RESTON, Va., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Bowman Consulting Group Ltd. (NASDAQ: BWMN), a national engineering services and program management firm, today announced financial results for the quarter ended June 30, 2025.

"We are experiencing strong momentum across the business as our teams continue to execute with discipline and deliver high-impact outcomes for our clients," said Gary Bowman, CEO of Bowman. "The second quarter marked another period of outpaced growth and strategic progress underpinned by strong demand across our core verticals. New orders were especially strong in transportation, renewables, and energy transmission -- markets where our expertise and differentiated capabilities are driving increased client engagement and long-term opportunities. Our record Adjusted EBITDA margin and backlog reflect not only the strength of our value proposition but also the confidence of our clients in our ability to deliver. As we look ahead, we remain focused on scaling efficiently, investing in talent, and reinforcing our leadership position as a lifecycle infrastructure solutions provider."

Second Quarter 2025 Compared to Second Quarter 2024 Financial Results:

   -- Gross contract revenue of $122.1 million compared to $104.5 million, a 
      17% increase 
 
   -- Net service billing1 of $108.0 million compared to $94.0 million, a 15% 
      increase 
 
   -- Organic net service billing2 growth of 8.4% compared to 5.8% 
 
   -- Net income of $6.0 million compared to a net loss of $2.1 million 
 
   -- Adjusted EBITDA1 of $20.2 million compared to $13.4 million, a 50.7% 
      increase 
 
   -- Adjusted EBITDA margin, net 1 of 18.7% compared to 14.3%, a 440-bps 
      increase 
 
   -- Cash flows from operations of $4.3 million compared to $3.1 million 

First Six Months of 2025 Compared to First Six Months of 2024 Financial Results:

   -- Gross contract revenue of $235.0 million compared to $199.4 million, an 
      18% increase 
 
   -- Net service billing1 of $208.1 million compared to $179.7 million, a 16% 
      increase 
 
   -- Organic net service billing2 growth of 9.8% compared to 9.6% 
 
   -- Net income of $4.3 million compared to a net loss of $3.6 million 
 
   -- Adjusted EBITDA1 of $34.7 million compared to $25.5 million, a 36.1% 
      increase 
 
   -- Adjusted EBITDA margin, net 1 of 16.7% compared to 14.2%, a 250-bps 
      increase 
 
   -- Cash flows from operations of $16.3 million compared to $5.6 million 
 
   -- Gross backlog of $438.2 million compared to $351.4 million, a 24.7% 
      increase 

CFO Commentary

"Our continued improvement in second quarter performance demonstrates the strength and resilience of our business model," said Bruce Labovitz, CFO of Bowman. "We continue to deliver on our commitments to improve profitability and cash conversion, optimize capital allocation, and maintain an underleveraged and healthy balance sheet. During the early part of the quarter we deployed capital to provide liquidity in our stock and align with shareholders in our belief that our equity was undeservedly undervalued. Our recently introduced BIG Fund reflects our commitment to aggressively invest free cash flow into innovation that will expand our revenue sources, accelerate and optimize our processes, and improve our margins. The Fund is actively sponsoring several compelling innovation initiatives throughout the company, and we are excited about the return on investment we expect to achieve. Having delivered solid first half results, including nearly 10% organic net service billing growth, a 36% increase in Adjusted EBITDA and a 250-basis point improvement in Adjusted EBITDA Margin, we are entering the second half of the year with strong momentum and a high degree of optimism about our future."

"Given the changing dynamics associated with the evolving power demands inherent in data center design, we have elected to reclassify the revenue of that sub-vertical into our Power and Utilities category," continued Labovitz. "To represent consistency between periods, we have likewise reclassified data center revenue from 2024. We believe this classification better reflects the current profile of our work with our data center customers."

Stock Repurchase Activities

Bowman repurchased $6.7 million of common stock during the three months ended June 30, 2025, with $1.3 million from the repurchase of shares from employees in connection with the payment of taxes associated with vesting events and $5.4 million under an existing $35 million repurchase authorization (the "Authorization"). The average price paid during the three months was approximately $22.19 per share repurchased. Total shares outstanding on June 30, 2025, were 17.2 million. Subsequent to the end of the second quarter, no repurchases have been made under the Authorization.

