Executive Summary

Q2 delivered 6% revenue growth to $236.3M, 270 bps gross margin expansion to 52.2%, and +10% adjusted EBITDA to $38.5M (16.3% margin); GAAP EPS fell to $0.50 on integration costs, higher interest, and a prior-year contingent consideration reversal .
Management raised FY24 guidance: revenue to $944–$950M (from $937–$942M) and adjusted EPS to $5.13–$5.20 (from $5.05–$5.11); GAAP EPS unchanged at $2.87–$2.93. The raise is driven by expected H2 strength; pending acquisitions are explicitly excluded from guidance .
Backlog reached $877M (+5% QoQ, +9% YoY), positioning Geospatial and Buildings & Technology for a stronger H2; CFO targets consolidated EBITDA margin “close to 17%” for FY24 .
Strategic wins and pipeline support medium-term growth: data center services growing; grid hardening/undergrounding, and geospatial awards (USGS, NOAA, NCDOT) add visibility .
Wall Street consensus (S&P Global) was unavailable via our tool for Q2; we cannot quantify beats/misses and will update once mapping is restored. Management’s Q2 materials do not cite a beat/miss .

What Went Well and What Went Wrong

What Went Well
- Margin expansion and profitability quality: gross margin +270 bps YoY to 52.2% on Geospatial and Infrastructure mix; adjusted EBITDA +10% to $38.5M (16.3%) .
- Backlog momentum and H2 setup: backlog grew to $877M (+5% QoQ, +9% YoY), underpinning raised FY24 revenue and adjusted EPS guidance .
- Strategic end-markets traction: Buildings & Technologies revenue +18% YoY to $64M with data center demand; Geospatial at $72M with federal funds resuming and Hydrospatial uptick; Infrastructure at $101M with DOT wins and cross-selling .
- Quote: “We are well-positioned to meet the expected increase in demand for our services in the second half of 2024, and we are raising guidance.” — Executive Chairman Dickerson Wright .
What Went Wrong
- GAAP earnings compressed: GAAP EPS fell to $0.50 (from $1.00) on VIS integration costs, higher interest expense (+$1.0M YoY), and the absence of a prior-year $6.7M contingent consideration reversal .
- Working capital drag: Q2 used ~$11.3M cash from operations as revenue ramp increased unbilled receivables; YTD CFO noted $8.2M operating cash generation .
- Elevated opex (YoY G&A): integration and acquisition costs increased G&A; CFO detailed ~$0.8M VIS integration costs (half non-recurring) and +$0.3M acquisition costs YoY .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$222.6	$213.3	$236.3
Gross Margin %	49.5%	52.9%	52.2%
Adjusted EBITDA ($M)	$35.0	$28.73	$38.50
Adjusted EBITDA Margin %	15.7%	13.5%	16.3%
GAAP Diluted EPS ($)	$1.00	$0.03	$0.50
Adjusted EPS ($)	$1.29	$0.66	$1.24

Segment mix (Q2 2024):

Segment Revenue ($USD Millions)	Q2 2024
Infrastructure	$101
Geospatial	$72
Buildings & Technologies	$64

KPIs and balance sheet highlights:

KPI	Q2 2023	Q1 2024	Q2 2024
Backlog ($M)	—	$838	$877 (+5% QoQ, +9% YoY)
Net leverage (x)	—	1.4x	1.5x
Cash from Ops ($M)	—	$19.6 (Q1)	$(11.3) (Q2 usage per CFO); YTD $8.2
Shares diluted (M)	15.45 (approx)	15.63	15.67

Non-GAAP reconciliation notes (Q2 2024): Adjusted EPS adds back $0.97 for amortization and acquisition-related costs and subtracts $0.23 for tax; GAAP EPS $0.50 → Adjusted EPS $1.24 .

Estimates vs actuals: S&P Global consensus data was unavailable via our tool for Q2 2024; we cannot quantify revenue/EPS beats or misses at this time . Values retrieved from S&P Global are unavailable due to a mapping issue.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	FY 2024	$937–$942 (5/8/24)	$944–$950 (8/7/24)	Raised
GAAP EPS ($)	FY 2024	$2.87–$2.93 (5/8/24)	$2.87–$2.93 (8/7/24)	Maintained
Adjusted EPS ($)	FY 2024	$5.05–$5.11 (5/8/24)	$5.13–$5.20 (8/7/24)	Raised
Revenue ($M)	FY 2024 (initial)	$930–$935 (2/22/24)	—	Initial baseline

Management added that no pending acquisitions are included in guidance; the FY raise reflects stronger operational outlook for H2 . CFO expects consolidated EBITDA margin “close to 17%” for 2024 (NV5 does not formally guide EBITDA) .

