HOLLYWOOD, Fla - NV5 Global, Inc. (NASDAQ:NVEE), a provider of professional and technical engineering and consulting solutions with a market capitalization of $1.23 billion, announced Monday its acquisition of Group Delta, a Southern California-based infrastructure engineering firm. According to InvestingPro analysis, NV5 appears undervalued at its current trading price of $18.87, which is near its 52-week low. This move aims to enhance NV5's infrastructure engineering and environmental services in the region, particularly in light of California's recent $180 billion infrastructure investment plan.
Group Delta, known for its geotechnical engineering, environmental consulting, and construction support services, brings a team of 100 specialists and five laboratories across Los Angeles, Orange, and San Diego counties to NV5's existing operations. This acquisition is set to bolster NV5's current portfolio in water, electrical utility, and transportation infrastructure sectors. The company maintains impressive gross profit margins of 51.76% and operates with a healthy current ratio of 2.05, indicating strong financial positioning for such strategic moves.
Ben Heraud, CEO of NV5, expressed enthusiasm for the strengthened competitive edge the merger will provide in pursuing significant infrastructure projects. Dickerson Wright, PE, Executive Chairman of NV5, highlighted the recent events underscoring the need for enhanced critical infrastructure in Southern California, indicating that the acquisition will reinforce NV5's capabilities to support various clients in the region.
Shah Ghanbari, PE, President of Group Delta, and Mike Reader, PE, CEO of Group Delta, both remarked on the promising career opportunities and expanded services that the merger will offer their employees and clients, respectively.
The strategic acquisition is expected to enhance NV5's service offerings and support the company's growth in the infrastructure market, particularly as California embarks on substantial improvements to its energy, water, and transportation systems. With revenue growth of 9.86% over the last twelve months and moderate debt levels, NV5 appears well-positioned for expansion. For deeper insights into NV5's growth potential and comprehensive analysis, investors can access detailed Pro Research Reports on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
NV5, operating out of more than 100 locations nationwide and internationally, continues to focus on utility services, infrastructure support, conformity assessment, buildings & technology, environmental health sciences, and geospatial services.
This news is based on a press release statement from NV5 Global, Inc. The company cautions that forward-looking statements in the release are subject to various factors that could cause actual results to differ materially from those anticipated.
In other recent news, NV5 Global has undergone significant leadership changes, with Ben Heraud assuming the position of sole CEO. Alex Hockman, the former Co-CEO, has transitioned to the role of CEO of Infrastructure within the company. As part of its recent developments, NV5 Global has set an ambitious target of $1.6 billion in annual revenue by 2028, following its impressive performance of surpassing $1 billion in gross revenue entering 2025.
The company plans to achieve this growth through the expansion of its existing capabilities and strategic investments in tech-based solutions and high-growth sectors. NV5 Global has also announced a plan to repurchase up to $20 million of its common stock. In addition, the company has secured infrastructure design and consulting contracts valued at over $67 million in total.
NV5 Global has further expanded its service offerings through the acquisition of Global Fire Protection Group and Southport Engineering Associates, which are expected to contribute to the company's earnings. These are the recent developments at NV5 Global.
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