NV5 Global Inc (NVEE) Q3 2024 Earnings Call Highlights: Strong Growth Amidst Market Challenges

In This Article:

  • Revenue: $250.9 million, a 6% increase from the prior year.

  • Gross Profit: $129.5 million, up 13% from the previous year.

  • Gross Margin: Expanded by 350 basis points to 51.6%.

  • Net Income: $17.1 million, a 31% increase year-over-year.

  • GAAP Diluted EPS: $0.27, a 29% increase from the prior year.

  • Adjusted EBITDA: $44.5 million, with a margin expansion of 230 basis points to 17.7%.

  • Adjusted EPS: $0.44, a 22% increase from the previous year.

  • Cash Flow from Operations: $48.9 million, a 145% increase year-over-year.

  • Net Leverage: 1.3x.

  • Backlog: $914 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • NV5 Global Inc (NASDAQ:NVEE) reported a 6% organic growth in the third quarter of 2024 compared to the same period in 2023.

  • The company achieved a 13% increase in gross profit and a 31% rise in net income year-over-year.

  • Adjusted EBITDA increased by 21%, with an 18% adjusted EBITDA margin for the quarter.

  • NV5 Global Inc (NASDAQ:NVEE) has a strong backlog of $914 million, supporting its goal of reaching a $1 billion revenue run rate by the end of the year.

  • The company is experiencing strong demand and growth in its geospatial and international business segments, which are more stable and subscription-based.

Negative Points

  • Interest rates have impacted the number of larger CapEx projects, affecting parts of NV5 Global Inc (NASDAQ:NVEE)'s MEP business.

  • The company had to revise its financial guidance due to adjustments related to a single customer from a previous acquisition.

  • There are concerns about potential weather-related delays affecting the fourth quarter performance.

  • NV5 Global Inc (NASDAQ:NVEE) faces challenges in the commercial space, with some life sciences clients slowing down major projects.

  • The company is cautious about the political environment and its potential impact on regulatory and non-regulatory business activities.

Q & A Highlights

Q: Can you provide more details on the revised financials and when the 10-Q will be filed? A: Edward Codispoti, CFO: The revision is related to a single customer at Axim, acquired last year. The impact is not material, and the 10-Q should be filed by Tuesday of next week.

Q: Has the mix changed much in terms of the three segments? A: Dickerson Wright, Executive Chairman: All segments are growing organically, with higher growth in our international and geospatial businesses, which are more stable and subscription-based.

Q: Can you discuss the opportunities in data center commissioning projects? A: Ben Heraud, Co-CEO: We have expanded to four major players in the US and are leveraging international relationships. We surpassed a gigawatt of data center load assessed this year, indicating strong growth.

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