Executive Summary

Q4 2024 delivered record quarterly performance with Gross Contract Revenue of $113.2M (+21.7% YoY), Net Service Billing of $98.6M (+22.5% YoY), Adjusted EBITDA of $17.0M (+51.8% YoY), and Diluted EPS of $0.33, aided by a $5.4M tax benefit; management said quarterly revenue and net revenue exceeded consensus, though SPGI detail was unavailable .
Backlog ended at a record $399M (+30% YoY), bookings remained strong into Q1 with >$100M new orders through early March; transportation and power/utilities strength offset softer pockets in wind and interest-rate–sensitive subsegments .
FY25 guidance was raised to Net Revenue $428–$440M and Adjusted EBITDA $70–$76M (from $422–$437M and $68–$75M), reflecting strong bookings and balance sheet capacity (revolver being upsized to $140M) .
Capital allocation remains balanced across M&A, tech investments, and buybacks; $34.4M repurchased in 2024, plus $4.1M post-year-end with ~$11M authorization remaining; management reiterated belief shares are undervalued near-term catalysts include bookings cadence, margin progression, and buybacks .

What Went Well and What Went Wrong

What Went Well
- Margin/earnings inflection: Adjusted EBITDA margin rose to 17.2% (from 14.0% YoY) with Adjusted EPS (diluted) of $0.71 (vs $0.31), reflecting labor realignment, mix, and a $5.4M tax benefit .
- Bookings/backlog: YE backlog reached $399M (+30% YoY); new orders topped $100M early in Q1, indicating continued demand across markets .
- Strategic positioning: Geospatial (Surdex) expanded cross-sell and incumbency; active pipeline in data centers, grid capacity/resilience, oil & gas and mining; minimal federal disruption; IIJA spending supportive of transportation .
What Went Wrong
- Interest-rate–sensitive submarkets: Prior quarters saw delays in converting awards to revenue (esp. transportation), and building infrastructure organic growth lagged earlier in 2024; improvement is underway but remains a watch item .
- Tax/GAAP dynamics: Q4 GAAP earnings benefited from a sizable tax benefit ($5.4M) tied to R&D credits/stock vesting/UTP reversals; underlying trend is positive, but normalization is needed for run-rate EPS .
- Segment mix noise: Emerging Markets growth and reclassification plans (breaking out aerial imaging/mapping in 2025) could complicate YoY comparability near term .

Financial Results

Revenue, EPS, margins vs prior quarters and prior year

Metric	Q2 2024	Q3 2024	Q4 2024
Gross Contract Revenue ($M)	$104.5	$113.9	$113.2
Net Service Billing ($M)	$94.0	$101.4	$98.6
Diluted EPS (GAAP)	$(0.13)	$0.04	$0.33
Adjusted EBITDA ($M)	$13.4	$17.0	$17.0
Adjusted EBITDA Margin, Net (%)	14.3%	16.7%	17.2%
Net Income Margin (%)	(2.0)%	0.7%	5.2%
Backlog ($M)	$352	$380	$399
YoY Growth (Gross Contract Revenue)	+26%	+21%	+21.7%
YoY Growth (Net Service Billing)	+27%	+23%	+22.5%
YoY Growth (Adjusted EBITDA)	+21%	+13%	+51.8%

Segment breakdown (Q4 2024 vs Q4 2023)

Segment (Gross Contract Revenue, $M)	Q4 2023	Q4 2024	YoY %
Building Infrastructure	$50.0	$54.0	+8.1%
Transportation	$21.2	$27.5	+29.6%
Power & Utilities	$16.7	$18.8	+12.7%
Emerging Markets	$5.1	$12.9	+152.9%
Total	$93.0	$113.2	+21.8%
Acquired Revenue	$13.0	$14.1	+8.5%

Select KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Organic Net Service Billing Growth	+10% (YTD)	+8% (TTM)	+9% (Q4)
Adjusted EPS (Diluted)	$(0.03)	$0.30	$0.71
Cash from Operations ($M)	n/a	$12.4 (9M)	$11.9 (Q4)

Notes: Management indicated Q4 revenue and net revenue exceeded consensus; SPGI consensus detail was unavailable due to data access limits .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue	FY 2025	$422–$437M (Nov-2024)	$428–$440M (Mar-2025)	Raised
Adjusted EBITDA	FY 2025	$68–$75M (Nov-2024)	$70–$76M (Mar-2025)	Raised

