Willdan Group, Inc. Segments Disclosure
9. SEGMENT AND GEOGRAPHICAL INFORMATION
Segment Information
The Company’s two segments are Energy and Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format.
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). The Company retroactively adopted ASU 2023-07, which requires, for fiscal years beginning after December 15, 2023, the disclosure of significant segment expenses that are regularly provided to the CODM, along with a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The Company’s CODM evaluates the performance of each segment based upon the information provided below.
There were no intersegment sales during the fiscal years 2025, 2024, or 2023. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.
Engineering | Unallocated | Consolidated | |||||||||||||
Energy | | & Consulting | | Corporate | | Intersegment | | Total (1) | |||||||
(in thousands) | |||||||||||||||
Fiscal Year 2025 | |||||||||||||||
Contract revenue | $ | 576,051 | $ | 105,501 | $ | — | $ | — | $ | 681,552 | |||||
Direct subcontractor services and other direct costs | 311,231 | 5,541 | — | — | 316,772 | ||||||||||
Direct salaries and wages | 66,908 | 42,190 | — | — | 109,098 | ||||||||||
Gross profit | 197,912 | 57,770 | — | — | 255,682 | ||||||||||
Other indirect costs | 140,938 | 39,449 | 12,462 | — | 192,849 | ||||||||||
EBITDA (2) | 56,449 | 18,315 | (10,336) | — | 64,428 | ||||||||||
Interest expense |
| — | — | 5,748 | — | 5,748 | |||||||||
Depreciation and amortization |
| 16,627 | 2,059 | — | — | 18,686 | |||||||||
Segment profit (loss) before income tax expense |
| 39,822 | 16,256 | (16,084) | — | 39,994 | |||||||||
Income tax (benefit) expense |
| (12,509) | (5,106) | 5,052 | — | (12,563) | |||||||||
Net income (loss) |
| 52,331 | 21,362 | (21,136) | — | 52,557 | |||||||||
Segment assets (3) |
| 398,299 | 44,170 | 101,742 | — | 544,211 | |||||||||
Engineering | Unallocated | Consolidated | |||||||||||||
Energy | | & Consulting | | Corporate | | Intersegment | | Total (1) | |||||||
(in thousands) | |||||||||||||||
Fiscal Year 2024 | |||||||||||||||
Contract revenue | $ | 473,309 | $ | 92,489 | $ | — | $ | — | $ | 565,798 | |||||
Direct subcontractor services and other direct costs | 266,092 | 3,381 | — | — | 269,473 | ||||||||||
Direct salaries and wages | 55,041 | 38,502 | — | — | 93,543 | ||||||||||
Gross profit | 152,176 | 50,606 | — | — | 202,782 | ||||||||||
Other indirect costs | 113,998 | 36,263 | 6,423 | — | 156,684 | ||||||||||
EBITDA (2) | 38,554 | 14,344 | (3,673) | — | 49,225 | ||||||||||
Interest expense |
| — | — | 7,801 | — | 7,801 | |||||||||
Depreciation and amortization |
| 13,260 | 1,485 | — | — | 14,745 | |||||||||
Segment profit (loss) before income tax expense |
| 25,294 | 12,859 | (11,474) | — | 26,679 | |||||||||
Income tax (benefit) expense |
| 3,896 | 1,980 | (1,767) | — | 4,109 | |||||||||
Net income (loss) |
| 21,398 | 10,879 | (9,707) | — | 22,570 | |||||||||
Segment assets (3) |
| 348,884 | 29,202 | 86,777 | — | 464,863 | |||||||||
Engineering | Unallocated | Consolidated | |||||||||||||
Energy | | & Consulting | | Corporate | | Intersegment | | Total (1) | |||||||
(in thousands) | |||||||||||||||
Fiscal Year 2023 | |||||||||||||||
Contract revenue | $ | 426,976 | $ | 83,119 | $ | — | $ | — | $ | 510,095 | |||||
Direct subcontractor services and other direct costs | 236,603 | 3,810 | — | — | 240,413 | ||||||||||
Direct salaries and wages | 54,377 | 35,538 | — | — | 89,915 | ||||||||||
Gross profit | 135,996 | 43,771 | — | — | 179,767 | ||||||||||
Other indirect costs | 104,644 | 32,259 | 4,359 | — | 141,262 | ||||||||||
EBITDA (2) | 32,103 | 11,525 | (3,193) | — | 40,435 | ||||||||||
Interest expense |
| 6 | — | 9,407 | — | 9,413 | |||||||||
Depreciation and amortization |
| 15,176 | 1,255 | — | — | 16,431 | |||||||||
Segment profit (loss) before income tax expense |
| 16,921 | 10,270 | (12,600) | — | 14,591 | |||||||||
Income tax (benefit) expense |
| 4,250 | 2,580 | (3,165) | — | 3,665 | |||||||||
Net income (loss) |
| 12,671 | 7,690 | (9,435) | — | 10,926 | |||||||||
Segment assets (3) |
| 345,745 | 25,842 | 44,001 | — | 415,588 | |||||||||
| (1) | Amounts may not add to the totals due to rounding. |
| (2) | “EBITDA”, defined as earnings before interest, taxes, depreciation and amortization, is a non-GAAP financial measure. |
| (3) | Segment assets are presented net of intercompany receivables. |
The following tables provide information about disaggregated revenue by contract type, client type and geographical region:
| 2025 | ||||||||
| Energy | | Engineering and | | Total | ||||
| (in thousands) | ||||||||
Contract Type | |||||||||
Time-and-materials | $ | 49,898 | $ | 72,100 | $ | 121,998 | |||
Unit-based | 215,499 | 26,235 | 241,734 | ||||||
Fixed price | 310,654 | 7,166 | 317,820 | ||||||
Total (1) | $ | 576,051 | $ | 105,501 | $ | 681,552 | |||
Client Type | |||||||||
Commercial | $ | 70,871 | $ | 7,029 | $ | 77,900 | |||
Government | 227,497 | 98,233 | 325,730 | ||||||
