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Bowman Consulting Group Ltd. (BWMN)·Q1 2025 Earnings Summary

Executive Summary

  • Solid Q1: BWMN delivered 19% YoY gross revenue growth to $112.9M, net service billing up 16.8% to $100.1M, record bookings and backlog up 27% YoY to $418.8M; guidance reaffirmed. Management highlighted “exceptional new order activity,” robust cash conversion and balanced demand across markets .
  • Beat vs S&P Global consensus on revenue and “Primary EPS”: Revenue $112.9M vs $111.3M est; Primary EPS $0.07 vs -$0.09 est; GAAP EBITDA missed S&P EBITDA consensus ($7.6M actual vs $13.8M est) while Adjusted EBITDA rose 20% YoY to $14.5M (14.5% margin) ; Q1 2025 S&P Global consensus figures marked with asterisks below (Values retrieved from S&P Global).
  • Sequentially healthy but seasonally softer margins: Adjusted EBITDA margin was 14.5% vs 17.2% in Q4 2024; CFO expects margins to ramp with higher revenue in Q2–Q3 as labor/overhead stay stable, enabling full-year margin targets .
  • Catalysts: Record bookings, backlog growth, reaffirmed FY25 guidance ($428–$440M net revenue; $70–$76M adj. EBITDA), stepped-up technology investments (AI-enabled iteration, geospatial, LiDAR/SONAR), and ongoing buybacks ($6.7M in Q1; $5.3M post-quarter) .

What Went Well and What Went Wrong

  • What Went Well

    • Record orders and backlog: Book-to-bill “well over 1,” backlog rose ~27% YoY to $419M (+$20M q/q), with orders balanced across transportation, power/utilities, building infrastructure and emerging markets .
    • Cash flow/discipline: Operating cash flow improved to $12.0M vs $2.5M LY; CFO cited ~83% operating cash conversion and ~73% free cash conversion; SG&A ratio improved YoY (44.7% of gross) and gross margin edged up to 51.4% .
    • Segment diversification: Transportation +30% YoY; Power & Utilities +16%; Emerging Markets +118%; management sees strong data center-related and grid-hardening demand .

  • What Went Wrong

    • EBITDA (GAAP) vs S&P consensus: GAAP EBITDA of ~$7.7M came in below S&P Global consensus of ~$13.8M, while Adjusted EBITDA was $14.5M; margin of 14.5% was below the midpoint of the full-year outlook, expected to ramp mid-year .
    • Transportation orders timing: Analyst noted lighter transportation order intake vs prior quarters; management called transportation “lumpy,” with strong pipeline and continued IIJA/state funding support .
    • Seasonal mix pressure: Adjusted EBITDA margin down vs Q4 2024 (17.2%) on seasonal revenue patterns; management reiterated full-year trajectory as higher Q2–Q3 revenue flows through relatively stable cost base .

Financial Results

Headline metrics vs prior year and prior quarter

MetricQ1 2024Q4 2024Q1 2025
Gross Contract Revenue ($M)$94.9 $113.2 $112.9
Net Service Billing ($M)$85.7 $98.6 $100.1
Adjusted EBITDA ($M)$12.1 $17.0 $14.5
Adjusted EBITDA Margin (on net)14.2% 17.2% 14.5%
GAAP Diluted EPS ($)($0.11) $0.33 ($0.11)
Adjusted Diluted EPS ($)$0.20 $0.71 $0.07
Cash from Operations ($M)$2.5 $11.9 (Q4) $12.0
Backlog ($M)$330.0 (approx) $399.0 $418.8

Q1 2025 actuals vs S&P Global consensus (Values retrieved from S&P Global)

MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($M)$111.3*$112.9
Primary EPS ($)-$0.09*$0.07
EBITDA ($M)$13.8*$7.7

