Bowman Consulting Group (BWMN) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in gross contract revenue, net service billing, and adjusted EBITDA for Q1 2026, with record backlog reaching $652.7 million, up 56% year-over-year and 36% sequentially.

• Growth driven by both organic execution and acquisitions, notably Smith & Associates, with robust demand across diversified end markets, especially power, utilities & energy, and transportation.

• Adjusted EBITDA grew 15.8% to $16.8 million, with margin at 14.7%; net loss widened to ($3.7) million due to higher operating expenses and non-cash items.

• Raised full-year 2026 guidance, now expecting over 20% revenue growth and adjusted EBITDA margin between 17.2% and 17.75%.

• Backlog growth and major government contract wins position the company for strong organic growth over the next several years.

Financial highlights

• Gross contract revenue for Q1 was $126.5 million, up 12% year-over-year.

• Net service billing reached $114.2 million, a 14.1% increase year-over-year, with 6% organic growth.

• Adjusted EBITDA was $16.8 million, up nearly 16% year-over-year, with a margin of 14.7%.

• Generated $11.6 million in operating cash flow, representing 70% conversion of adjusted EBITDA.

• Reported a GAAP loss of $3.7 million due to non-cash amortization, acquisition expenses, and other non-recurring items; Adjusted EPS improved to $0.14.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $520–$540 million, with adjusted EBITDA margin expected between 17.2% and 17.75%.

• Adjusted EBITDA expected to grow nearly 28% year-over-year at the midpoint.

• Backlog supports approximately 60% of expected revenue for the remainder of the year; remaining 40% to be delivered through new bookings.

• Revenue cadence expected to build through the year, with Q3 at or near the midpoint between Q2 and Q4.

• Guidance based on completed acquisitions as of the release date, excluding future deals.