Utilities (2) | 277,683 | 239 | 277,922 | ||||||
Total (1) | $ | 576,051 | $ | 105,501 | $ | 681,552 | |||
Geography (3) | |||||||||
Domestic | $ | 576,051 | $ | 105,501 | $ | 681,552 | |||
| 2024 | ||||||||
| Energy | | Engineering and | | Total | ||||
| (in thousands) | ||||||||
Contract Type | |||||||||
Time-and-materials | $ | 34,381 | $ | 67,931 | $ | 102,312 | |||
Unit-based | 205,117 | 19,676 | 224,793 | ||||||
Fixed price | 233,811 | 4,882 | 238,693 | ||||||
Total (1) | $ | 473,309 | $ | 92,489 | $ | 565,798 | |||
Client Type | |||||||||
Commercial | $ | 34,072 | $ | 7,548 | $ | 41,620 | |||
Government | 182,079 | 84,695 | 266,774 | ||||||
Utilities (2) | 257,158 | 246 | 257,404 | ||||||
Total (1) | $ | 473,309 | $ | 92,489 | $ | 565,798 | |||
Geography (3) | |||||||||
Domestic | $ | 473,309 | $ | 92,489 | $ | 565,798 | |||
| 2023 | ||||||||
| Energy | | Engineering and | | Total | ||||
| (in thousands) | ||||||||
Contract Type | |||||||||
Time-and-materials | $ | 35,582 | $ | 63,530 | $ | 99,112 | |||
Unit-based | 199,040 | 15,753 | 214,793 | ||||||
Fixed price | 192,354 | 3,836 | 196,190 | ||||||
Total (1) | $ | 426,976 | $ | 83,119 | $ | 510,095 | |||
Client Type | |||||||||
Commercial | $ | 31,162 | $ | 5,866 | $ | 37,028 | |||
Government | 159,935 | 76,972 | 236,907 | ||||||
Utilities (2) | 235,879 | 281 | 236,160 | ||||||
Total (1) | $ | 426,976 | $ | 83,119 | $ | 510,095 | |||
Geography (3) | |||||||||
Domestic | $ | 426,976 | $ | 83,119 | $ | 510,095 | |||
| (1) | Amounts may not add to the totals due to rounding. |
| (2) | Includes the portion of revenue related to small business programs paid by the end user/customer. |
| (3) | Revenue from the Company’s foreign operations were immaterial for fiscal years 2025, 2024, and 2023. |
The following sets forth the assets that are included in Unallocated Corporate as of January 2, 2026 and December 27, 2024.
| 2025 | | 2024 | |||
(in thousands) | ||||||
Assets: | ||||||
Cash and cash equivalents | $ | 65,919 | $ | 74,158 | ||
Restricted cash | — | — | ||||
Accounts receivable, net | (2,618) | (6,881) | ||||
Prepaid expenses |
| 5,339 |
| 2,765 | ||
Goodwill | 2 | 2 | ||||
Other receivables |
| 2,150 |
| 40 | ||
Equipment and leasehold improvements, net |
| 1,310 |
| 1,051 | ||
ROU Assets | 890 | 1,149 | ||||
Other |
| 1,952 |
| 1,147 | ||
Deferred income taxes | 26,798 | 13,346 | ||||
$ | 101,742 | $ | 86,777 | |||
Geographical Information
Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S.
The Company operates through a network of offices spread across 22 U.S. states, the District of Columbia, the Commonwealth of Puerto Rico, and Canada. Revenues from the Company’s Puerto Rican and Canadian operations were not material for fiscal years 2025, 2024, and 2023.
Customer Concentration
For fiscal years 2025, 2024, and 2023, the Company’s top 10 customers accounted for 50.7%, 51.3%, and 52.7%, respectively, of the Company’s consolidated contract revenue. For fiscal year 2025, the Company had individual customers that accounted for more than 10% of its consolidated contract revenue; for fiscal year 2025, the Company derived 23.2% of its consolidated contract revenue from two customers, Clark County School District and Southern California Edison. For fiscal years 2024 and 2023, the Company had no individual customers that accounted for more than 10% of its consolidated contract revenue.
On a segment basis, the Company also had individual customers that accounted for more than 10% of its segment contract revenues. For fiscal year 2025, the Company derived 27.4% of its Energy segment revenues from two customers, Clark County School District and Southern Edison, and had no individual customers accounted for more than 10% of its Engineering and Consulting segment revenues. For fiscal year 2024, the Company derived 10.7% of its Energy segment revenues from one customer, Southern California Edison, and had no individual customers accounted for more than 10% of its Engineering and Consulting segment revenues. For fiscal year 2023, the Company derived 22.7% of its Energy segment revenues from two customers, Los Angeles Department of Water and Power (“LADWP”) and the Dormitory Authority State of New York (“DASNY”), and had no individual customers accounted for more than 10% of its Engineering and Consulting segment revenues.
The Company’s largest clients are based in California, New York, and Nevada. In fiscal years 2025, 2024, and 2023, services provided to clients in California accounted for 43.5%, 43.9%, and 45.1%, respectively, of the Company’s consolidated contract revenue, services provided to clients in New York accounted for 19.0%, 23.6%, and 24.7%, respectively, of the Company’s consolidated contract revenue, and services provided to clients in Nevada accounted for 11.8%, 8.2%, and 0.3%, respectively, of the Company’s consolidated contract revenue.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 17, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 16, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.