Loan A has been reduced to $50 million and supplemented by an additional $50 million delayed draw term loan feature, which remains unused at this time. The Term Loan A will be amortized at $2.5 million per year over the five-year term. Interest rate spreads over SOFR over prime were generally reduced by 25 basis points, with the spread varying depending on the leverage ratio for any given quarterly period.

新的定期貸款 A 已減少至 5000 萬美元，並補充了額外的 5000 萬美元延期提取定期貸款功能，目前尚未使用。定期貸款 A 將在五年期限內以每年 250 萬美元攤提。SOFR 與優惠利率之間的利差通常減少 25 個基點，利差隨特定季度的槓桿率而變化。

The expanded and extended credit facilities along with future cash flows provide the resources necessary to drive growth and expand our service capabilities in strategic markets through acquisitions while maintaining the strong balance sheet and conservative leverage.

擴大和延長的信貸額度以及未來的現金流提供了必要的資源，以推動成長並透過收購擴大我們在策略市場的服務能力，同時保持強勁的資產負債表和保守的槓桿率。

On slide 11, based on our strong performance to start the year, we're raising our 2025 financial targets. We now expect net revenue for the year to be in the range of $325 million to $335 million, adjusted EBITDA in the range of $65 million to $68 million, and adjusted diluted earnings per share in the range of $2.75 to $2.90 per share. These targets do not assume any future acquisitions.

在第 11 張投影片上，基於我們今年年初的強勁表現，我們提高了 2025 年的財務目標。我們現在預計全年淨收入在 3.25 億美元至 3.35 億美元之間，調整後 EBITDA 在 6,500 萬美元至 6,800 萬美元之間，調整後每股攤薄收益在 2.75 美元至 2.90 美元之間。這些目標不承擔任何未來的收購。

Operator, we're now ready for questions.

接線員，我們現在可以回答問題了。

(Operator Instructions) Craig Irwin, ROTH Capital Partners.

（操作員指示）Craig Irwin，ROTH Capital Partners。

Congratulations on another strong quarter. Mike, top question on investors' minds these days is actually tariffs. And I might have missed it, but I don't think you mentioned tariffs as far as the impact on Willdan. It was creating a lot of confusion out there, but it sounds like your customer base is already committed to the projects and, I mean, I guess that most of the equipment they're using is not at risk. Can you just address the tariff issue for us and tell us what you understand this ?

恭喜您又一個季度取得強勁業績。麥克，目前投資者最關心的問題其實是關稅。我可能錯過了，但我認為您沒有提到關稅對威爾丹的影響。這在外面造成了很多混亂，但聽起來您的客戶群已經致力於這些項目，我的意思是，我猜他們使用的大多數設備都沒有風險。你能不能先解釋一下關稅問題，然後告訴我們你對此有何理解？？

Sure, Craig. And you may have joined just a little late. On page 6 of the slide deck, it specifically addresses tariffs. So we go over that again. Yes. Really, you mentioned the risk is in the equipment that we specify on our projects. We're looking for price escalation. It hasn't occurred yet, but it could as possible along with project delays if the equipment just becomes too expensive to be economical.

當然，克雷格。你可能加入得有點晚。投影片的第 6 頁專門討論了關稅問題。因此我們再重複一遍。是的。確實，您提到風險存在於我們在專案中指定的設備中。我們正在尋求價格上漲。這種情況還沒有發生，但如果設備價格變得太昂貴而不經濟，這種情況可能會發生，同時專案也會延遲。

What we're doing about it is searching high and low for alternative equipment sources. Most of our suppliers have already front-loaded equipment over the past quarter, and we have most of the equipment we need for the installations that we have this year, which I said front-loaded and purchased that already. We don't know what's going to happen next year at this point.

我們目前正在採取的措施是四處尋找替代設備來源。我們的大多數供應商已經在過去一個季度預先裝載了設備，並且我們已經擁有今年安裝所需的大部分設備，我所說的預先裝載和購買了這些設備。目前我們還不知道明年會發生什麼事。

We're also inserting more flexible contract terms where we can in all of the new contracts that address tariffs specifically. We haven't seen any short-term impact thus far, but it may be too early. So that's what we have, Craig.

