Bowman Consulting Group (BWMN) Q1 2025 earnings summary

Executive summary

• Achieved 19% year-over-year growth in gross contract revenue to $112.9 million for Q1 2025, with net service billing up 16.8% to $100.1 million, driven by acquisitions and organic growth.

• Adjusted EBITDA increased 19.6% to $14.5 million, with 14.5% margin and 83% conversion to free cash flow; net loss remained flat at $1.7 million.

• Gross backlog grew 26.9% year-over-year to $418.8 million, providing strong forward visibility and supporting a positive outlook.

• Continued revenue diversification across transportation, power & utilities, energy, building infrastructure, and emerging markets.

• Welcomed Virginia Grebbien as an independent director, bringing extensive water sector experience.

Financial highlights

• Gross contract revenue was $112.9 million, up 19% year-over-year; net service billing reached $100.1 million, up 16.8%.

• Adjusted EBITDA was $14.5 million (14.5% margin), up from $12.1 million (14.2% margin) in Q1 2024.

• Gross margin improved to 51.4% from 50.6% last year, reflecting higher labor efficiency.

• Operating cash flow improved to $12 million, with 83% operational and 73% free cash flow conversion.

• Adjusted EPS (basic) was $0.07, down from $0.22 in Q1 2024; GAAP net loss was $(1.7) million.

Outlook and guidance

• Full-year 2025 net revenue guidance reaffirmed at $428–$440 million, with adjusted EBITDA expected between $70–$76 million.

• Expects high single- to low double-digit organic growth for the year, with momentum building through Q2 and Q3.

• Anticipates margin expansion as revenue growth outpaces labor growth.

• Guidance includes only acquisitions completed to date.

• New orders in Q2 are outpacing Q1, supporting an optimistic outlook for continued growth.