RESTON, Va., May 05, 2026 (GLOBE NEWSWIRE) -- Bowman Consulting Group Ltd. (NASDAQ: BWMN), a national engineering services and program management firm, today announced financial results for the first quarter ended March 31, 2026.
"Bowman is in a strong position coming out of the first quarter with record-setting backlog growth that positions us for outsized organic growth over the next couple of years," said Gary Bowman, founder and CEO. "Additionally, we delivered double-digit increases in both net service billing and Adjusted EBITDA in the quarter. The strength of demand across our market verticals positions us to achieve continued margin expansion during 2026 and beyond. We are confident in our ability to deliver solid performance this year and have raised full-year 2026 guidance accordingly."
First Quarter 2026 Compared to First Quarter 2025 Financial Results:
-- Gross contract revenue of $126.5 million compared to $112.9 million, a
12.0% increase
-- Net service billing1 of $114.2 million compared to $100.1 million, a
14.1% increase
-- Organic net service billing2 growth of 6.0% compared to 5.6%
-- Net loss of $(3.7) million compared to $(1.7) million
-- Basic and Diluted EPS of $(0.22) compared to $(0.11) respectively
-- Adjusted EBITDA1 of $16.8 million compared to $14.5 million, a 15.8%
increase
-- Adjusted EBITDA margin, net 1 of 14.7% compared to 14.5%
-- Adjusted Basic and Diluted EPS 3 of $0.14 compared to $0.07 respectively
-- Cash from Operations of $11.6 million as compared to $12.0 million
-- Gross backlog of $652.7 million compared to $418.8 million, a 55.9%
increase
Notable Events:
-- The Company executed a $146.7 million contract modification with a U.S.
government agency, bringing the total not-to-exceed value of the contract
to $177.7 million. The original contract was entered into in December
2025.
-- On March 3, 2026, the Company entered into a Third Amendment to the
Credit Agreement and Joinder Agreement, which increased the maximum
aggregate revolving commitments from $210.0 million to $250.0 million.
-- During the three months ended March 31, 2026, the Company repurchased
288,098 shares of its common stock under the 2025 Stock Repurchase
Authorization at an average price of $32.03 per share for a total of $9.2
million.
-- On May 1, 2026, Bowman acquired Smith & Associates Land Surveying, LLC.,
expanding service capabilities in the Southwest region and adding $2.0
million of run-rate net service billing.
CFO Commentary
"Our achievements in the quarter position us to generate significant organic growth and meaningful margin expansion this year," said Bruce Labovitz, CFO. "Our balance sheet strength enables us to make strategic investments aimed at expanding our breadth of services and extending client engagement beyond asset operationalization. Recent acquisitions have provided us an extensive suite of quality enhancement, productivity improvement and client engagement tools that are proving highly impactful on our ability to deliver work more timely, more efficiently and with greater impact. Our investments in infrastructure and automation are designed to ensure the durability of revenue and margins as the industry once again experiences technological inflection."
Full Year 2026 Guidance
Bowman raised net revenue guidance for full year 2026:
Date Issued Net Revenue Adjusted EBITDA Margin --------------- -------------- ---------------------- November 2025 $465 - $480 MM 17.0% - 17.5% --------------- -------------- ---------------------- March 2026 $495 - $510 MM 17.0% - 17.5% --------------- -------------- ---------------------- May 2026 $520 - $540 MM 17.2% - 17.7% --------------- -------------- ----------------------
The current outlook for 2026 is based on completed acquisitions as of the date of this release and does not include contributions from future acquisitions.
Conference Call Information
Bowman will host a conference call to discuss financial results tomorrow morning, May 6, 2026, 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 2,500 employees and over 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 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 net service billing growth (also a non-GAAP financial metric) for the three months ended 3/31/26 excludes revenue from acquisitions completed after 3/31/2025. Year over year growth rates only reflect revenue realized 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.
