Organic Growth Outlook
Q: What's the expectation for organic growth and acquisitions' contribution?
A: NV5 projects organic growth of 8% or above for the rest of the year, not including growth from acquisitions. " The four acquisitions made year-to-date are expected to contribute a $40 million revenue run rate, with $5.7 million from acquisitions in the first quarter. "

Margin and Profitability Expectations
Q: Will EBITDA growth align with revenue growth this year?
A: Profitability in the first quarter was affected by the continuing resolution, but NV5 anticipates margins to expand throughout the year as resources come back online and synergies from acquisitions are realized. " They hope to achieve an EBITDA margin close to 17%, up from 13.5% in Q1. "

Geospatial Revenue Target
Q: Is the $320 million Geospatial revenue target for 2024 still good?
A: NV5 remains confident in reaching the $320 million revenue target for the Geospatial business in 2024, even with federal delays. " They expect continued growth supported by commercial work. "

M&A Activity and Pipeline
Q: Has the macro environment shifted your M&A focus?
A: NV5 maintains a disciplined M&A process, focusing on acquisitions that support and densify existing platforms and add profitability. " They see opportunities in data center work, energy support, and the audiovisual market. "

Q: Are there more acquisitions in the pipeline, especially in data centers?
A: NV5 continues to pursue M&A opportunities, with dedicated full-time staff. " They are considering significant opportunities in the utility and data center businesses and are exploring new geographies and high-growth areas in infrastructure. "

Gross Margin Sustainability
Q: Is the 53% gross margin sustainable for the year?
A: NV5 anticipates the gross margin to be 53% or above as they integrate acquisitions and reduce duplications. " They expect gross margins to be in the 51% to 53% range for the full year. "

Debt Management and Capital Allocation
Q: Will you prioritize debt reduction or acquisitions with cash flow?
A: NV5 aims to keep leverage low at around 1.4x EBITDA and avoids overleveraging. " They plan to use free cash flow to pay down debt unless compelling M&A opportunities arise. "

Infrastructure Organic Growth Progress
Q: Update on organic growth in infrastructure?
A: The Infrastructure group achieved 7% organic growth in the quarter. " NV5 has initiatives focusing on growing the business with Departments of Transportation and in environmental areas like water resources. "

Data Center Business Growth
Q: What's the growth path for the data center business?
A: NV5 is encouraged by the growth in the data center market, with most work currently international for well-known Western clients. " They expect revenue growth on the U.S. side to increase quickly over the next 12 months. "

Budgets and Project Funding Trends
Q: Any trends in budgets and project funding at state and local levels?
A: Federal project delays due to the continuing resolution have been resolved, and work is picking up. " NV5 isn't seeing significant delays in federal infrastructure funding and notes growth in real estate transaction services despite interest rate impacts. "

Areas Growing Below Geospatial
Q: What areas are growing less robustly than Geospatial?
A: The Infrastructure group grew at 7%, encouraging despite downturns in LNG and offshore wind businesses. " Geospatial is growing strongly, and international operations show strong percentage growth from a low base. "