- **Topline Growth**: Q1 2025 gross revenues up 10% YoY to $234M, driven by 17% Buildings & Tech and 12% Infrastructure growth.
- **Margin Expansion**: 150bps EBITDA margin target on track via indirect labor cuts, office consolidations, and AI automation.
- **Cash Flow Strength**: 129% free cash flow conversion in Q1, $53M cash to fuel growth and $20M buyback.
- **Strategic Acquisitions**: 3 Q1 deals adding $10M+ TTM revenue, with 12-month accretion.
- **Geopolitical Resilience**: <1% federal revenue exposure, 11% Geospatial software growth via SaaS migration.


**【CEO Opening Remarks】**
- Q1 2025 gross revenues reached $234 million, up 10% YoY, driven by 12% growth in Infrastructure and 17% in Buildings & Technology segments.
- Cross-selling initiatives targeting $40 million in incremental revenue over 12 months, with early success in data center commissioning and fire protection services.
- Margin improvement initiatives include indirect labor reductions, office consolidations, and AI-driven proposal automation, expected to deliver 150bps EBITDA margin expansion by year-end.

**【CFO Financial Highlights】**
- Adjusted EBITDA of $29.7 million (+8% YoY), with adjusted EPS of $0.17 (+13% YoY).
- Free cash flow conversion of 129% in Q1, on track for 60% target for full year.
- Net leverage reduced to 1.3x, with $53 million in cash to support growth and M&A.

**【Segment Updates】**
- **Infrastructure**: 12% YoY growth, driven by Northeast/Southeast utility and transportation projects. 2025 backlog reflects strong state/federal funding (e.g., gas taxes, federal defense contracts).
- **Buildings & Tech**: 17% YoY growth, with data centers now 15% of segment revenue. Tariff mitigation strategies include digital twin solutions to reduce material waste.
- **Geospatial**: 11% YoY software revenue growth, SaaS migration driving margins. Federal delays minimal (1 contract cancellation), with focus shifting to utility vegetation management and coastal infrastructure.

**【Acquisition Activity】**
- Q1 2025: 3 acquisitions ($10M+ TTM revenue) adding hyperscale data center commissioning, land surveying, and power delivery expertise. All accretive within 12 months.

**【Q&A Key Takeaways】**
- **Geospatial Federal Risk**: <1% of revenue, insulated by defense contracts. 2025 outlook for federal work flat, with private utility growth offsetting.
- **Tariff Impact**: Minimal direct exposure; digital twin solutions helping clients reduce material costs by 10-15%.
- **Margin Expansion Timing**: Q2/Q3 implementation phase, full impact in H2 2025. Software restructuring already delivering $1M+ annual savings.
- **Buyback Update**: $20M authorized, execution contingent on M&A pipeline and stock price.


NV5 Global (NVEE)-1 May 25-2025 Q1 Earnings call transcript

- **2024 Record Performance**: $941M revenue (+10%), $143.5M Adjusted EBITDA (+7%), 51.3% gross margin. Achieved $1B+ revenue entering 2025.
- **2028 Vision**: $1.6B revenue target by 2028, driven by mid-single-digit organic growth and TIC acquisitions.
- **2025 Guidance**: $1.026B-$1.045B revenue, $1.27-$1.37 Adjusted EPS. Backlog $904M (88% of guidance range).
- **Margin Expansion**: Target 150bps EBITDA improvement via utilization, cost-cutting, and contract renegotiation.
- **Geospatial Growth**: 10-11% organic growth, $69M Q4 revenue, 38%+ utility bookings beat.
- **Data Center Expansion**: 25%+ organic growth, new contracts in Thailand, Indonesia, Middle East.
- **AI & Innovation**: Army Corps LLM contracts, NOAA coastal resilience AI models, LiDAR crisis response in California.


**【Executive Chairman Dickerson Wright - 2024 Performance & 2028 Vision】**
- **Record 2024 Results**: Full-year revenue $941M (+10% YoY), Adjusted EBITDA $143.5M (+7%), Gross Margin 51.3% (vs 49.7% in 2023). Achieved $1B+ revenue entering 2025.
- **2028 Growth Target**: $1.6B revenue by end-2028, driven by mid-high-single-digit organic growth and strategic acquisitions. Focus on high-margin TIC (Testing, Inspection, Certification) services.
- **2025 Guidance**: Revenue $1.026B-$1.045B, Adjusted EPS $1.27-$1.37, GAAP EPS $0.52-$0.62. Backlog at $904M (88% of 2025 guidance range).

**【CEO Ben Heraud - Operational Highlights】**
- **Backlog Strength**: Entering 2025 with $904M backlog (+8% YoY), 80%+ of 2025 guidance covered.
- **Organic Growth Drivers**: Utility undergrounding, data center design/commissioning, clean energy projects. Q4 2024 Geospatial revenue $69M (50% from federal gov).
- **M&A Strategy**: 2024 acquisitions added $17M+ to 2025 revenue. Focus on tech-enabled TIC companies (e.g., Global Fire Protection Group, Group Delta).
- **Cross-Selling Success**: Recent acquisition generated $1M+ cross-sell within first month.

**【CFO Edward Codispoti - Financial Performance & 2025 Initiatives】**
- **Q4 2024 Results**: Revenue $246.5M (+15% YoY), Adjusted EBITDA $36.3M, Adjusted EPS $0.28 (flat YoY due one-time items).
- **2025 Margin Expansion Plan**: Target 150bps EBITDA margin improvement via:
  - Utilization optimization (direct labor efficiency)
  - Administrative cost reduction (IT, G&A)
  - Lease consolidation
- **Cash Flow Optimization**: 2024 Free Cash Flow Conversion 40%; targeting 60% in 2025 via contract renegotiation and billing cadence improvements.
- **Balance Sheet**: Net leverage 1.4x, weighted average interest rate 6.5% (trending down to 5.8% as of year-end).

**【Geospatial President Kurt Allen - Segment Update】**
- **Q4 2024 Performance**: Revenue $69M, 50% from federal gov, 31% from utilities. 2024 utility bookings exceeded budget by 38%.
- **AI Integration**: Army Corps of Engineers contract using LLMs for dredge data analysis. NOAA coastal resilience projects using deep learning models.
- **International Expansion**: New Zealand Topobathymetric LiDAR award, Thailand/S. Korea data center expansion.
- **Crisis Response**: Post-LA wildfires, provided LiDAR data for mudslide risk modeling and coastal resilience planning.

**【Q&A Key Themes】**
1. **Margin Expansion Feasibility**: 150bps EBITDA target achievable via utilization (direct labor efficiency) and cost-cutting (IT, G&A). 2025 backlog at 88% of guidance gives confidence.
2. **Geospatial Growth**: 10-11% organic growth target, driven by federal contracts and utility demand. ENVI software cloud migration doubling SaaS revenue.
3. **Data Center Demand**: 25%+ organic growth in design/commissioning, expanding into Thailand, Indonesia, Middle East. Fire protection services cross-sold into data centers.
4. **Inflation Impact**: LNG contracts transitioning from fixed to T&M pricing. Administrative cost inflation (e.g., salaries) partially offset by utilization gains.
5. **Cash Flow Challenges**: Unbilled receivables up due to gov contract milestones. 2025 focus on renegotiating contracts for earlier billing cadence.


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