Bowman Reports Results for Fourth Quarter and Full Year 2025; Raises 2026 Guidance

Core Insights - Bowman Consulting Group Ltd. reported record financial results for Q4 and the full year 2025, with a positive outlook for 2026, raising net service billing guidance [1][9]. Financial Performance - Q4 2025 gross contract revenue reached $129.0 million, a 14.0% increase from $113.2 million in Q4 2024 [7]. - Q4 2025 net service billing was $114.6 million, up 16.2% from $98.6 million in Q4 2024 [7]. - Full-year 2025 gross contract revenue was $490.0 million, a 14.9% increase from $426.6 million in 2024 [7]. - Full-year 2025 net service billing increased by 14.5% to $434.8 million from $379.7 million in 2024 [7]. - Adjusted EBITDA for Q4 2025 was $19.9 million, a 17.1% increase from $17.0 million in Q4 2024 [7]. - Full-year 2025 adjusted EBITDA was $72.9 million, a 22.5% increase from $59.5 million in 2024 [7]. Growth Metrics - Organic net service billing growth for Q4 2025 was 10.9%, compared to 8.5% in Q4 2024 [7]. - Full-year organic net service billing growth was 12.4%, slightly down from 13.1% in 2024 [7]. Notable Events - The acquisition of RPT Alliance on December 8, 2025, expanded Bowman's power and utilities practice [7]. - CEO Gary Bowman announced plans to retire in 2026, with a formal search for his successor underway [7]. - A credit agreement amendment increased the maximum borrowing capacity to $250 million from $210 million [7]. Share Repurchases - In Q4 2025, the company repurchased 272,885 shares at an average price of $34.25, totaling $9.3 million [7]. - For the full year 2025, 683,448 shares were repurchased at an average price of $27.51, totaling $18.8 million [7]. 2026 Guidance - The company raised its net revenue guidance for 2026 to $495 - $510 million, maintaining an adjusted EBITDA margin of 17.0% - 17.5% [9].