Bowman Consulting Group (BWMN) Q3 2025 earnings summary

Executive summary

• Achieved annualized gross revenue surpassing $500 million, with Q3 2025 gross contract revenue up 11% year-over-year to $126.0 million and net income rising to $6.6 million from $0.8 million.

• Adjusted EBITDA for Q3 2025 was $18.3 million (16.3% margin), and backlog increased up to 18% year-over-year, reaching $447.7 million, providing strong forward visibility.

• Completed multiple acquisitions in 2025, expanding capabilities in renewable energy, high-voltage transmission, and digital services.

• Maintained a healthy balance sheet, increased revolver capacity to $210 million, and supported growth through innovation and disciplined capital allocation.

• Focused on recurring public sector work, resilient private demand, and innovation to drive future growth.

Financial highlights

• Q3 2025 net service billing was $112.1 million, up 11% year-over-year, with gross margin at 53% and net margin at 5.3%.

• Adjusted EBITDA for Q3 2025 was $18.3 million (16.3% margin), and basic adjusted EPS was $0.63, doubling from the prior year.

• Cash flow from operations for the first nine months was $26.5 million, more than doubling year-over-year.

• Operating expenses for Q3 2025 were $61.6 million, up 4.1% year-over-year; effective tax rate for the nine months was (12.1)%.

• Gross margin by vertical: Building infrastructure 55.7%, power/utilities/energy 55.5%, natural resources 56.6%, transportation 45.7%.

Outlook and guidance

• Reaffirmed 2025 net revenue guidance of $430–$442 million and adjusted EBITDA of $71–$77 million.

• Introduced 2026 guidance: net revenue of $465–$480 million and adjusted EBITDA margin of 17.0%–17.5%.

• Expect continued revenue and margin expansion in 2026, driven by integration of acquisitions and national footprint growth.

• Guidance excludes contributions from future acquisitions.

• Building infrastructure expected to benefit from improved financing conditions and labor allocation in 2026.