Willdan Group Inc (WLDN) 2025 Q2 法說會逐字稿

Greetings. Welcome to Willdan Group's second-quarter 2025 earnings results conference call. (Operator Instructions)

問候。歡迎參加 Willdan Group 2025 年第二季財報業績電話會議。（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce Al Kaschalk, Vice President. Thank you, sir. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興介紹副總裁 Al Kaschalk。謝謝您，先生。你可以開始了。

Good afternoon, everyone, and welcome to Willdan Group's second-quarter 2025 earnings call. Joining our call today are Mike Bieber, President and CEO; and Kim Early, Executive Vice President and CFO.

大家下午好，歡迎參加 Willdan Group 2025 年第二季財報電話會議。今天參加電話會議的有總裁兼執行長 Mike Bieber 和執行副總裁兼財務長 Kim Early。

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. Please note that year-over-year commentary or variances on revenue, adjusted EBITDA, adjusted EPS success during our prepared remarks are on an organic basis.

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。請注意，我們準備好的評論中對收入、調整後 EBITDA、調整後 EPS 成功的同比評論或差異都是基於有機基礎的。

We will be making forward-looking statements about our performance. These statements are based on how we see things today. 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, actual results may differ materially to risks and uncertainties.

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。我們可能會選擇在未來某個時間點更新這些前瞻性聲明。我們不承擔任何此類義務。正如我們提交給美國證券交易委員會的文件中所述，實際結果可能與風險和不確定性有重大差異。

With that, I'll 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. Good afternoon. We had another strong quarter of performance, capping a record first half in 2025. In the second quarter, we continued to execute very well, delivering results that exceeded the Street expectations and our own forecasts across revenue, adjusted EBITDA and EPS. Our formula for catalyzing organic growth with the capabilities of new acquisitions is working.

謝謝，艾爾。午安.我們又度過了一個表現強勁的季度，創下了 2025 年上半年的紀錄。在第二季度，我們繼續表現良好，在收入、調整後 EBITDA 和 EPS 方面，業績超出了華爾街的預期和我們自己的預測。我們利用新收購的能力來促進有機成長的方案正在發揮作用。

Against a strong Q2 last year, net revenue grew 31% year-over-year, driven by an outstanding 23% organic growth rate and 8% acquisitive growth. Performance remained strong across all business lines, reflecting the consistency of our execution and the value of our integrated model, with electric load growth expected to increase over the next decade, driven by data centers and electrification, will downs differentiated capabilities position us well to sustain long-term growth. As a result, we're raising our full year financial targets, which Kim will present a little later.

與去年第二季的強勁表現相比，淨收入年增 31%，這得益於出色的 23% 有機成長率和 8% 的收購成長。所有業務線的業績仍然強勁，反映了我們執行力的一致性和整合模型的價值，預計未來十年電力負載成長將會增加，這主要得益於資料中心和電氣化的推動，差異化能力將使我們能夠保持長期成長。因此，我們提高了全年財務目標，Kim 稍後會提出。

Turning to slide 3. Willdan delivers a broad range of energy and infrastructure solutions to commercial customers, utilities and state and local governments. The Energy segment makes up about 85% of our revenue, while our legacy engineering and consulting work makes up about 15%. Demand remains healthy across all customer groups. The 15% of work for commercial customers is mostly centered around electricity usage at data centers, where AI-driven loan growth is creating significant demand.

翻到幻燈片 3。Willdan 為商業客戶、公用事業公司以及州和地方政府提供廣泛的能源和基礎設施解決方案。能源部門約占我們收入的 85%，而我們的傳統工程和諮詢工作約佔 15%。所有客戶群的需求依然保持健康。15% 的商業客戶工作主要集中在資料中心的電力使用上，而人工智慧驅動的貸款成長正在創造巨大的需求。

Willdan is helping technology clients navigate energy constraints, optimize infrastructure and meet aggressive power requirements. Our utility business makes up about 41% of revenue and continues to perform well.

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。我們的公用事業業務約佔總收入的 41%，並且持續表現良好。

Most of our utility contracts are three to five years in duration, funded by rate payer fees and continue to provide a strong foundation of recurring revenue. The size of our long-term utility programs is generally increasing across the country as we perform well versus competitors and energy efficiency becomes a power resource.

我們的大部分公用事業合約期限為三至五年，由納稅人支付的費用提供資金，並繼續提供堅實的經常性收入基礎。由於我們比競爭對手錶現更好，而且能源效率成為一種動力資源，我們長期公用事業計劃的規模在全國範圍內普遍擴大。

Work for state and local governments makes up 44% of revenue and continues to grow organically at a double-digit pace. Demand from our government customers remain solid and the outlook is positive. Most of our government work is funded through user fees and municipal bonds, which have remained stable.

為州和地方政府工作佔總收入的 44%，並繼續以兩位數的速度有機成長。我們的政府客戶的需求依然強勁，前景樂觀。我們的政府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。

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 see particular demand for integrated resource planning and asset valuation on projects associated with data center electricity load.

在幻燈片 4 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，我們發現與資料中心電力負荷相關的項目對綜合資源規劃和資產評估有特別的需求。

Our upfront work has increased organically at a rate of about 50% this year. These market changes led us to the APG acquisition which we announced in March that provides deeper solutions for these clients. In Engineering, we saw strong execution and growth, particularly with municipal customers.

我們的前期工作今年有機成長了約 50%。這些市場變化促使我們在三月宣布收購 APG，為這些客戶提供更深層的解決方案。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。

In Program Management, we performed above our plan on utility programs and building energy programs for cities. Putting this model to work on the right. As an example, were hired by technology hyperscalers and their partners to help identify the optimal sites for data centers.

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。將此模型應用於右邊的工作。例如，我們受僱於科技超大規模企業及其合作夥伴，協助確定資料中心的最佳位置。

This quarter, we rolled out a new proprietary software that we use to help clients cite data centers. We think this new software tool is a significant differentiator and provides our clients with minimized interconnect times, lower power and land option costs and faster speed to market.

