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Dec 28, 2024
NV5 Q4 2024 Earnings Report
NV5 Global, Inc. reported its financial results for the fourth quarter and full year ended December 28, 2024, showing strong growth in gross revenues and gross profit.
Key Takeaways
NV5 Global, Inc. delivered a strong performance in Q4 2024, with gross revenues increasing by 15% to $246.5 million and gross profit increasing by 13% to $122.2 million. Despite higher acquisition-related costs and amortization expenses, the company maintained consistent Adjusted EBITDA margins.
Gross revenues increased by 15% to $246.5 million in Q4 2024 compared to Q4 2023.
Gross profit rose by 13% to $122.2 million in Q4 2024.
Net income for Q4 2024 was $5.4 million, down from $10.1 million in Q4 2023 due to increased acquisition-related costs and amortization.
Adjusted EBITDA remained consistent at $36.3 million in Q4 2024, with an Adjusted EBITDA Margin of 14.7%.
NV5
NV5
Forward Guidance
NV5 Global, Inc. issued guidance for fiscal year 2025, projecting gross revenues between $1.026 billion and $1.045 billion, GAAP EPS between $0.52 and $0.62 per share, and Adjusted EPS between $1.27 and $1.37 per share.
Positive Outlook
- Projected gross revenues for FY 2025 indicate continued growth.
- Anticipated increase in GAAP EPS for FY 2025.
- Expected increase in Adjusted EPS for FY 2025.
- Robust backlog and tailwinds in target sectors are expected to drive growth.
- Strategic focus on mandated, non-discretionary testing, inspection, and certification (TIC) and engineering services mitigates economic cycle impacts.
Challenges Ahead
- GAAP EPS guidance for FY 2025 is lower than Adjusted EPS, indicating ongoing non-GAAP adjustments.
- Acquisition-related costs and amortization expenses may continue to impact net income.
- Interest expense may remain a factor due to higher debt balances.
- The company's acquisition strategy, while beneficial, introduces integration risks.
- Economic conditions, nationally and globally, could still affect demand for services.