Core Insights - Bowman Consulting Group Ltd. has been awarded a two-year contract by the Nebraska Department of Transportation (NDOT) to provide on-call bridge evaluation services, which includes inspecting approximately 300 to 500 bridges statewide [1][2] - This contract strengthens Bowman's long-term relationship with NDOT and positions the company among a select group of firms responsible for statewide bridge evaluations, encompassing condition assessments, safety inspections, and recommendations for repair or replacement [2][3] - The CEO of Bowman highlighted that this contract exemplifies the company's commitment to acquisition integration and revenue capture, contributing to predictable, recurring revenue and expanding their service offerings with a key client [3] Company Overview - Bowman Consulting Group Ltd. is headquartered in Reston, Virginia, and operates as a national engineering services firm, providing infrastructure, technology, and project management solutions [4] - The company employs 2,500 individuals across 100 locations in the United States, offering a wide range of services including planning, engineering, geospatial, construction management, and environmental consulting [4]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the utility of a specific screening strategy to find stocks with strong fundamentals and positive momentum. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their upward price trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3][4]. - Bowman Consulting (BWMN) is highlighted as a strong candidate for trend investing, having increased by 47.5% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - BWMN has also shown a price increase of 10.6% over the last four weeks, confirming that the upward trend is still intact [5]. Group 2: Fundamental Strength and Ratings - BWMN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a proven track record, with Rank 1 stocks averaging an annual return of +25% since 1988, indicating a strong historical performance for stocks in this category [7]. - The Average Broker Recommendation for BWMN is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Broader Investment Strategy - In addition to BWMN, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting a broader opportunity for investors to explore [8]. - The article encourages investors to utilize various Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8].

Company Overview - Bowman Consulting Group Ltd. is a national engineering services and program management firm headquartered in Reston, Virginia [2] - The company employs approximately 2,500 individuals and operates across 100 locations in the United States [2] - Bowman provides a wide range of services including planning, engineering, geospatial, construction management, commissioning, environmental consulting, and land procurement [2] Conference Participation - Bowman Consulting Group will participate in D.A. Davidson's 24th Annual Diversified Industrials & Services Conference scheduled for September 17-19 [1] - The conference will take place at The Four Seasons Hotel in Nashville, Tennessee [1]

Core Insights - Bowman Consulting Group Ltd. has been awarded a contract by the Illinois Department of Transportation (IDOT) to provide preliminary engineering services for the improvement of US 30 in Morrison, Illinois, which includes preparing an environmental impact statement (EIS) [1][2] Group 1: Contract Details - This contract marks Bowman's first win within IDOT's Region Two/District Two, expanding the company's reach within the state [2] - The project involves the reconstruction of US 30 along the historic Lincoln Highway, addressing congestion, pedestrian accommodations, and local flooding concerns [3] Group 2: Project Scope and Financials - The US 30 reconstruction project is valued at $15.2 million and includes roadway widening, turn lanes, drainage upgrades, ADA-compliant pedestrian facilities, and new bicycle accommodations [4] - The project aims to modernize infrastructure that dates back to the 1930s, enhancing both roadway and drainage systems [4] Group 3: Strategic Implications - The contract reinforces Bowman's strategy to build a durable revenue base through multi-phase infrastructure programs, reflecting confidence from agencies like IDOT in the company's capabilities [3] - The engagement is expected to position Bowman favorably for future assignments as the multi-year project progresses [2][3]

Group 1 - The appeal of investing in Bowman Consulting (NASDAQ: BWMN) is its ability to convert a record backlog into double-digit margins and consistent cash generation [1] - The current valuation of Bowman Consulting is at an 11x EV/EBITDA multiple, indicating potential for growth [1] Group 2 - The analyst has a strong foundation in portfolio construction and capital markets, focusing on a hybrid investment strategy that combines stable holdings with tactical allocations [1] - There is a particular interest in the gaming sector, reflecting both professional experience and personal passion [1]

Company Performance - Bowman Consulting (BWMN) has gained approximately 58.8% year-to-date, significantly outperforming the average loss of 0.6% in the Business Services sector [4] - The Zacks Consensus Estimate for BWMN's full-year earnings has increased by 70.7% over the past 90 days, indicating a positive shift in analyst sentiment and earnings outlook [3] Sector and Industry Context - The Business Services sector consists of 255 individual stocks and currently holds a Zacks Sector Rank of 7 among 16 sector groups [2] - Within the Business Services industry, which includes 26 companies, BWMN ranks better than the average industry gain of 7.3% year-to-date [6] - Concentrix Corporation (CNXC), another stock in the Business Services sector, has a year-to-date return of 11.3% and a Zacks Rank of 2 (Buy) [4][5] Investment Outlook - Investors interested in Business Services stocks should monitor both Bowman Consulting and Concentrix Corporation for their strong performance trends [7]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse unexpectedly, leading to potential losses [1][2]. - A predefined screening strategy, "Recent Price Strength," helps identify stocks with strong fundamentals that can sustain their upward trends [3]. Group 2: Company Spotlight - Bowman Consulting (BWMN) - BWMN has shown a solid price increase of 58.3% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 25% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, BWMN is trading at 98.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - BWMN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock's Average Broker Recommendation is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 4: Additional Insights - Besides BWMN, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which offers insights into successful strategies [9].

