Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _____________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-40371 _____________________________________________ BOWMAN CONSULTING GROUP LTD. (Exact Name of Reg ...

Bowman Consulting Group (BWMN) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Company Participants Gary Bowman - CEO & ChairmanBruce Labovitz - CFOLiam Burke - Managing Director Conference Call Participants Aaron Spychalla - Research AnalystJeff Martin - Director of Research & Senior Research AnalystBrent Thielman - MD & Senior Research Analyst Operator Good morning. My name is Becky, and I'll be the conference operator today. At this time, I would like to welcome everyone to the Bowman Consulting Group Fir ...

Financial Data and Key Metrics Changes - Gross revenue increased by 19% to $112.9 million compared to $94.9 million last year [8] - Net service billing grew by 17% to $100.1 million from $85.7 million last year [8] - Adjusted EBITDA was $14.5 million, up 19.6% compared to $12.1 million last year [10] - Gross margin increased slightly to 51.4% from 50.6% last year [9] - Cash flow from operations improved to $12 million compared to $2.5 million last year, with 83% operational cash flow conversion [13] Business Line Data and Key Metrics Changes - Transportation revenue grew by 30%, accounting for approximately 21% of total revenue, up from 19% last year [11] - Power and Utilities revenue grew by 16%, accounting for 19% of revenue, down from 19.5% last year [11] - Building Infrastructure revenue grew by 6%, accounting for roughly 49% of revenue, down from 56% last year [11] - Emerging Markets revenue grew by 118%, accounting for 11% of revenue, up from 6% last year [11] Market Data and Key Metrics Changes - Organic net revenue growth was approximately 6%, doubling last year's growth [12] - Transportation led organic growth at approximately 15%, followed by Emerging Markets at 10% [12] Company Strategy and Development Direction - The company emphasizes a high net to gross ratio to ensure long-term organic growth and free cash flow [9] - A three-pronged capital allocation strategy focuses on internal initiatives, acquisitions, and share repurchases [16] - The company aims to leverage innovation, geolocation, and automation to enhance operations and productivity [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the outlook for the transportation sector, citing strong order pipelines [30][31] - The company expects continued growth driven by federal investments in infrastructure and domestic re-industrialization [25][26] - Full-year guidance is reaffirmed with net revenues expected in the range of $428 million to $440 million [27] Other Important Information - The backlog at the end of Q1 was $419 million, a nearly $90 million increase from last year [15] - The company repurchased $6.7 million of common stock during the quarter [14] Q&A Session Summary Question: Transportation order activity outlook - Management indicated that the transportation sector has a strong outlook with many large orders in the pipeline despite a slight downturn in Q1 [30][31] Question: Drivers of growth in Power segment - Growth drivers include data centers, grid capacity expansion, and weather-related infrastructure fortification [32] Question: M&A market conditions - Management noted that while valuations remain strong, they are actively pursuing larger acquisitions to drive inorganic growth [35][36] Question: Macro conditions affecting business segments - Management reported strong new bookings across all verticals, reaffirming guidance despite macroeconomic uncertainties [44] Question: Technology investment and staffing - Management believes the current workforce is stable enough to handle expected revenue growth, with plans for increased technology investment [51][52] Question: Trends in Building Infrastructure - The building infrastructure segment is seeing strength in both residential and commercial projects, with a robust flow of backlog to start [60][63] Question: Backlog conversion rates - Management confirmed that 70% to 80% of backlog typically converts within twelve months, though larger projects may extend this timeframe [68][69] Question: Impact of AI on the business - The company is cautiously integrating AI into operations but has not yet seen significant competitive advantages from it [73]

