Bowman Consulting Group Ltd. Reports Strong Q1 2025 Earnings

Bowman Consulting Group Ltd., a national engineering services and program management firm, has released its financial results for the first quarter of 2025, ending March 31. The company reported significant growth in several key financial metrics, reflecting strong operational performance and strategic initiatives.

Financial Highlights

For the first quarter of 2025, Bowman reported a gross contract revenue of $112.9 million, marking a 19.0% increase from $94.9 million in the same period last year. Net service billing also saw a substantial rise, reaching $100.1 million, up 16.8% from $85.7 million in Q1 2024. Despite these gains, the company reported a net loss of $1.7 million, slightly higher than the $1.6 million loss in the previous year. Adjusted EBITDA improved by 19.6% to $14.5 million, with an adjusted EBITDA margin of 14.5%, up from 14.2%.

Business and Operational Highlights

Bowman experienced record new order bookings in the first quarter, contributing to a gross backlog of $418.8 million, a 26.9% increase from $329.9 million in Q1 2024. The company also reported strong cash flows from operations, totaling $12.0 million compared to $2.5 million in the previous year. The growth in new orders was balanced across various business segments, indicating robust demand for Bowman's services.

Strategic Initiatives and Corporate Developments

During the first quarter, Bowman repurchased $6.7 million of common stock, with $2.6 million from employee share repurchases related to tax payments and $4.1 million under an existing $35 million repurchase authorization. The average price paid for the repurchased shares was approximately $25.10. Additionally, 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.

Management's Perspective

Gary Bowman, Chairman and CEO, highlighted the company's strong momentum and exceptional new order activity. He emphasized the double-digit growth in net service billing and the significant increase in organic growth. Bowman remains committed to its three-pronged capital allocation strategy, focusing on innovation, organic growth, acquisitions, and opportunistic share repurchases. The CEO expressed confidence in the company's ability to navigate macroeconomic uncertainties and reaffirmed the full-year forecast.

Future Outlook

Bowman reiterated its guidance for fiscal year 2025, projecting net revenue between $428 million and $440 million and adjusted EBITDA between $70 million and $76 million. The company expects performance to ramp up through the second and third quarters before leveling off in the fourth quarter, consistent with broader industry trends. Management remains optimistic about continued growth and the company's strategic positioning.

SEC Filing: Bowman Consulting Group Ltd. [ BWMN ] - 8-K - May. 06, 2025