Willdan

To engineer a sustainable future by being the leading provider of data-driven solutions for the energy transition.

Willdan SWOT Analysis

Updated: October 6, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Willdan was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Willdan SWOT Analysis reveals a company at a critical inflection point. Its formidable strengths—entrenched utility relationships and deep domain expertise—position it perfectly to capitalize on the generational opportunities presented by the Inflation Reduction Act and the broader energy transition. However, this potential is constrained by internal weaknesses, namely margin pressure and a service-heavy model that limits scalability. The primary strategic imperative is to leverage its trusted advisor status to capture massive new funding streams while aggressively scaling its proprietary software offerings. This dual focus will be essential to improve profitability, diversify revenue, and fend off both large incumbents and agile tech startups. Successfully navigating this path will define Willdan's market leadership for the next decade.

ICF International Tetra Tech Jacobs Engineering Group AECOM TRC Companies

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To engineer a sustainable future by being the leading provider of data-driven solutions for the energy transition.

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Strengths

RELATIONSHIPS: Deep, multi-year contracts with top US utility companies.
BACKLOG: Strong and growing backlog provides revenue visibility ($300M+).
EXPERTISE: Niche technical expertise in energy efficiency & grid design.
GROWTH: Consistent double-digit revenue growth in the core Energy segment.
LEADERSHIP: New, focused CEO from the successful Energy division.

Weaknesses

MARGINS: Gross margins (~30%) trail pure-play software/tech competitors.
INTEGRATION: Difficulty fully integrating past acquisitions to drive synergy.
CONCENTRATION: High revenue concentration with a few key utility clients.
SCALABILITY: Service-heavy model is less scalable than a software model.
DEBT: Balance sheet leverage can constrain investment and M&A flexibility.

Opportunities

FUNDING: Unprecedented federal funding (IRA) for clean energy projects.
DECARBONIZATION: Strong tailwinds from state & corporate climate goals.
ELECTRIFICATION: Massive market growth in building and transportation EV.
GRID RESILIENCE: Increased need for grid hardening due to extreme weather.
SOFTWARE: Cross-sell proprietary analytics software to existing clients.

Threats

COMPETITION: Intense rivalry from larger firms (AECOM) and tech startups.
POLITICAL: Changes in administration could reduce or delay federal funding.
INTEREST RATES: Higher rates increase project costs and can delay decisions.
TALENT: Fierce competition for specialized engineers and data scientists.
RECESSION: Economic downturn could slow municipal and commercial projects.

Key Priorities

FUNDING: Prioritize capturing a large share of IRA/IIJA-funded projects.
SOFTWARE: Accelerate the integration and sale of high-margin software.
PROFITABILITY: Improve project execution to expand gross and net margins.
DIVERSIFICATION: Expand service offerings to reduce client concentration.

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Willdan OKR

Updated: October 6, 2025 • 2025-Q4 Analysis

This Willdan OKR plan is a masterclass in focused execution. It directly translates the SWOT's strategic imperatives into a clear, actionable roadmap. The objectives—CAPTURE FUNDING, SCALE SOFTWARE, BOOST MARGINS, and WIN BIG—are not generic corporate goals; they are a direct assault on the company's biggest opportunities and weaknesses. The key results are sharp, measurable, and ambitious, effectively linking high-level strategy to tangible operational outcomes like software attach rates and project margins. This plan provides the clarity and alignment needed to harness the massive energy transition tailwinds, transforming Willdan from a successful services firm into a scalable, high-margin industry leader. It's a blueprint for durable, profitable growth.

ICF International Tetra Tech Jacobs Engineering Group AECOM TRC Companies

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To engineer a sustainable future by being the leading provider of data-driven solutions for the energy transition.

CAPTURE FUNDING

Become the #1 partner for IRA & IIJA-funded projects.

PIPELINE: Increase the qualified pipeline of federally-funded projects from $500M to $1.5B by year-end.
WINS: Secure $250M in new contracts that are directly attributable to IRA or IIJA funding initiatives.
PARTNERSHIPS: Establish formal go-to-market partnerships with 3 key hardware vendors in the EV/grid space.
EXPERTISE: Certify 100% of our program managers as in-house experts on federal funding requirements.

