Bowman Announces Record Results for Fourth Quarter and Full Year 2024

Strength of new orders signals continued growth for 2025

Bowman Consulting Group Ltd. (NASDAQ:BWMN), a national engineering services and program management firm, today announced record financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Versus Fourth Quarter 2023 Financial Results:

• Gross contract revenue of $113.2 million compared to $93.0 million, a 21.7% increase
• Net service billing¹ of $98.6 million compared to $80.5 million, a 22.5% increase
• Organic net service billing growth² of 9% compared to 4%
• Net income of $5.9 million compared to a net loss of $7.7 million
• Adjusted EBITDA¹ of $17.0 million compared to $11.2 million, a 51.8% increase
• Adjusted EBITDA margin, net ¹ of 17.2% compared to 14.0%, a 320-bps increase
• Cash flows from operations of $11.9 million compared to ($0.5 million)
• Basic and Diluted EPS of $0.34 and $0.33, respectively, compared to ($0.59)
• Gross backlog of $399.0 million compared to $306.0 million, a 30.4% increase

Full-Year 2024 Versus Full-Year 2023 Financial Results:

• Gross contract revenue of $426.6 million compared to $346.3 million, a 23.2% increase
• Net service billing¹ of $379.7 million compared to $304.0 million, a 24.9% increase
• Organic net service billing growth² of 13% compared to 18%
• Net income of $3.0 million compared to a net loss of $6.6 million
• Adjusted EBITDA¹ of $59.5 million compared to $47.0 million, a 26.6% increase
• Adjusted EBITDA margin, net ¹ of 15.7% compared to 15.5%, a 20-bps increase
• Cash flows from operations of $24.3 million compared to $11.7 million,
• Basic and Diluted EPS was $0.18 and $0.17, respectively, compared to ($0.53)

CEO Commentary

"Fiscal 2024, our third full year as a public company, was another successful year of growth for Bowman," said Gary Bowman, chairman and CEO of Bowman. "We made eight strategic acquisitions which grew our presence across all our markets, expanded our geographic footprint, added significant new talent, deepened our technical services and laid a solid foundation for continued long-term organic revenue growth. We finished the year strong, producing as much operating cash flow in the fourth quarter as we did for all of 2023, and nearly doubling our cash flows from operations during the first nine months of 2024. For the year, 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.

"This year's off to a strong start with continued strong bookings pacing ahead of plan. Looking ahead, our objective in 2025 is to make investments in service line expansions and technology tools that will increase our wallet-share with customers, improve the delivery of our services and accelerate long-term organic growth. We believe the market for our services is as dynamic, technologically complex and economically viable as it has ever been, supported by continued demand for infrastructure expansion and improvement. To date, we have experienced minimal adverse impact from recent changes in government spending priorities and economic policies. We remain optimistic about our long-term trajectory and confident in our ability to create value for our shareholders."

Stock Repurchase Activities

Bowman repurchased $34.4 million of common stock during the twelve months ended December 31, 2024, with $11.1 million from the repurchase of shares from employees in connection with the payment of taxes associated with stock vesting and $23.3 million under a Company repurchase authorization. The average price paid during the twelve months was approximately $26.56 per share repurchased.

After the end of the year, the Company has repurchased an additional $4.1 million of its common stock under its repurchase authorization. Approximately $11.0 million remains available under the Company's current repurchase authorization.

Non-GAAP Adjusted Earnings per Share³

In connection with the release of financial results, the Company reported the non-GAAP financial metric of Adjusted Earnings per Share as follows:

Other Fiscal 2024 Highlights and Subsequent Events

• Acquired eight companies in 2024, representing approximately $60 million of run-rate net service billing; broadened services and sector expertise and expanded nationwide reach with additional bridge, transportation, utility services, sustainability, fire protection, electrical engineering, water/wastewater, utility rate studies and economic consulting and advanced high-altitude orthoimaging and geospatial capabilities.
• On February 14, 2025, the Company closed on the acquisition of UP Engineers in San Antonio, Texas.
• In March 2025, the Company received commitment from its bank syndicate participants to expand its Senior Secured Credit Facility by $40 million to $140 million.

Fiscal Year 2025 Guidance

The Company is increasing its previously issued fiscal year 2025 guidance. The table below summarizes Bowman's updated guidance for fiscal year 2025:

The current outlook for 2025 is based on completed and definitively contracted acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management discusses the Company's acquisition pipeline and its prospective impact during regularly scheduled earnings calls.

Conference Call Information

Bowman will host a conference call to discuss financial results tomorrow morning, March 12, 2025, at 9:00 a.m. ET. Access to a live webcast is available through the Investor Relations section of the Company's website at investors.bowman.com.

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is a national engineering services firm offering infrastructure engineering, technical services and project management solutions to owners and operators of the built environment. With over 2,300 employees in more than 100 locations throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. For more information, visit bowman.com or investors.bowman.com.

¹ Non-GAAP financial metric the Company believes offers valuable perspective on results of operations (see non-GAAP tables below for reconciliations).

² Organic growth for the three and twelve months ended 12/31/24 excludes revenue from acquisitions completed on or after January 1, 2024. Year over year growth rates only reflect revenue recognized post-acquisition.

³ Basic Adjusted EPS and Diluted Adjusted EPS are all non-GAAP financial metrics the Company believes offer valuable perspectives on results of operations (see non-GAAP tables below for reconciliations). Adjusted EPS (Basic and Diluted) include addbacks for non-reoccurring expenses specific to acquisitions, non-cash stock compensation expense associated with pre-IPO grants, and other expenses not in the ordinary course of business. With respect to the elimination of any non-cash stock compensation expense, the Company computes an adjusted tax expense or benefit which accounts for the elimination of any periodic windfall or shortfall tax effects resulting from the difference between grant date fair value and vest date value. With respect to all other eliminations, the Company applies its average marginal statutory tax rate, currently 25.8%, to derive the tax adjustment associated with the elimination of expenses. A reconciliation of non-GAAP Adjusted EPS to GAAP EPS, both basic and diluted, is included with this press release for reference.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will," "goal" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the "Risk Factors" set forth in the Company's most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

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Investor Relations Contact:

Betsy Patterson

[email protected]