Investor Relations Contact:
Betsy Patterson
ir@bowman.com
BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except per share data)
March 31, December 31,
2026 2025
------------- ----------------
(Unaudited)
ASSETS
Current Assets
-----------------------------------------
Cash and cash equivalents $ 12,047 $ 11,066
Accounts receivable, net 133,888 130,634
Contract assets 57,390 53,512
Notes receivable - officers,
employees, affiliates, current
portion 237 13
Prepaid and other current assets 18,488 17,730
-------- ---------
Total current assets 222,050 212,955
Non-Current Assets
-----------------------------------------
Property and equipment, net 53,040 49,206
Operating lease, right-of-use assets 46,072 45,822
Goodwill 173,579 173,579
Notes receivable, less current
portion 903 903
Notes receivable - officers,
employees, affiliates, less current
portion 868 1,108
Other intangible assets, net 85,616 88,580
Deferred tax asset, net 5,822 5,822
Other assets 1,818 1,707
-------- ---------
Total Assets $ 589,768 $ 579,682
======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
-----------------------------------------
Revolving credit facility 108,817 95,350
Accounts payable and accrued
liabilities, current portion 67,978 60,035
Contract liabilities 14,185 10,965
Notes payable, current portion 20,840 22,698
Operating lease obligation, current
portion 12,130 11,951
Finance lease obligation, current
portion 13,979 13,735
-------- ---------
Total current liabilities 237,929 214,734
Non-Current Liabilities
-----------------------------------------
Other non-current obligations 395 377
Notes payable, less current portion 29,269 34,313
Operating lease obligation, less
current portion 40,486 40,430
Finance lease obligation, less
current portion 25,850 23,718
Deferred tax liability, net 279 279
Pension and post-retirement
obligation, less current portion 4,659 4,726
-------- ---------
Total liabilities $ 338,867 $ 318,577
-------- ---------
Shareholders' Equity
Preferred Stock, $0.01 par value;
5,000,000 shares authorized, no
shares issued and outstanding -- --
Common stock, $0.01 par value;
30,000,000 shares authorized as of
March 31, 2026 and December 31,
2025; 22,273,373 shares issued and
17,153,424 outstanding, and
21,972,432 shares issued and
17,194,091 outstanding as of March
31, 2026 and December 31, 2025,
respectively 223 220
Additional paid-in-capital 360,007 355,458
Accumulated other comprehensive
income 869 895
Treasury stock, at cost; 5,119,949
and 4,778,341 shares, respectively (95,959) (84,931)
Accumulated deficit (14,239) (10,537)
-------- ---------
Total shareholders' equity $ 250,901 $ 261,105
-------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 589,768 $ 579,682
======== =========
BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands except per share data)
(Unaudited)
For the Three Months
Ended March 31,
----------------------------
2026 2025
----------
Gross Contract Revenue $ 126,479 $ 112,931
Contract costs:(exclusive of
depreciation and amortization below)
Direct payroll costs 48,313 41,956
Sub-consultants and expenses 12,275 12,878
---------- ----------
Total contract costs 60,588 54,834
---------- ----------
Operating Expenses:
Selling, general and
administrative 57,783 50,490
Depreciation and amortization 8,406 6,521
(Gain) on sale (402) (49)
---------- ----------
Total operating expenses 65,787 56,962
---------- ----------
Income from operations 104 1,135
---------- ----------
Other expense 3,401 2,110
---------- ----------
Loss before tax expense (3,297) (975)
Income tax expense 405 769
---------- ----------
Net loss $ (3,702) $ (1,744)
========== ==========
Earnings allocated to non-vested shares -- --
---------- ----------
Net loss attributable to common
shareholders $ (3,702) $ (1,744)
========== ==========
Earnings (loss) per share
Basic $ (0.22) $ (0.11)
Diluted $ (0.22) $ (0.11)
Weighted average shares
outstanding:
Basic 16,453,401 16,356,331
Diluted 16,453,401 16,356,331
BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
For the Three Months Ended March 31,
----------------------------------------------
2026 2025
--------------
Cash Flows from Operating
Activities:
Net loss $ (3,702) $ (1,744)
Adjustments to reconcile net
loss to net cash provided by
operating activities
Depreciation and
amortization - property,
plant and equipment 5,113 3,904
Amortization of
intangible assets 3,292 2,617
Gain on sale of assets (402) (49)
Credit losses 374 345
Stock based compensation 4,227 6,630
Deferred taxes -- (10,977)
Accretion of discounts on
notes payable 108 256
Changes in operating
assets and liabilities,
net of acquisition of
businesses
Accounts receivable (3,628) (1,896)
Contract assets (3,878) (6,340)
Prepaid expenses and
other assets (812) 615
Accounts payable and
accrued expenses 7,666 14,885
Contract liabilities 3,220 3,788
--- ------------- --------------
Net cash provided by
operating activities 11,578 12,034
--- ------------- --------------
Cash Flows from Investing
Activities:
Purchases of property and
equipment (1,933) (1,043)
Proceeds from sale of
assets and disposal of
leases 402 49
Capitalized internal-use
software development
costs (328) --
Proceeds from notes
receivable -- 718
Acquisitions of
businesses, net of cash
acquired -- (1,479)
Collections under stock
