Revenue Growth - Gross contract revenue increased to $427 million for the year ended December 31, 2024, representing a five-fold growth over the past 10 years[18]. - Organic gross contract revenue grew by $37.9 million or 10.9% compared to the year ended December 31, 2023[28]. - Approximately 60% of revenue for the year ended December 31, 2024, was derived from repeat customers[19]. - The company had a backlog of approximately $400 million as of December 31, 2024[28]. - The company aims to grow revenue five-fold over the next five years, building on a decade of both acquisitive and organic growth[58]. Market Position and Opportunities - The company ranked 78 on the ENR Top 500 Design Firms list in 2024, up from 87 in 2023[18]. - The U.S. engineering services market is projected to reach $312 billion by 2025, with a CAGR of 6.0% from 2024 to 2030[36]. - The company is positioned to capitalize on approximately $1.6 trillion in funding and incentives from U.S. federal government programs[30]. - The U.S. will need to invest $1 trillion per year in new energy capacity over the next 20 years to support economic growth and energy transition[46]. - The demand for aggregates in construction is expected to increase due to funding from the Infrastructure Investment and Jobs Act[55]. Revenue Composition - Approximately 29% of revenue in 2024 was derived from public sector customer assignments, compared to 21% in 2023[18]. - Transportation services accounted for 20.6% and 21.0% of gross contract revenue for the years ended December 31, 2024 and 2023, respectively[42]. - Power and Utilities represented 17.6% and 18.5% of gross contract revenues for the years ended December 31, 2024 and 2023, respectively[48]. - Building infrastructure constituted 51.5% and 56.3% of gross contract revenue for the years ended December 31, 2024 and 2023, respectively[52]. - Emerging markets represented 10.4% of gross contract revenue in 2024, up from 4.2% in 2023[57]. Acquisitions and Growth Strategy - The company acquired 34 operating companies and three non-operating licensing companies since its IPO in May 2021[29]. - The company plans to continue aggressive growth through acquisitions, focusing on markets with positive outlooks[59]. - Acquisition targets are evaluated based on criteria such as potential for recurring revenue and alignment with strategic growth objectives[64][66]. - In 2024, the company completed eight acquisitions for a total of approximately $79.7 million, including 1,023,786 shares of common stock valued at $33.9 million[92]. - The company maintains a dynamic pipeline for acquisitions, driven by market awareness and existing relationships[64]. Employee and Organizational Development - As of December 31, 2024, the company employed over 2,200 staff across more than 95 offices in the U.S. and two in Mexico[18]. - The company had approximately 2,200 employees as of December 31, 2024, with 93% being full-time employees[111]. - The company engages employees in organic growth through equity participation and incentives tied to performance[63]. - The company is committed to employee health and wellness, providing various innovative and flexible health programs to ensure employee safety and well-being[115]. - The company has focused on talent development, investing significant resources in training and continuous learning to maintain its position as a leading engineering services provider[117]. Financial Management - The company operates with a book-to-bill ratio for net service billing of greater than 1.0 for full years 2024 and 2023[28]. - As of December 31, 2024, the company had $37.0 million outstanding on its Credit Agreement, with interest rates tied to Term SOFR, varying between 6.91% and 8.70% based on the ratio of Funded Debt to EBITDA[343]. - A one percentage point change in the assumed interest rate of the Credit Agreement would change the company's annual interest expense by approximately $0.3 million in 2024[343]. - The company's finance lease obligations with Honour and Enterprise were $28.3 million as of December 31, 2024, bearing fixed interest rates, thus no exposure to market risk related to these obligations[344]. - The company has not entered into derivative financial instruments for trading purposes, indicating a conservative approach to market risk management[342]. Regulatory and Compliance - The company is licensed to operate in all states within the United States either directly or through an affiliate as of December 31, 2024[120]. - The company is subject to various federal, state, and local regulations that could impact its ability to obtain or renew contracts, which may impose added costs on its business[121]. Safety and Risk Management - The company’s professional safety team has established protocols leading to fewer accidents and lower associated costs, enhancing its competitive position[112]. - The company experienced a voluntary turnover rate reflective of the competitive labor market, which does not pose a substantial risk to delivering its backlog[111]. - The company’s backlog is influenced by new contracts and acquisitions, indicating effective growth strategies[102]. Marketing and Customer Relations - The company’s marketing and business development efforts focus on lead generation, cross-selling services, and expanding customer relationships[103]. - The company served a diverse portfolio of customers, with approximately 60% being repeat customers, and the ten largest customers accounting for about 18% of net service billing in both 2024 and 2023[93]. - The company aims to increase the proportion of revenue from long-term projects and multi-year contracts, with 27% of revenue in 2024 derived from public sector customers[94]. Organizational Culture - The company emphasizes a diverse and inclusive workplace to attract and retain qualified talent, which is crucial for its success[114]. - The company encourages in-person collaboration to enhance employee engagement, although it does not mandate full-time in-office attendance[116]. - A scalable organizational infrastructure has been developed to support significant growth without a proportional increase in overhead expenses[62].
Bowman(BWMN) - 2024 Q4 - Annual Report