Bowman Consulting Group (BWMN) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in gross contract revenue, net service billing, and adjusted EBITDA for Q1 2026, with record backlog exceeding $650 million, driven by organic execution and acquisitions across diversified end markets.

• Raised full-year 2026 guidance, now expecting over 20% revenue growth and adjusted EBITDA margin between 17.2% and 17.75%.

• Net loss widened to ($3.7) million due to higher operating expenses, non-cash amortization, and acquisition costs.

• Backlog surged to $652.7 million, up 55.9% year-over-year and 36% sequentially, reflecting strong demand and new contract wins.

• Major government contract secured with a not-to-exceed value of $177 million, expected to impact revenue in the second half of 2026 and beyond.

Financial highlights

• Gross contract revenue for Q1 was $126.5 million, up 12% year-over-year.

• Net service billing reached $114.2 million, a 14.1% increase year-over-year, with 6% organic growth.

• Adjusted EBITDA was $16.8 million, up nearly 16% year-over-year, with a margin of 14.7%.

• Generated $11.6 million in operating cash flow, representing 70% conversion of adjusted EBITDA.

• Operating expenses rose 15.4% to $65.8 million, with SG&A up 14.5% and depreciation/amortization up 29.2%.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $520–$540 million, with adjusted EBITDA margin guidance increased to 17.2%–17.7%.

• Adjusted EBITDA expected to grow nearly 28% year-over-year at the midpoint.

• Backlog supports approximately 60% of expected revenue for the remainder of the year; remaining 40% to be delivered through new bookings.

• Revenue cadence expected to build through the year, with Q3 at or near the midpoint between Q2 and Q4.

• Guidance based on completed acquisitions as of the release date, excluding future deals.