Driven by AI-electricity load growth and demand for data centers, Willdan Group, which provides civil engineering and building services for government agencies, has soared more than 30% in stock market trade since reporting better-than-expected second-quarter earnings and revenue last week.
Willdan Group late on Thursday reported Q2 earnings growing 172% to $1.50 per share with sales totaling $95 million, up 31% vs. a year ago. Prior to the announcement, analysts expected Q2 EPS of 70 cents and revenue coming in at $75.6 million, according to FactSet.
The company also hoisted its 2025 adjusted EPS outlook to $3.50-$3.65, far above its previous $2.75-$2.90 view from May. Analyst consensus currently pegs full-year earnings at $3.61 per share, according to FactSet.
Willdan executives said its results and the jump in outlook were due to new contract wins. "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," the company said in its earnings release.
The company's work for commercial customers is mostly "centered around electricity usage at data centers, where AI-driven load growth is creating significant demand."
Best IBD 50 Stocks To Watch
Willdan Group CEO Michael Bieber said on the Aug. 7 Q2 conference call that with electricity load growth "expected to increase over the next decade, driven by data centers and electrification," Willdan was well positioned to "sustain long-term growth."
Bieber explained to analysts on the call that hyperscalers and their partners hire Willdan to identify sites for data centers and that Willdan also provides consulting, engineering and project management to supply electricity to the data centers in the long term.
"After a data center is built, Willdan provides energy optimization inside the data center as we've done for many years," Bieber said.
Trump Makes AI Data Centers Top Priority
President Donald Trump has made data center buildout and U.S. AI ambitions a key part of his policy. Last month, Trump joined several Big Tech players in Pittsburgh, Pennsylvania to tout major data center investment in the state.
Specialized data centers "train" AI learning models and allow those models to generate conclusions from new data. The sorts of computers needed to enable the generative process have much greater power needs than that of traditional data centers handling internet and cloud computing tasks.
On Friday, WLDN shares soared 27.5% as investors responded positively to the Q2 results and outlook for the company. At Wednesday's stock market close, Willdan stock edged own 0.25% to 118.33. The stock has advanced about 33% since second-quarter earnings and is up around 211% in 2025, on the back of four consecutive monthly advances dating back to April.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Investors should exercise caution. Willdan's sudden stock price acceleration could be read as part of a "climax run," where a winning stock starts to blow itself out, according to IBD stock market principles.
The stock's Aug, 8 surge could be considered an exhaustion gap. Such moves occurs at the end of a long price move when the low of the day is above the high of the previous trading day, creating a gap in the chart's price action, shown on MarketSurge charts.
Willdan is also well into a profit-taking zone after rallying 136% from a late-May breakout. Combined, the signals suggest investors take some profit to protect profits gained in the advance.
On Friday, Clear Street analyst Tim Moore raised the firm's price target on Willdan Group to 88 — 25% below where shares traded on Wednesday. The analyst did, however, keep a buy rating on the shares. Moore called the Q2 results "another highly impressive sales and EPS beat" and noted that Willdan's guidance raise indicates strong execution and "firepower for highly accretive acquisitions."
Willdan Stock Trend
Meanwhile, Everus Construction Group, also a member stock of the IBD-tracked Building-Heavy Construction industry group along with WLDN, moved 4.4% higher to 79.15 at Wednesday's stock market close, adding to a 7% advance on Tuesday.
Everus stock rebounded from its 21-day exponential moving average on Tuesday, moving past a buy point.
The IBD Chart Tool: MarketSurge
The long-term data center play Willdan has a 21-day average true range of 5.62%. Everus shows an ATR of 4%.
The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Willdan stock has perfect 99 Composite Rating out of a best-possible 99. The data centers play also has a robust 99 Relative Strength Rating and a strong 95 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get Full Access To IBD Stock Lists And Ratings
Why This IBD Tool Simplifies The Search For Top Stocks
IBD Digital: Unlock IBD's Premium Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets
Is Rally Rotating? Cisco Falls Late; This Cathie Wood, Nancy Pelosi Pick Is A Buy
