• 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.

• Warning! GuruFocus has detected 6 Warning Signs with NVEE.

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.

Q: How might the Trump election win impact your business lines? A: Dickerson Wright, Executive Chairman: It's a mixed impact. While eased regulations could start projects faster, higher regulations also drive business. Each segment head provided insights, indicating continued demand in infrastructure and bipartisan support for geospatial work.

Q: Are there any green shoots in real estate transactions given the easing of rates? A: Alexander Hockman, Co-CEO: We anticipate growth in real estate transactions as rates decrease, with strong results from our real estate transactional groups.

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