本季度，我們推出了一款新的專有軟體，用於幫助客戶引用資料中心。我們認為這個新的軟體工具是一個顯著的差異化因素，它為我們的客戶提供了最短的互連時間、更低的電力和土地選擇成本以及更快的上市速度。

We then provide clients consulting, engineering and project management to supply the electricity of power's data centers. The new generation of data centers require high-voltage power, often hundreds of megawatts, with a dedicated utilities scale substation and utility interconnect. After a data center is build, we'll then provide energy optimization inside the data center, as we've done for many years.

然後，我們為客戶提供諮詢、工程和專案管理，為電力資料中心提供電力。新一代資料中心需要高壓電力，通常為數百兆瓦，並配備專用的公用事業規模變電站和公用事業互連。資料中心建成後，我們將提供資料中心內部的能源優化，就像我們多年來所做的那樣。

On slide 5, we have a strong pipeline of opportunities that we're converting into contracts. These are just a few examples we've converted since our last conference call. For our confidential Phoenix Data Center developer, we won a $36 million project to provide consulting, engineering and construction management for a data center substation and interconnect.

在第 5 張投影片上，我們擁有大量正在轉化為合約的機會。這些只是我們自上次電話會議以來轉換的幾個例子。對於我們保密的鳳凰城資料中心開發商，我們贏得了一個價值 3,600 萬美元的項目，為資料中心變電站和互連提供諮詢、工程和施工管理。

For the New York Power Authority, NYPA, we won two contracts with the combined $20 million to provide energy infrastructure upgrades. NYPA has grown to become among our largest customers, and we thank NYPA worth entrusting us with these latest awards.

我們為紐約電力局 (NYPA) 贏得了兩份合同，總額為 2000 萬美元，用於提供能源基礎設施升級。NYPA 已發展成為我們最大的客戶之一，我們感謝 NYPA 授予我們這些最新獎項。

We also won another $17 million data center substation project for a confidential client in Sunnyvale, California. We were awarded a $13 million performance contract with the White River School District in Washington State to provide energy efficiency and infrastructure upgrades.

我們也為加州桑尼維爾的一位保密客戶贏得了另一個價值 1700 萬美元的資料中心變電站專案。我們與華盛頓州白河學區簽訂了一份價值 1300 萬美元的績效合同，以提供能源效率和基礎設施升級。

We're awarded a $6 million solar generation project in Illinois. And for that same state Commerce Commission, we were awarded a $1 million project to evaluate Illinois's electricity resource adequacy under new load conditions.

我們在伊利諾伊州贏得了一個價值 600 萬美元的太陽能發電計畫。對於同一州商業委員會，我們獲得了一個價值 100 萬美元的項目，用於評估伊利諾伊州在新負載條件下的電力資源充足性。

The LADWP program previously, our largest contract, restarted finally in July. We don't expect material contributions from this $330 million five-year contract in 2025, but the ramp has started. Based on our pipeline of new opportunities and program expansions, we feel good about the outlook for 2026.

我們之前最大的合約－洛杉磯水電局計畫終於在7月重啟。我們並不期望這份 2025 年價值 3.3 億美元的五年合約會帶來實質貢獻，但成長已經開始。根據我們的新機會和計劃擴展，我們對 2026 年的前景充滿信心。

On slide 6. From 1970 to 2005, the US experienced several decades of sustained electricity load growth, followed by 15 years of relative flatness. Today, we are in a new era of structural load growth, a trend that is reshaping the electricity landscape. This quarter reflected what we've seen over the past few quarters.

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，我們正處於結構性負載成長的新時代，這一趨勢正在重塑電力格局。本季反映了我們過去幾季所看到的情況。

Demand for our services expanding across our end markets. The shift towards electrification, coupled with the resurgence in domestic manufacturing and the explosive growth of AI-driven data centers create strong tailwinds for Willdan.

我們終端市場對我們服務的需求不斷擴大。向電氣化的轉變，加上國內製造業的復甦以及人工智慧驅動的資料中心的爆炸性成長，為 Willdan 創造了強勁的順風。

Electricity demand in the US is projected to grow by 50% between now and 2050. And we're already seeing the front edge of that demand emerge to multiyear infrastructure investments, grid modernization and private sector-funded electricity for data center load. This demand environment supports our belief that Willdan is well positioned to help our clients navigate these changes.

預計從現在到 2050 年，美國的電力需求將增加 50%。我們已經看到這種需求的前沿出現在多年的基礎設施投資、電網現代化和私營部門資助的資料中心負載電力上。這種需求環境支持了我們的信念，即 Willdan 完全有能力幫助我們的客戶應對這些變化。

We also continue to monitor the uncertainty around tariff risk. While these risks have not had a material impact on our business to date, we remain proactive.

我們也將繼續監測關稅風險的不確定性。雖然這些風險迄今尚未對我們的業務產生重大影響，但我們仍保持積極主動的態度。

We're working closely with our clients to manage potential volatility, including inserting more flexible contract terms and identifying alternative suppliers for key equipment to mitigate pricing pressure needed. While the economic environment remains generally constructive, a recession remains a potential risk. We would not be immune to a broad-based slowdown. But if that occurs, we believe Willdan is relatively well insulated given the funding sources of our core customers, particularly utilities and public agencies. Overall, I'm very pleased with Willdan's performance.

我們正在與客戶密切合作，以管理潛在的波動，包括插入更靈活的合約條款和尋找關鍵設備的替代供應商，以減輕所需的價格壓力。儘管經濟環境總體保持良好，但經濟衰退仍然是潛在風險。我們也無法免受廣泛經濟放緩的影響。但如果發生這種情況，我們相信，考慮到我們核心客戶（尤其是公用事業和公共機構）的資金來源，Willdan 的保護相對較好。總的來說，我對 Willdan 的表現非常滿意。

Q2 was solid across the board and towards the foundation for a strong second half and an even stronger 2026.

第二季業績全面穩健，為下半年乃至 2026 年的強勁表現奠定了基礎。

Kim. Over to you.

