Core Insights - Bowman Consulting Group Ltd. has been awarded a $1.3 million contract for the design and development of ATEC Parkway, a two-mile roadway in Aurora, Colorado, which is part of the larger Aurora Highlands community development [1][2] - The company is managing over $500 million in infrastructure projects in The Aurora Highlands, indicating a strong presence in the Denver metro area [2] - The ATEC Parkway project is the District's first infrastructure initiative, which is expected to facilitate future developments and enhance connectivity within the region [3] Company Overview - Bowman Consulting Group is a national engineering services firm headquartered in Reston, Virginia, with over 2,300 employees across more than 100 locations in the United States [4] - The firm specializes in providing infrastructure, technology, and project management solutions to various regulated end markets [4] - Bowman trades on the Nasdaq under the symbol BWMN, indicating its status as a publicly listed company [4]

Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN) and Thomson Reuters (TRI) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and ou ...

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]

Financial Performance - Gross Contract Revenue increased by 19% year-over-year, reaching $112.9 million in Q1 2025 compared to $94.9 million in Q1 2024 [12] - Net Service Billing grew by 17% year-over-year, amounting to $100.1 million in Q1 2025 from $85.7 million in Q1 2024 [12] - Adjusted EBITDA increased by 20% year-over-year, reaching $14.5 million in Q1 2025 compared to $12.1 million in Q1 2024 [12] - Adjusted EPS (basic) was $0.07 in Q1 2025, compared to $0.22 in Q1 2024 [12] - The company purchased $6.7 million of common stock in Q1 [19] Backlog and Growth - Backlog grew by 30% year-over-year [11] - Organic Net Service Billing grew by 6% year-over-year [11] - Gross Backlog reached $419 million in Q1 2025, compared to $330 million in Q1 2024 [21] Revenue Composition and Guidance - Building Infrastructure accounted for 50% of Gross Revenue with a 5.9% year-over-year increase [28] - Transportation accounted for 21% of Gross Revenue with a 29.9% year-over-year increase [28] - Power, Utilities & Energy Services accounted for 19% of Gross Revenue with a 16.1% year-over-year increase [28] - The company maintains FY 2025 Net Revenue guidance of $428 million to $440 million and Adjusted EBITDA guidance of $70 million to $76 million [32]

Core Insights - Bowman Consulting (BWMN) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.20 per share a year ago, representing an earnings surprise of 133.33% [1] - The company posted revenues of $112.93 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.55%, compared to $94.91 million in the same quarter last year [2] - The stock has underperformed the market, losing about 9.9% since the beginning of the year, while the S&P 500 declined by 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $117.31 million, and for the current fiscal year, it is $1.13 on revenues of $483.39 million [7] - The estimate revisions trend for Bowman Consulting is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Business - Services industry, to which Bowman Consulting belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

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 ...