SCALE SOFTWARE

Embed our software into every client relationship.

ATTACH: Increase the attach rate of software subscriptions on new service contracts from 15% to 40%.
ARR: Grow standalone software and analytics Annual Recurring Revenue (ARR) from $10M to $25M.
AUTOMATE: Launch an AI module that reduces manual energy audit reporting time from 40 to 4 hours.
INTEGRATION: Ship 3 new major product integrations that connect our software to key utility platforms.

BOOST MARGINS

Drive profitability through operational excellence.

GROSS MARGIN: Increase consolidated gross margin from 30% to a sustained 35% through project discipline.
UTILIZATION: Improve billable employee utilization rate from 75% to 82% via new resource management tools.
PROCUREMENT: Realize $5M in cost savings by centralizing subcontractor procurement and negotiation.
CHANGE ORDERS: Reduce unbilled project scope by 50% through tighter change order management processes.

WIN BIG

Diversify by winning larger, more integrated deals.

MEGA-DEALS: Win 3 new contracts each valued at over $25M, including one outside our top 3 clients.
PRIVATE SECTOR: Increase revenue from non-utility, private sector clients from 10% to 20% of total.
NEW LOGOS: Land 10 new enterprise logos in strategic growth areas like data centers or industrial fleets.
BUNDLING: Launch 3 new bundled service offerings that combine our Energy, Civil, and Software expertise.

METRICS

Net Service Revenue Growth: 15% YoY
Adjusted EBITDA Margin: 12%
Backlog Growth: 20% YoY

VALUES

People First
Unwavering Integrity
Relentless Innovation
Commitment to Excellence

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Willdan Retrospective

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Claude

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Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

ICF International Tetra Tech Jacobs Engineering Group AECOM TRC Companies

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To engineer a sustainable future by being the leading provider of data-driven solutions for the energy transition.

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What Went Well

ENERGY: Continued strong organic revenue growth in the core Energy segment.
FUNDING: CEO highlighted a robust pipeline of projects tied to federal funds.
BACKLOG: Record or near-record backlog provides strong future visibility.
CASH FLOW: Improved operating cash flow compared to the prior year period.
CONTRACTS: Secured key contract extensions and expansions with major utilities.

Not So Well

MARGINS: Gross margin percentage compressed slightly due to project mix.
NET INCOME: Net income remains low, showing pressure on overall profitability.
INTEREST: Higher interest expense continues to be a drag on earnings.
CIVIL: The Civil segment showed flat or modest growth, lagging Energy.
GUIDANCE: Forward-looking guidance may have been conservative, citing risks.

Learnings

MIX: Project mix has a significant and immediate impact on gross margins.
EXECUTION: Operational efficiency is the primary lever for bottom-line growth.
SOFTWARE: High-margin software revenue is not yet large enough to lift margins.
FUNDING LAG: There's a lag between federal funding announcements and revenue.
LEVERAGE: Financial leverage is sensitive to the interest rate environment.

Action Items

PRICING: Review bidding process to better price for risk and margin.
EFFICIENCY: Implement new project management tools to improve utilization.
CROSS-SELL: Create specific incentives for selling software on service deals.
PIPELINE: Prioritize converting high-margin, IRA-funded projects in backlog.
DEBT: Evaluate options for refinancing or paying down high-cost debt.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Willdan Market

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Claude

Gemini

GPT

Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

Founded: 1964
Market Share: Niche leader in specific utility programs; low single-digit % of broader market.
Customer Base: Investor-owned utilities, municipalities, state & federal agencies.
Category:
Engineering Services
SIC Code: 8711 Engineering Services
NAICS Code: 541330 Engineering Services
Location: Anaheim, CA
Zip Code: 92805
Congressional District: CA-46 ANAHEIM
Employees: 1600

Competitors

ICF International View Analysis

Tetra Tech View Analysis

Jacobs Engineering Group Request Analysis

AECOM View Analysis

TRC Companies Request Analysis

Products & Services

No products or services data available

Distribution Channels

Willdan Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

Problem

Aging and inefficient energy infrastructure.
Pressure to meet decarbonization mandates.
Complexity of managing distributed energy.
Need for reliable, resilient power grids.