金。交給你了。

Thanks, Mike, and good afternoon, everyone. Our Q2 results marked the tenth consecutive quarter of significant year-over-year improvement, continuing the trend that began in early 2023. Organic net revenue growth of 23% for the second quarter, the successful completion of recent acquisitions and strong free cash flow conversion attests to the record-setting performance for the quarter and the year-to-date. This momentum enabled us to complete an expansion and extension of our credit facilities and reduced our total debt by $28 million during the quarter, reinforcing our commitment to disciplined capital deployment. With low leverage and strong operating performance, we're well positioned to continue to invest in growth and development of new opportunities.

謝謝，麥克，大家下午好。我們第二季的業績連續第十個季度同比大幅改善，延續了 2023 年初開始的趨勢。第二季有機淨收入成長 23%，近期收購的成功完成以及強勁的自由現金流轉換證明了本季和年初至今創紀錄的業績。這一勢頭使我們能夠完成信貸額度的擴大和延長，並在本季度減少了 2800 萬美元的總債務，從而加強了我們對嚴格資本部署的承諾。憑藉低槓桿率和強勁的經營業績，我們有能力繼續投資於成長和開發新的機會。

Turning to slide 7. For the second quarter of 2025, contract revenue increased 23% year-over-year to $174 million. Recent acquisitions contributed $11 million to the contract revenue in the quarter. Net revenue grew 31% to $95 million. The recent acquisitions brought 8% of that growth, yielding the organic growth rate of 23%.

翻到幻燈片 7。2025 年第二季度，合約營收年增 23%，達到 1.74 億美元。最近的收購為本季的合約收入貢獻了 1,100 萬美元。淨收入成長 31% 至 9,500 萬美元。最近的收購帶來了 8% 的成長，實現了 23% 的有機成長率。

Growth was broad-based across both segments. Revenue in our Energy segment rose 25%, led by continued strength and funding acceleration in utility programs and double-digit gains in planning and construction management. Engineering and Consulting segment revenues increased 16%, reflecting the continuing municipal demand geographic expansion and new contract wins.

兩個部門均實現了廣泛成長。我們能源部門的收入成長了 25%，這主要得益於公用事業項目的持續強勁和融資加速，以及規劃和施工管理的兩位數成長。工程和諮詢部門收入增加了 16%，反映了市政需求的持續地域擴張和新合約的簽訂。

Gross profit grew 40% with gross margin improving to 39.4%, up from 34.6% last year, driven by a favorable revenue mix and solid project execution.

受良好收入結構和穩健項目執行的推動，毛利成長 40%，毛利率從去年的 34.6% 提高至 39.4%。

On the cost side, G&A expenses rose 33%, primarily due to increased wages and incentive compensation aligned with the earnings growth as well as higher stock-based comp linked to the rise in our share price and depreciation and amortization from recent acquisitions. Altogether, higher revenues, favorable gross margin and effective cost control drove a 92% increase in pre-tax income.

在成本方面，一般及行政費用上漲了 33%，這主要是由於與盈利增長一致的工資和激勵薪酬增加，以及與股價上漲和近期收購的折舊和攤銷相關的股票薪酬增加。總體而言，更高的收入、良好的毛利率和有效的成本控制推動稅前收入成長 92%。

Due to the impact of discrete items tie the stock-based compensation and energy efficiency tax incentives, we reported a 52% income tax benefit for the quarter. Net income, thus rose to $15.4 million, up 236% from the $4.6 million we reported in Q2 of 2024. Adjusted EBITDA reached $21.9 million, representing 23% of net revenue, up 71% from a year ago.

由於股票薪酬和能源效率稅收優惠等單一項目的影響，我們報告本季的所得稅收益為 52%。因此，淨收入增至 1,540 萬美元，較 2024 年第二季報告的 460 萬美元成長 236%。調整後 EBITDA 達到 2,190 萬美元，佔淨收入的 23%，比去年同期成長 71%。

Adjusted earnings per share more than doubled from to $1.50 from $0.55 and GAAP earnings per share was $1.03, up from $0.33 a year ago. This was a record quarter.

調整後每股收益從 0.55 美元增加到 1.50 美元，增長了一倍多，而 GAAP 每股收益為 1.03 美元，高於一年前的 0.33 美元。這是一個創紀錄的季度。

Now to slide 8. For the first half of 2025 contract revenue was up 24% year-over-year, while net revenue increased 28% to $180 million. Gross profit increased 31% to $126 million as the gross margin expanded to 38.7%, up from 36.5% last year.

現在看投影片 8。2025 年上半年合約營收年增 24%，淨收入成長 28%，達到 1.8 億美元。毛利成長 31% 至 1.26 億美元，毛利率從去年的 36.5% 擴大至 38.7%。

Adjusted EBITDA rose 52% to $36.4 million and adjusted earnings per share grew 125% to $2.14 per share. GAAP earnings per share for the first half was $1.36, up from $0.54.

調整後的 EBITDA 成長 52% 至 3,640 萬美元，調整後的每股盈餘成長 125% 至每股 2.14 美元。上半年每股 GAAP 收益為 1.36 美元，高於 0.54 美元。

All are record numbers for a six-month period. For some time, we've had a goal of achieving best-in-class adjusted EBITDA performance of 20% or more of net revenue. The 23% level for Q2 brings us our adjusted EBITDA margin to 20.2% for the six months to date and gives us confidence that we're on track to exceeding that 20% goal for the first time this year.

所有這些數字都是六個月以來的最高紀錄。一段時間以來，我們一直致力於實現一流的調整後 EBITDA 業績，即淨收入的 20% 或更多。第二季 23% 的水平使我們六個月以來的調整後 EBITDA 利潤率達到 20.2%，並且讓我們有信心，我們預計今年將首次超過 20% 的目標。

Slide 9 outlines our balance sheet and cash flow metrics. We ended the quarter with $28 million in net debt and a net debt to adjusted EBITDA ratio of 0.4x, modestly higher than year-end after deploying $35 million in cash for the recent acquisitions.

