Bowman(BWMN) - 2025 Q2 - Quarterly Results

Executive Summary Bowman reported record Q2 and H1 2025 results, with strong revenue, net service billing, and Adjusted EBITDA growth, reversing net losses Q2 and H1 2025 Performance Highlights Bowman reported record Q2 and H1 2025 results, with strong revenue, net service billing, and Adjusted EBITDA growth, reversing net losses Second Quarter 2025 vs. Second Quarter 2024 Financial Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :-------------------------- | :------ | :------ | :----- | :------- | | Gross contract revenue | $122.1M | $104.5M | $17.6M | 17% | | Net service billing | $108.0M | $94.0M | $14.0M | 15% | | Organic net service billing growth | 8.4% | 5.8% | 2.6% | - | | Net income (loss) | $6.0M | $(2.1)M | $8.1M | N/A | | Adjusted EBITDA | $20.2M | $13.4M | $6.8M | 50.7% | | Adjusted EBITDA margin, net | 18.7% | 14.3% | 4.4% | 440-bps | | Cash flows from operations | $4.3M | $3.1M | $1.2M | 38.7% | First Six Months 2025 vs. First Six Months 2024 Financial Highlights (in millions) | Metric | H1 2025 | H1 2024 | Change | % Change | | :-------------------------- | :------ | :------ | :----- | :------- | | Gross contract revenue | $235.0M | $199.4M | $35.6M | 18% | | Net service billing | $208.1M | $179.7M | $28.4M | 16% | | Organic net service billing growth | 9.8% | 9.6% | 0.2% | - | | Net income (loss) | $4.3M | $(3.6)M | $7.9M | N/A | | Adjusted EBITDA | $34.7M | $25.5M | $9.2M | 36.1% | | Adjusted EBITDA margin, net | 16.7% | 14.2% | 2.5% | 250-bps | | Cash flows from operations | $16.3M | $5.6M | $10.7M | 191.1% | | Gross backlog | $438.2M | $351.4M | $86.8M | 24.7% | Strategic Commentary and Business Outlook Strong demand in core verticals drives momentum, with focus on efficient scaling, talent investment, and a new 'BIG Fund' for innovation - Strong demand observed across core verticals, with new orders particularly robust in transportation, renewables, and energy transmission[2] - Focus remains on scaling efficiently, investing in talent, and reinforcing leadership as a lifecycle infrastructure solutions provider[2] - Introduced the 'BIG Fund' to aggressively invest free cash flow into innovation, aiming to expand revenue sources, accelerate processes, and improve margins[6] - Reclassified data center revenue into the Power and Utilities category, including prior periods, to better reflect the current profile of work with data center customers[6] Financial Results This section details Bowman's Q2 and H1 2025 financial performance, covering income, balance sheet, cash flow, and non-GAAP metrics Second Quarter 2025 Financial Results Bowman reported a 17% increase in gross contract revenue and 15% in net service billing for Q2 2025, achieving $6.0 million net income and 50.7% Adjusted EBITDA growth Second Quarter 2025 vs. Second Quarter 2024 Financial Results | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Increase | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Gross contract revenue | $122,090 | $104,501 | 17% | | Net service billing | $107,997 | $93,981 | 15% | | Net income (loss) | $6,009 | $(2,082) | N/A | | Adjusted EBITDA | $20,203 | $13,412 | 50.7% | | Adjusted EBITDA margin, net | 18.7% | 14.3% | 440-bps | | Cash flows from operations | $4,300 | $3,100 | 38.7% | First Six Months 2025 Financial Results For H1 2025, Bowman's gross contract revenue grew by 18% and net service billing by 16%, achieving $4.3 million net income and 36.1% Adjusted EBITDA growth First Six Months 2025 vs. First Six Months 2024 Financial Results | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | % Increase | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Gross contract revenue | $235,021 | $199,409 | 18% | | Net service billing | $208,050 | $179,671 | 16% | | Net income (loss) | $4,265 | $(3,640) | N/A | | Adjusted EBITDA | $34,708 | $25,541 | 36.1% | | Adjusted EBITDA margin, net | 16.7% | 14.2% | 250-bps | | Cash flows from operations | $16,293 | $5,588 | 191.1% | | Gross backlog | $438,200 | $351,400 | 24.7% | Non-GAAP Financial Metrics Bowman provides non-GAAP metrics, including Adjusted EBITDA and Adjusted EPS, showing significant year-over-year improvements for Q2 and H1 2025 Adjusted EBITDA and Margin Adjusted EBITDA and its margin demonstrated strong growth for both Q2 and H1 2025, reflecting improved operational efficiency Adjusted EBITDA and Margin | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :---------------------- | :------ | :------ | :------ | :------ | | Adjusted