NV5 Global (NVEE) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 gross revenue of $941.3 million, up 10% year-over-year, with 6% organic growth and adjusted EBITDA up 7% to $143.5 million.

• Gross margin expanded to 51.3% from 49.7% in 2023, reflecting improved profitability.

• Net income declined to $28.0 million from $43.7 million, with GAAP diluted EPS at $0.44 versus $0.71; adjusted EPS was $1.14, nearly flat year-over-year.

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

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

Financial highlights

• Q4 2024 gross revenues grew 15% year-over-year to $246.5 million; gross profit up 13% to $122.2 million.

• Q4 net income was $5.4 million, down from $10.1 million in Q4 2023, impacted by higher acquisition-related costs and amortization.

• Full-year net income was $28.0 million, down from $43.7 million in 2023; GAAP diluted EPS was $0.44 vs. $0.71; adjusted EPS was $1.14.

• Adjusted EBITDA for 2024 was $143.5 million, up from $133.8 million; margin at 15.2%.

• Cash from operations was $57.3 million, down from $62.2 million, mainly due to working capital timing.

Outlook and guidance

• 2025 gross revenue guidance: $1.026–$1.045 billion; adjusted EPS: $1.27–$1.37; GAAP EPS: $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% in 2024 to 60%+ in 2025 through contract renegotiations and billing optimization.

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

• Geospatial segment budgeted for 10–11% organic growth; infrastructure and buildings/technology segments expected to deliver mid-single-digit organic growth.