我們還在所有專門針對關稅的新合約中加入了更靈活的合約條款。到目前為止我們還沒有看到任何短期影響，但可能還為時過早。這就是我們所擁有的，克雷格。

Excellent. Excellent. And my next question is around the return to secular load growth, right? So it hasn't really found its way into your valuation, but Willdan seems like a really important part of the solution when transmission lines take many years to actually site and construct. New generation faces tremendous environmental hurdles, even in a Republican administration, for construction.

出色的。出色的。我的下一個問題是關於恢復長期負荷成長，對嗎？因此，它實際上並沒有進入您的估值，但當輸電線路需要很多年才能實際選址和建造時，Willdan 似乎是解決方案中非常重要的一部分。即使在共和黨政府的領導下，新一代的建築業也面臨巨大的環境障礙。

And the idea of brownouts and blackouts is highly unappealing to different utility commissions. Can you say what the tempo of conversation is with your customers, both utilities and state and local government? And how you're partnering with them to frame the long-term solution set, both things that you can execute quickly in a matter of months or years versus some of these other competing solutions that are much longer duration in gestation.

而電壓下降和停電的想法對於不同的公用事業委員會來說非常沒有吸引力。您能否說一下與客戶（包括公用事業公司以及州和地方政府）的對話節奏如何？以及如何與他們合作制定長期解決方案，這兩件事都可以在幾個月或幾年內快速執行，而其他一些競爭解決方案的醞釀時間則要長得多。

The market was good with just electrification driving load growth. And that was really the status of the world about 12 to 18 months ago. It was a very healthy market then, and they were talking about load growth for the next 25 years, just based on the electrification of buildings and the transportation networks, [BDs] and other things.

市場表現良好，僅電氣化就推動了負載成長。這確實是 12 到 18 個月前的世界狀況。當時市場非常健康，他們談論的是未來 25 年的負載成長，僅基於建築物和交通網絡的電氣化、[BD] 和其他方面。

Then about 12 months ago, the conversation changed with AI and data centers filing on top. A lot of the high-growth scenarios were just -- that have been modeled during those early days aren't even possible likely in the short term, because there's not enough generation, there's not enough high-voltage transmission. You can't site these facilities quickly enough.

大約 12 個月前，話題發生了變化，人工智慧和資料中心成為焦點。許多早期模擬的高成長情境在短期內甚至不可能實現，因為發電量不足，高壓輸電也不足。您無法足夠快地安置這些設施。

So customers have backed off those extreme growth scenarios. And now we're seeing 2%-plus growth per year or something like that, which is significant in the electric space, when you consider this is likely a long-term trend, it's likely over the next 25 years. So there's conversations with all of our major customers about updating their forecasts, updating their CapEx spending. The lead times for new generation have become even longer, especially around gas turbines. So all of that is happening at once.

因此，客戶已經放棄了這些極端的成長情境。現在我們看到每年 2% 以上的成長率，這在電力領域意義重大，如果你認為這可能是長期趨勢，那麼它很可能在未來 25 年內持續下去。因此，我們與所有主要客戶進行了討論，以更新他們的預測和資本支出。新一代產品的交付週期變得更長，尤其是燃氣渦輪機。所以所有這些都是同時發生的。

And often part of the energy stack is energy efficiency as well, which was sort of our legacy market. So we're building a company that tries to serve those customers in all of those [ways].

通常，能源堆疊的一部分也是能源效率，這是我們的傳統市場。因此，我們正在建立一家公司，努力為所有這些客戶提供服務[方式]。

Excellent. And last question if I may. The last couple of years, you guys have been pretty conservative around guidance. And I don't think I've ever seen you raise guidance in your first quarter given that it's your seasonally sort of lowest quarter as you start the year. There's got to be some really interesting things or high-confident things that you're looking at.

出色的。如果可以的話，這是我的最後一個問題。過去幾年，你們在指導方面相當保守。而且我認為我從未見過你們在第一季提高業績預期，因為這是你們今年年初季節性最低的一個季度。你正在關注的肯定是一些真正有趣或值得高度信賴的事情。

Can you talk about what (technical difficulty) -- that has you being more confident now than maybe in prior years? Even though you have executed very well over the last couple of years. And are there elephants out there? Are there things out there that could work to the plus side for you as we look at potential continued strength in the building business book?

您能談談是什麼（技術困難）讓您現在比前幾年更有信心嗎？儘管過去幾年你表現得非常好。那裡有大象嗎？當我們看到建築業務的潛在持續優勢時，是否存在對您有利的因素？

Well, Q1 came in above our own internal forecast. It was just very strong. And it wasn't any one area; it was across the board. We're just performing very well. And some of our customers are looking at upsizing the size of contract that we have on these legacy programs.

