Bowman Reports Record Second Quarter 2025 Results (Form 8-K)

Bowman Reports Record Second Quarter 2025 Results

Organic revenue and backlog growth reinforce long-term strength of end-markets

August 6, 2025, Reston, VA - 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 Share3

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 June 30,						For the Six Months Ended June 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.