Bowman Consulting Group (BWMN) Q2 2024 earnings summary

Executive summary

• Gross contract revenue reached $104.5M for Q2 2024, up 26% year-over-year, with net service billing at $94M, driven by acquisitions and organic growth.

• Backlog increased 19% year-over-year and 5–7% sequentially, reaching $352M, with notable wins in transportation, power, and emerging markets.

• Adjusted EBITDA for Q2 was $13.4M (14.3% margin), up 21% year-over-year; net loss widened to $2.1M.

• Growth was fueled by both acquisitions and organic expansion, with significant integration of acquired firms enhancing efficiency and value.

• Several acquisitions were completed, including Surdex and others, and a $51M equity offering and new $100M credit facility strengthened liquidity.

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); net loss was $2.1M.

• Basic and diluted EPS for Q2 was -$0.13; adjusted EPS was -$0.03.

• Free cash flow conversion from Adjusted EBITDA after CapEx was 70%.

• Cash and equivalents at June 30, 2024, were $23.1M; net debt was $71M.

• CapEx for H1 2024 was $7.5M (3.7% of gross revenue).

Outlook and guidance

• FY 2024 net service billing guidance updated to $375–$385M; Adjusted EBITDA guidance set at $58–$63M, with a midpoint margin of 16%.

• Organic growth for the year expected in the mid-single digits (6–8%), with Q3 and Q4 projected to be relatively even.

• Guidance reflects only completed acquisitions and excludes future deals.