NV5 secures $290 million geospatial intelligence contract By Investing.com

HOLLYWOOD, Fla. – NV5 Global, Inc. (NASDAQ: NVEE), a professional services provider specializing in technology and consulting solutions, announced today that it has secured a significant contract with the National Geospatial-Intelligence Agency (NGA). The contract, part of the Luno A program, is aimed at delivering unclassified commercial geospatial intelligence (GEOINT)-derived computer vision and analytic services to support the national intelligence community.

The five-year contract is a multiple-award indefinite delivery, indefinite quantity arrangement with a total value of $290 million. It is designed to monitor global economic, environmental activities, and military capabilities. NV5 will leverage advanced commercial computer vision and artificial intelligence technologies, which will be integrated into analytic workflows for operational use by the national security community.

Dickerson Wright, PE, Executive Chairman of NV5, expressed the company’s enthusiasm for being selected by the NGA, highlighting NV5’s longstanding 20-year support of the agency’s mission. He anticipates that the contract will generate approximately $30 million in revenue for NV5 over its term.

NV5 is known for its wide range of services, including utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services. With a national and international presence, NV5 operates from over 100 offices.

This press release also includes forward-looking statements as defined by the U.S. Private Securities Litigation Reform Act of 1995. NV5 cautions that these statements are subject to factors that could cause actual results to differ materially from those anticipated in these forward-looking statements. These factors include changes in demand from government and private clients, economic conditions, industry competition, regulatory changes, and other risks detailed in the company’s SEC filings.

The information provided is based on a press release statement by NV5 Global, Inc.

In other recent news, NV5 Global Inc. has made significant strides in both its business operations and financial performance. The company recently expanded its water resources capabilities through the acquisition of the California Water Resources Group from Weston Solutions. This strategic move, aimed at enhancing environmental regulatory compliance services, is set to boost NV5’s earnings and is expected to recognize revenue by the late third quarter of 2024.

In addition to this expansion, NV5 Global Inc. reported a successful second quarter in 2024, with the company’s backlog expanding to $877 million. This robust demand for their services was particularly evident in the Infrastructure, Geospatial, and Buildings & Technology segments. Notably, the Geospatial Services segment thrived due to federal contract awards and utility market demand, while the Buildings & Technology segment reported an 18% growth.

NV5 has also revised its full-year revenue guidance upwards to between $944 million and $950 million, with a target to achieve a run rate revenue of $1 billion by the end of 2024. These recent developments reflect the company’s strong organic growth, a 9% increase in backlog over the same quarter in the previous year, and a promising future, with plans for further acquisitions to strengthen its segments. However, it is important to note that future acquisitions are not included in the current guidance.

InvestingPro Insights

NV5 Global, Inc. (NASDAQ: NVEE) has recently secured a lucrative contract with the National Geospatial-Intelligence Agency, which is expected to bolster its revenue stream. As investors consider the implications of this deal for NV5’s financial health and stock performance, key metrics from InvestingPro offer a snapshot of the company’s current market position.

InvestingPro Data shows NV5’s market capitalization stands at $1.48 billion, reflecting the scale of the company within the professional services sector. The firm’s impressive gross profit margin over the last twelve months as of Q2 2024 is 50.88%, which highlights its ability to manage costs effectively and maintain profitability. However, NV5 is trading at a high earnings multiple, with a Price/Earnings (P/E) Ratio of 43.66, suggesting that investors are willing to pay a premium for the company’s earnings potential.

Two InvestingPro Tips highlight critical aspects of NV5’s financial outlook. Firstly, NV5 operates with a moderate level of debt, which may provide it with the financial flexibility needed to invest in growth opportunities such as the NGA contract. Secondly, analysts predict the company will be profitable this year, which, combined with a history of profitability over the last twelve months, paints a positive picture for potential investors.

For more detailed analysis and additional InvestingPro Tips, which include analyst revisions and valuation multiples, interested readers can visit https://www.investing.com/pro/NVEE. Currently, there are 10 additional InvestingPro Tips available for NV5, offering deeper insights into the company’s financial health and market potential.

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