NV5 stock rating cut to Market Perform at William Blair

On Thursday, NV5 Holdings (NASDAQ:NVEE), a company currently valued at $1.46 billion with impressive gross profit margins of 51%, experienced a change in stock rating as William Blair analysts downgraded the firm from Outperform to Market Perform. According to InvestingPro analysis, the stock is currently trading at a high P/E multiple of 48.3x, though net income is expected to grow this year. This adjustment follows NV5’s recent announcement that it has entered into a definitive agreement to merge with Acuren Corporation (TIC) in a deal valued at $1.7 billion, or $23.00 per share.

The merger, announced on May 15, 2025, is poised to establish a full-service global Testing, Inspection, Certification, and Compliance (TICC) firm. The combined entity is projected to have an EBITDA of $350 million for the year 2024, which includes an anticipated $20 million in synergies.

The transaction is expected to be concluded in the second half of 2025 and includes a 60-day go-shop period, which allows NV5 to seek alternative acquisition proposals. This period provides an opportunity for NV5 to potentially receive better offers from other interested parties. The company enters this period with strong financial fundamentals, maintaining a healthy current ratio of 1.86 and operating with moderate debt levels.

William Blair’s downgrade reflects a shift in perspective on NV5’s stock potential following the merger announcement. The Market Perform rating indicates a neutral outlook on the company’s shares, suggesting that the analysts see the stock as likely to perform in line with the broader market indices.

Investors and market observers are now watching closely as NV5 moves through the merger process, which is still subject to customary closing conditions and regulatory approvals. The outcome of the go-shop period and the completion of the merger will be pivotal moments for NV5 and its stakeholders.

In other recent news, Acuren Corporation announced a merger agreement with NV5 Global, Inc., which significantly impacted its stock. The company also reported its first-quarter 2025 results, revealing revenue of $234.2 million, which exceeded analyst expectations and marked a 5% increase year-over-year. Despite the revenue growth, Acuren experienced a net loss of $25.9 million, or -$0.21 per share, compared to a smaller net loss of $1.3 million in the same quarter last year. CEO Tal Pizzey attributed the revenue increase to enhanced service line penetration and market share gains, noting a 7.2% organic growth rate. However, the company’s adjusted EBITDA margin decreased to 11% from 15.9% in the previous year, primarily due to planned public company costs and increased contributions from lower-margin site work. Acuren maintained its full-year 2025 guidance, anticipating revenue growth in the low-to-mid-single digit percentage range compared to 2024. The merger announcement with NV5 Global was a key highlight, overshadowing the earnings report and contributing to the notable stock price movement. Acuren concluded the quarter with $155.7 million in cash and a total liquidity of $224.9 million.

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