Bowman Consulting Group Stock Earnings Reports

Bowman reported a strong start to FY2026 with double-digit growth across gross contract revenue, net service billing and adjusted EBITDA. Gross contract revenue was $126.5M (+12% YoY); net service billing $114.2M (+14% YoY); adjusted EBITDA $16.8M (14.7% margin). Backlog hit a record ~$653M (up 56% YoY, 36% sequentially), driven entirely by organic awards and including a recently disclosed government contract with a not-to-exceed value of ~$177M over 36 months that will mainly impact H2. Management raised full‑year guidance: net revenue $520M–$540M (implying >20% revenue growth) and adjusted EBITDA margin 17.25%–17.75%. Organic growth is expected to accelerate (company expects >20% organic net revenue growth for 2026), with Power (+37% GCR growth) and Transportation (+13%) notable contributors and data-center-related work now >6% of revenue. The company is investing heavily in data capture, automation and internal-use software (over 25 proprietary tools introduced), expanded its revolver to $250M to fund CapEx and M&A, and repurchased $9.2M of stock in the quarter. Q1 included some margin pressure from a slow start, mobilization costs and incremental costs tied to exiting emerging growth company status; management expects overhead to decline as revenue accelerates and for margins to expand later in the year. Key investor catalysts: conversion of backlog to revenue (management expects ~60% of remaining year revenue supported by backlog), ramp of the large government award in H2, continued acquisitions and technology-driven product expansion (especially geospatial and energy solutions), and execution on capacity alignment to meet demand. Risks/near‑term headwinds include temporary mobilization and staffing costs, a projected modest decline in net-to-gross ratio (3–5 points) from new awards, and nonrecurring items impacting GAAP results (Q1 GAAP loss of $3.7M).