On June 6, 2025, the board of directors authorized a new share program under which the Company may repurchase up to $25 million of its common stock over a 12-month period beginning June 9, 2025. This repurchase plan replaced the Authorization referred to above and which was scheduled to expire on July 31, 2025.

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    For the Six Months Ended June 
                           June 30,                          30, 
--------------  ------------------------------  ------------------------------ 
Adjusted 
Earnings Per 
Share 
(Non-GAAP)           2025            2024            2025            2024 
  Basic                  $0.56         $(0.03)           $0.63           $0.17 
  Diluted                $0.55         $(0.03)           $0.62           $0.16 
--------------  --------------  --------------  --------------  -------------- 
 
 

Fiscal Year 2025 Guidance

The table below raises Bowman's guidance for fiscal year 2025:

 
Date Issued    Net Revenue    Adjusted EBITDA 
------------  --------------  --------------- 
August 2025   $430 - $442 MM     $71 - $77 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, August 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 06/30/25 excludes revenue from acquisitions completed after June 30, 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.

Investor Relations Contact:

Betsy Patterson

ir@bowman.com

 
 
                       BOWMAN CONSULTING GROUP LTD. 
                   CONDENSED CONSOLIDATED BALANCE SHEETS 
               (Amounts in thousands except per share data) 
 
                                             June 30,       December 31, 
                                                2025            2024 
                                           -------------  ---------------- 
                                            (Unaudited) 
ASSETS 
  Current Assets 
----------------------------------------- 
    Cash and cash equivalents               $    15,540    $      6,698 
    Accounts receivable, net                    113,131         105,105 
    Contract assets                              52,468          43,369 
    Notes receivable, current portion               903               - 
    Notes receivable - officers, 
     employees, affiliates, current 
     portion                                        443           1,889 
    Prepaid and other current assets             14,240          19,560 
                                               --------       --------- 
      Total current assets                      196,725         176,621 
  Non-Current Assets 
----------------------------------------- 
    Property and equipment, net                  45,163          42,011 
    Operating lease, right-of-use assets         42,122          42,085 
    Goodwill                                    135,929         134,653 
    Notes receivable, less current 
     portion                                          -             903 
    Notes receivable - officers, 
     employees, affiliates, less current 
     portion                                      1,108             638 
    Other intangible assets, net                 61,403          65,409 
    Deferred tax asset, net                      54,225          42,040 
    Other assets                                  1,570           1,521 
                                               --------       --------- 
Total Assets                                $   538,245    $    505,881 
                                               ========       ========= 
LIABILITIES AND SHAREHOLDERS' EQUITY 
  Current Liabilities 
----------------------------------------- 
    Revolving credit facility                    59,516          37,000 
    Accounts payable and accrued 
     liabilities, current portion                42,954          51,626 
    Contract liabilities                         13,522           7,905 
    Notes payable, current portion               15,316          17,075 
    Operating lease obligation, current 
     portion                                     11,142          10,979 
    Finance lease obligation, current 
     portion                                     13,113          10,394 
                                               --------       --------- 
      Total current liabilities                 155,563         134,979 
  Non-Current Liabilities 
----------------------------------------- 
    Other non-current obligations                55,705          45,079 
    Notes payable, less current portion          16,003          19,992 
    Operating lease obligation, less 
     current portion                             36,936          37,058 
    Finance lease obligation, less 
     current portion                             19,721          17,940 
    Pension and post-retirement 
     obligation, less current portion             4,674           4,718 
                                               --------       --------- 
      Total liabilities                     $   288,602    $    259,766 
                                               --------       --------- 
 
