Executive Summary

Q1 2025 delivered solid top-line and profitability growth: gross revenues $234.0M (+10% YoY), gross margin 52.6% (flat YoY), Adjusted EBITDA $29.7M (+8% YoY), Adjusted EPS $0.17 (+13% YoY). GAAP EPS was $0.01 as higher amortization from recent M&A weighed on GAAP results .
Management reaffirmed full-year 2025 guidance: gross revenues $1.026B–$1.045B; GAAP EPS $0.52–$0.62; Adjusted EPS $1.27–$1.37, citing strong backlog and pipeline; cash from operations rose 96% YoY to $38.4M in Q1, supporting free cash conversion goals .
Segment momentum was led by Infrastructure (+12% YoY) and Buildings & Technology (+17% YoY); Geospatial slowed due to federal award delays expected to normalize through 2025 as software transitions to SaaS and efficiency actions take hold .
Acuren–NV5 merger announced May 15 creates a ~$2B revenue platform with ~$350M adjusted EBITDA post-synergies and $20M near-term cost synergies; transaction expected to close 2H25; management positioned cross-selling opportunities across utilities, infrastructure and data centers as key catalysts .

What Went Well and What Went Wrong

What Went Well

Strong Q1 growth: revenues $234.0M (+10% YoY), gross profit $123.2M (+10% YoY), Adjusted EBITDA $29.7M (+8% YoY), Adjusted EPS $0.17 (+13% YoY); cash from operations $38.4M (+96% YoY) reflecting improved working capital and execution .
Segment outperformance: Infrastructure (+12% YoY) and Buildings & Technology (+17% YoY) drove the quarter; data centers now ~15% of Buildings revenue, benefitting from expanding hyperscaler relationships and commissioning capabilities .
Reaffirmed FY25 guidance and backlog strength: entering the year with $904M R12M backlog (88% of low-end FY25 revenue guide), underpinning confidence in organic growth and margin expansion initiatives. “We are reaffirming…full-year 2025 guidance for revenue and earnings per share” .

What Went Wrong

Geospatial softness: growth slowed due to delays in federal contract awards amid administrative changes; management expects acceleration through 2025 as contracts resume and SaaS transitions lift margins .
GAAP profitability remained muted: net income $0.4M and GAAP EPS $0.01, impacted by higher intangible amortization from acquisitions (+$1.4M YoY in Q1) and interest expense; adjusted measures showed healthier performance .
Estimate comparison unavailable: S&P Global consensus mapping for NVEE was not accessible via our system this quarter, preventing beat/miss analysis against Street numbers (see Estimates Context) [GetEstimates error noted].

Financial Results

Consolidated results: prior year, prior quarter, current quarter

Metric	Q1 2024	Q4 2024	Q1 2025
Gross Revenues ($USD Millions)	$212.6	$246.5	$234.0
Gross Profit ($USD Millions)	$111.7	$122.2	$123.2
Gross Margin (%)	52.6%	49.6%	52.6%
Net Income ($USD Millions)	$0.077	$5.429	$0.428
GAAP Diluted EPS ($)	$0.00	$0.09	$0.01
Adjusted EBITDA ($USD Millions)	$27.64	$36.29	$29.74
Adjusted EPS ($)	$0.15	$0.28	$0.17
Cash from Operations ($USD Millions)	$19.55	n/a	$38.37

Notes: Adjusted EBITDA excludes stock-based compensation and acquisition-related costs; Adjusted EPS excludes intangible amortization and acquisition costs net of tax .

Segment momentum (YoY growth vs Q1 2024)

Segment	Q1 2025 YoY Growth	Commentary
Infrastructure	+12%	Strong utility and transportation demand; funding secured via state/local sources (gas/utility/property taxes), minimizing macro exposure .
Buildings & Technology	+17%	Data centers ~15% of Buildings revenue; expanding commissioning and power delivery; fire protection cross-sell gaining traction .
Geospatial	Slowed (qualitative)	Federal award delays; software revenue +11% YoY with improved margins; restructuring and SaaS transition expected to lift performance .

Prior two quarters trend snapshot

Metric	Q3 2024	Q4 2024
Gross Revenues ($USD Millions)	$250.9	$246.5
Adjusted EBITDA ($USD Millions)	$44.53	$36.29
Adjusted EPS ($)	$0.44	$0.28

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Revenues	FY 2025	$1.026B–$1.045B	$1.026B–$1.045B	Maintained
GAAP EPS	FY 2025	$0.52–$0.62	$0.52–$0.62	Maintained
Adjusted EPS	FY 2025	$1.27–$1.37	$1.27–$1.37	Maintained

