NV5 secures $20 million in NYC parks engineering contracts

NEW YORK - NV5 Global, Inc. (NASDAQ:NVEE), a $1.5 billion market cap engineering firm with impressive gross margins of 51% and 8.7% revenue growth in the last twelve months, has been awarded over $20 million in engineering design and construction management contracts by the New York City Department of Parks and Recreation, the company announced Monday. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value estimates.

The contracts will support improvements to parks and recreational facilities throughout New York City’s five boroughs. This continues NV5’s two-decade relationship with the city agency, which oversees more than 1,700 parks and recreational spaces.

Under the agreements, NV5 will provide engineering, landscape architecture, inspection, and construction management services for the reconstruction and renovation of recreation centers, greenways, sports facilities, parks, playgrounds, and public open spaces.

The company’s professionals will work on projects aimed at enhancing user experience and improving recreational amenities for residents and visitors.

"For over two decades, Parks has put their trust in NV5 to provide professional engineering, landscape architecture, open space planning, and construction management services for a variety of public facilities throughout the five boroughs of New York City," said Ben Heraud, CEO of NV5, in the press release.

The New York City Department of Parks and Recreation manages approximately 30,000 acres and more than 5,000 individual properties across the city.

NV5 Global operates from over 100 offices nationwide and internationally, providing technology, certification, and consulting solutions for the built environment. The company generated $962.75 million in revenue over the last twelve months, demonstrating its significant market presence in the engineering and consulting sector.

In other recent news, NV5 Global, Inc. announced a significant $10 million contract with the North Carolina Department of Transportation to provide geospatial and utility services for infrastructure projects. This contract will involve advanced data collection and mapping solutions, including GPS services and aerial lidar collection. NV5 also revealed its strategic expansion into the South Korean data center market through a partnership with SA Bricks, aiming to capitalize on the growing demand for cloud computing and AI. Additionally, NV5 has amended the employment agreements of three key executives, introducing "good leaver" provisions effective in 2025.

In corporate developments, NV5 is set to merge with Acuren Corporation in a deal valued at $1.7 billion. This merger is expected to create a comprehensive Testing, Inspection, Certification, and Compliance firm with a projected EBITDA of $350 million for 2024. However, William Blair analysts downgraded NV5’s stock rating from Outperform to Market Perform following the merger announcement. Meanwhile, Acuren reported first-quarter revenue of $234.2 million, surpassing analyst estimates, although it posted a net loss of $25.9 million. The merger and financial results have drawn significant attention from investors and market observers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.