嗯，第一季的表現超出了我們自己的內部預測。它非常強大。而且它不屬於任何一個單一領域；這是全面的。我們只是表現得非常好。我們的一些客戶正在考慮擴大我們在這些遺留項目上的合約規模。

So with that already completed, Craig, we just thought it was the right thing to do and, in good conscience, we needed to raise estimates modestly, which we did. That's what we attempted to do. Even taking into account some of the tariff risks maybe in the fourth quarter or something like that. We're just -- we've got a great book of business right now and customers that want to expand our programs. So that's why we did it.

因此，克雷格，既然已經完成了，我們就認為這是正確的做法，並且憑良心說，我們需要適度提高預算，我們也確實這麼做了。這就是我們嘗試做的。即使考慮到第四季度或類似的一些關稅風險。我們只是—我們現在有大量的業務，客戶希望擴展我們的計劃。這就是我們這麼做的原因。

Tim Moore, Clear Street.

蒂姆·摩爾，Clear Street。

Organic growth was very strong even excluding the extra week in the quarter and, obviously, the -- pulling out the acquisition contribution that was impressive. So I just thought, you mentioned it was very broad-based growth drivers. Are there -- just thinking about the opposite side of the spectrum, I'm kind of curious, are there any pockets or end-markets or consulting engagement types where maybe you're seeing any type of slowdown in demand since late last year? Or anything maybe not as compelling or accelerating? Just kind of curious on the opposite end.

即使不計本季的額外一周，有機成長仍然非常強勁，而且顯然，除去令人印象深刻的收購貢獻。所以我只是認為，您提到它是非常廣泛的成長動力。有沒有——只是考慮一下光譜的另一端，我有點好奇，自去年年底以來，是否有任何領域或終端市場或諮詢參與類型可能出現需求放緩？或者有什麼事情可能不那麼引人注目或具有加速性？只是有點好奇對方的狀況。

Kim, I can't think of any headwind we've seen in the actual operations. Can you?

金，我想不出我們在實際操作中遇到任何阻力。你可以嗎？

No, not significant ones. A little less in the permitting field than a few places, but nothing worth mentioning really. No.

不，沒有什麼重大的改變。在許可領域比一些地方少一點，但實際上沒有什麼值得一提的。不。

No. The major risk out there, Tim, is the equipment risk and tariffs, no one knows how that will occur. But the rest of the business is doing just very well across the board.

不。提姆，主要的風險是設備風險和關稅，沒有人知道這將如何發生。但其餘業務整體表現都很好。

That's really helpful. And just out of curiosity, have you ever -- I mean this might be more of a project calculation. But I mean, have you ever kind of, on the larger contracts, let's call it, $100 million-plus, multiyear contracts, I mean equipment, if you kind of quantify how much equipment is of that? I mean, are we talking like equipment is 10% of the project cost, something like that? So I mean, tariffs wouldn't drastically hurt you or harm you with some price escalators in there?

這真的很有幫助。只是出於好奇，你有沒有——我的意思是這可能更像是一個專案計算。但我的意思是，對於較大的合同，比如說 1 億美元以上的多年期合同，您是否曾經量化過其中有多少設備？我的意思是，我們說的設備佔專案成本的 10% 左右嗎？所以我的意思是，關稅不會對你造成嚴重傷害，或透過一些價格調整來傷害你？

Yes. I think in the parts of our business where we're really working through the installation of equipment, and I think material and equipment costs are probably 25% to 30% of what the overall contract value would be, something like that. That's the exposure there.

是的。我認為，在我們業務中真正涉及設備安裝的部分，材料和設備成本可能佔總合約價值的 25% 到 30%，諸如此類。這就是那裡的曝光。

Okay. That's helpful. And that's over multiyear contracts such as the five-year with the Los Angeles Water and Power?

好的。這很有幫助。這是針對多年期合約，例如與洛杉磯水電公司簽訂的五年合約嗎？

Yes, that's right. That's right.

是的，沒錯。這是正確的。

And then just on the Los Angeles Department of Water and Power, it was -- we talked about, last time you reported, it was a great renewal, but the timing of the renewal is -- there's a gap definitely in the first half of the year.

