NV5 Global (NVEE) 7 Nov 24 2024 Q3 Earnings call transcript

In the latest earnings call, NV5 Inc., a leading provider of professional and technical services, shared its financial results for the third quarter of 2024. The company reported a strong performance, with significant organic growth and strategic acquisitions contributing to its success.

Record Performance and Organic Growth

NV5's third-quarter results highlighted a remarkable achievement in organic growth. The company reported a 6% increase in gross revenues, reaching a record $250.9 million. This growth was attributed to strong demand across its three main segments: Infrastructure, Geospatial, and Building and Technology Services. Notably, the company's gross profit increased by 13%, reaching $129.5 million, and its net income saw a 31% increase, amounting to $17.1 million.

Cross-selling and Integrated Service Offerings

NV5's strategy of cross-selling and integrated service offerings has proven to be a competitive advantage. This was evident in the Geospatial segment, where the company's expertise in data capture and analytics has led to significant growth. In the Infrastructure segment, the cross-selling of services between engineering, transportation, and utility verticals has contributed to increased demand and backlog, bolstering NV5's confidence in achieving its revenue goal of $1 billion by the end of the year.

Strategic Acquisitions and Expansion

NV5's strategic acquisitions have been instrumental in driving growth and expanding its service offerings. The acquisition of the California Water Resources Group and myBIMteam, a subscription-based building digitization service provider, are expected to strengthen NV5's water resources services and building digitization capabilities, respectively. These acquisitions will not only create a higher barrier of entry for competitors but also provide synergies with NV5's existing services.

Looking Forward: A Bright Outlook

The company's outlook for the future remains positive, with a focus on expanding its service offerings and staying nimble to support future growth. With a robust backlog of $914 million, NV5 is confident in its ability to achieve its revenue goals and is budgeting for gross revenue approaching $1 billion in 2025. The company's conservative approach to guidance, coupled with its strategic acquisitions and organic growth, positions it well for continued success in the coming years.

Conclusion

NV5's strong third-quarter performance and strategic initiatives underscore its commitment to delivering value to its clients and investors. With a focus on organic growth, strategic acquisitions, and innovative service offerings, NV5 is well-positioned to capitalize on opportunities in its target markets and maintain its competitive edge. The company's optimistic outlook for 2025, coupled with its robust backlog and strategic acquisitions, bodes well for its future growth and success.