投影片 9 概述了我們的資產負債表和現金流量指標。本季末，我們的淨債務為 2,800 萬美元，淨債務與調整後 EBITDA 比率為 0.4 倍，在為最近的收購投入 3,500 萬美元現金後，略高於年底的水平。

We had $32 million in cash and $90 million available under $100 million revolver and available but undrawn $50 million delayed draw term facility, giving us $172 million in total available liquidity at quarter end. Subsequent to the end of the quarter, we reduced the borrowing under our revolver another $10 million, leaving us to full $100 million available at present.

我們擁有 3,200 萬美元現金和 9,000 萬美元 1 億美元循環信貸額度，以及可用但未提取的 5,000 萬美元延期提款額度，使我們在季度末擁有總計 1.72 億美元的可用流動資金。本季結束後，我們又減少了循環信貸額度 1,000 萬美元，目前可用資金為 1 億美元。

In the first half of 2025, we converted 80% of the adjusted EBITDA to cash from operations through a continuing focus on working capital efficiency. DSO was 70 days, reflecting continued strong collection and disciplined cash management. Free cash flow for the first half of 2025 was $24 million, consistent with the $24 million generated in the first half of 2024.

2025 年上半年，我們透過持續關注營運資本效率，將 80% 的調整後 EBITDA 轉化為營運現金。DSO 為 70 天，反映出持續強勁的收款和嚴格的現金管理。2025 年上半年的自由現金流為 2,400 萬美元，與 2024 年上半年產生的 2,400 萬美元一致。

On a trailing 12-month basis, our free cash flow was $64 million or $4.34 per share. Our healthy balance sheet, expanded credit facility and strong operating performance provides us with the financial flexibility to pursue targeted acquisitions and expand capabilities in strategic markets, all while maintaining prudent leverage.

在過去 12 個月中，我們的自由現金流為 6,400 萬美元，即每股 4.34 美元。我們健康的資產負債表、擴大的信貸額度和強勁的經營業績為我們提供了財務靈活性，以進行有針對性的收購並擴大策略市場的能力，同時保持審慎的槓桿率。

Turning to slide 10. Based on our year-to-date performance, we're raising our full year 2025 financial targets. Net revenue is now expected to be between $340 million to $350 million. Adjusted EBITDA is now expected to be in the range of $70 million to $73 million, and adjusted diluted earnings per share is projected between $3.50 to $3.65 per share based on an estimated tax benefit of 15% and 15.1 million shares outstanding. These targets do not include the impact of any future acquisitions.

翻到第 10 張投影片。根據我們今年迄今的表現，我們提高了 2025 年全年財務目標。目前預計淨收入將在 3.4 億美元至 3.5 億美元之間。調整後的 EBITDA 目前預計在 7,000 萬美元至 7,300 萬美元之間，調整後的每股攤薄收益預計在 3.50 美元至 3.65 美元之間，基於 15% 的預計稅收優惠和 1,510 萬股流通股。這些目標不包括任何未來收購的影響。

For purposes of modeling, we expect Q3 adjusted EBITDA to be similar to Q2 and Q4 to be slightly less than Q3.

為了建模的目的，我們預計第三季調整後的 EBITDA 將與第二季相似，而第四季將略低於第三季。

On slide 11, we delivered solid growth and financial performance and we're raising our fiscal year '25 financial targets. We are well positioned in dynamic and growing markets. we have an active pipeline of strategic acquisition opportunities. We're excited about the future.

在第 11 張投影片上，我們實現了穩健的成長和財務業績，並且我們正在提高 25 財年的財務目標。我們在充滿活力和不斷增長的市場中佔據有利地位。我們擁有積極的策略收購機會。我們對未來充滿期待。

Operator, we're now ready to take questions.

接線員，我們現在可以回答問題了。

(Operator Instructions)

（操作員指示）

Craig Irwin, ROTH Capital Partners.

克雷格歐文（Craig Irwin），羅仕證券資本合夥公司（ROTH Capital Partners）。

Good evening and thanks for taking my questions. First, I should start off by saying congratulations. I've never seen about [15] and quarter for Willdan, so you guys are not going to cover right off the ball. Mike, what stands out is 31% growth and 23% organic growth. Over the last few years, you've done a lot of work that I don't think investors have seen preparing for future growth capacity, the development of the capabilities of your site managers, your engineering teams.

晚上好，感謝您回答我的問題。首先，我要表示祝賀。我從來沒有見過威爾丹 (Willdan) 有大約 [15] 和四分之一的得分，所以你們不會立即掩護球。麥克，最突出的是 31% 的成長和 23% 的有機成長。在過去的幾年裡，你們做了很多工作，我認為投資人沒有看到這些工作，為未來的成長能力、現場管理人員和工程團隊的能力發展做準備。

And then these recent acquisitions bring in new capabilities, new engineering talent, can you maybe unpack for us the potential Willdan to deliver on robust organic growth as we look into '26 and '27.

這些最近的收購帶來了新的能力、新的工程人才，您能否為我們揭示 Willdan 在 26 年和 27 年實現強勁有機成長的潛力？

Will this require substantial hiring beyond what you've put in place over the last couple of years? Are there opportunities for leverage that you're seeing maybe new opportunities that you're seeing with your recent acquisitions?

這是否需要比過去幾年更多的招募？您是否看到了利用槓桿的機會，或者說您在最近的收購中看到了新的機會？

Yeah, good question, Craig. 23% is one of the best numbers we've ever posted, it's outstanding. And certainly, at this size, we've never done anything like that. We've worked hard over the last couple of years in intercompany collaboration. When we bring in a new group of the new acquisition, that can catalyze a lot of cross-selling between the new acquisitions capabilities and our legacy clients.

是的，克雷格，問得好。 23% 是我們發布過的最好的數字之一，非常出色。當然，在這種規模下，我們從來沒有做過這樣的事情。過去幾年來，我們在公司間合作方面做出了巨大努力。當我們引入新收購的一批新客戶時，這可以催化新收購能力與我們傳統客戶之間的大量交叉銷售。

And that's what's happening in part. The organic growth rate has actually been increasing over the last several quarters. And some of it is due to that cross-selling. We're in the early stages with APG. That's a key piece of the puzzle to help clients with data centers and utility clients trying to address these problems, and that has set off a number of opportunities, some of which we listed many of which are to come later this year and into 2026.