Solution

Turnkey energy efficiency program management.
Engineering services for grid modernization.
Data analytics and software for insights.
Strategic consulting on energy policy.

Key Metrics

Net Service Revenue Growth
Gross Margin Percentage
Backlog Growth
Operating Cash Flow

Unique

Integration of software and expert services.
Deep regulatory knowledge in key states.
Long-term, embedded utility relationships.
Proprietary data from thousands of projects.

Advantage

High client switching costs due to trust.
Unique dataset for benchmarking/analytics.
Master Service Agreements (MSAs) in place.
Decades of specialized engineering focus.

Channels

Direct sales and account management teams.
Public procurement portals (RFPs/RFQs).
Industry conferences and trade shows.
Strategic partnerships.

Customer Segments

Investor-Owned Utilities (IOUs)
Municipal Governments and Agencies
State and Federal Government Entities
Large Commercial & Industrial companies.

Costs

Employee salaries and benefits (largest).
Subcontractor expenses.
Software development and R&D.
Sales, General & Administrative (SG&A).

Willdan Product Market Fit Analysis

Updated: October 6, 2025

Willdan helps utilities and cities achieve their ambitious decarbonization goals. It combines deep engineering expertise with proprietary software to modernize infrastructure, enhance grid reliability, and deliver data-driven energy efficiency. This integrated approach ensures clients build a more sustainable and cost-effective future, turning complex energy transition challenges into manageable, successful outcomes.

Achieve ambitious decarbonization targets.

Modernize infrastructure for a reliable future.

Leverage data to reduce costs and improve performance.

Before State

Inefficient energy use, high carbon footprint
Aging, unreliable grid infrastructure
Complex, slow manual data analysis for energy

After State

Optimized, efficient energy consumption
A modern, resilient, and intelligent grid
Automated, data-driven sustainability insights

Negative Impacts

High operational costs and wasted energy
Power outages and grid instability risks
Missed decarbonization goals and opportunities

Positive Outcomes

Reduced energy costs and GHG emissions
Increased grid reliability and capacity
Accelerated progress toward climate goals

Key Metrics

Customer Retention Rates

90%+ for key utility clients

Net Promoter Score (NPS)

Estimated 40-50 (B2B services average)

User Growth Rate

N/A for services; focused on contract value growth.

Customer Feedback/Reviews

Primarily through direct feedback and contract renewals.

Repeat Purchase Rates

High, driven by multi-year master service agreements.

Requirements

Deep engineering and regulatory expertise
Powerful data analytics and software tools
Trusted program management and execution

Why Willdan

Deploying expert teams for design & implementation
Integrating proprietary software for analysis
Managing complex projects from start to finish

Willdan Competitive Advantage

Holistic approach combining software and services
Decades of data to inform better solutions
Incumbent status with major utility players

Proof Points

Multi-billion dollar programs managed for top utilities
Documented TWh savings for clients
Long-term, multi-year contract renewals

Willdan Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

Strategic pillars derived from our vision-focused SWOT analysis

Lead in electrification and energy efficiency projects.

Deliver resilient, intelligent utility infrastructure.

Scale proprietary software to enhance services.

Pursue integrated projects and targeted acquisitions.

What You Do

Data-driven engineering and software for energy, sustainability, and infra.

Target Market

Utilities, governments, and commercial clients leading the energy transition.

Differentiation

End-to-end service and software integration.
Deep, long-term relationships with major US utilities.
Specialized expertise in complex regulatory environments.

Revenue Streams

Fee-for-service consulting contracts
Software-as-a-Service (SaaS) subscriptions
Program management fees

Willdan Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

Company Operations

Organizational Structure: Segmented by Energy, Civil, and Software and Resources divisions.
Supply Chain: Primarily human capital; key suppliers are specialty subcontractors.
Tech Patents: Proprietary software and analytics methodologies (trade secrets).
Website: https://www.willdan.com/

Top Clients

Board Members

Willdan Competitive Forces

Threat of New Entry

MODERATE: While new consulting firms can start, building the trust, reputation, and MSA contracts with large utilities takes years, creating a barrier.

Supplier Power

MODERATE: Key suppliers are specialized engineers and data scientists. The war for this talent gives them significant wage-setting power.