Group 1 - Bowman Consulting Group Ltd. has entered a $4.5 million master service agreement with the DuPage Water Commission for construction engineering services for Section 2 of the WaterLink Pipeline Project, which is valued at $250 million [1][2] - The WaterLink Pipeline Project aims to expand potable water services in growing suburban communities in Illinois, involving a 30-mile pipeline extension with approximately six miles of new 54-inch diameter water transmission main [2][3] - The project will require complex construction methods due to its proximity to high-tension overhead electrical lines and the need to cross highways, rail lines, utility corridors, and streams [2][3] Group 2 - The project is expected to enhance Bowman's role in large-scale municipal infrastructure, providing multi-year revenue visibility and contributing to margin-accretive growth [3] - The WaterLink initiative will bring Lake Michigan drinking water to the Kendall County communities of Montgomery, Oswego, and Yorkville, with construction scheduled to begin in 2025 and continue through 2028 [3] - Bowman Consulting Group operates over 100 locations in the United States, employing more than 2,400 staff and offering a range of engineering and project management services [4]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements present the company's financial position, results of operations, and cash flows, highlighting significant revenue growth and a shift from net loss to net income [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $538.2 million from $505.9 million, and total liabilities rose to $288.6 million from $259.8 million, with shareholders' equity also slightly increasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $196,725 | $176,621 | | Goodwill | $135,929 | $134,653 | | **Total Assets** | **$538,245** | **$505,881** | | Revolving credit facility | $59,516 | $37,000 | | **Total Liabilities** | **$288,602** | **$259,766** | | **Total Shareholders' Equity** | **$249,643** | **$246,115** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved significant year-over-year improvement, shifting from a net loss to a net income for both the three and six-month periods ended June 30, 2025, with strong revenue growth Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Contract Revenue | $122,090 | $104,501 | $235,021 | $199,409 | | Income (loss) from operations | $9,044 | $(1,235) | $10,180 | $(3,845) | | Net income (loss) | $6,009 | $(2,082) | $4,265 | $(3,640) | | Diluted EPS | $0.34 | $(0.13) | $0.24 | $(0.24) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $16.3 million for the six months ended June 30, 2025, while cash used in investing activities decreased, and financing activities shifted to a net use of cash Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,293 | $5,588 | | Net cash used in investing activities | $(1,837) | $(20,582) | | Net cash (used in) provided by financing activities | $(5,614) | $17,450 | | **Net increase in cash** | **$8,842** | **$2,456** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, recent acquisitions, revenue recognition, debt facilities, share repurchase programs, and a significant uncertain tax position related to R&D costs - The company has established a **$60.4 million** uncertain tax position related to the capitalization and amortization of research and development (R&D) costs as of June 30, 2025, following the TCJA Section 174 requirement[62](index=62&type=chunk) - During H1 2025, the company completed two acquisitions for **$3.6 million**. In 2024, it completed the significant acquisition of Surdex Corporation for **$43.3 million** and seven other acquisitions for **$36.2 million**[79](index=79&type=chunk)[81](index=81&type=chunk)[87](index=87&type=chunk) - As of June 30, 2025, the company had **$317.7 million** in remaining performance obligations, with **88.2%** expected to be recognized as revenue within the next twelve months[93](index=93&type=chunk) - In March 2025, the company increased its Revolving Credit Facility from **$100.0 million** to **$140.0 million**. The outstanding balance was **$59.5 million** as of June 30, 2025[105](index=105&type=chunk)[107](index=107&type=chunk) - On June 6, 2025, the board authorized a new **$25 million** share repurchase program, replacing the previous one. No repurchases were made under the new program as of June 30, 2025[76](index=76&type=chunk)[78](index=78&type=chunk) - Subsequent to the quarter end, the company completed another acquisition for a total consideration of **$2.7 million**, plus potential contingent consideration of up to **$2.8 million**[150](index=150&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant revenue and profitability growth for Q2 and H1 2025, driven by organic expansion and acquisitions across all core markets, alongside strong non-GAAP metrics, increased backlog, and robust liquidity [Results of Operations - Three Months Ended June 30, 2025 vs. 2024](index=39&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20vs.