NV5 Global (NVEE) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenues of $941.3 million, up 10% year-over-year, with 6% organic growth excluding certain business units.

• Adjusted EBITDA rose to $143.5 million from $133.8 million, and gross margin expanded to 51.3% from 49.7%.

• Net income declined to $28.0 million from $43.7 million, with GAAP diluted EPS at $0.44 versus $0.71; adjusted EPS remained stable at $1.14.

• Entered 2025 with a record $904 million backlog, 8% higher than prior year, representing over 80% of 2025 revenue guidance.

• Expanded Testing, Inspection & Certification (TIC) services and completed several strategic acquisitions in high-growth sectors, including data center commissioning, fire protection, and building digitization.

Financial highlights

• Q4 2024 revenues grew 15% to $246.5 million; gross profit up 13% to $122.2 million compared to Q4 2023.

• Q4 2024 net income was $5.4 million, down from $10.1 million, impacted by higher acquisition-related costs and amortization.

• Full-year net income was $28.0 million, down from $43.7 million, reflecting higher amortization, interest, and acquisition-related costs.

• Adjusted EBITDA for the year was $143.5 million, up from $133.8 million; adjusted EPS was $1.14 for 2024 and guidance of $1.27–$1.37 for 2025.

• Net leverage remained low at 1.4x at year-end.

Outlook and guidance

• 2025 revenue guidance set at $1.026–$1.045 billion, with adjusted EPS of $1.27–$1.37 and GAAP EPS of $0.52–$0.62.

• Targeting mid- to high-single-digit organic growth and 150 basis points EBITDA margin expansion in 2025.

• Free cash flow conversion expected to improve from 40% to 60%+ through contract renegotiation and billing optimization.

• 2028 growth target: $1.6 billion gross revenue run rate, driven by organic growth and strategic M&A.

• Strong $904 million backlog entering 2025, with continued tailwinds in utilities, data centers, and government sectors.