Willdan Group, Inc. (WLDN) is a hidden AI Revolution stock as it consults on the electric grid. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 48% this year.

Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.

It’s a small cap company with a market cap of $1.7 billion. Willdan’s specialties include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting.

Willdan Group Beats Big in the Second Quarter
On Aug 7, 2025, Willdan Group reported its second quarter 2025 earnings results. It blew by the Zacks Consensus by $0.78. Willdan reported earnings of $1.50 versus the consensus of $0.72. That’s a beat of 108.3%.

It was the fourth consecutive large beat with its four-quarter average surprise now being 54%.

Contract revenue was up 23% to $173.5 million while net revenue was up 31.1% to $95 million.

For the first six months of the year, contract revenue jumped 23.7% to $325.9 million.

“These results reflect a combination of consistent execution in our core programs, new contract wins, and successful strategic acquisitions,” said Mike Bieber, Willdan’s President and CEO.

“Electricity load growth from data centers and broader electrification trends are accelerating the need for reliable power and resilient grid infrastructure, driving investment across our markets,” he added.

Willdan Raised Full Year Guidance
With such a strong first half, the company is bullish about the rest of the year. It raised its full year financial targets.
Net revenue is expected to be between $340 million and $350 million, up from the guidance it gave on May 8, 2025, with its first quarter earnings report, of between $325 million and $335 million.

Earnings are now expected to be in the range of $3.50 and $3.65, up from its prior guidance of $2.75 to $2.90.

Analysts Raise 2025 and 2026 Earnings Estimates
With another beat and raise, and a big increase in the earnings guidance, it’s not a surprise that the analysts have also been raising their full year earnings estimates.
2 estimates were raised in the last 30 days for 2025, pushing up the Zacks Consensus to $3.60 from $2.82. That is at the higher end of the company’s guidance range.

That’s earnings growth of 48.2% as the company made $2.43 last year.

2 estimates were also increased for 2026 pushing the Zacks Consensus up to $4.00. That’s another 11% earnings growth.

Here’s what it looks like on the 5-year Price and Consensus chart.

Image Source: Zacks Investment Research

Shares of Willdan Group Soar in 2025
Willdan Group shares have taken off just like the earnings, gaining 209% year-to-date. It’s even easily outperforming NVIDIA over the same period.

Image Source: Zacks Investment Research

Willdan is still attractive on a valuation basis. Yes, it’s now trading with a forward price-to-earnings (P/E) ratio of 32. That does not scream value.

But it’s price-to-sales (P/S) ratio is just 2.7 which is more attractive. Willdan is not trading at the extreme valuations like Palantir and other AI technology stocks.

If you’re looking for a small cap stock with exposure to the AI Revolution through the infrastructure buildout, Willdan Group should be on your short list.

— Tracey Ryniec

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Source: Zacks