這就是正在發生的部分情況。過去幾個季度，有機成長率實際上一直在上升。其中一部分是由於交叉銷售。我們與 APG 合作尚處於早期階段。這是幫助資料中心客戶和公用事業客戶解決這些問題的關鍵一環，並且帶來了許多機遇，我們列出了其中一些，其中許多將在今年稍後和 2026 年到來。

But it's the cross-selling that is helping to drive our organic growth above any of our competitors' rate that I have seen, I think.

但我認為，交叉銷售有助於推動我們的有機成長率高於我所見過的任何競爭對手。

Excellent. And then can you maybe talk about your positioning for work with AEG. Now Willdan over the last several years has had particularly strong relationships with utility commissions as a service provider facilitating energy efficiency, you spent time educating commissions on different technologies and different solutions and helping them understand the returns available.

出色的。然後您能否談談您與 AEG 合作的定位？現在，Willdan 在過去幾年中作為促進能源效率的服務提供者與公用事業委員會建立了特別牢固的關係，您花時間向委員會介紹不同的技術和不同的解決方案，並幫助他們了解可用的回報。

How does this change Willdan or position Willdan for growth on the grid side as your commercial and state and federal customers look to solve these grid problems. I mean, there's big problems and they need big solutions being. They need companies they can trust.

當您的商業、州和聯邦客戶尋求解決這些電網問題時，這會如何改變 Willdan 或使 Willdan 在電網方面實現成長。我的意思是，存在著大問題，需要一個大的解決方案。他們需要可以信賴的公司。

Yeah. Good question, Craig. You need to have a reputation and be trusted by these large IOUs especially, that's true for the cities as well. So we've got a good background in working for IOUs across the country. And that helps us when we take a commercial plant in for interconnect or planning work for -- I mean data centers, we are standing up energy efficiency programs that tend to offset new generation.

是的。問得好，克雷格。你需要有聲譽並得到這些大型 IOU 的信任，對於城市來說也是如此。因此，我們在為全國各地的 IOU 工作方面擁有良好的經驗。當我們將商業工廠用於互連或規劃工作時，這會對我們有所幫助 - 我的意思是資料中心，我們正在製定傾向於抵消新一代的能源效率計劃。

That reputation of delivering really helps. So it's been going on for a long time. We really started in California and New York, and now we're working across the country, it's helping.

這種履行承諾的聲譽確實很有幫助。所以這種情況已經持續很久了。我們實際上是從加州和紐約州開始的，現在我們在全國各地開展工作，這很有幫助。

Excellent. And then cash flow has been particularly strong as well these last couple of quarters. I know you do have about 45% fixed price work out there. Can you maybe give us a little color on the character of that work? And going forward is the balance of sort of cost and excess billings in excess and the cash flow cycle on some of these exciting projects going to be something we'll have to look closely at or is the character of the work that you're doing something where this is lower risk than some of these very large E&C projects that others tend to complete?

出色的。過去幾個季度，現金流也特別強勁。我知道你們確實有大約 45% 的固定價格可以工作。能否給我們簡單介紹一下這部作品的特色？展望未來，我們必須密切關注這些令人興奮的專案的成本、超額費用和現金流週期之間的平衡，還是您所做工作的性質使其風險低於其他人傾向於完成的一些大型 E&C 專案？

Yeah. Well, we do -- we are fortunate to get good cash flows from those fixed price projects, right? And they do offer us opportunity to get paid in advance for work that's done subsequently and reduced the working capital requirement in the company. And we worked hard on that as well as working hard with our utility customers faster invoicing and processing of those kinds of invoices.

是的。嗯，我們確實如此——我們很幸運能夠從這些固定價格項目中獲得良好的現金流，對嗎？他們確實為我們提供了提前獲得後續工作報酬的機會，並減少了公司的營運資金需求。我們為此付出了巨大的努力，同時也努力為我們的公用事業客戶更快地開立和處理此類發票。

As far as the risk profile of the fixed price contracts that we've got, it's relatively low compared to a classic EPC kind of a contractor. We subcontract, as you know, a fair amount of the work that we do. and the pricing on the projects that we execute in terms of materials is really pretty well handled in advance. We don't do a lot of self-performance kind of work where you rely on tons where we've downloaded some of that pricing risk to them.

就我們所簽訂的固定價格合約的風險狀況而言，與傳統的 EPC 承包商相比，風險相對較低。如您所知，我們將相當一部分工作分包出去，我們執行的專案的材料定價實際上是提前處理好的。我們不會做很多自我履行類型的工作，這些工作依賴我們已經將部分定價風險轉移給他們的大量工作。

So we feel like that those fixed price contracts are a little less risky than what you might think of the classic EPC contractor and also part of that -- those fixed price contracts are actually service agreements.

因此，我們認為這些固定價格合約的風險比傳統 EPC 承包商的風險要小一些，而且這些固定價格合約實際上是服務協議。

There's really no EPC risk involved in some of the work that we do in terms of planning and analytics stuff that is fixed price in nature. And so it's just based on the scoping of the work that we do. And then typically with the kinds of customers that we worked with for quite some time on projects that we know well.

就規劃和分析工作而言，我們所做的一些工作實際上並不涉及 EPC 風險，因為這些工作本質上是固定價格的。所以這只是基於我們所做工作的範圍。然後通常與我們在專案上合作過很長一段時間的客戶合作，我們對此非常了解。

So the downside is pretty small with those. So -- so we're pretty happy with that. We're pretty happy with the way that we've been able to bring down that overall working capital requirement on the cash flows and -- and I think as you can see from the numbers, we've had pretty good success.

因此，這些的缺點相當小。所以——我們對此非常滿意。我們對能夠降低現金流的整體營運資本需求感到非常滿意——而且我認為正如您從數字中看到的那樣，我們取得了相當大的成功。

Understood. Last question, if I may. Obviously, the momentum across your markets is broad-based, it seems like everything is really working for you right now. Can you maybe call out for us any specific elephants that you might be chasing? I know you've layer in some chunky data center and power opportunities recently.

