NV5 Global's Q4 2024: Contradictions Unveiled on Geospatial Growth, Acquisitions, and Cloud Migration

These are the key contradictions discussed in NV5 Global's latest 2024Q4 earnings call, specifically including: Geospatial Segment Growth Expectations, Acquisitions Impact, Geospatial Organic Growth Expectations, and Geospatial Software Cloud Migration Status:



Revenue and Earnings Growth:
- NV5 Global reported revenues of $941 million for 2024, up 10% from the previous year.
- Adjusted EBITDA increased by 7% to $143 million.
- Growth was driven by strong performance in utilities, data centers, and infrastructure support services.

Organic Growth and Backlog:
- NV5 experienced over 100% organic growth in 2024, contributing to 6% of revenues.
- The company began 2025 with a rolling 12-month backlog of $904 million, up 8% from the previous year.
- The increased backlog reflects strong demand in key sectors like utilities, data centers, and digital transformation.

Mergers & Acquisitions and Margin Expansion:
- NV5 plans to expand EBITDA margins by a targeted 150 basis points in 2025.
- The margin expansion is expected through initiatives like improving utilization, reducing administrative costs, and consolidating lease space.
- This is supported by strategic acquisitions focused on tech-enabled TIC services to strengthen the TIC platform and recurring revenue streams.

Geospatial Segment Performance:
- The Geospatial segment generated $69 million in revenue in Q4 2024, with 50% from federal contracts and 31% from utilities.
- The segment is expected to contribute significantly to NV5's growth with margin expansion efforts and niche capabilities in international markets.