Bowman(US:BWMN)2025-11-06 22:16Financial Performance - Gross contract revenue for Q3 2025 was $126.0 million, a year-over-year increase of 10.6% from $113.9 million in Q3 2024[155]. - Net income for Q3 2025 was $6.6 million, compared to $0.8 million in Q3 2024, reflecting significant improvement in profitability[155]. - Adjusted EBITDA for Q3 2025 was $18.3 million, up from $17.0 million in Q3 2024, indicating strong operational performance[155]. - For the nine months ended September 30, 2025, gross contract revenue reached $361.1 million, representing a 15.3% increase from $313.3 million in the same period of 2024[156]. - Net income increased by $13.8 million to $10.9 million for the nine months ended September 30, 2025, compared to a net loss of $2.9 million for the same period in 2024[222]. Revenue Breakdown - Net service billing for Q3 2025 was $112.1 million, compared to $101.4 million in Q3 2024, demonstrating growth in service delivery[180]. - Revenue from transportation increased by $4.4 million or 20.2%, driven by new contract awards and acquired transportation backlog[183][184]. - Revenue from power and utilities increased by $3.9 million or 16.6%, primarily due to acquisitions and expansion of utility projects[185]. - Revenue from natural resources and imaging decreased by $0.5 million or 3.3%, with 48.9% of revenue derived from imaging and mapping activities[186]. - Revenue from the transportation sector increased by $14.5 million or 24.1% for the nine months ended September 30, 2025, attributed to new contract awards and acquired backlog[207]. - Revenue from power and utilities increased by $13.0 million or 19.6% for the nine months ended September 30, 2025, driven by acquisitions and expansion of utility projects[208]. - Revenue from natural resources and imaging markets increased by $10.0 million or 32.1% for the nine months ended September 30, 2025, primarily due to the acquisition of Surdex Corporation[210]. Cost and Expenses - Total contract costs increased by $4.8 million or 8.8% to $59.1 million, representing 46.9% of total contract revenue[188]. - Direct payroll costs increased by $3.5 million or 8.4% to $45.2 million, accounting for 76.5% of total contract costs[189]. - Selling, general and administrative expenses increased by $3.3 million or 6.4% to $55.2 million, driven by increased headcount and overhead costs[194]. - Total contract costs increased by $19.7 million or 13.1% to $170.5 million for the nine months ended September 30, 2025, representing 47.2% of total contract revenue[212]. - Direct payroll costs increased by $11.0 million or 9.3% to $129.5 million for the nine months ended September 30, 2025, accounting for 76.0% of total contract costs[213]. Profitability Metrics - Adjusted EBITDA margin for Q3 2025 was 16.3%, slightly down from 16.7% in Q3 2024, reflecting stable operational efficiency[180]. - The company’s net margin improved to 5.3% in Q3 2025, compared to 0.7% in Q3 2024, indicating better cost management[180]. - Adjusted EBITDA increased by $1.3 million or 7.8% to $18.3 million for the three months ended September 30, 2025, compared to $17.0 million for the same period in 2024[201]. - Adjusted EBITDA margin decreased slightly to 16.3% for the three months ended September 30, 2025, from 16.7% in the same period of 2024[202]. - Adjusted EBITDA rose by $10.5 million or 24.7% to $53.0 million for the nine months ended September 30, 2025, compared to $42.5 million for the same period in 2024[224]. Cash Flow and Financing - Cash and cash equivalents at the end of the period increased by $4.6 million to $16.2 million as of September 30, 2025, compared to $11.7 million at the end of 2024[231]. - Net cash provided by operating activities was $26.5 million for the nine months ended September 30, 2025, compared to $12.4 million for the same period in 2024[232]. - Net cash used in investing activities decreased by $22.2 million to $1.4 million for the nine months ended September 30, 2025, compared to $23.6 million for the same period in 2024[233]. - Net cash used in financing activities was $15.5 million for the nine months ended September 30, 2025, compared to $2.2 million provided by financing activities for the same period in 2024[234]. - The company maintained a $140.0 million Revolving Credit Facility as of September 30, 2025, with a balance of $57.0 million[235]. Strategic Initiatives - The company completed three acquisitions post-September 30, 2025, with total consideration of $7.4 million, enhancing its market position[157]. - The company is actively pursuing acquisitions as part of its strategic growth initiative, assessing multiple opportunities at various stages of due diligence[230]. - The backlog increased by $48.7 million or 12.2% to $447.7 million during the nine months ended September 30, 2025, compared to $399.0 million at December 31, 2024[226]. Market Risks and Challenges - The company faces market risks related to customer demand fluctuations and competitive pressures in the industry[246]. - The ability to retain key professionals and hire additional qualified personnel is critical for the company's growth strategy[246]. - The company is dependent on a limited number of customers, which poses a risk to revenue stability[246]. - The company must successfully execute its acquisitions strategy, including the integration of new acquisitions into operations[246]. - Changes in general economic conditions, such as inflation and interest rates, could materially impact the company's performance[246].