明白了。如果可以的話，最後一個問題。顯然，你們的市場動能十分廣泛，目前看來一切都對你們有利。您能否告訴我們您正在追逐的具體大像有哪些？我知道您最近已經涉足了一些大型資料中心和電力機會。

Are there any projects or awards that are potentially $100 million plus that are potential bookings over the next couple of quarters?

是否有任何項目或獎項可能價值超過 1 億美元，並可能在未來幾季內獲得預訂？

You're looking into our playbook, Craig? Yes. We've got a few of them that we've been chasing for quite some time actually, and they have come to maturity. I think it's likely that you'll see some announcements. We've been chasing an important contract in New York, and I think we're nearing completion on that one.

克雷格，你在研究我們的劇本嗎？是的。實際上，我們已經追逐了其中的一些很長時間，並且它們已經成熟。我認為您很可能會看到一些公告。我們一直在紐約爭取一份重要的合同，我認為我們已經接近完成。

That's the mix big opportunity. And there's a series of opportunities with some of the RINs in California, we've talked about RINs in the prior quarters. Those opportunities are coming out later this year. they'll probably be awarded either late this year or sometime early in 2026. And those are all nice big new chunks of long-term contracts.

這就是混合的巨大機會。加州的一些 RIN 帶來了一系列機會，我們在前幾季已經討論過 RIN。這些機會將在今年晚些時候出現。他們可能會在今年年底或 2026 年初的某個時候獲得獎勵。這些都是很好的、大額的長期合約。

Fantastic. Well, congratulations, guys, really impressive results.

極好的。好吧，恭喜你們，你們的成績確實令人印象深刻。

Thanks, Craig.

謝謝，克雷格。

Tim Moore, Clear Street Capital.

蒂姆·摩爾 (Tim Moore)，Clear Street Capital。

Thanks and congratulations on the continued organic sales growth and the cross-selling EBITDA margin expansion despite the Los Angeles Water & Power contract, not really kicking in yet. I just want to kind of touch base want to aspect, I think maybe similar to cross-selling APG, but a little bit different.

感謝並祝賀您，儘管洛杉磯水電合約尚未真正生效，但有機銷售額仍持續成長，交叉銷售 EBITDA 利潤率也不斷擴大。我只是想了解一下基本情況，我認為可能與交叉銷售 APG 類似，但略有不同。

The software and analytics side, I mean, you have that gem of a business, the E3 acquisition that you did I was just wondering, are you seeing that as a carrot angle really bringing in more penetration getting you into the door, some of these clients to really show them the power support and innovative resource planning. Is that something you kind of tack on to other existing business?

軟體和分析方面，我的意思是，您擁有如此出色的業務，您收購了 E3，我只是想知道，您是否將其視為一個誘餌角度，真正為您帶來更多的滲透力，讓您進入一些客戶，真正向他們展示強大的支持和創新的資源規劃。這是您添加到其他現有業務中的東西嗎？

No, you're exactly right, Craig. The software offering is now being paired with our services, where we didn't provide that type of integrated consulting before. And a number of new projects have been awarded over the last, I'll say, 18 months with that recipe. It's really working pretty well, preparing the software with the consulting services.

不，你完全正確，克雷格。該軟體產品現在與我們的服務結合，而我們之前並沒有提供過這種類型的綜合諮詢。在過去的 18 個月裡，我們已經透過這項方案獲得了許多新項目。利用諮詢服務來準備軟體確實效果很好。

We mentioned also earlier, that upfront consulting work grew organically 15% year-over-year for the first half over last half.

我們之前也提到過，上半年前期諮詢工作量較上半年年增了 15%。

So it's on fire. It's doing exceptionally well right now. We're adding new capabilities and recruiting a lot of new hires.

所以它就火了。目前它的表現非常好。我們正在增加新功能並招募大量新員工。

That's very helpful, Mike. I appreciate that. I just want to just really follow up, I guess, on the broad-based growth question, kind of as this last quarter. Considering you have that gap for the Los Angeles Department of Water Power contract pretty much in the first half of this year. Is there anything you can pinpoint besides the upfront consulting work?

這非常有幫助，麥克。我很感激。我想真正跟進一下廣泛的成長問題，就像上個季度的情況一樣。考慮到今年上半年洛杉磯水電局的合約存在很大差距。除了前期諮詢工作之外，您還能指出什麼嗎？

Anything jumping out that you really think is coming back and getting momentum? Does it kind of reconcile a bit more of the organic sales beat in the June quarter?

您認為有什麼東西突然出現並真的捲土重來並獲得發展勢頭嗎？這是否在某種程度上與六月季度有機銷售額的成長相一致？

It's tough to do that. We've been growing in the teams. We have previously posted individual quarters up in the 20s. This was exceptional. 23% is one of the best numbers we've ever posted.

做到這一點很困難。我們的團隊一直在不斷成長。我們之前曾發布過 20 多歲的個別季度數據。這是非常出色的。 23% 是我們發布過的最好的數字之一。

And it really was sort of across the board. It was a combination of expanding existing long-term agreements where those big annuity-type IOU relationships increased in volume. It wasn't a lot of new awards. It wasn't any single big award and additional cross-selling where we're pairing our legacy civil engineering work with performance contracting. We won a number of new contracts in Southern California.

這確實是全面的。這是擴大現有長期協議的結合，其中大型年金型 IOU 關係的數量增加。新獎項並不多。這並不是任何單一的大獎和額外的交叉銷售，我們將傳統的土木工程工作與績效承包結合。我們在南加州贏得了許多新合約。

Also, if you look at the large IOU engagements on the East Coast and on the West Coast, California contract, especially SCE, those were all significantly up as well. So all of those areas contributed to that 23% outstanding performance.

