HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ: NVEE), a provider of professional and technical engineering and consulting solutions with a market capitalization of $1.36 billion and impressive gross profit margins of 51.76%, has announced the completion of its acquisition of Southport Engineering Associates on Monday. The transaction, which involved a mix of cash and stock, is expected to immediately contribute to NV5's earnings, building on the company's robust 9.86% revenue growth over the last twelve months.
Southport Engineering, established in 1996 and based in Ridgefield, Connecticut, specializes in energy efficiency and engineering design services. It caters to a diverse clientele across the hospitality, educational, healthcare, industrial, gaming, and financial sectors, primarily in New York City and the surrounding region. The company prides itself on its ability to meet regulatory and owner-imposed efficiency standards for facilities.
Dickerson Wright, PE, Executive Chairman of NV5, expressed enthusiasm for the addition of Southport Engineering to NV5's buildings and technology platform. He highlighted Southport's tech-enabled solutions and its focus on energy-efficient designs as key to assisting building owners with achieving high standards for facility efficiency and occupant comfort.
Southport Engineering is noted for its comprehensive service offerings that promote building efficiency. Their approach begins with detailed energy studies and extends to engineering design, commissioning, and owner representation services. This methodology is expected to enhance cross-selling opportunities for NV5's building digitization and technology services.
Ben Heraud, CEO of NV5, remarked on the alignment between Southport Engineering's methods and NV5's approach to organic growth, which is driven by comprehensive, tech-enabled services. Heraud anticipates that the acquisition will lead to accelerated growth and profitability for NV5 in the Northeast.
Michael Fabrizi, PE, President of Southport Engineering Associates, also expressed excitement about joining the NV5 team and the prospects of delivering combined services to their long-standing client partners.
This acquisition marks a strategic move for NV5 as it continues to expand its footprint and service offerings in the buildings and technology sector. Currently trading near its 52-week low of $20.93, compared to its high of $28.75, InvestingPro analysis suggests the stock may be undervalued, while maintaining a healthy financial position with liquid assets exceeding short-term obligations and a moderate debt-to-equity ratio of 0.36.For investors seeking deeper insights, InvestingPro offers an extensive analysis with 10 additional investment tips and a comprehensive Pro Research Report, part of its coverage of over 1,400 US stocks. The company operates out of more than 100 offices nationwide and abroad, providing a wide range of services across multiple business verticals.
The information reported is based on a press release statement from NV5 Global, Inc.
In other recent news, NV5 Global, Inc. has seen significant developments. The company reported a robust financial performance for the third quarter of 2024, with a 6% increase in organic growth and a 13% rise in gross profit to $129.5 million. Net income climbed by 31% to $17.1 million, and adjusted EBITDA grew by 21%, resulting in an 18% margin.
Furthermore, NV5 secured a series of infrastructure consulting contracts totaling $14 million, aimed at supporting various Southern California municipalities. The company also acquired contracts totaling $46 million for grid hardening projects in the Western United States, aimed at enhancing electrical grid stability and fire prevention.
NV5 is expanding its services in healthcare, aviation, and hospitality, focusing on building digitization. Despite potential challenges in larger CapEx projects due to rising interest rates, the company remains optimistic about growth in the Asia-Pacific region and its Technology and Acoustics Group. These are among the recent developments at NV5.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.