HOLLYWOOD, Fla. – NV5 (NASDAQ: NVEE), a $1.47 billion market cap provider of engineering and consulting solutions with impressive gross profit margins of 51%, announced today its expansion into the South Korean data center market through a strategic partnership with SA Bricks, a specialist in commissioning and energy management for data center infrastructure. This move is part of NV5’s broader strategy to capitalize on the growing demand for cloud computing and AI, which has led to increased investments in data centers by Korean and international technology companies. According to InvestingPro data, the company has demonstrated strong momentum with an 18.36% return over the past week and projects 9% revenue growth for fiscal year 2025.
The South Korean data center market has been experiencing robust growth, and NV5 has been active in the region since 2014, completing numerous data center design and commissioning projects across Southeast Asia and South Korea. The collaboration with SA Bricks is expected to enhance NV5’s ability to meet the needs of its clients, particularly in the hyperscale data center sector.
Ben Heraud, CEO of NV5, commented on the expansion, stating that the company’s data center design and commissioning services continue to see strong demand in both the U.S. and international markets. He emphasized that the move into South Korea represents NV5’s ongoing efforts to enter high-growth regions for data center infrastructure. Gary Hui, COO of NV5 Data Center Division, echoed Heraud’s sentiments, noting that the expansion is in response to U.S. technology sector clients seeking support for their investments in Korean hyperscale data center infrastructure.
With this expansion, NV5’s data center business now operates in 15 countries across North America, Asia, Australia, and the Middle East. InvestingPro analysis reveals 12 additional key insights about NV5’s financial health and market position, available to subscribers along with comprehensive research reports that transform complex Wall Street data into actionable intelligence. The company specializes in tech-enabled engineering, testing, inspection, and consulting solutions for the built environment, focusing on engineering design, asset management, and geospatial data analytics to support infrastructure resilience and building systems performance throughout the entire asset lifecycle.
This announcement is based on a press release statement from NV5 Global, Inc. and reflects the company’s forward-looking strategy. Based on InvestingPro’s Fair Value analysis, NV5 currently appears undervalued, suggesting potential upside for investors who analyze the company’s strong fundamentals, including its healthy current ratio of 1.86 and steady revenue growth of 8.74% over the last twelve months. However, NV5 cautions that these forward-looking statements are subject to factors that could cause actual results to differ materially from those anticipated, including changes in market demand, economic conditions, competitive pressures, regulatory changes, and other risks outlined in the company’s SEC filings.
In other recent news, NV5 Global, Inc. has announced a significant merger agreement with Acuren Corporation valued at $1.7 billion. This merger is expected to create a comprehensive global Testing, Inspection, Certification, and Compliance firm, with a projected EBITDA of $350 million for 2024. The transaction, which includes a 60-day go-shop period, is anticipated to conclude in the second half of 2025, pending customary closing conditions and regulatory approvals. Following this announcement, William Blair downgraded NV5’s stock rating from Outperform to Market Perform, reflecting a neutral outlook on its shares.
Additionally, NV5 has amended the employment agreements of three key executives, introducing “good leaver” provisions effective in 2025. While the complete details of these amendments were not disclosed, they are available in the company’s recent SEC filing. Meanwhile, Acuren Corporation reported first-quarter revenue of $234.2 million, surpassing analyst expectations despite a net loss of $25.9 million. The company attributed its revenue growth to increased service line penetration and market share gains, maintaining a positive outlook for the year.
Acuren’s CEO highlighted solid free cash flow and balance sheet improvements, despite a decrease in adjusted EBITDA margin to 11%. The merger announcement with NV5 has been a focal point, overshadowing Acuren’s earnings report. Investors and market observers are closely watching the developments as NV5 progresses through the merger process.