%202024) Gross contract revenue for Q2 2025 increased **16.8%** to **$122.1 million**, driven by growth across all markets, resulting in a shift from net loss to **$6.0 million** net income and a **50.6%** increase in Adjusted EBITDA Q2 2025 vs Q2 2024 Key Metrics (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Gross Contract Revenue | $122,090 | $104,501 | 16.8% | | Net Income (Loss) | $6,009 | $(2,082) | N/A | | Adjusted EBITDA (Non-GAAP) | $20,203 | $13,412 | 50.6% | | Net Service Billing (Non-GAAP) | $107,997 | $93,981 | 14.9% | Q2 2025 Gross Contract Revenue by Market (in thousands) | Market | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Building Infrastructure | $56,561 | $52,442 | 7.9% | | Transportation | $24,611 | $19,233 | 28.0% | | Power & Utilities | $26,843 | $22,917 | 17.1% | | Natural Resources & Imaging | $14,075 | $9,909 | 42.0% | [Results of Operations - Six Months Ended June 30, 2025 vs. 2024](index=43&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20vs.%202024) Gross contract revenue for H1 2025 grew **17.9%** to **$235.0 million**, with significant market-specific growth, leading to a net income of **$4.3 million** and a **35.9%** increase in Adjusted EBITDA H1 2025 vs H1 2024 Key Metrics (in thousands) | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Gross Contract Revenue | $235,021 | $199,409 | 17.9% | | Net Income (Loss) | $4,265 | $(3,640) | N/A | | Adjusted EBITDA (Non-GAAP) | $34,708 | $25,541 | 35.9% | | Net Service Billing (Non-GAAP) | $208,050 | $179,671 | 15.8% | H1 2025 Gross Contract Revenue by Market (in thousands) | Market | H1 2025 (in thousands) | H1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Building Infrastructure | $108,593 | $101,844 | 6.6% | | Transportation | $48,340 | $37,361 | 29.4% | | Power & Utilities | $52,153 | $44,768 | 16.5% | | Natural Resources & Imaging | $25,935 | $15,436 | 68.0% | [Backlog](index=46&type=section&id=Backlog) The company's backlog increased **9.8%** to **$438.2 million** by June 30, 2025, demonstrating diversification across key markets, primarily Building Infrastructure and Transportation Backlog Composition | Market | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Building Infrastructure | 40% | 41% | | Transportation | 31% | 35% | | Power & Utilities | 21% | 15% | | Natural Resources & Imaging | 8% | 9% | [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, primarily from cash operations and a **$140.0 million** revolving credit facility, supporting ongoing operations and strategic acquisitions - Principal sources of liquidity are cash from operations and a **$140.0 million** Revolving Credit Facility[227](index=227&type=chunk) - Cash and cash equivalents increased by **$8.8 million** during the first six months of 2025[227](index=227&type=chunk) - The company is actively pursuing acquisitions and expects to use a meaningful portion of its liquidity and capital resources for this purpose[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes on its **$59.5 million** revolving credit facility, with a **1%** rate change impacting annual interest expense by approximately **$0.3 million** - The company's main market risk is interest rate changes on its revolving credit facility, with **$59.5 million** outstanding as of June 30, 2025[246](index=246&type=chunk) - A **1%** change in the interest rate on the credit facility would change annual interest expense by approximately **$0.3 million**[246](index=246&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the end of the period, the company's disclosure controls and procedures were effective at the reasonable assurance level[250](index=250&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[251](index=251&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial results or position - As of the report date, the company is not involved in any legal proceedings that would have a material adverse effect on its operations or financial condition[254](index=254&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported compared to the latest Annual Report on Form 10-K - No material changes to risk factors were reported compared to the latest Annual Report on Form 10-K[255](index=255&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company terminated its 2024 share repurchase program and authorized a new **$25 million** program