Bowman Reports Strong First Quarter 2025 Earnings, Surpassing Consensus Expectations

About this update from Bowman Consulting Group Ltd.

Record new orders reinforce continued confidence in full year guidance RESTON, Va. --(BUSINESS WIRE)-- Bowman Consulting Group Ltd. (NASDAQ: BWMN), a national engineering services and program management firm, today announced financial results for the quarter ended March 31, 2025 . First Quarter 2025 Compared to First Quarter 2024 Financial Results: Gross contract revenue of $112.9 million compared to $94.9 million , a 19.0% increase Net service billing1 of $100.1 million compared to $85.7 million , a 16.8% increase Organic net service billing2 growth of 6% compared to 3% Net loss of $1.7 million compared to a net loss of $1.6 million Adjusted EBITDA1 of $14.5 million compared to $12.1 million , a 19.6% increase Adjusted EBITDA margin, net 1 of 14.5% compared to 14.2%, a 30-bps increase Cash flows from operations of $12.0 million compared to $2.5 million Basic and Diluted EPS of ( $0.11 ) compared to ( $0.11 ) Gross backlog of $418.8 million compared to $329.9 million , a 26.9% increase CEO Commentary “Building on our strong momentum at the end of 2024, we delivered a solid first quarter highlighted by exceptional new order activity and healthy cash conversion,” said Gary Bowman , chairman and CEO of Bowman. “We generated double digit growth in net service billing with organic growth that more than doubled the first quarter of last year. Our record new order bookings in the quarter were balanced throughout the business and contributed to another consecutive quarter of backlog growth. We executed on and remain committed to our current three-pronged capital allocation strategy focused on strategic investment in innovation and organic growth, acquisition of adjacent operations and opportunistic share repurchases.” “We expect performance to continue to ramp up through the second and third quarters before leveling off in the fourth quarter, which is consistent with broader industry trends. New orders in the second quarter are, so far, outpacing first quarter new orders. We firmly believe that we are relatively insulated from current macroeconomic uncertainties based on the markets we serve, our defensive organizational structure, the sources of funding for our customers' projects and our disciplined approach to revenue capture, labor optimization and efficient execution. Given what we know today, we maintain an upbeat and optimistic outlook for continued growth and reaffirm our full year forecast.” Stock Repurchase Activities Bowman repurchased $6.7 million of common stock during the three months ended March 31, 2025 , with $2.6 million from the repurchase of shares from employees in connection with the payment of taxes associated with vesting events and $4.1 million under an existing $35 million repurchase authorization (the “Authorization”). The average price paid during the three months was approximately $25.10 per share repurchased. Total shares outstanding on March 31, 2025 , were 17.3 million. Since the end of the first quarter, the Company has repurchased an additional $5.3 million under the Authorization at an average price of $21.60 per share repurchased. Non-GAAP Adjusted Earnings per Share 3 In connection with the release of financial results, the Company reported the non-GAAP financial metric of Adjusted Earnings per Share as follows: For the Three Months Ended March 31 , Adjusted Earnings Per Share (Non-GAAP) 2025 2024 Basic $0.07 $0.22 Diluted $0.07 $0.20 Fiscal Year 2025 Guidance The table below reiterates Bowman’s guidance for fiscal year 2025: Date Issued Net Revenue Adjusted EBITDA March 2025 $428 - $440 MM $70 - $76 MM The current outlook for 2025 is based on completed and definitively contracted acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management discusses the Company’s acquisition pipeline and its prospective impact during regularly scheduled earnings calls. Conference Call Information Bowman will host a conference call to discuss financial results tomorrow morning, May 7, 2025 , at 9:00 a.m. ET . Access to a live webcast is available through the Investor Relations section of the Company’s website at investors.bowman.com . About Bowman Consulting Group Ltd. Headquartered in Reston, Virginia , Bowman is a national engineering services firm offering infrastructure engineering, technical services and project management solutions to owners and operators of the built environment. With over 2,300 employees in more than 100 locations throughout the United States , Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. For more information, visit bowman.com or investors.bowman.com . 