NV5 Global (NVEE) Q2 2024 earnings summary

Executive summary

• Q2 2024 gross revenues rose 6.1% year-over-year to $236.3M, with strong organic and acquisition-driven growth across all segments, though net income declined to $7.9M due to higher operating and interest expenses and non-recurring acquisition costs.

• Backlog increased to $877M, up 9% year-over-year, positioning for increased demand in the second half of 2024.

• All three business segments—Infrastructure, Geospatial, and Buildings & Technology—contributed to growth, with notable expansion in data centers and international markets.

• Technology leadership and cross-segment collaboration are key drivers of competitive advantage and growth.

• Five acquisitions completed in 2024, expanding utility O&M, water resources, and staffing services.

Financial highlights

• Q2 2024 gross revenue was $236.3M (+6.1% YoY); gross profit increased 12% to $123.3M, with gross margin expanding to 52.2%.

• Net income was $7.9M, down from $15.4M in Q2 2023, mainly due to higher expenses and absence of prior year contingent consideration reversal.

• Adjusted EBITDA rose 10% to $38.5M, with margin up to 16.3%.

• Adjusted EPS was $1.24, compared to $1.29 in Q2 2023; GAAP EPS was $0.50, down from $1.00.

• Cash from operations was negative $11.3M in Q2, but positive $8.2M year-to-date; cash and equivalents at quarter-end were $29.4M.

Outlook and guidance

• Full-year 2024 gross revenue guidance raised to $944M–$950M.

• Full-year GAAP EPS guidance is $2.87–$2.93; adjusted EPS guidance is $5.13–$5.20.

• Organic growth expected to continue at 6–10% for the remainder of the year.

• EBITDA margin expected to approach 17% for the full year.

• Management expects strong demand and sufficient liquidity for at least the next 12 months.