Financial Data and Key Metrics Changes - Net service billing grew by almost 17% to surpass $100 million, compared to $85.7 million last year [7][8] - Gross revenue increased by 19% to $112.9 million from $94.9 million last year [8] - Adjusted EBITDA rose by 19.6% to $14.5 million, with an adjusted EBITDA margin of 14.5%, up from 14.2% last year [10] - Gross margin slightly increased to 51.4% from 50.6% last year, indicating improved labor efficiency [9] - Cash flow from operations improved significantly to $12 million from $2.5 million last year, with an operational cash flow conversion rate of 83% [13] Business Line Data and Key Metrics Changes - Transportation revenue grew by 30%, accounting for approximately 21% of total revenue, up from 19% last year [11] - Power and Utilities revenue increased by 16%, making up 19% of revenue, down slightly from 19.5% last year [11] - Building Infrastructure revenue grew by 6%, accounting for roughly 49% of total revenue, down from 56% last year [11] - Emerging Markets revenue surged by 118%, now representing 11% of total revenue, up from 6% last year [11] Market Data and Key Metrics Changes - Organic net revenue growth was approximately 6%, doubling last year's growth rate [12] - The backlog at the end of Q1 was $419 million, a year-over-year increase of nearly $90 million [15] Company Strategy and Development Direction - The company maintains a three-pronged capital allocation strategy focusing on internal initiatives, acquisitions, and share repurchases [16] - The company emphasizes an asset-light business model, avoiding heavy equipment investments, which allows for lower capital expenditures and better cash efficiency [22][23] - The company is committed to innovation in technology, automation, and geolocation to enhance productivity and project execution [24][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong new order activity and reaffirmed full-year guidance of net revenues between $428 million and $440 million [29] - The company is well-positioned to benefit from U.S. infrastructure demands and federal investments, particularly in defense and maritime sectors [26][28] - Management acknowledged the potential impact of macroeconomic conditions but remains confident in the strength of their order book and market demand [42] Other Important Information - The company repurchased $6.7 million of common stock during the quarter, with an additional $5.3 million repurchased since the end of the quarter [14] - The balance sheet remains under-leveraged with a net debt of $97 million, providing sufficient access to capital for future investments [14] Q&A Session Summary Question: Transportation order activity outlook - Management indicated that while Q1 order activity was lighter, the outlook remains strong with large orders in the pipeline [32][33] Question: Drivers of growth in Power segment - Growth drivers include data centers, grid capacity expansion, and weather-related infrastructure fortification [34] Question: M&A market conditions - Management noted that while valuations remain strong, they are actively pursuing larger acquisitions to drive inorganic growth [36] Question: Macro conditions and end market strength - Management reported strong new bookings across all verticals, reaffirming guidance despite macroeconomic uncertainties [42] Question: Technology investment and staffing - Management believes the current workforce is stable enough to handle expected revenue growth, with plans for increased technology investments [49][50] Question: Trends in Building Infrastructure - The company sees robust growth in both residential and commercial sectors, with a solid flow of backlog to start projects [57][58]

Q1 2025 EARNINGS | MAY 7, 2025 | NASDAQ: BWMN TRANSPORTATION POWER & UTILITIES ENERGY BUILDING INFRASTRUCTURE WATER RESOURCES Presenters: Gary Bowman Chairman & CEO Bruce Labovitz Chief Financial Officer Safe Harbor Statement Please note that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expr ...

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this professional services firm would post earnings of $0.39 per share when it actually produced earnings of $0.71, de ...

Financial Performance - Gross contract revenue for Q1 2025 was $112.9 million, a 19.0% increase from $94.9 million in Q1 2024[7] - Net service billing reached $100.1 million, reflecting a 16.8% increase compared to $85.7 million in the same quarter last year[7] - Adjusted EBITDA for Q1 2025 was $14.5 million, a 19.6% increase from $12.1 million in Q1 2024[7] - Organic net service billing growth was 6% in Q1 2025, compared to 3% in Q1 2024[7] - Adjusted net income attributable to common shareholders decreased to $1,135,000 in Q1 2025 from $2,984,000 in Q1 2024[23] - Basic adjusted earnings per share (Non-GAAP) for Q1 2025 was $0.07, down from $0.22 in Q1 2024[24] Cash Flow and Operations - Cash flows from operations improved significantly to $12.0 million, up from $2.5 million in the prior year[7] - The company reported a net cash provided by operating activities of $12,034,000 in Q1 2025, significantly higher than $2,519,000 in Q1 2024[21] - Cash and cash equivalents at the end of Q1 2025 were $10,700,000, compared to $11,673,000 at the end of Q1 2024[21] Backlog and Orders - The company reported a gross backlog of $418.8 million, which is a 26.9% increase from $329.9 million[7] - New orders in Q2 2025 are currently outpacing those in Q1 2025, indicating strong momentum[4] - The company’s gross backlog by category as of March 31, 2025, was 39% Building Infrastructure, 33% Transportation, 20% Power and Utilities, and 8% Emerging Markets[34] Guidance and Projections - The company maintained its fiscal year 2025 guidance, projecting net revenue between $428 million and $440 million and adjusted EBITDA between $70 million and $76 million[9] Losses - The net loss for Q1 2025 was $1.7 million, slightly higher than the net loss of $1.6 million in Q1 2024[7] - Net loss for Q1 2025 was $1,744,000, compared to a net loss of $1,558,000 in Q1 2024, representing an increase in loss of 11.9%[23] Revenue Growth - Gross contract revenue increased by 19.0% to $112,931,000 in Q1 2025 from $94,907,000 in Q1 2024[28] - Net service billing rose to $100,053,000 in Q1 2025, a 16.7% increase from $85,689,000 in Q1 2024[26] - Organic growth in gross revenue was 6.5% for Q1 2025, with notable increases in Transportation (16.2%) and Emerging Markets (12.9%) compared to Q1 2024[30] Stock Repurchase - The company repurchased $6.7 million of common stock during Q1 2025, with an average price of approximately $25.10 per share[5]