1 Non-GAAP financial metric the Company believes offers valuable perspective on results of operations (see non-GAAP tables below for reconciliations). 2 Organic growth for the three months ended 03/31/25 excludes revenue from acquisitions completed after March 31, 2024 . Year over year growth rates only reflect revenue realized post-acquisition. 3 Basic Adjusted EPS and Diluted Adjusted EPS are all non-GAAP financial metrics the Company believes offer valuable perspectives on results of operations (see non-GAAP tables below for reconciliations). Adjusted EPS (Basic and Diluted) include addbacks for non-reoccurring expenses specific to acquisitions, non-cash stock compensation expense associated with pre-IPO grants, and other expenses not in the ordinary course of business. With respect to the elimination of any non-cash stock compensation expense, the Company computes an adjusted tax expense or benefit which accounts for the elimination of any periodic windfall or shortfall tax effects resulting from the difference between grant date fair value and vest date value. With respect to all other eliminations, the Company applies its average marginal statutory tax rate, currently 25.8%, to derive the tax adjustment associated with the elimination of expenses. A reconciliation of non-GAAP Adjusted EPS to GAAP EPS, both basic and diluted, is included with this press release for reference. Forward-Looking Statements This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will,” “goal” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) March 31 , 2025 December 31 , 2024 (Unaudited) ASSETS Current Assets Cash and equivalents $ 10,700 $ 6,698 Accounts receivable, net 107,354 105,105 Contract assets 50,099 43,369 Notes receivable - officers, employees, affiliates, current portion 1,345 1,889 Prepaid and other current assets 19,452 19,560 Total current assets 188,950 176,621 Non-Current Assets Property and equipment, net 41,250 42,011 Operating lease, right-of-use assets 43,119 42,085 Goodwill 135,896 134,653 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 204 638 Other intangible assets, net 63,892 65,409 Deferred tax asset, net 53,018 42,040 Other assets 1,517 1,521 Total Assets $ 528,749 $ 505,881 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Revolving credit facility 45,000 37,000 Accounts payable and accrued liabilities, current portion 55,020 51,626 Contract liabilities 11,831 7,905 Notes payable, current portion 16,533 17,075 Operating lease obligation, current portion 11,121 10,979 Finance lease obligation, current portion 11,088 10,394 Total current liabilities 150,593 134,979 Non-Current Liabilities Other non-current obligations 55,829 45,079 Notes payable, less current portion 19,035 19,992 Operating lease obligation, less current portion 37,961 37,058 Finance lease obligation, less current portion 16,506 17,940 Pension and post-retirement obligation, less current portion 4,710 4,718 Total liabilities $ 284,634 $ 259,766 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of March 31, 2025 and December 31, 2024 ; 21,502,214 shares issued and 17,337,090 outstanding, and 21,281,247 shares issued and 17,382,138 outstanding as of March 31, 2025 and December 31, 2024 , respectively 215 213 Additional paid-in-capital 335,514 329,073 Accumulated other comprehensive income 1,114 1,146 Treasury stock, at cost; 4,165,124 and 3,899,109 shares, respectively (67,579 ) (60,901 ) Stock subscription notes receivable (19 ) (30 ) Accumulated deficit (25,130 ) (23,386 ) Total shareholders' equity $ 244,115 $ 246,115 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 528,749 $ 505,881 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) (Unaudited) For the Three Months Ended March 31 , 2025 2024 Gross Contract Revenue $ 112,931 $ 94,907 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 41,956 37,687 Sub-consultants and expenses 12,878 9,218 Total contract costs 54,834 