on June 6, 2025, with no repurchases made under the new program as of June 30, 2025 - On June 6, 2025, the board authorized a new **$25 million** share repurchase program, which will run for 12 months[259](index=259&type=chunk) - The previous 2024 Repurchase Authorization was terminated. As of June 30, 2025, no repurchases have been made under the new 2025 program[258](index=258&type=chunk)[259](index=259&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) Several key executives and a director adopted Rule 10b5-1 trading plans during Q2 2025 for the potential sale of company common stock - In June 2025, CEO Gary Bowman, CFO Bruce Labovitz, COO Daniel Swayze, and Director Stephen Riddick each adopted a Rule 10b5-1 trading plan for the potential sale of company stock[261](index=261&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications and XBRL data files

Financial Data and Key Metrics Changes - The second quarter recorded a 17% increase in gross contact revenue, a 15% increase in net service billing, over 8% organic net service billing growth, and almost 51% growth in adjusted EBITDA [5][6] - Gross revenue and net revenue reached $122 million and $108 million respectively, with adjusted EBITDA of $20.2 million and a margin of $18.7 million, marking record-setting figures [6][7] - Adjusted EBITDA margin increased by 250 basis points year-over-year and is projected to be around 17% for the year [10][11] Business Line Data and Key Metrics Changes - Organic growth in net revenue was positive across all verticals, strongest in transportation at 21%, followed by natural resources and imaging at 19%, power utilities and energy at 5%, and building infrastructure at 4% [14][15] - The backlog at the end of Q2 was nearly $87 million, a 25% increase compared to last year and a 5% increase from Q1 [15] Market Data and Key Metrics Changes - The company is experiencing strong demand in transportation, renewables, and energy transmission, with record bookings well balanced across markets [5][6] - The influence of the data center market is growing, leading to increased demand for power generation, transmission, and consumption [22][23] Company Strategy and Development Direction - The company is focusing on capturing a larger share of the data center market by moving data centers into the power market sector and expanding service offerings through acquisitions [23][26] - A commitment of $25 million for innovation investment through the Bowman Innovation Growth Fund aims to enhance digital and data service offerings and create efficiencies [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 and early 2026, expecting a similar growth pattern to the previous year with momentum building through the second and third quarters [28] - The recent "One Big Beautiful" bill is expected to accelerate investment decisions and project pipelines, particularly in renewable energy [84][85] Other Important Information - The company maintains a healthy balance sheet with low leverage of 1.6 times trailing four quarters adjusted EBITDA and $108 million in net debt [15][16] - Cash flow from operations year-to-date is $16.3 million, reflecting a nearly 50% adjusted EBITDA conversion rate [16] Q&A Session All Questions and Answers Question: Can you talk about the Transportation segment and growth areas? - The company is seeing strong synergies from recent acquisitions and increased public spending, leading to wins in construction management and engineering services [30][31] Question: Can you provide more color on the Power and Utilities segment? - Energy transmission is significant for the company, with recent wins in power transmission and applications from the acquisition of Surdex [32] Question: Can you discuss operational capacity and areas of investment? - The company is focused on managing labor increases and investing in innovation to leverage workforce efficiency [34] Question: Can you elaborate on the updated outlook for the year? - The updated view implies improving margins in the second half, despite some inflationary pressure on labor [38][40] Question: How has the acquisition pace affected the organic business? - The slower acquisition pace has allowed the company to focus on organic growth and efficiencies, with plans to continue pursuing larger deals [57][58] Question: What is the impact of the One Big Beautiful bill on project pipelines? - The bill is expected to accelerate investment decisions and project activity, particularly in renewable energy [84][85] Question: What is driving growth in natural resources? - Growth is driven by the acquisition of Certex and increased work in high altitude orthoimetry and geospatial services [87]