Willdan Group, Inc.

The ASU 2025-09 amendments are intended to simplify the application of hedge accounting and to more closely align hedge accounting with the economics of an entity's risk management activities in the following five areas: (1) similar risk assessment for cash flow hedges, (2) hedging forecasted interest payments on choose-your-rate debt instruments, (3) cash flow hedges of nonfinancial forecasted transactions, (4) net written options as hedging instruments, and (5) foreign-currency-denominated debt instrument as hedging instrument and hedged item (dual hedge).

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

DERIVATIVE FINANCIAL INSTRUMENTS The Company uses certain interest rate derivative contracts to hedge interest rate exposures on its variable rate debt.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

On November 30, 2023 , the Company entered into an interest rate swap agreement that the Company designated as cash flow hedge to fix the variable interest rate on a portion of the Company s Term Loan (see Note 6, Debt Obligations for information regarding our indebtedness).

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

As most of the Company s leases do not provide an implicit rate to calculate present value, the Company determines this rate by estimating the Company s incremental borrowing rate at the lease commencement date.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

These results reflect a combination of consistent execution in our core programs, new contract wins, and successful strategic acquisitions.

SEC original ↗Willdan Group, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

For example, all statements we make relating to our plans and objectives for future operations, growth or initiatives and strategies are forward-looking statements.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

The interfaces and synergies between these segments are important elements of the Company s strategy to design and deliver trusted, comprehensive, innovative, and proven solutions for its customers.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC s Disclosure Update and Simplification Initiative ( ASU 2023-06 ).

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues.

SEC original ↗Willdan Group, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA.

SEC original ↗Willdan Group, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively.

SEC original ↗Willdan Group, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Legal Proceedings 53 Item 1A.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

These statements concern our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition, which are subject to risks and uncertainties.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026

All of our forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from our expectations.

SEC original ↗Willdan Group, Inc. — 10-Q Quarterly report10-QAug 7, 2026