Willdan Group, Inc. has secured a $112 million energy savings performance contract with the City of San Diego that will cover 40 municipal facilities, decarbonize 23 of them, and upgrade 39,000 street‑light fixtures. The agreement includes electrification measures, battery energy storage, and HVAC and water system upgrades, positioning the city to meet its Zero Emissions Municipal Buildings and Operations Policy goals.
The deal fits squarely into Willdan’s strategy of capturing growth in the U.S. electricity demand cycle driven by AI data centers and broader electrification. By adding a long‑term, multi‑year revenue stream of this magnitude, the contract strengthens Willdan’s backlog and is expected to lift its 2026 revenue outlook, according to Wedbush analysts who noted the deal’s positive impact on the company’s financial trajectory.
City officials highlighted the project’s value to San Diego’s sustainability agenda. Municipal Energy Program Manager Lindsey Hawes said the projects are "strategically designed to pay for themselves over time, using the money we’ll save in energy and operational costs each month." The contract therefore supports the city’s climate goals while delivering measurable cost savings for residents.
Construction is slated to begin in summer 2026 and run for roughly two years, after which the city will benefit from reduced operating costs and a modernized infrastructure network. The long‑term nature of the agreement provides Willdan with a predictable revenue stream that complements its existing portfolio of public‑sector modernization projects.
Analysts view the contract as a significant win for Willdan, noting that the $112 million deal is a key milestone that reinforces the company’s position as a leading partner for large‑scale, performance‑based energy projects in major metropolitan markets.
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