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HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ:NVEE), a $1.22 billion market cap provider of professional and technical engineering and consulting solutions, announced today that it has secured contracts totaling $9 million to support wildfire mitigation and enhance grid resiliency for several major U.S. utilities. The company, which maintains impressive gross margins of 51.34% according to InvestingPro data, has demonstrated strong operational efficiency in its core markets. The company will utilize its advanced geospatial remote sensing technologies to assess risks to electrical transmission and distribution assets, optimize vegetation management, and bolster Geographic Information System (GIS) applications.
A significant contract involves a geospatial vegetation management project for a Texas utility, which includes the collection and analysis of 14,210 line miles of Light Detection and Ranging (LiDAR) data. NV5 will also integrate 4,870 miles of existing data into INSITE, its proprietary cloud-based geospatial data management platform, to aid in wildfire prevention efforts. With a healthy current ratio of 1.95 and moderate debt levels, the company appears well-positioned to execute these large-scale projects effectively.
In Northern California, an investor-owned utility has expanded NV5’s Annual Transmission Vegetation Management contract to include tree health and mortality assessments in high fire-risk zones, contributing to the utility’s comprehensive wildfire management strategy.
Furthermore, NV5 was selected by a Western utility to collect updated geospatial remote sensing data to improve asset and vegetation risk assessments, supporting both wildfire and storm mitigation strategies.
Ben Heraud, CEO of NV5, emphasized the importance of the company’s remote sensing technology in mitigating risks posed by wildfires and storms, stating, "These contracts reinforce our commitment to using remote sensing technology to improve wildfire prevention, enhance grid reliability, and support public safety."
NV5 operates over 100 offices nationwide and abroad, offering solutions across six business verticals: utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services.
This announcement is based on a press release statement from NV5 Global, Inc. and includes forward-looking statements that are subject to change based on various factors, including market demand, economic conditions, competition, and regulatory changes. The company has demonstrated solid revenue growth of 9.81% over the last twelve months, and InvestingPro analysis suggests the stock is currently trading below its Fair Value. Investors seeking deeper insights into NV5’s financial health and growth prospects can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 10+ additional ProTips and detailed financial metrics.
In other recent news, NV5 Global, Inc. reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) expectations, posting an EPS of $0.28 compared to the forecasted $0.30. However, the company’s revenue exceeded projections, coming in at $246.52 million versus the anticipated $243.82 million. Additionally, NV5 has completed the acquisition of CRS Survey PLLC, a North Carolina-based land surveying and mapping service provider, which is expected to be immediately accretive to the company’s earnings. The acquisition aims to enhance NV5’s capabilities in supporting transportation clients and driving organic growth in the Southeast operations.
Furthermore, NV5 has expanded its data center business by acquiring Herman Cx, a firm specializing in commissioning services for hyperscale data centers. This acquisition is also expected to be immediately accretive to earnings, bolstering NV5’s commissioning capabilities and creating cross-selling opportunities. The company has secured $18 million in contracts for designing and commissioning data centers across the United States and Asia, highlighting its expanding influence in the rapidly growing data center industry. NV5 also secured a $5 million contract with the Florida Department of Transportation to provide geotechnical engineering and construction materials testing services for the Florida Turnpike, emphasizing its role in infrastructure development and maintenance.
These developments reflect NV5’s strategic efforts to expand its service offerings and strengthen its market position in key sectors. The company has set ambitious revenue targets for 2025, projecting revenues between $1.026 billion and $1.045 billion, with a focus on high-margin recurring services.
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