EBITDA | $20,203 | $13,412 | $34,708 | $25,541 | | Adjusted EBITDA margin, net | 18.7% | 14.3% | 16.7% | 14.2% | Adjusted Earnings per Share Adjusted Earnings per Share, both basic and diluted, showed significant improvement, moving from negative to positive for Q2 and H1 2025 Adjusted Earnings Per Share (Non-GAAP) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------ | :------ | :------ | :------ | :------ | | Basic | $0.56 | $(0.03) | $0.63 | $0.17 | | Diluted | $0.55 | $(0.03) | $0.62 | $0.16 | Consolidated Financial Statements This section presents Bowman's condensed consolidated balance sheets, income statements, and cash flow statements for the reported periods Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $538.2 million, with a rise in liabilities and a modest increase in total shareholders' equity Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :---------------------- | :------------ | :---------------- | | Total Assets | $538,245 | $505,881 | | Total Liabilities | $288,602 | $259,766 | | Total Shareholders' Equity | $249,643 | $246,115 | Condensed Consolidated Income Statements Income statements show a strong turnaround, with net income of $6.0 million for Q2 and $4.3 million for H1 2025, reversing prior-year losses and significant revenue growth Condensed Consolidated Income Statement Highlights | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------- | :------ | :------ | :------ | :------ | | Gross Contract Revenue | $122,090 | $104,501 | $235,021 | $199,409 | | Total Contract Costs | $56,518 | $49,616 | $111,361 | $96,514 | | Total Operating Expenses | $56,528 | $56,120 | $113,480 | $106,740 | | Income (loss) from operations | $9,044 | $(1,235) | $10,180 | $(3,845) | | Net income (loss) | $6,009 | $(2,082) | $4,265 | $(3,640) | Condensed Consolidated Statements of Cash Flows Net cash from operating activities significantly increased to $16.3 million for H1 2025, with decreased cash used in investing and a net cash outflow from financing Condensed Consolidated Statements of Cash Flows Highlights | Metric | H1 2025 (in thousands) | H1 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 and cash equivalents | $8,842 | $2,456 | | Cash and cash equivalents, end of period | $15,540 | $23,143 | Revenue Composition and Growth This section analyzes Bowman's gross contract revenue composition by category, organic growth trends, and the gross backlog breakdown Gross Contract Revenue Composition by Category Gross contract revenue is diversified, with Building Infrastructure as the largest segment, and Transportation and Natural Resources & Imaging showing strong growth in Q2 and H1 2025 Gross Contract Revenue Composition | Category | Q2 2025 (in thousands) | % | Q2 2024 (in thousands) | % | Change (in thousands) | % Change | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :------- | | Building Infrastructure | $56,561 | 46.3% | $52,442 | 50.2% | $4,119 | 7.9% | | Transportation | $24,611 | 20.2% | $19,233 | 18.4% | $5,378 | 28.0% | | Power and Utilities | $26,843 | 22.0% | $22,917 | 21.9% | $3,926 | 17.1% | | Natural Resources & Imaging | $14,075 | 11.5% | $9,909 | 9.5% | $4,166 | 42.0% | | Total | $122,090 | 100.0% | $104,501 | 100.0% | $17,589 | 16.8% | | Category | H1 2025 (in thousands) | % | H1 2024 (in thousands) | % | Change (in thousands) | % Change | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :------- | | Building Infrastructure | $108,593 | 46.2% | $101,844 | 51.1% | $6,749 | 6.6% | | Transportation | $48,340 | 20.6% | $37,361 | 18.7% | $10,979 | 29.4% | | Power and Utilities | $52,153 | 22.2% | $44,768 | 22.5% | $7,385 | 16.5% | | Natural Resources & Imaging | $25,935 | 11.0% | $15,436 | 7.7% | $10,499 | 68.0% | | Total | $235,021 | 100.0% | $199,409 | 100.0% | $35,612 | 17.9% | Organic Growth Analysis Organic gross revenue increased by 10.7% in Q2 and 12.1% in H1, with organic net revenue growing 8.4% and 9.8% respectively, driven by Transportation and Natural Resources & Imaging Organic Gross Revenue | Category | Q2 2025 (in thousands) | % | Q2 2024 (in thousands) | % | Change (in thousands) | Organic +/- | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :---------- | | Gross Revenue, Organic | $115,631 | 100.0% | $104,501 | 100.0% | $11,130 | 10.7% | | Building Infrastructure | $55,525 | 48.0% | $52,442 | 50.2% | $3,083 | 5.9% | | Transportation | $22,876 | 19.8% | $19,233 | 18.4% | $3,643 | 18.9% | | Power and Utilities | $24,495 | 21.2% | $22,917 | 21.9% | $1,578 | 6.9% | | Natural Resources & Imaging | $12,735 | 11.0% | $9,909 | 9.5% | $2,826 | 28.5% | | Category | H1 2025 (in thousands) | % | H1 2024 (in thousands) | % | Change (in thousands) | Organic +/- | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :---------- | | Gross Revenue, Organic | $223,545 | 100.0% | $199,409 | 100.0% | $24,136 | 12.1% | | Building Infrastructure | $107,155 | 48.0% | $101,844 | 51.1% | $5,311 | 5.2% | | Transportation | $44,123 | 19.7% | $37,361 | 18.7% | $6,762 | 18.1% | | Power and Utilities | $48,041 | 21.5% | $44,768 | 22.5% | $3,273 | 7.3% | | Natural Resources & Imaging | $24,226 | 10.8% | $15,436 | 7.7% | $8,790 | 56.9% | Organic Net Revenue | Category | Q2 2025 (in thousands) | % | Q2 2024 (in thousands) | % | Change (in thousands) | Organic +/- | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :---------- | | Net Revenue, Organic | $101,890 | 100.0% | $93,981 | 100.0% | $7,909 | 8.4% | | Building Infrastructure | $50,398 | 49.4% | $48,533 | 51.6% | $1,865 | 3.8% | | Transportation | $18,724 | 18.4% | $15,507 | 16.5% | $3,217 | 20.7% | | Power and Utilities | $22,184 | 21.8% | $21,050 | 22.4% | $1,134 | 5.4% | | Natural Resources & Imaging | $10,584 | 10.4% | $8,891 | 9.5% | $1,693 | 19.0% | | Category | H1 2025 (in thousands) | % | H1 2024 (in thousands) | % | Change (in thousands) | Organic +/- | | :-------------------------- | :------ | :---- | :------ | :---- | :----- | :---------- | | Net Revenue, Organic | $197,252 | 100.0% | $179,671 | 100.0% | $17,581 | 9.8% | | Building Infrastructure | $98,104 | 49.8% | $94,620 | 52.6% | $3,484 | 3.7% | | Transportation | $35,994 | 18.2% | $30,341 | 16.9% | $5,653 | 18.6% | | Power and Utilities | $43,540 | 22.1% | $40,704 | 22.7% | $2,836 | 7.0% | | Natural Resources & Imaging | $19,614 | 9.9% | $14,006 | 7.8% | $5,608 | 40.0% | Gross Backlog by Category Gross backlog increased by 24.7% to $438.2 million as of June 30, 2025, with Building Infrastructure and Transportation forming the largest segments - Gross backlog increased by 24.7% to $438.2 million compared to $351.4 million year-over-year[5] Gross Backlog by Category at June 30, 2025 | Category | Percentage | | :-------------------------- | :--------- | | Building Infrastructure | 40% | | Transportation | 31% | | Power and Utilities | 21% | | Natural Resources & Imaging | 8% | | TOTAL | 100% | Corporate Actions and Outlook This section covers Bowman's stock repurchase activities and updated fiscal year 2025 guidance for net revenue and Adjusted EBITDA Stock Repurchase Activities Bowman repurchased $6.7 million of common stock in Q2 2025 and authorized a new $25 million share repurchase program - Repurchased $6.7 million of common stock during the three months ended June 30, 2025, at an average price of approximately $22.19 per share[7] - The board of directors authorized a new share program on June 6, 2025, to repurchase up to $25 million of common stock over a 12-month period, replacing the prior authorization[8] Fiscal Year 2025 Guidance Bowman raised its fiscal year 2025 guidance for net revenue and Adjusted EBITDA, reflecting increased confidence in performance Fiscal Year 2025 Guidance (August 2025, in millions) | Metric | Range | | :-------------- | :------------ | | Net Revenue | $430 - $442 MM | | Adjusted EBITDA | $71 - $77 MM | Additional Information This section provides an overview of Bowman Consulting Group, details on forward-looking statements, and investor relations contact information About Bowman Consulting Group Ltd. Bowman Consulting Group Ltd. is a national engineering services firm providing infrastructure engineering, technical services, and project management solutions - Bowman is a national engineering services firm offering infrastructure engineering, technical services, and project management solutions[12] - Operates with over 2,300 employees in more than 100 locations throughout the United States[12] Forward-Looking Statements This section contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections - The press release contains forward-looking statements subject to risks and uncertainties, including changes in demand, general economic conditions, competitive pressures, and changes in laws or regulations[14] Investor Relations This section provides details on the upcoming conference call to discuss financial results and investor relations contact information - A conference call to discuss financial results is scheduled for August 7, 2025, at 9:00 a.m. ET[11] - Investor Relations contact: Betsy Patterson at ir@bowman.com[15]