46,905 Operating Expenses: Selling, general and administrative 50,490 44,713 Depreciation and amortization 6,521 5,995 (Gain) on sale of assets (49 ) (96 ) Total operating expenses 56,962 50,612 Income (loss) from operations 1,135 (2,610 ) Other expense 2,110 2,401 Loss before tax benefit (975 ) (5,011 ) Income tax expense (benefit) 769 (3,453 ) Net loss $ (1,744 ) $ (1,558 ) Earnings allocated to non-vested shares – – Net loss attributable to common shareholders $ (1,744 ) $ (1,558 ) Earnings (loss) per share Basic $ (0.11 ) $ (0.11 ) Diluted $ (0.11 ) $ (0.11 ) Weighted average shares outstanding: Basic 16,356,331 13,827,728 Diluted 16,356,331 13,827,728 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands except per share data) (Unaudited) For the Three Months Ended March 31 , 2025 2024 Cash Flows from Operating Activities: Net loss $ (1,744 ) $ (1,558 ) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization - property and equipment 3,904 2,656 Amortization of intangible assets 2,617 3,339 Gain on sale of assets (49 ) (96 ) Credit losses 345 402 Stock based compensation 6,630 7,829 Deferred taxes (10,977 ) (4,201 ) Accretion of discounts on notes payable 256 117 Changes in operating assets and liabilities Accounts receivable (1,896 ) (7,946 ) Contract assets (6,340 ) (2,151 ) Prepaid expenses and other assets 615 (5,523 ) Accounts payable and accrued expenses 14,885 10,614 Contract liabilities 3,788 (963 ) Net cash provided by operating activities 12,034 2,519 Cash Flows from Investing Activities: Purchases of property and equipment (1,043 ) (262 ) Fixed assets converted to lease financing - 424 Proceeds from sale of assets and disposal of leases 49 96 Payments received under loans to shareholders - 20 Proceeds from notes receivable 718 - Acquisitions of businesses, net of cash acquired (1,479 ) (3,027 ) Collections under stock subscription notes receivable 11 10 Net cash used in investing activities (1,744 ) (2,739 ) Cash Flows from Financing Activities: (Repayments) Borrowings under revolving credit facility 8,000 1,964 Repayments under fixed line of credit - (49 ) Repayment under notes payable (4,377 ) (3,734 ) Payments on finance leases (2,702 ) (1,716 ) Payment of contingent consideration from acquisitions (1,016 ) - Payments for purchase of treasury stock (2,574 ) (5,732 ) Repurchases of common stock (4,103 ) - Proceeds from issuance of common stock 484 473 Net cash used in financing activities (6,288 ) (8,794 ) Net increase (decrease) in cash and cash equivalents 4,002 (9,014 ) Cash and cash equivalents, beginning of period 6,698 20,687 Cash and cash equivalents, end of period $ 10,700 $ 11,673 Supplemental disclosures of cash flow information: Cash paid for interest $ 2,028 $ 1,962 Cash paid for income taxes $ 10 $ 11 Non-cash investing and financing activities Property and equipment acquired under finance lease $ (2,006 ) $ (3,002 ) Note payable converted to common shares $ (434 ) $ (672 ) Issuance of notes payable for acquisitions $ (2,056 ) $ (2,461 ) Settlement of contingent consideration $ 1,968 $ - BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended March 31 , 2025 2024 Net loss (GAAP) $ (1,744 ) $ (1,558 ) + tax expense (benefit) (GAAP) 769 (3,453 ) Loss before tax expense (GAAP) $ (975 ) $ (5,011 ) + acquisition related expenses 594 1,350 + amortization of intangibles 2,617 3,339 + non-cash stock comp related to pre-IPO 493 1,557 + other non-core expenses 143 399 Adjusted income before tax expense $ 2,872 $ 1,634 Adjusted income tax expense (benefit) 1,676 (1,660 ) Adjusted net income $ 1,196 $ 3,294 Adjusted earnings allocated to non-vested shares 61 310 Adjusted net income attributable to common shareholders $ 1,135 $ 2,984 Earnings (loss) per share (GAAP) Basic $ (0.11 ) $ (0.11 ) Diluted $ (0.11 ) $ (0.11 ) Adjusted earnings per share (Non-GAAP) Basic $ 0.07 $ 0.22 Diluted $ 0.07 $ 0.20 Weighted average shares outstanding Basic 16,356,331 13,827,728 Diluted 16,638,334 14,561,032 Basic Adjusted Earnings (Loss) Per Share Summary - Non-GAAP For the Three Months Ended March 31 , 2025 2024 Loss per share (GAAP) $ (0.11 ) $ (0.11 ) Pre-tax basic per share adjustments $ 0.29 $ 0.23 Adjusted earnings per share before tax expense $ 0.18 $ 0.12 Tax expense (benefit) per share adjustment $ 0.11 $ (0.12 ) Adjusted earnings per share - adjusted net income $ 0.07 $ 0.24 Adjusted earnings per share allocated to non-vested shares $ – $ 0.02 Adjusted earnings per share attributable to common shareholders $ 0.07 $ 0.22 Diluted Adjusted Earnings (Loss) Per Share Summary - Non-GAAP For the Three Months Ended March 31 , 2025 2024 Loss per share (GAAP) $ (0.11 ) $ (0.11 ) Pre-tax diluted per share adjustments $ 0.28 $ 0.22 Adjusted earnings per share before tax expense $ 0.17 $ 0.11 Tax expense (benefit) per share adjustment $ 0.10 $ (0.11 ) Adjusted earnings per share - adjusted net income $ 0.07 $ 0.22 Adjusted earnings per share allocated to non-vested shares $ – $ 0.02 Adjusted earnings per share attributable to common shareholders $ 0.07 $ 0.20 BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands except per share data) Combined Statement of Operations Reconciliation For the Three Months Ended March 31 , 2025 2024 Gross contract revenue $ 112,931 $ 94,907 Contract costs (exclusive of depreciation and amortization) 54,834 46,905 Operating expense 56,962 50,612 Income (loss) from operations 1,135 (2,610 ) Other expense 2,110 2,401 Income tax expense (benefit) 769 (3,453 ) Net loss $ (1,744 ) $ (1,558 ) Net margin (1.5 )% (1.6 )% Other financial information 1 Net service billing $ 100,053 $ 85,689 Adjusted EBITDA 14,505 12,128 Adjusted EBITDA margin, net 14.5 % 14.2 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended March 31 , 2025 2024 Gross contract revenue $ 112,931 $ 94,907 Less: sub-consultants and other direct expenses 12,878 9,218 Net service billing $ 100,053 $ 85,689 Adjusted EBITDA Reconciliation For the Three Months Ended March 31 , 2025 2024 Net Service Billing $ 100,053 $ 85,689 Net loss $ (1,744 ) $ (1,558 ) + interest expense 2,113 2,131 + depreciation & amortization 6,521 5,995 + tax expense (benefit) 769 (3,453 ) EBITDA $ 7,659 $ 3,115 + non-cash stock compensation 6,642 7,861 + settlements and other non-core expenses 143 399 + acquisition expenses 61 753 Adjusted EBITDA $ 14,505 $ 12,128 Adjusted EBITDA margin, net 14.5 % 14.2 % 1 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. BOWMAN CONSULTING GROUP LTD. GROSS CONTRACT REVENUE COMPOSITION (Unaudited) (dollars in thousands) For the Three Months Ended March 31 , Consolidated Gross Revenue 2025 % 2024 % Change % Change Building Infrastructure1 55,915 49.5 % 52,785 55.6 % 3,130 5.9 % Transportation 23,542 20.8 % 18,128 19.1 % 5,414 29.9 % Power and Utilities1 21,435 19.0 % 18,467 19.5 % 2,968 16.1 % Emerging Markets 2 12,039 10.7 % 5,527 5.8 % 6,512 117.8 % Total 112,931 100.0 % 94,907 100.0 % 18,024 19.0 % Acquired3 11,842 10.5 % 18,474 19.5 % (6,632 ) (35.9 )% 1 Includes periodic reclassifications of revenue between categories from prior periods for consistency of presentation. 2 Represents environmental, mining, water resources, imaging and mapping, and other. 3 Acquired revenue in prior periods as previously reported; four quarters post-closing, acquired revenue is thereafter reclassified as organic for the purpose of calculating organic growth rates. BOWMAN CONSULTING GROUP LTD. ORGANIC GROWTH ANALYSIS (Unaudited) For the Three Months Ended March 31 , (dollars in thousands) 2025 % 2024 % Change Organic Gross Revenue 101,089 100.0 % 94,907 100.0 % 6,182 6.5 % Building Infrastructure 54,549 54.0 % 52,785 55.6 % 1,764 3.3 % Transportation 21,060 20.8 % 18,128 19.1 % 2,932 16.2 % Power and Utilities 19,240 19.0 % 18,467 19.5 % 773 4.2 % Emerging Markets 6,240 6.2 % 5,527 5.8 % 713 12.9 % For the Three Months Ended March 31 , (dollars in thousands) 2025 % 2024 % Change Organic Net Revenue 90,486 100.0 % 85,691 100.0 % 4,795 5.6 % Building Infrastructure 50,286 55.6 % 49,167 57.4 % 1,119 2.3 % Transportation 17,085 18.9 % 14,867 17.3 % 2,218 14.9 % Power and Utilities 17,502 19.3 % 16,536 19.3 % 966 5.8 % Emerging Markets 5,613 6.2 % 5,121 6.0 % 492 9.6 % BOWMAN CONSULTING GROUP LTD. GROSS BACKLOG BY CATEGORY AT MARCH 31, 2025 (Unaudited) Category Percentage Building Infrastructure 39 % Transportation 33 % Power and Utilities 20 % Emerging Markets 8 % TOTAL 100 % View source version on businesswire.com : https://www.businesswire.com/news/home/20250506896498/en/ Investor Relations Contact: Betsy Patterson [email protected] Source: Bowman Consulting Group

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