Segment revenue mix (gross) – Q1 YoY

SegmentQ1 2024 ($M, %)Q1 2025 ($M, %)
Building Infrastructure$52.8 (55.6%) $55.9 (49.5%)
Transportation$18.1 (19.1%) $23.5 (20.8%)
Power & Utilities$18.5 (19.5%) $21.4 (19.0%)
Emerging Markets$5.5 (5.8%) $12.0 (10.7%)
Total$94.9 (100%) $112.9 (100%)

Selected KPIs

KPIQ1 2024Q4 2024Q1 2025
Net to Gross Ratio (qualitative)High 80s (company framework) High 80s (company framework) High 80s (company framework)
Operating Cash Conversionn/an/a~83% (management)
Free Cash Flow Conversionn/an/a~73% (management)
Share Repurchases$5.7M in Q1 2024 (treasury purchases) $34.4M in FY24 $6.7M in Q1; +$5.3M post-Q1
Shares Outstanding (period-end)n/a17.38M (12/31/24) 17.3M (3/31/25)
Net Debt / Adj. EBITDAn/a1.6x TTM (YE) 1.6x TTM; 1.3x forward (Q1 call)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net RevenueFY 2025$428–$440M (Mar-2025) $428–$440M (May-2025) Maintained
Adjusted EBITDAFY 2025$70–$76M (Mar-2025) $70–$76M (May-2025) Maintained

Notes: Outlook excludes future acquisitions not yet closed .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3’24, Q4’24)Current Period (Q1’25)Trend
Technology/AI investmentManagement flagged targeted tech investment; discussed lowering stock comp % over time and margin improvement; highlighted geospatial (Surdex) and new service line expansions .Higher near-term tech spend to inflect productivity/margins; examples include AI in iteration, high-res scanning, AR/digital twin in utilities; capex/OpEx mix evolving with SaaS .Accelerating investment, focused on productivity and wallet share.
Macro/tariffs/supply chainEarly 2025 outlook positive; minimal adverse federal impacts; diversified markets; domestic focus .Domestic model shields from tariff/supply-chain volatility; limited downstream exposure; markets well-supported; strong Q2 orders so far .Constructive macro stance; resilient to trade/tariff frictions.
Demand by marketQ3: transportation ramp; BI re-energized; emerging markets growth; backlog +27% YoY . Q4: bookings >$100M early Q1; distributed across markets .Transportation +30% YoY; power/utilities +16%; emerging +118%; balanced orders across markets; data center and grid capacity drivers .Broad-based growth, with transport/power as notable engines.
Backlog conversion~70–80% turns in 12 months; timing delays easing .70–80% remains a good rule of thumb; larger project mix may modestly extend duration .Stable conversion; slightly longer duration with scale.
Capital allocationBuybacks in 2024 ($34M); raised revolver to $140M; balanced M&A, tech, buybacks .Q1 buybacks $6.7M; +$5.3M post-Q1; net leverage ~1.6x TTM; runway for M&A + innovation .Continued balanced deployment; anti-dilutive bias given valuation.
M&ALarger average deal size; integration on track (Exeltech, Surdex) .Pipeline healthy; valuations competitive; pursuing larger deals and acqui-hires .Active pipeline; disciplined on size/fit.
Data centers/powerBuilding infrastructure/data centers gaining; power resilience focus .Data centers driving power upgrades; grid fortification/undergrounding as drivers .Strengthening secular tailwinds.

Management Commentary

  • “We delivered a solid first quarter highlighted by exceptional new order activity and healthy cash conversion… record new order bookings… contributed to another consecutive quarter of backlog growth.” – Gary Bowman, CEO .
  • “Gross revenue was up 19%… net service billing up 17%… gross margin increased… SG&A as a % of revenue declined. While our net loss was essentially flat… pretax income improved significantly… Adjusted EBITDA was $14.5M… margin 14.5%… we are confident higher quarterly revenue during the remainder of the year… will yield margins sufficient to meet or exceed our full-year margin guidance.” – Bruce Labovitz, CFO .
  • “We are committed to… innovation, visualization, geolocation and automation… increased our primary revolving line of credit to $140M… capital leasing capacity… to support aggressive investments.” – Bruce Labovitz, CFO .
  • “We’re not resellers or builders… asset-light approach allows lower CapEx and better cash efficiency… domestic focus shields us from global volatility while aligning with U.S. policy tailwinds… highly defensible business model.” – Gary Bowman, CEO .