此外，如果你看一下東海岸和西海岸的大型 IOU 合約，加州合約，特別是 SCE，它們的數量也都大幅增加。因此，所有這些領域都對 23% 的出色表現做出了貢獻。

That's terrific color and build conviction for investors. And my last question I just wanted to follow up a question I asked for Kim. I think last quarter, tariffs comes up a lot. We know that I think maybe if I got the strong equipment materials might be 25% to 30% of your overall contract value from the non-consulting business side. price escalators, subcontractors.

這是一種極佳的色彩，能夠增強投資者的信心。我的最後一個問題只是想跟進我問 Kim 的一個問題。我認為上個季度關稅大幅上漲。我們知道，我認為如果我從非諮詢業務方面獲得強大的設備材料，可能會占到總合約價值的 25% 到 30%。價格自動扶梯，分包商。

So is there a chance that you kind of restate this year or early next year where there's a gap maybe a little bit in the price escalator clauses kicking in from some of the older contracts? I'm just kind of wondering how you deal with that.

那麼，您是否有可能在今年或明年年初重申，一些舊合約中的價格自動調整條款可能會存在一些差距？我只是有點好奇你是如何處理這個問題的。

Yeah. We don't expect it to have a significant impact obvious to you this year. But we think we're pretty well covered from that end. As we move into next year, we do as we indicated, a number of our contracts are going to provide opportunities for us to pass along pricing increases and changing contract terms is going to offers the opportunity to update pricing to the extent that tariffs may impact us.

是的。我們預計它今年不會對您產生明顯的重大影響。但我們認為，從這個角度來看，我們已經做好了充分的準備。隨著進入明年，我們將按照我們所說的去做，我們的許多合約將為我們提供機會來轉嫁價格上漲，而改變合約條款將提供機會來更新價格，因為關稅可能會對我們產生影響。

It's not sure as you've seen with the volatility of exactly what those tariffs are going to be or what they are going to impact.

如您所見，這些關稅的具體金額以及其將產生什麼影響尚不確定。

And how much of our equipment is actually imported and subject to those tariffs. But right now, we're still not considering that to be a major threat to add. I'm sure there'll be some increases in material costs in some of our contracts, and we may see some impact from those.

我們實際上有多少設備是進口的並受到這些關稅的約束。但目前，我們仍然不認為這是一個需要增加的重大威脅。我確信我們的一些合約中的材料成本會增加，我們可能會看到一些影響。

But as Mike mentioned in his comments, I think that we're in a pretty good position to manage that risk at the moment in the AI.

但正如麥克在評論中提到的那樣，我認為我們目前在人工智慧領域處於相當有利的地位來管理這種風險。

Great. Thanks Kim and Mike. I appreciate it and that's it for my questions.

偉大的。感謝 Kim 和 Mike。我很感激，我的問題就到這裡。

Paul Strigler, [Satori Capital].

保羅·斯特里格勒，[Satori Capital]。

Congratulations on another great quarter well done. Just got a couple of quick administrative questions. I noticed in the one big, beautiful bill, the Section 179 tax credit was terminated, we will round down sometime next year. And I know, obviously, this quarter, you've had a large tax benefit. Can you just talk about what that means going forward?

恭喜您又取得了一個出色的季度。我剛剛問了幾個簡單的管理問題。我注意到，在一份漂亮的大法案中，第 179 條稅收抵免已被終止，我們將在明年某個時候減少。而且我知道，本季你們顯然獲得了巨額稅收優惠。您能談談這對未來意味著什麼嗎？

Yes. Well, that is something that we have seen as well. We're not happy to see that go away. Obviously, we're not sure whether it will stay away, there's certainly going to be efforts see if that provision can be restored. But it will have a significant impact on our tax rate for this year.

是的。嗯，這也是我們所看到的。我們不願意看到這種情況消失。顯然，我們不確定它是否會消失，但肯定會努力看看是否可以恢復該規定。但這將對我們今年的稅率產生重大影響。

And we'll continue to enjoy that benefit really probably pretty much through the end of next year. I think it's all the projects that get started through sometime in the fall of next year. I can't remember exactly what month it is. But yes, that will be a -- an impact for sure, if the cancellation of that tax benefit goes away.

我們很可能會繼續享受這項好處，直到明年年底。我認為所有項目都將於明年秋季某個時候開始。我不記得具體是幾月了。但是，如果取消該稅收優惠，那肯定會產生影響。

We've been able to enjoy tax benefits in the low teens and the credit, of course, for this year, we would expect the tax rate to be relatively low next year as well.

我們今年已經可以享受到低至十幾歲的稅收優惠和抵免，當然，我們預計明年的稅率也會相對較低。

Because of that benefit will continue to enjoy. But if it goes away, we'll have that higher tax rate than that's just something that we'll have to deal with. But we're in pretty good shape. .

因為那個好處將會繼續享受。但如果它消失，我們的稅率就會更高，這是我們必須處理的。但我們的狀態非常好。。

And then just I was thinking more about the impact to customer decisions on making energy efficiency upgrades because they -- I mean, they lose at 30% tax credit. Was that through the payback period for some of these projects?

然後我更多地考慮了客戶對能源效率升級的決策的影響，因為他們——我的意思是，他們損失了 30% 的稅收抵免。這是否是某些項目的報稅期？

Well, that 30% tax credit is not the 179D, that's a different issue. But yeah, the elimination of those of the incentives for some of those generating projects, you mean for renewable energies. So it's a minor issue, I think, for us. That's not what drives much of the work that we're doing within our government sector.

嗯，30% 的稅收抵免不是 179D，這是另一個問題。但是的，取消一些發電項目的激勵措施，你的意思是取消再生能源專案的激勵措施。所以我認為這對我們來說只是一個小問題。這並不是我們政府部門進行大部分工作的動力。

That's where we get the benefit from the 179D are generally from government and non-tax paying kinds of clients doing utility scale generation of wind and solar projects, which is where the biggest impact of the cancellation of those investment tax credits is going to impact is a relatively minor part of what we do.

我們從 179D 中獲得的利益通常來自從事風能和太陽能公用事業規模發電項目的政府和非納稅客戶，而取消這些投資稅收抵免的最大影響將只影響我們所做工作的一小部分。

We don't new utility scale generating projects really at all. We're focused on smaller scale projects that we do as part of our facilities improvement and the infrastructure will we do for some of the public entities.