Assumptions: Guidance excludes contributions from future acquisitions not yet closed .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior)	Q3 2024 (Prior)	Q4 2024 (Current)	Trend
Bookings/Backlog	Backlog +19% YoY; delays converting awards (transportation)	Backlog +27% YoY; some big awards commenced; >$28M QoQ increase	YE backlog $399M; >$100M new orders early Q1	Improving conversion; accelerating orders
Transportation/IIJA	Selections pending contracting/notice to proceed	Several DOT awards underway; pipeline expanding	IIJA spending supportive; broad strength; building infrastructure backlog dip seen as timing	Positive momentum
Technology/Geospatial	Surdex added aerial imaging; expanding mapping/LiDAR	Continued cross-sell; methane detection opportunity	New sensors, LiDAR+SONAR, AR/digital twins for utilities	Expanding use-cases and upsell
Data Centers/AI	Land use assessments for DC sites	Robust activity; targeting “inside the building” MEP	Pursuing lifecycle DC work; power capacity as key constraint	Growing exposure
R&D/Tax	Reversed UTP; cash/tax effects	IRS timing allowed filing w/o $12M payment; disclosed	$5.4M Q4 tax benefit (R&D credits/vesting/UTP)	Favorable tax items in Q4
Capital Allocation	$51M equity raise; new $100M revolver	Buybacks continued; shares ~17.5M outstanding	Revolver upsizing to $140M; $4.1M post-YE buybacks; ~$11M capacity	Capacity to fund M&A and buybacks
Building Infrastructure	Organic lag amid rates; expecting rebound	Improving activity; multifamily re-energizing	DC-area exposure low-single-digits overall; manageable	Stabilizing with pockets of strength
Energy/Mining	Redeployed from wind; adding oil & gas skills	—	Oil & gas and mining to see significant momentum	Positive mix shift

Management Commentary

“We posted record results and delivered another year of meaningful backlog growth… Bookings were especially strong in the second half of 2024 generating a healthy book-to-burn ratio.” – Gary Bowman, CEO .
“Gross revenue for the fourth quarter was $113 million… Net revenue… $98.6 million. These results both exceeded consensus estimates… Adjusted EBITDA… was $17 million… reflects in part our labor realignment efforts in the third quarter.” – Bruce Labovitz, CFO .
“At year-end, we had… ~$95 million of net debt and a leverage ratio of 1.6… We have plenty of capacity to borrow… to fund strategic growth… We now have $11 million remaining under our current [buyback] authorization… we believe our equity is highly undervalued.” – Bruce Labovitz, CFO .
“Transportation, power and utilities and data center demand continues to be robust… We anticipate oil and gas and mining will see significant positive momentum in 2025 and beyond.” – Gary Bowman, CEO .

Q&A Highlights

Transportation/IIJA: IIJA spending “kicking in” with sustained outlook; transportation visibility remains strong across states and local funding .
Backlog/Visibility: Backlog profile similar to prior years; ~80% turns in 12 months; limited delays; outsourcing opportunities if agencies cut staff .
Tech Investments: New remote sensors, LiDAR+SONAR asset tools, AR/digital twin for utilities; invest opportunistically where revenue/cost synergies justify .
Capital Allocation: Integration on track; can pursue M&A and buybacks simultaneously; line of credit being expanded; preference for balanced “and” approach .
Data Centers: Expanding to lifecycle/inside-DC services; power capacity is main constraint; AI DCs less latency-sensitive, expanding geographies .
Geographic exposure: D.C.-area residential ~10–15% of the residential sub-portfolio; overall low single-digit of total; diversified footprint .

Estimates Context

Management stated Q4 revenue and net revenue exceeded consensus; however, S&P Global consensus details for Q4 2024 were unavailable due to data access limits during this analysis .
Implication: Given the magnitude of YoY growth and margin inflection in Q4, Street EPS/EBITDA estimates for FY25 likely need upward bias on margin and bookings strength; watch normalization of tax rate and cadence of interest-rate–sensitive subsegments.

Key Takeaways for Investors

Bookings-driven setup: Record backlog ($399M) and >$100M orders early in Q1 support revenue visibility; watch conversion pace, particularly in transportation .
Margin trajectory: Adjusted EBITDA margin reached 17.2% in Q4; sustained labor discipline and mix could support mid/high-teens through FY25, with non-GAAP addbacks moderating .
Balanced capital deployment: Upsized revolver, repurchases (~$38.5M including post-YE) and M&A pipeline position Bowman for both organic and inorganic growth; buybacks provide downside support .
Mix tailwinds: Transportation (IIJA), grid resilience, oil & gas/midstream renewals, and data center infrastructure offset weaker wind and rate-sensitive pockets .
Guidance raised: FY25 Net Revenue/Adj. EBITDA targets increased; execution against backlog conversion and tech-enabled cross-sell are key to upside vs. new ranges .
Normalization watch: Q4 GAAP EPS benefited from tax items; focus on run-rate margins, cash conversion, and non-cash stock comp trajectory into FY25 .
Trading setup: Near-term catalysts include continued order wins, transportation program starts, and incremental buybacks; any acceleration in multifamily/data centers could further de-risk FY25 .

Appendix: Additional Data and Disclosures

Non-GAAP reconciliation and Adjusted EPS detail for Q4: Adjusted Diluted EPS $0.71 vs GAAP $0.33; adjustments include acquisition expenses, amortization, pre-IPO stock comp, and other non-core expenses; adjusted tax expense methodology outlined in press materials .
Backlog mix at 12/31/24: Building Infrastructure 41%, Transportation 35%, Power & Utilities 15%, Emerging Markets 9% .
Stock repurchases: $34.4M in 2024 (avg. $26.56/share), $4.1M post-year-end; ~$11M authorization remaining .

Sources: Q4 2024 8-K press release and exhibits ; Company press release (3/11/25) ; Q4 2024 earnings call (3/12/25) ; Q3 2024 press release/8-K and call ; Q2 2024 press release/8-K and call .

Bowman Consulting Group Ltd. (BWMN)·Q4 2024 Earnings Summary