Buyer Power

HIGH: A few large utility and government clients make up a large portion of revenue, giving them significant negotiating leverage on price and terms.

Threat of Substitution

LOW: The complex, integrated nature of engineering, program management, and regulatory consulting is difficult to substitute with a single product.

Competitive Rivalry

HIGH: Fragmented market with large public firms (Jacobs, AECOM), specialized private consultants, and emerging tech startups all competing.

Analysis of AI Strategy

Updated: October 6, 2025 • 2025-Q4 Analysis

The Willdan AI SWOT Analysis underscores a significant, latent opportunity. The company's unique and extensive proprietary dataset is a powerful, unrefined asset—a moat that agile competitors lack. The immediate path to value is not moonshot AI research, but the pragmatic application of AI to automate core processes like energy audits and proposal generation. This will directly address the company's primary weakness: margin pressure. By integrating AI-driven efficiencies and predictive insights into its existing software and service offerings, Willdan can deliver more value, improve profitability, and create stickier client relationships. The strategy should be one of focused execution—turning its data advantage into a tangible financial and competitive edge before rivals can build comparable AI tools from scratch.

ICF International Tetra Tech Jacobs Engineering Group AECOM TRC Companies

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To engineer a sustainable future by being the leading provider of data-driven solutions for the energy transition.

Strengths

DATA: Possesses decades of proprietary energy project and performance data.
EXPERTISE: In-house engineers can validate and refine AI model outputs.
ACCESS: Direct access to client problems ideal for targeted AI solutions.
VALIDATION: Can deploy and test AI tools in real-world client projects.

Weaknesses

TALENT: Limited bench of dedicated AI/ML engineers and data scientists.
SYSTEMS: Legacy data infrastructure is fragmented and not AI-optimized.
CULTURE: Engineering culture may be slow to adopt AI-driven workflows.
INVESTMENT: Lack of significant, dedicated R&D budget for foundational AI.

Opportunities

AUTOMATION: Use AI to automate energy audits and reporting by up to 80%.
OPTIMIZATION: AI models to optimize grid load and DER management for clients.
BIDDING: Develop AI tools to more accurately price and bid on complex RFPs.
DESIGN: Generative AI for creating initial engineering plans and schematics.
PREDICTION: AI for predictive maintenance recommendations on client assets.

Threats

COMPETITION: Tech-native startups may build superior AI-driven platforms.
DISRUPTION: AI could commoditize traditional engineering analysis tasks.
SECURITY: AI models and data are high-value targets for cyberattacks.
ADOPTION: Clients may be hesitant to trust and adopt AI-based solutions.
BIAS: Risk of biased AI models leading to inequitable energy programs.

Key Priorities

AUTOMATE: Focus AI development on automating core, repetitive workflows.
INTEGRATE: Embed AI-powered analytics into existing software platforms.
PARTNER: Collaborate with AI firms to accelerate development and talent.
DATA GOVERNANCE: Establish a unified data strategy to fuel future AI.

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Willdan Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Willdan Q3 2024 Earnings Call Transcript
Willdan 2023 10-K SEC Filing
Willdan Investor Relations Website & Presentations
Industry reports on Energy Transition and IRA funding
Analysis from financial news sources (e.g., Seeking Alpha, Yahoo Finance)

Profit: FY2023 Net Income: $0.8 million

Market Cap: ~$350 million (as of late 2024)

Stock Performance

Annual Report: Available on Willdan's investor relations website and SEC EDGAR.

Debt: Approximately $70 million in total debt.

ROI Impact: Project margins and software scalability are key ROI drivers.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Willdan scores as a Market Leader due to its strong alignment with the societal-level energy transition (high Ambition). Its Achievability is solid, bolstered by massive market opportunities (IRA). However, the overall Iconic Index is moderated by significant competitive threats and internal margin pressures, reflected in a modest SWOT Factors score. The OKRs are strong and category-shaping but not yet world-shaping. The path to a higher tier requires successfully scaling its software to break free from linear services growth.

SWOT Factors

Upside: 83.3 Risk: 76.7

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively scale high-margin software to improve valuation.

Systematically capture IRA funding to accelerate top-line growth.

Leverage proprietary data to build a defensible AI moat.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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