Shareholders' Equity 
    Preferred Stock, $0.01 par value; 
    5,000,000 shares authorized, no 
    shares issued and outstanding as of 
    June 30, 2025 and December 31, 2024               -               - 
    Common stock, $0.01 par value; 
     30,000,000 shares authorized as of 
     June 30, 2025 and December 31, 2024; 
     21,706,804 shares issued and 
     17,240,980 outstanding, and 
     21,281,247 shares issued and 
     17,382,138 outstanding as of June 
     30, 2025 and December 31, 2024, 
     respectively                                   217             213 
    Additional paid-in-capital                  341,727         329,073 
    Accumulated other comprehensive 
     income                                       1,082           1,146 
    Treasury stock, at cost; 4,465,824 
     and 3,899,109 shares, respectively         (74,253)        (60,901) 
    Stock subscription notes receivable              (9)            (30) 
    Accumulated deficit                         (19,121)        (23,386) 
                                               --------       --------- 
      Total shareholders' equity            $   249,643    $    246,115 
                                               --------       --------- 
 
TOTAL LIABILITIES AND SHAREHOLDERS' 
 EQUITY                                     $   538,245    $    505,881 
                                               ========       ========= 
 
 
 
 
                       BOWMAN CONSULTING GROUP LTD. 
                 CONDENSED CONSOLIDATED INCOME STATEMENTS 
               (Amounts in thousands except per share data) 
                                (Unaudited) 
 
                      For the Three Months         For the Six Months 
                          Ended June 30,              Ended June 30, 
                    -------------------------  --------------------------- 
                       2025          2024         2025           2024 
                    -----------  ------------  -----------  -------------- 
Gross Contract 
 Revenue            $   122,090  $   104,501   $   235,021  $   199,409 
Contract 
costs:(exclusive 
of depreciation 
and amortization 
below) 
  Direct payroll 
   costs                 42,425       39,096        84,390       76,776 
  Sub-consultants 
   and expenses          14,093       10,520        26,971       19,738 
                     ----------   ----------    ----------   ---------- 
  Total contract 
   costs                 56,518       49,616       111,361       96,514 
                     ----------   ----------    ----------   ---------- 
Operating 
Expenses: 
  Selling, general 
   and 
   administrative        49,759       49,154       100,239       93,874 
  Depreciation and 
   amortization           6,544        7,181        13,065       13,177 
  Loss (gain) on 
   sale, net                225         (215)          176         (311) 
                     ----------   ----------    ----------   ---------- 
  Total operating 
   expenses              56,528       56,120       113,480      106,740 
                     ----------   ----------    ----------   ---------- 
Income (loss) from 
 operations               9,044       (1,235)       10,180       (3,845) 
                     ----------   ----------    ----------   ---------- 
Other expense             1,636        2,027         3,746        4,428 
                     ----------   ----------    ----------   ---------- 
Income (loss) 
 before tax 
 benefit                  7,408       (3,262)        6,434       (8,273) 
Income tax expense 
 (benefit)                1,399       (1,180)        2,169       (4,633) 
                     ----------   ----------    ----------   ---------- 
Net income (loss)   $     6,009  $    (2,082)  $     4,265  $    (3,640) 
                     ==========   ==========    ==========   ========== 
Earnings allocated 
 to non-vested 
 shares                     307           --           218           -- 
                     ----------   ----------    ----------   ---------- 
Net income (loss) 
 attributable to 
 common 
 shareholders       $     5,702  $    (2,082)  $     4,047  $    (3,640) 
                     ==========   ==========    ==========   ========== 
  Earnings (loss) 
  per share 
  Basic             $      0.35  $     (0.13)  $      0.25  $     (0.24) 
  Diluted           $      0.34  $     (0.13)  $      0.24  $     (0.24) 
  Weighted average 
  shares 
  outstanding: 
  Basic              16,331,964   16,301,926    16,344,173   15,064,827 
  Diluted            16,583,034   16,301,926    16,589,787   15,064,827 
 
 
 
 
                        BOWMAN CONSULTING GROUP LTD. 
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                           (Amounts in thousands) 
                                 (Unaudited) 
 
                                      For the Six Months Ended June 30, 
                                 ------------------------------------------- 
                                         2025                   2024 

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