NV5 Global (NVEE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with gross revenues up 6% year-over-year to $250.9 million, gross profit up 13% to $129.5 million, and net income up 31% to $17.1 million, driven by strong organic growth and margin expansion.

• Entered Q4 with a record $914 million backlog, supporting a $1 billion revenue run rate target by year-end and positioning for continued growth into 2025.

• All business segments—Infrastructure, Geospatial, and Buildings & Technology—reported strong organic growth, with notable contract wins and strategic acquisitions expanding water resources and building digitization services.

• Cash flows from operating activities surged 145% year-over-year to $48.9 million in Q3, and cash on hand increased to $73.3 million.

• Six acquisitions completed in 2024 for $65.2 million, financed through cash, stock, and earn-outs, with a robust M&A pipeline supporting future growth.

Financial highlights

• Q3 2024 gross revenues reached $250.9 million (up 6% year-over-year), gross profit rose 13% to $129.5 million, and gross margin expanded by 350 basis points to 51.6%.

• Net income increased 31% to $17.1 million; GAAP diluted EPS was $0.27, and Adjusted EPS was $0.44, both up from prior year.

• Adjusted EBITDA reached $44.5 million (up 21%), with margin expanding to 18%.

• Cash flow from operations hit a record $48.9 million, up 145% year-over-year.

• For the nine months ended September 28, 2024, gross revenues totaled $694.8 million, up from $642.3 million year-over-year.

Outlook and guidance

• Full-year 2024 gross revenues expected between $939 million and $943 million, with GAAP EPS guidance of $0.48–$0.54 and Adjusted EPS of $1.15–$1.19.

• Conservative Q4 guidance due to potential weather-related delays and macroeconomic factors, but management remains optimistic about 2025 growth.

• Achieved $1 billion revenue run rate by end of 2024; new growth target to be announced.