Q&A Highlights

  • Transportation demand and IIJA: Transportation is “lumpy,” but outlook remains strong; IIJA funds continue alongside state/local gas-tax funds .
  • Power drivers: Data centers, grid capacity expansion, weather resilience/undergrounding cited as multi-year demand drivers .
  • Staffing and tech investments: Workforce stable to deliver higher revenue with non-proportional headcount growth; investing in AI-enabled iteration, scanning/imaging; expect slightly higher “traditional” CapEx despite SaaS mix .
  • Building Infrastructure (BI) mix: Approximately 50/50 residential/commercial; residential more robust vs last year; commercial steady; project starts flowing better vs election-induced pauses last year .
  • Backlog conversion: 70–80% over 12 months remains a reasonable rule; larger projects lengthen lifespan modestly .
  • M&A and acqui-hires: Valuations remain firm; pipeline active; selectively pursuing larger deals; also adding headcount via acqui-hires .
  • AI adoption: Integrated cautiously; not yet a decisive competitive win/loss factor, but part of process improvement .

Estimates Context

  • Revenue: $112.9M actual vs $111.3M S&P Global consensus; beat by ~$1.6M (1.4%). Values with asterisks retrieved from S&P Global .
  • Primary EPS: $0.07 actual vs -$0.09 S&P Global consensus; beat by $0.16. Values with asterisks retrieved from S&P Global .
  • EBITDA (GAAP): ~$7.7M actual vs ~$13.8M S&P Global consensus; below consensus. Values with asterisks retrieved from S&P Global .
  • Management expounded that adjusted EBITDA rose 20% YoY to $14.5M (14.5% margin), and expects margins to ramp with seasonal revenue in Q2–Q3 .

Q1 2025 S&P Global consensus and actual (Values retrieved from S&P Global)

MetricConsensusActual
Revenue ($M)$111.3*$112.9
Primary EPS ($)-$0.09*$0.07
EBITDA ($M)$13.8*$7.7

Key Takeaways for Investors

  • Core growth intact with balanced demand: 19% revenue growth, record bookings/backlog and diversification across transportation, power/utilities, BI, and emerging markets de-risk the outlook .
  • Quality of revenue improving: Net-to-gross in the high-80s, higher gross margin, and lower SG&A ratios point to better labor utilization and operating leverage potential as volumes ramp .
  • Seasonal margin cadence: Q1 margin softness vs Q4 is expected; management targets higher margins as Q2–Q3 revenue accelerates with stable cost base, supporting FY25 EBITDA guidance .
  • Capital deployment remains shareholder-friendly: Ongoing buybacks ($6.7M in Q1; $5.3M post-quarter) and capacity for M&A/tech investments (revolver at $140M) should help compound EPS/FCF over time .
  • Structural tailwinds: Data center-related civil/power work and grid hardening should sustain multi-year demand; BI showing recovery in residential and steady commercial .
  • Watch the EBITDA definition vs consensus: S&P’s EBITDA consensus tracked below adjusted EBITDA framing; company emphasizes Adjusted EBITDA as the key profitability KPI (14.5% of net revenue in Q1) .
  • Guidance held with strong early-Q2 orders: Reaffirmed FY25 net revenue and adj. EBITDA ranges, noting new orders in Q2 are outpacing Q1, supporting confidence in the year .

Additional Notable Press Releases (Q1/Q2 Context)

  • $4.2M Illinois construction engineering award (Will County) reinforces transportation credentials and backlog visibility (announced in April; execution contributes to 2025 pipeline) .

Footnote on estimates: Asterisked values are retrieved from S&P Global consensus via GetEstimates (Primary EPS, Revenue, EBITDA, and # of estimates). Values retrieved from S&P Global.