我們實際上根本沒有新的公用事業規模發電項目。我們專注於較小規模的項目，這些項目是我們設施改進的一部分，我們將為一些公共實體進行基礎設施建設。

Great. Well, thank you so much. Congratulations and keep up the good work.

偉大的。嗯，非常感謝。恭喜你並繼續努力。

(Operator Instructions)

（操作員指示）

Richard Bosenberg, Private Investor.

理查德·博森伯格，私人投資者。

Yes, good afternoon and congratulations on a great quarter. Are you close to making any more acquisitions this year? And in states like North Carolina, South Carolina and Georgia, is it harder to do business there because the governor is a Republican and he doesn't have the same policies as the blue stage?

是的，下午好，恭喜您本季取得如此出色的成績。今年你們還會進行任何收購嗎？在北卡羅來納州、南卡羅來納州和喬治亞州等州，做生意變得更加困難，因為州長是共和黨人，而且他的政策與藍調舞台不同？

Thank you.

謝謝。

Well, acquisitions. You never can tell when you're in them win or if they'll close. What we can say is that we do have a good pipeline of new opportunities that we're looking at evaluating and talking with. So that's going to play out for us over this year and certainly the first half of next year based on the companies that we're already generating relationships with. That's what the M&A pipeline looks like.

嗯，收購。你永遠不知道何時你會獲勝，或者他們是否會關閉。我們可以說的是，我們確實擁有一系列新的機遇，我們正在對其進行評估和洽談。因此，根據我們已經建立關係的公司的情況，今年以及明年上半年我們的情況將會有所改變。這就是併購通路的樣子。

And it's likely that over that period of time, we will have acquisitions that make it through our gaps and close. We'll tell you about them when they do. In terms of North Carolina, South Carolina and Georgia, it's interesting, actually. We do have a large contract with Duke that serves North and South Carolina, especially and several other states. And no, it's not harder to do business there, actually.

而且很有可能在那段時間內，我們會透過收購來彌補我們的差距並完成交易。當他們這樣做時，我們會告訴你。就北卡羅來納州、南卡羅來納州和喬治亞州而言，實際上很有趣。我們確實與杜克大學簽訂了一份大合同，主要為北卡羅來納州、南卡羅來納州以及其他幾個州提供服務。不，實際上在那裡做生意並不難。

That contract is doing very well. So sometimes don't believe everything you read in the newspapers. We read a lot about polarizing policies at the political level, and it generally has very little to do with the actual work we see on the ground. The North Carolina and South Carolina are vibrant markets for us right now.

該合約執行得很好。所以有時候不要相信報紙上讀到的一切。我們讀到了很多關於政治層面兩極化政策的文章，但這與我們在當地看到的實際工作通常關係不大。北卡羅來納州和南卡羅來納州目前是我們活躍的市場。

Okay. That's good. Also, if that elimination of the tax credit and the big bill, the big beautiful build, as they call it, if that goes away, like you -- how much would your tax rate go back up to right now, it's about 15%. So how much would an increase if that actually states law states part of the bill?

好的。那挺好的。此外，如果取消稅收抵免和巨額帳單，即所謂的宏偉宏偉的建設，如果這一切都消失了，那麼你的稅率將回升到現在的多少呢？大約是 15%。那麼，如果該法案確實規定了法律的一部分，那麼增加幅度會是多少？

Yeah. Well, that tax rate, that 15% you're talking about is a 15% benefit, a 15% tax rate. But previously, we were looking at maybe the low teens or mid-teens tax rate. And with the elimination of that we're likely to get much closer to 20%, somewhere in that kind of a range, I would guess.

是的。嗯，您說的那個稅率，15% 是 15% 的福利，15% 的稅率。但之前，我們關注的可能是低至十幾歲或十幾歲的稅率。隨著這一比例的消除，我們可能會更接近 20%，我猜大概在這樣的範圍內。

It varies from year-to-year just based on the square footage of the properties that get completed. So it's tough to just tie it to a number because it's tied to -- actually to a square footage piece. But -- but it will have a significant impact, I would say, let's call it 5 points or quarter.

它每年都有所不同，僅取決於已完工的房產面積。因此很難將其與數字聯繫起來，因為它實際上與平方英尺有關。但是 - 但它會產生重大影響，我想說，我們稱之為 5 分或四分之一。

So on what our effective tax rate would be on a normalized basis. So it's significant. But Richard, you likely wouldn't see that until 2027 or later.

那麼我們的有效稅率在正常情況下是多少呢？所以這很重要。但是理查德，你可能要到 2027 年或更晚才會看到這一點。

Richard, you likely wouldn't see that until 2027.

理查德，你可能要等到 2027 年才能看到這一點。

Okay. So would it go like the 25% or 30%, it would just go from, let's say, 15% to 20%?

好的。那麼它會像 25% 或 30% 那樣嗎？它會從 15% 上升到 20% 嗎？

Yeah, that would be my best guess at this time is what we look for. We have other benefits that we get that run through our tax rate as well to arrive at the effective tax rate that we get. But it would definitely increase our effective tax rate over what it would be if 170D stayed in place. It's significant for us and really helpful.

是的，這是我目前最好的猜測，也是我們所尋找的。我們獲得的其他福利也透過稅率來計算，從而得出我們所獲得的有效稅率。但如果 170D 繼續實施，這肯定會提高我們的實際稅率。這對我們來說意義重大，而且非常有幫助。

Okay, thank you very much, guys. Thanks a lot.

好的，非常感謝你們。多謝。

We have reached the end of our question-and-answer session. I would like to turn the floor back over to Mike for closing remarks.

我們的問答環節已經結束。我想把發言權交還給麥克，請他做最後發言。

Well thank you all for attending. We'll see some of you over the next few months, and we look forward to speaking with all of you next quarter. Thank you.

非常感謝大家的出席。我們將在接下來的幾個月裡見到你們中的一些人，我們期待下個季度與你們所有人交談。謝謝。

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開連接，感謝您的參與。