subscription notes
receivable -- 11
--- ------------- --------------
Net cash used in investing
activities (1,859) (1,744)
--- ------------- --------------
Cash Flows from Financing
Activities:
Borrowings under
revolving credit
facility 13,467 8,000
Repayment under notes
payable (7,235) (4,377)
Payments on finance
leases (4,193) (2,702)
Payment of contingent
consideration from
acquisitions (225) (1,016)
Payments for purchase of
treasury stock (1,801) (2,574)
Repurchases of common
stock (9,227) (4,103)
Proceeds from issuance of
common stock 476 484
--- ------------- --------------
Net cash used in financing
activities (8,738) (6,288)
--- ------------- --------------
Net increase in cash and
cash equivalents 981 4,002
--- ------------- --------------
Cash and cash equivalents,
beginning of period 11,066 6,698
--- ------------- --------------
Cash and cash equivalents,
end of period $ 12,047 $ 10,700
--- ------------- --------------
Supplemental disclosures of
cash flow information:
Cash paid for interest $ 2,559 $ 2,028
=== ============= ==============
Net cash (received from)
income taxes $ (102) $ 10
=== ============= ==============
Non-cash investing and
financing activities:
Property and equipment
acquired under finance
lease $ (6,850) $ (2,006)
=== ============= ==============
Non-cash additions to
property and equipment $ (459) $ --
=== ============= ==============
Note payable converted to
common shares $ -- $ (434)
=== ============= ==============
Issuance of notes payable
for acquisitions $ -- $ (2,056)
=== ============= ==============
Settlement of contingent
consideration $ 525 $ 1,968
=== ============= ==============
BOWMAN CONSULTING GROUP LTD.
RECONCILIATION OF EPS TO ADJUSTED EPS
(Amounts in thousands except per share data)
For the Three Months Ended March 31,
2026 2025
---------------
Net loss (GAAP) $ (3,702) $ (1,744)
+ income tax expense
(GAAP) 405 769
Loss before tax expense
(GAAP) $ (3,297) $ (975)
+ acquisition related
expenses 1,540 594
+ amortization of
intangibles 3,292 2,617
+ non-cash stock comp
related to pre-IPO 165 493
+ other non-core
expenses 3,268 143
Adjusted income before tax
expense $ 4,968 $ 2,872
Adjusted income tax expense 2,564 1,676
Adjusted net income $ 2,404 $ 1,196
Adjusted earnings allocated
to non-vested shares 91 61
Adjusted net income
attributable to common
shareholders $ 2,313 $ 1,135
Earnings (loss) per
share (GAAP)
Basic $ (0.22) $ (0.11)
Diluted $ (0.22) $ (0.11)
Adjusted earnings per
share (Non-GAAP)
Basic $ 0.14 $ 0.07
Diluted $ 0.14 $ 0.07
Weighted average shares
outstanding
Basic 16,453,401 16,356,331
Diluted 16,671,910 16,638,334
Basic Adjusted Earnings Per
Share Summary - Non-GAAP For the Three Months Ended March 31,
2026 2025
---------------
Earnings (loss) per share
(GAAP) $ (0.22) $ (0.11)
Pre-tax basic per share
adjustments $ 0.52 $ 0.29
Adjusted earnings per share
before tax expense $ 0.30 $ 0.18
Income tax expense per
share adjustment $ 0.15 $ 0.11
Adjusted earnings per share
- adjusted net income $ 0.15 $ 0.07
Adjusted earnings per
share allocated to
non-vested shares $ 0.01 $ --
Adjusted earnings per share
attributable to common
shareholders $ 0.14 $ 0.07
Diluted Adjusted Earnings
Per Share Summary -
Non-GAAP For the Three Months Ended March 31,
2026 2025
---------------
Earnings (loss) per share
(GAAP) $ (0.22) $ (0.11)
Pre-tax diluted per
share adjustments $ 0.52 $ 0.28
Adjusted earnings per share
before tax expense $ 0.30 $ 0.17
Income tax expense per
share adjustment $ 0.15 $ 0.10
Adjusted earnings per share
- adjusted net income $ 0.15 $ 0.07
Adjusted earnings per
share allocated to
non-vested shares $ 0.01 $ --
Adjusted earnings per share
attributable to common
shareholders $ 0.14 $ 0.07
BOWMAN CONSULTING GROUP LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands except per share data)
Combined Statement of
Operations Reconciliation For the Three Months Ended March 31,
2026 2025
------------- ---- ------------ ---
Gross contract revenue $ 126,479 $ 112,931
Contract costs (exclusive of
depreciation and
amortization) 60,588 54,834
Operating expense 65,787 56,962
Income from operations 104 1,135
Other expense 3,401 2,110
Income tax expense 405 769
Net loss $ (3,702) $ (1,744)
Net margin (2.9) % (1.5) %
Other financial
information(1)
Net service billing $ 114,204 $ 100,053
Adjusted EBITDA 16,797 14,505
Adjusted EBITDA margin, net 14.7% 14.5%
Gross Contract Revenue to
Net Service Billing
Reconciliation For the Three Months Ended March 31,
2026 2025
------------- ---- ------------ ---
Gross contract revenue $ 126,479 $ 112,931
Less: sub-consultants and
other direct expenses 12,275 12,878
Net service billing $ 114,204 $ 100,053
Organic net service billing $ 106,086 $ 100,053
Acquisition-related net
service billing $ 8,118 $ --
Adjusted EBITDA
Reconciliation For the Three Months Ended March 31,
2026 2025
------------- ---- ------------ ---
Net service billing $ 114,204 $ 100,053
Net loss $ (3,702) $ (1,744)
+ interest expense 3,262 2,113
+ depreciation &
amortization 8,406 6,521
+ income tax expense 405 769
EBITDA $ 8,371 $ 7,659
+ non-cash stock
compensation 4,196 6,642
+ acquisition and other
non-core expenses 4,230 204
Adjusted EBITDA $ 16,797 $ 14,505
Adjusted EBITDA margin,
net 14.7% 14.5%
(1) Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.