Earnings Call Themes & Trends

Topic	Q4 2023 (Prior-2)	Q1 2024 (Prior-1)	Q2 2024 (Current)	Trend
AI/Data centers	International mission-critical demand; planning/design growth; U.S. clean energy support	Data center services +27% org; unlocking power load; expanding geographies	$64M segment rev (+18% YoY); targeting $400M in 5 yrs; ~30% org growth; AI heat/power constraints solutions	Accelerating, larger TAM and services breadth
Geospatial/federal budget	CR delays hurt Q4; 2024 budget $320M targeted; software expansion	CR resolved late Q1; aircraft utilization records; bookings strong; SaaS NV/ENVI modernization	$72M rev; >$35M in federal awards in May/June; Hydrospatial +$8M; H2 lift expected	Recovery underway; H2 uplift
Utility/grid hardening	Growth in T&D, LNG; undergrounding cost improvements; electrification demand	Continued expansion; EV charging program wins	$7M undergrounding oversight; $10M NCDOT awards; drivers include grid modernization approvals	Strong, sustained drivers
Backlog/organic growth	Backlog $838M; modest FY24 org growth assumed	Backlog $838M; org growth 8% Q1; hiring, client-facing initiatives	Backlog $877M (+5% QoQ, +9% YoY); YTD org ~7%	Improving
M&A/recurring revenue	Active pipeline; VIS recurring ~$30M; goal to increase recurring	4 acquisitions YTD; ~$40M run-rate; $5.7M Q1 revenue from acquisitions	Agreements for utility O&M and CA water resources; ~400 personnel; not in guidance	Active; accretive targets
Macro/politics	Election-year CR risk noted	CR resolved; aiming to beat/raise	Election seen neutral; federal projects flowing; operations resilient	Neutral to positive

Management Commentary

“Gross revenues… grew 6% to $236.3 million… gross profit increased 12%… gross margin expansion of 270 basis points to 52.2%.” — CFO Edward Codispoti .
“Our adjusted EBITDA was $38.5 million… margin… 16.3%… adjusted EPS was $1.24 per share.” — CFO .
“Backlog… increased to $877 million… 5% over Q1 '24 and 9% over the second quarter of last year.” — Executive Chairman Dickerson Wright .
“We are raising our guidance for gross revenues to $944 million to $950 million… GAAP EPS $2.87 to $2.93… adjusted EPS $5.13 to $5.20.” — Executive Chairman .
“We would expect [Geospatial] to lift consolidated margins… For the full year, I would estimate that we’d come close to 17% [EBITDA margin].” — CFO .
“Guidance is… a very strong second half from operations… we do not include… pending acquisitions.” — Executive Chairman .

Q&A Highlights

Guidance composition: Raised FY24 outlook reflects organic performance; pending acquisitions not included .
Profitability trajectory: Geospatial strength expected to lift H2 margins; CFO models near 17% FY24 EBITDA margin .
Cash flow dynamics: Q2 operating cash use driven by unbilled growth amid ramp and Geospatial restart; YTD cash from ops $8.2M .
Acquisition contribution: 2024 acquisitions contributed $10.5M revenue in Q2; $15.9M in H1 .
Organic growth: Midpoint revenue guide implies ~10% total growth; YTD organic ~7%; target 6–10% organic in H2 .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 revenue/EPS and FY24 was unavailable via our tool due to a mapping issue, so we cannot quantify beats/misses. We will update once the S&P Global mapping is restored .
Directionally, sell-side models may need to reflect: (a) raised FY revenue and adjusted EPS ranges, (b) higher H2 Geospatial contribution and mix-driven margin lift, and (c) EBITDA margin path toward ~17% for FY24 (company commentary; NV5 does not guide EBITDA) .

Key Takeaways for Investors

Mix-driven margin expansion is taking hold; Geospatial and Infrastructure drove Q2 gross margin to 52.2% and adjusted EBITDA margin to 16.3%; H2 mix should further help margins toward ~17% for FY24 .
The FY24 raise (revenue and adjusted EPS) is supported by backlog growth and federal funding normalization; importantly, acquisitions are excluded, offering upside optionality .
Data center/AI compute remains a powerful secular tailwind; NV5 is scaling services, targeting $400M data center revenue over five years, with ~30% organic growth currently .
Grid modernization and undergrounding are durable growth drivers; recent $7M undergrounding oversight, $10M NCDOT, and $5–$10M NOAA/USGS awards support Geospatial and Infrastructure visibility .
Watch working capital cadence: unbilled receivables ramped with revenue restart; YTD cash from ops positive, but quarter-to-quarter volatility likely as H2 volumes accelerate .
Valuation inflection could come from evidence of sustained 16–17% EBITDA margins and recurring/software mix lift (VIS and SaaS ENVI), plus accretive M&A integration .
Near-term catalysts: contract wins flowing post-CR, Investor Day tech narrative reinforcement, potential closure of announced utility O&M and water resources deals, and any additional FY24 upward revisions if H2 tracks above plan .

Appendix: Additional Relevant Q2 2024 Press Releases (Context)

$10M USGS geospatial awards for resource management (TX minerals, AK lidar/3D Hydrography) .
$5M NOAA Lake Michigan hydrographic survey .
$10M NCDOT multi-contract awards (rail roadway design, Western Region support, environmental analysis) .
$7M Northern California 230 kV underground transmission oversight (grid reliability/AI data center demand context) .
Agreement to acquire California Water Resources Group (accretive; late Q3 revenue recognition) .

NV5 Global, Inc. (NVEE)·Q2 2024 Earnings Summary