Bowman Consulting Group (BWMN) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue, surpassing $100 million in a single quarter for the first time, with Q3 2024 gross contract revenue up 21% year-over-year to $113.9 million and net service billing up 23% to $101.4 million.

• Adjusted EBITDA rose 13% year-over-year to $17.0 million in Q3 2024, while organic net service billing grew 8% year-over-year.

• Backlog increased 27% year-over-year to $380 million, providing strong forward visibility and supporting revenue growth.

• Leadership transition included the promotion of a new COO and the immediate retirement of the president, with operational responsibilities consolidated.

• Revenue diversification continued across building infrastructure, transportation, power/utilities, and emerging markets, with acquisitions contributing significantly.

Financial highlights

• Q3 2024 gross contract revenue was $113.9 million (+20.6% YoY); net service billing was $101.4 million (+23.5% YoY); net income was $0.8 million, down from $1.2 million; Adjusted EBITDA was $17.0 million (16.7% margin).

• Nine months 2024 gross contract revenue was $313.3 million (+23.7% YoY); net service billing was $281.0 million (+25.7% YoY); net loss was ($2.9 million); Adjusted EBITDA was $42.5 million (15.1% margin).

• Gross margin for Q3 was 52.4%, up from 51.6% last year; year-to-date gross margin at 51.9%.

• Adjusted EPS (basic) for Q3 was $0.31, down 13.9% year-over-year; nine-month Adjusted EPS was $0.49, down from $0.79.

• Cash and equivalents at period end: $11.7 million; operating cash flow for nine months: $12.4 million.

Outlook and guidance

• FY 2024 net revenue guidance raised to $376–$386 million, with Adjusted EBITDA of $58–$63 million; FY 2025 outlook: net revenue of $422–$437 million and Adjusted EBITDA of $68–$75 million.

• Guidance includes only acquisitions completed or definitively contracted as of the release date.

• Projecting organic growth of approximately 7% for 2025, with margin expansion expected through economies of scale and operational excellence.