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Introduction & Market Context
NV5 Global Inc. (NASDAQ:NVEE) released its first quarter 2025 financial results on May 1, 2025, showcasing solid performance with 10% revenue growth year-over-year. The company positions itself as "a safe port in a storm of uncertainty," emphasizing its focus on mandated services supporting essential infrastructure that remain largely untethered from broader economic conditions.
The engineering and consulting firm highlighted its resilience, noting that as a provider of testing, inspection, and certification services, it is minimally impacted by tariffs, interest rate fluctuations, or supply chain disruptions. With a significant portion of revenue coming from the public sector, NV5 benefits from pre-funded projects and stable demand.
As shown in the following slide detailing the company’s business model:
Quarterly Performance Highlights
NV5 reported gross revenues of $234 million for Q1 2025, a 10% increase from $212.6 million in the same period last year, with 5% coming from organic growth. Gross profit rose to $123.2 million from $111.7 million, maintaining a steady gross margin of 52.6%. Net income increased significantly to $428,000 from $77,000 in Q1 2024, while adjusted EBITDA grew by 8% to $29.7 million.
The company’s key financial metrics for the quarter are summarized in the following table:
The Q1 results showed particularly strong performance in two segments: Infrastructure Support grew by 12% year-over-year, while the Buildings & Technology segment expanded by 17%. The Geospatial segment remained flat compared to the previous year due to temporary federal delays, though management expects growth to accelerate in Q2.
These results and accomplishments are highlighted in the following slide:
Segment Performance Analysis
NV5’s business is organized into three main segments, each showing distinct performance patterns in Q1 2025.
The Infrastructure Support segment, which generated $101 million in Q1 gross revenue, focuses on utility, transportation, and water infrastructure services. This segment’s 12% growth was driven by electrical grid safety projects, DOT program management, and transportation infrastructure investments in the Northeast and Southeast regions. Management emphasized that infrastructure spending remains strong with no delays or cancellations observed in funded projects.
The Buildings & Technology segment contributed $70 million in Q1 gross revenue, growing 17% year-over-year. This segment encompasses data centers (15% of segment revenue), clean energy (12%), environmental services (30%), and building systems engineering (43%). Data centers have become an increasingly important growth driver, while real estate due diligence services grew 19% organically compared to Q1 2024.
The Geospatial segment, which accounted for $63 million in Q1 gross revenue, showed flat growth due to temporary federal delays. This segment serves government agencies (68% combined federal, state and local) and utilities (32%), providing data solutions for infrastructure, water resources, and defense applications. Management noted that utilities continue to be the fastest-growing part of this segment, with transportation asset management emerging as a growth opportunity.
Strategic Initiatives & Acquisitions
NV5 completed three strategic acquisitions in Q1 2025 to strengthen its existing platform and accelerate organic growth. Notable acquisitions included Herman Cx LLC, which expanded the company’s commissioning capabilities for hyperscale data center facilities, and CRS Survey PLLC, which enhanced land surveying and mapping services for transportation infrastructure in North Carolina.
The company also launched several strategic initiatives to improve margins and drive growth. A margin improvement initiative targeting a 150 basis point increase over 2024’s adjusted EBITDA margin includes measures to increase utilization, reduce indirect labor, and optimize real estate leases. Q1 efficiency measures included indirect labor reduction, office consolidation, and IT cost optimization in the Geospatial segment.
Additionally, NV5 introduced a new cross-selling program with an annual revenue target of $40 million. The program, launched in Q2 2025, focuses on recorded revenue rather than contract awards and includes management incentives to drive cross-selling across segments.
Financial Position & Cash Flow
NV5 reported significant improvement in cash flow, with cash flows from operations increasing 96% compared to Q1 2024. The company had $53.2 million in cash on hand as of March 29, 2025, and reduced its net leverage to 1.3x, a 7% reduction from Q4 2024. Management attributes these improvements to favorable client contract structures and efforts to minimize work in progress and time to bill.
The company also provided a reconciliation of GAAP EPS to adjusted EPS, showing that the $0.17 adjusted EPS primarily reflects adjustments for amortization of intangible assets and acquisition-related costs.
Forward-Looking Guidance
NV5 reaffirmed its full-year guidance for 2025, projecting gross revenues between $1.026 billion and $1.045 billion, GAAP EPS of $0.52 to $0.62, and adjusted EPS of $1.27 to $1.37. The company expects organic growth of 5-9%, margin expansion of 150 basis points, and cash flow conversion exceeding 60%.
Management expressed confidence in carrying Q1 momentum throughout the year, building upon the strong backlog of $906 million, and continuing strategic M&A activities to support organic growth.
The company’s positioning as a provider of mandated services for essential infrastructure, combined with its diversified approach and focus on public sector clients, forms the foundation of its strategy for continued growth despite economic uncertainties. NV5’s stock closed at $18.43 on May 1, 2025, unchanged in aftermarket trading following the earnings release, suggesting investor confidence in the company’s steady performance and outlook.
Full presentation:
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