Bowman Consulting (BWMN) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 6, 2025, might help the stock move higher if these key numbers are better than e ...

Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN) and Cintas (CTAS) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positiv ...

Financial Data and Key Metrics Changes - Gross revenue for Q4 2024 was $113 million, a 22% increase year-over-year, while net revenue increased by 23% to $98.6 million [9] - Net income for the quarter rose to $5.9 million, or $0.34 per share, compared to a net loss of $7.7 million in the previous year [10] - Full year gross revenue reached $426.6 million, marking a 23% increase, with net revenue up 25% to $379.7 million [11] - Adjusted EBITDA for the year was $59.5 million, representing a 15.7% margin on net revenue, a 26.6% year-over-year increase [12] Business Line Data and Key Metrics Changes - Building infrastructure remained the largest market, contributing 51% of gross revenue, followed by commercial (23%), residential (18%), and municipal (10%) [13] - Organic growth of net revenue was 8.5% in Q4 and 13% for the year, with emerging markets leading the growth [15] Market Data and Key Metrics Changes - Transportation accounted for 21% of gross revenue, with two-thirds from public client engagements, while power, utilities, and energy represented 18% [14] - The backlog grew over 30% during 2024 to just under $400 million, with new orders in Q1 2025 exceeding $100 million [19] Company Strategy and Development Direction - The company made eight strategic acquisitions in 2024 to enter new geographies and expand service offerings, enhancing expertise in areas like bridge design and sustainability [6] - The focus for 2025 includes strategic investments in M&A, product line expansions, and technology tools to enhance service delivery and organic growth [25] Management's Comments on Operating Environment and Future Outlook - Management noted strong trends in transportation due to IIJA spending and minimal disruptions from federal funding cuts, maintaining a defensive business model [27] - The company anticipates continued growth in oil and gas and mining sectors, with a focus on renewable energy infrastructure [24] Other Important Information - The company repurchased $34 million of stock in 2024, indicating confidence in the value of its equity [18] - Cash flow from operating activities improved significantly, generating nearly $12 million in Q4 and over $24 million for the year [17] Q&A Session Summary Question: Impact of IIJA on transportation vertical - Management observed that IIJA spending is beginning to kick in, with no adverse impacts noted [31] Question: Backlog comparison to past years - Backlog characteristics remain similar to previous years, with steady work contracted and authorized to proceed [33] Question: Investments in service line expansions and technology tools - The company is building a team to implement technology investments that enhance customer engagement and service delivery [37] Question: New orders and verticals driving growth - New orders in Q1 2025 are strong across all markets, with no single market overshadowing others [44][50] Question: Capital allocation strategy - The company is balancing M&A opportunities with stock buybacks and technology investments, assessing the best allocation of capital regularly [55] Question: Progress on gaining wallet share - The company is focusing on increasing geospatial capacity and getting involved earlier in project life cycles to enhance wallet share [62] Question: Update on natural gas pipeline replacement opportunities - The natural gas pipeline market remains active, providing significant recurring revenue [68] Question: Land development business in the D.C. area - The company has diversified significantly, with the D.C. area representing a low single-digit percentage of the overall portfolio [79]