BOWMAN CONSULTING GROUP LTD.
GROSS CONTRACT REVENUE COMPOSITION
(Unaudited)
(dollars in thousands) For the Three Months Ended March 31,
Consolidated Gross
Contract Revenue 2026 % 2025 % Change % Change
--------- ------- --------- ------- ----------
Building
Infrastructure(1) 52,348 41.4% 52,039 46.1% 309 0.6%
Transportation 26,609 21.0% 23,542 20.8% 3,067 13.0%
Power, Utilities &
Energy(1) 34,732 27.5% 25,311 22.4% 9,421 37.2%
Natural Resources(2) 12,790 10.1% 12,039 10.7% 751 6.2%
Total 126,479 100.0% 112,931 100.0% 13,548 12.0%
Acquired(3) 8,564 6.8% 11,842 10.5% (3,278) (27.7)%
(1) Includes periodic reclassifications of revenue between categories from prior periods for consistency of presentation. For the three months ended March 31, 2025, $3.9 million of data center revenue were reclassified from Building Infrastructure to Power, Utilities & Energy.
(2) Formerly Emerging Markets which represents environmental, mining, water resources, imaging and mapping, and other.
(3) Acquired revenue in prior periods as previously reported; four quarters post-closing, acquired revenue is thereafter reclassified as organic for the purpose of calculating organic growth rates.
BOWMAN CONSULTING GROUP LTD.
ORGANIC GROWTH ANALYSIS
(Unaudited)
For the Three Months Ended March 31,
---------------------------------------------------------
Organic
(dollars in thousands) 2026 % 2025 % Change +/-
------- --------- ------- --------- ------ ---------
Gross Revenue, Organic 117,915 100.0% 112,931 100.0% 4,984 4.4%
Building
Infrastructure 52,200 44.3% 52,039 46.1% 161 0.3%
Transportation 26,609 22.6% 23,542 20.8% 3,067 13.0%
Power, Utilities &
Energy 26,316 22.3% 25,311 22.4% 1,005 4.0%
Natural Resources 12,790 10.8% 12,039 10.7% 751 6.2%
For the Three Months Ended March 31,
Organic
(dollars in thousands) 2026 % 2025 % Change +/-
------- --------- ------- --------- ------ ---------
Net Revenue, Organic 106,086 100.0% 100,053 100.0% 6,033 6.0%
------- ----- ------- ----- ------ ----
Building
Infrastructure 48,828 46.0% 48,100 48.0% 728 1.5%
Transportation 22,171 20.9% 19,578 19.6% 2,593 13.2%
Power, Utilities &
Energy 24,257 22.9% 23,075 23.1% 1,182 5.1%
Natural Resources 10,830 10.2% 9,300 9.3% 1,530 16.5%
BOWMAN CONSULTING GROUP LTD.
GROSS BACKLOG BY CATEGORY AT MARCH 31, 2026
(Unaudited)
Category Percentage
--------------------------------------- ------------
Building Infrastructure(1) 25%
Transportation 21%
Power, Utilities & Energy(1) 21%
Natural Resources 33%
--------------------------------------- -------
TOTAL 100%
--------------------------------------- -------
(1) includes reclassification of data center effective June 30, 2025.
(END) Dow Jones Newswires
May 05, 2026 16:54 ET (20:54 GMT)