Bowman Consulting Founder Gary Bowman to Retire After 30-Year Run and 141% Post-IPO Return

February 17, 2026 · by Fintool Agent

BWMN

Bowman Consulting Group (NASDAQ: BWMN) announced today that founder and CEO Gary Bowman plans to retire and resign from the board later this year, ending a three-decade run that transformed a Virginia engineering startup into a national infrastructure services firm with 2,500+ employees and $427 million in revenue. 1

The planned succession—explicitly stated as not due to any disagreement with the company—triggers a formal CEO search while the board moves to lock in the existing leadership team with substantial retention incentives. 2

The Numbers Behind Bowman's Transformation

Under Gary Bowman's leadership, particularly since the May 2021 IPO, the company has delivered substantial shareholder returns while executing an aggressive growth strategy:

The stock reached an all-time high of $45.83 in October 2025 before pulling back 26% to current levels. BWMN's 141% post-IPO return compares favorably to the broader engineering and construction sector.

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A Planned Exit, Not a Sudden Departure

The 8-K filing makes clear this is an orderly transition, not a crisis-driven exit:

"Mr. Bowman's decision to retire and resign was not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices." 1

Gary Bowman delivered a notice of non-renewal on February 12, 2026, meaning his employment agreement will expire on December 31, 2026. 2 He will continue as CEO until a successor is appointed and then serve as Senior Advisor to ensure a smooth handover. 3

The timing aligns with strong operational momentum. On the Q4 2024 earnings call in March, Bowman was bullish on 2025 prospects:

"Since we went public in 2021, we've increased net revenue at a compound annual growth rate of over 41%. We built our backlog up to nearly $400 million, and we've more than tripled our adjusted EBITDA while expanding margin by 350 basis points from 12.2% to 15.5%." 4

Board Moves to Retain Key Executives

The board simultaneously announced retention packages for the two executives likely to guide operations through the transition:

CFO Bruce Labovitz received an amended employment agreement including:

• $2 million one-time cash bonus, payable April 1, 2027, contingent on continued employment 5
• Accelerated vesting protections in change-of-control scenarios 6
• Term extended through June 2028 with automatic renewals 7

COO Dan Swayze received:

• One-year contract extension through December 31, 2028 8
• 5,719 shares of time-based restricted stock (3-year vest) 9
• 5,719 performance-based RSUs tied to company metrics through 2028 10

These moves signal the board's intent to preserve operational continuity regardless of who takes the CEO role.

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What the CEO Search Signals

The board, led by Chairman Jim Laurito, has initiated a "formal search process to include both internal and external candidates." 1

Key considerations for investors:

1. Internal vs. External — COO Dan Swayze would be the obvious internal candidate given his operational role and the retention package structure. An external hire could signal strategic shifts.

2. M&A Integration Expertise — With 35+ acquisitions since the IPO, the next CEO must continue managing a complex integration pipeline. The company's growth strategy depends heavily on disciplined deal execution.

3. Founder Transition Risk — Engineering services firms often have deep founder relationships with key clients and talent. The Senior Advisor arrangement suggests the board recognizes this risk.

Board Chairman Jim Laurito emphasized continuity in the press release:

"He has built not only a national engineering platform, but a culture grounded in discipline, accountability and long-term value creation. Bowman is exceptionally well positioned for its next chapter because of the foundation he has established." 2

Financial Position Heading Into Transition

Bowman enters the succession period from a position of operational strength:

*Values retrieved from S&P Global

The 2025 guidance calls for net revenues of $428-440 million with adjusted EBITDA of $70-76 million, which would represent continued margin expansion toward "sustained high teens margins." 12

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Investor Takeaways

Near-term: Expect minimal disruption. Gary Bowman remains CEO through the search, with the CFO and COO locked in. The company has strong backlog visibility ($419 million as of Q1 2025) and momentum in transportation, power, and data center markets. 1

Medium-term: Watch for CEO appointment timing and background. An external hire from a larger engineering firm could accelerate enterprise capabilities; an internal promotion would emphasize continuity.

Longer-term: The core question is whether Bowman's M&A-driven growth strategy—35+ deals in under five years—can continue at the same pace and discipline without the founder at the helm.

Related

• Bowman Consulting Company Profile