然後就洛杉磯水電局而言，我們上次報告時談到了，這是一次偉大的更新，但更新的時間是——今年上半年肯定存在差距。

So now you're saying you think that's really going to start ramping in the fourth quarter. So how should we think about -- I mean the momentum is really good in the rest of the business and clearly overpowered any -- whatever the sales gap would have been in the March quarter, whether it was $7 million or $8 million, something like that. So should we just not -- things are going just so well, it's not even a blip, the way that that renews and the timing of the start gap?

所以現在您說您認為這種情況將在第四季度真正開始加劇。那麼我們應該如何考慮——我的意思是，其他業務的成長勢頭非常好，明顯超過了——3 月份季度的銷售差距是多少，無論是 700 萬美元還是 800 萬美元，諸如此類。那麼我們是否應該不要——事情進展得如此順利，甚至不是一個小插曲，更新的方式和開始差距的時間？

Tim, I think you pointed out the biggest concern we probably had in Q1. Without our biggest program up and running, what was the result going to be? And we blew right through that. We overcame that headwind and posted, as you mentioned, 12% organic growth on a normalized basis, even better than that actually.

提姆，我認為你指出了我們在第一季可能遇到的最大擔憂。如果我們最大的專案沒有啟動並運行，結果會怎麼樣？我們很快就克服了這一點。我們克服了這一不利因素，並實現了 12% 的正常有機增長，正如您所說，實際上甚至比這還要好。

So that gives us -- shows the strength of the business. We were concerned about it also. We had no revenue for LADWP in the quarter and I don't think we're going to have any in Q2 either, or certainly not much. But by Q4, we've now received notice to proceed, we're working through the administrative hurdles of ramping up such a big program. And I think that by the end of the year, we'll start to see some real momentum, especially going into 2026, that that should be cranked up.

這向我們展示了企業的實力。我們也對此感到擔憂。本季我們沒有為洛杉磯水電局帶來任何收入，我認為第二季也不會有任何收入，或者說收入肯定不會太多。但到了第四季度，我們已收到繼續推進的通知，我們正在努力克服推動如此大型專案所面臨的行政障礙。我認為，到今年年底，我們將開始看到一些真正的勢頭，特別是進入 2026 年，這種勢頭將會進一步增強。

That's terrific. And I've got one last question. The APG, the Alternative Power Generation acquisition, seems amazing and really increased your sales exposure to data centers. If I remember correctly, maybe you might have 10% to 15% now. I mean it's probably the bulk of the commercial exposure you have.

太棒了。我還有最後一個問題。APG（替代發電）的收購似乎令人驚奇，確實增加了你們在資料中心的銷售曝光度。如果我沒記錯的話，也許現在你有 10% 到 15%。我的意思是，這可能是你所擁有的大部分商業曝光。

I was just wondering, have you thought about integrating the two from your previous kind of maybe data center exposure team with the APG team? Are you going to keep them kind of separate? I'm just wondering if they're going to be cross-selling or really kind of working together to really grow that business even faster.

我只是想知道，您是否考慮過將您之前的資料中心曝光團隊與 APG 團隊整合在一起？您要將它們分開嗎？我只是想知道他們是否會進行交叉銷售或真正合作以使業務真正更快地成長。

They started cross-selling before we closed the transaction. They're in close communication. We're not going to physically merge them, but we don't need to. We've already compared the customer lists. We're already probably executing projects at this point between the two groups. So that's exactly the strategy.

在我們完成交易之前，他們就開始交叉銷售。他們正保持著密切溝通。我們不會在物理上合併它們，但我們也不需要這樣做。我們已經比較過客戶名單了。此時我們可能已經在兩個團隊之間執行專案了。這才是真正的策略。

(Operator Instructions) If there are no further questions, I'd like to turn the floor back to Mike Bieber for any closing comments.

（操作員指示）如果沒有其他問題，我想將發言權交還給邁克·比伯，請他發表最後評論。

I just want to thank our customers, employees and investors for their interest in Willdan. We've got several upcoming investor conferences. So we'll see some of you in person soon. Otherwise, we'll talk to you next quarter. Thank you.

我只想感謝我們的客戶、員工和投資者對 Willdan 的關注。我們即將召開幾場投資者會議。因此我們很快就會與你們中的一些人見面。否則，我們將在下個季度與您交談。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開線路。再次感謝您的參與。