Bowman Consulting Group (BWMN) Q4 2025 earnings summary

Executive summary

• Achieved record financial results for Q4 and full year 2025, driven by strong execution, organic growth, and multiple strategic acquisitions across engineering, infrastructure, and energy sectors.

• Delivered innovative solutions in diversified markets, including transportation, power, utilities, building infrastructure, and natural resources.

• Ended 2025 with a record backlog of $479 million, up 20% year-over-year, entering 2026 with strong momentum and diversified service platform.

• Leadership transition planned, with CEO retirement and focus on management stability and strategic continuity.

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%.

• Adjusted EBITDA for 2025 was $72.9 million (up 22.5%), margin at 16.8%; Q4 adjusted EBITDA was $19.9 million, margin 17.3%.

• Net income for 2025 was $12.8 million, up from $3 million; GAAP EPS of $0.74 (basic), adjusted EPS of $1.72 (basic).

• Cash from operating activities increased nearly 50% to $35.8 million; free cash flow for 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.

• Expect to convert 70–80% of backlog to revenue in 2026; margin expansion of 50–80 bps projected, driven by labor optimization and process automation.

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