Bowman Consulting Group (BWMN) Q4 2025 earnings summary

Executive summary

• Achieved record financial results for Q4 and full year 2025, driven by double-digit growth in gross revenue, organic net revenue, and Adjusted EBITDA, supported by organic expansion and seven acquisitions across engineering, infrastructure, and energy sectors.

• Ended 2025 with a record backlog of $479 million, up 20% year-over-year, and strengthened market position through acquisitions and workforce expansion.

• Maintained a book-to-burn ratio above 1x since 2021, with Q1 2026 sales outpacing Q4 2025.

• Leadership transition planned, with CEO retirement in 2026 and focus on continuity and retention of key staff and culture.

• Entered 2026 with strong momentum, improved cash conversion, and confidence in market positioning.

Financial highlights

• Q4 2025 gross revenue rose 14% year-over-year to $129 million; net service billing up 16.2% to $114.6 million.

• Full-year 2025 gross revenue was $490 million (up 14.9%), net revenue $434.8 million (up 14.5%), and net-to-gross ratio held at 89%.

• Organic net revenue grew 12.4% for the year; Q4 organic net revenue up 11% year-over-year.

• Full-year 2025 adjusted EBITDA up 22.5% to $72.9 million; margin at 16.8%.

• GAAP EPS rose to $0.74 (basic) and $0.73 (diluted), up 300% year-over-year; adjusted EPS $1.72 (basic) and $1.68 (diluted), up nearly 40%.

• Cash from operating activities increased 50% to $35.8 million; free cash flow for FY 2025 was $33.4 million.

Outlook and guidance

• 2026 net revenue guidance raised to $495–$510 million, with Adjusted EBITDA margin of 17–17.5%.

• Guidance includes only completed and definitively contracted acquisitions as of March 2026.

• Guidance implies 16% absolute net revenue growth, or 12% organic growth excluding RPT acquisition.

• Revenue expected to be nonlinear, with Q1 and Q4 comprising 47% and Q2/Q3 53% of annual net revenue.

• Targeting further margin expansion of 50–80 basis points in 2026.