NV5 Global’s first quarter results received a positive market reaction, as the company reported double-digit revenue growth driven by strong performance in its Infrastructure and Buildings & Technology segments. Management attributed this growth to robust investments in utility, transportation, and data center projects, highlighting the essential and often mandated nature of the services NV5 provides. CEO Ben Heraud emphasized the company’s focus on organic growth and operational efficiency, noting that recent acquisitions and successful cross-selling initiatives contributed to higher segment revenues. Heraud also pointed to the effectiveness of margin and cash flow improvement programs implemented during the quarter, which began to show results. Delays in the Geospatial segment were acknowledged, but management expects these to be temporary, citing integration efforts and federal contract timing as factors.
Is now the time to buy NVEE? Find out in our full research report (it’s free).
NV5 Global (NVEE) Q1 CY2025 Highlights:
- Revenue: $234 million vs analyst estimates of $228.6 million (10.1% year-on-year growth, 2.4% beat)
- Adjusted EPS: $0.17 vs analyst expectations of $0.19 (8.9% miss)
- Adjusted EBITDA: $29.74 million vs analyst estimates of $29.44 million (12.7% margin, 1% beat)
- The company reconfirmed its revenue guidance for the full year of $1.04 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $1.32 at the midpoint
- Operating Margin: 1.9%, in line with the same quarter last year
- Market Capitalization: $1.48 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions NV5 Global’s Q1 Earnings Call
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Chris Moore (CJS Securities) asked about the pace of recovery in the Geospatial segment and future growth expectations. CEO Dickerson Wright and CEO Ben Heraud responded that recent efficiency measures and improved backlog should drive better performance as the year progresses, with mandated services providing stability.
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Rob Brown (Lake Street) inquired about data center commissioning contracts and cross-selling opportunities from acquisitions. Heraud explained that typical contracts range from $1-2 million and that the company is leveraging new client relationships to expand into additional services like power delivery and fire protection.
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Andy Wittmann (Baird) questioned the achievability of management’s margin expansion targets and the timing of realized savings from efficiency programs. CFO Edward Codispoti detailed that cost reductions are ramping gradually, with the most significant impact expected in the second half of the year.
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Sam Kusswurm (William Blair) asked about potential impacts of tariffs on client projects and the fire hardening business. Wright and segment leaders noted minimal direct exposure to tariffs and indicated that fire hardening activity is building, but major contract awards are still pending.
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Andy Wittmann (Baird) followed up on the shift in organic growth guidance, to which Wright attributed increased backlog in infrastructure and technology businesses, as well as optimism around software-driven services.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of recovery and margin expansion in the Geospatial segment, (2) progress toward the $40 million cross-selling target across business lines, and (3) continued execution of margin improvement initiatives, especially as efficiency gains are expected to accelerate in the second half of the year. Additional attention will be paid to funding trends for infrastructure projects and the scaling of digital and SaaS offerings.
NV5 Global currently trades at $22.65, up from $18.40 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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