Rationale: Reaffirmation supported by backlog strength and execution on margin/cash conversion initiatives .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Infrastructure funding/resilience	Record results; essential, mandated services; backlog tailwinds	Funding secured pre-project; robust in utilities/transportation; growth expected	Improving/steady
Data center expansion	Strong international growth; U.S. ramping; 25% organic growth cited	Buildings revenues +17%; data centers ~15% of Buildings; commissioning ~$1–2M per phase contracts; expanding power delivery/fire protection	Expanding
Geospatial SaaS/AI	Transition to cloud; NGA multi-award; federal demand; wildfire LiDAR analytics	Software +11% YoY; efficiency actions; expect growth/margin lift; federal award delays easing	Normalizing after restructure
Margin expansion program	Target +150 bps in FY25 via utilization, indirect labor, real estate, IT optimization	Q1 set-up; greater impact expected Q2–H2; reaffirmed target	Building into H2
Cash flow conversion	FY24 ~40%; target 60% in FY25; billing cadence optimization	Q1 CFO $38.4M (129% of Adjusted EBITDA conversion in Q1); tracking toward 60% for FY25	Improving
Tariffs/macro sensitivity	Minimal impact due to mandated consulting services; domestic focus	Services not tariff-sensitive; building digital tools reduce material waste; little effect on schedules	Limited exposure

Management Commentary

“NV5 delivered strong first quarter results for revenue and profitability…we are reaffirming full-year 2025 guidance for revenue and earnings per share.” – Ben Heraud, CEO .
“Infrastructure funding is strong…investments are for essential services…we anticipate continued growth.” – Ben Heraud; Alex Hockman adds diverse, fee-based funding mechanisms support demand .
“Our adjusted EBITDA increased 8% to $29.7 million…cash flows from operations…$38.4 million, a 96% increase.” – Edward Codispoti, CFO .
On data centers: “Typical commissioning contracts are ~$1–$2M and done in phases; we’re expanding scope to power delivery, MEP, fire protection.” – Ben Heraud and team .
On margin plan: “Utilization and indirect labor reductions, office consolidation, and IT cost optimization will drive the +150 bps target.” – Management .

Q&A Highlights

Margin expansion: Confidence in +150 bps FY25 margin lift with more impact in H2; actions underway across utilization, indirect labor, real estate, and IT costs .
Backlog quality: ~$904M entering Q1; ~88% of low-end FY25 revenue guide; well-diversified across utilities and public agencies; limited disruption from administrative changes .
Geospatial federal mix: ~48% federal; plan to grow private sector utility share and cross-sell with power delivery; federal demand steady with defense budgets .
Buyback: $20M repurchase authorized; deployment subject to windows and priorities alongside organic/M&A initiatives .
Data centers: Contract phasing and scope expansion underpin growth; international demand robust, U.S. catching up .

Estimates Context

Street consensus via S&P Global was not accessible due to a missing Capital IQ company mapping for NVEE in our system; as a result, we cannot provide a definitive beat/miss vs Wall Street estimates for Q1 2025. Management reaffirmed guidance and highlighted backlog/cash conversion improvements to underpin FY targets .
We recommend revisiting consensus comparisons once mapping is restored to assess potential upward revisions given segment momentum and margin initiatives [GetEstimates error noted].

Key Takeaways for Investors

Reaffirmed FY25 guide with strong backlog coverage (88% of low end), improved Q1 cash conversion and targeted margin expansion suggest increased earnings visibility into H2; look for sequential margin upticks starting Q2 .
Infrastructure and data center exposure continue to be secular beneficiaries; expanding commissioning/power delivery and fire protection cross-sell should support Buildings mix and margins .
Geospatial is pivoting to higher-margin SaaS and efficiency post-restructure; expect gradual acceleration as federal awards resume and software growth persists .
Merger with Acuren is a transformational catalyst: ~$2B revenue platform, ~$350M adjusted EBITDA post-synergies, and $20M near-term cost savings, with significant cross-selling potential across utilities, infrastructure, and industrial end markets .
Near-term trading: watch for margin progression and cross-selling disclosures; medium-term thesis: diversified, mandated services plus tech-enabled workflows (geospatial, digital twins) should support sustained mid/high-single-digit organic growth with margin expansion .
Capital deployment flexibility: improving cash generation, low leverage (~1.3x), and buyback authorization offer optionality alongside disciplined bolt-on M&A .

Appendices

Non-GAAP Adjustments (Q1 2025)

Adjusted EBITDA reconciles GAAP net income plus interest, taxes, D&A, stock-based comp, and acquisition-related costs; Q1 Adjusted EBITDA $29.735M .
Adjusted EPS adds back per-share intangible amortization and acquisition costs net of tax; Q1 Adjusted EPS $0.17 (adds ~$0.21 less ~$0.05 tax) .

Relevant Press Releases (Q1 period)

Earnings call notice (April 10): scheduling, participants, webcast .
Merger announcement (May 15): $23/share consideration, $1.7B EV (~10.3x 2025E Adjusted EBITDA), ~$20M cost synergies, 60-day go-shop; combined rev/EBITDA and financing details .

NV5 Global, Inc. (NVEE)·Q1 2025 Earnings Summary