Bowman Consulting Group (BWMN) Q2 2024 earnings summary

Executive summary

• Gross contract revenue reached $104.5M for Q2 2024, up 26% year-over-year, and net service billing was $94M, marking the first time surpassing $100M in a quarter.

• Growth was driven by acquisitions and organic expansion, especially in geospatial, public sector, renewable energy, and water services.

• Backlog increased 19% year-over-year and 5–7% sequentially, reaching $352M, with notable wins in ports, harbors, and renewables.

• Net loss widened to $2.1M for Q2 2024, compared to $0.6M in the prior year, reflecting higher operating scale and acquisition costs.

• Integration of acquired firms is rapid, making organic vs. acquired growth distinctions challenging.

Financial highlights

• Q2 2024 gross contract revenue was $104.5M (+26% YoY); net service billing was $94M (+27% YoY); Adjusted EBITDA was $13.4M (14.3% margin, +21% YoY).

• Net loss before tax was $3.2M; net loss after tax was $2.1M; net loss margin was (2.0)% for Q2.

• Adjusted EPS for Q2 was $(0.03), down from $0.15 in Q2 2023.

• Gross margin improved to 52–52.5% from 50% in Q2 2023; SG&A steady at 52% of net revenue.

• Non-cash stock compensation for Q2 was $6.1M, down 12% year-over-year.

Outlook and guidance

• FY 2024 net service billing guidance updated to $375–$385M; Adjusted EBITDA guidance set at $58–$63M (midpoint margin ~16%).

• Guidance reflects only completed acquisitions and excludes future deals.

• Organic growth for 2024 expected in the mid-single digits (6–8%).

• Backlog and recent acquisitions support a positive revenue outlook for the next twelve months.