Bowman Consulting Group (BWMN) Q2 2025 earnings summary

Executive summary

• Achieved record-setting Q2 2025 with gross contract revenue up 17% year-over-year to $122.1M and net income of $6.0M, reversing a prior-year loss.

• Adjusted EBITDA increased over 50% to $20.2M, with margin expanding to 18.7%.

• Backlog grew 24.7% year-over-year to $438.2M, providing strong forward visibility.

• Strategic focus on transportation, renewables, data centers, and energy transmission, including the acquisition of e3i to expand service offerings.

• Management highlights improved profitability, cash conversion, and capital allocation, with optimism for the second half of 2025.

Financial highlights

• Q2 2025 gross contract revenue: $122.1M (up 17% YoY); net service billing: $108.0M (up 15% YoY); net income: $6.0M (vs. $2.1M loss YoY).

• Adjusted EBITDA: $20.2M (up over 50% YoY); margin: 18.7% of net service billing.

• Gross margin improved by 120 bps to 53.7%; net margin for Q2 was 4.9%.

• Backlog at June 30, 2025: $438.2M, up from $399.0M at year-end.

• Basic adjusted EPS was $0.56 in Q2 2025, compared to $(0.03) in Q2 2024.

Outlook and guidance

• Fiscal 2025 net revenue guidance raised to $430–$442M; Adjusted EBITDA guidance increased to $71–$77M.

• Projecting a 17% adjusted EBITDA margin for the year, with second-half margins expected to average just over 17%.

• Guidance excludes contributions from future acquisitions; management remains optimistic about the acquisition pipeline.

• Backlog supports revenue visibility, with 88.2% of $317.7M in remaining performance obligations expected to be recognized within 12 months.