Financial Performance - Gross Contract Revenue increased by 19% year-over-year, reaching $112.9 million in Q1 2025 compared to $94.9 million in Q1 2024 [12] - Net Service Billing grew by 17% year-over-year, amounting to $100.1 million in Q1 2025 from $85.7 million in Q1 2024 [12] - Adjusted EBITDA increased by 20% year-over-year, reaching $14.5 million in Q1 2025 compared to $12.1 million in Q1 2024 [12] - Adjusted EPS (basic) was $0.07 in Q1 2025, compared to $0.22 in Q1 2024 [12] - The company purchased $6.7 million of common stock in Q1 [19] Backlog and Growth - Backlog grew by 30% year-over-year [11] - Organic Net Service Billing grew by 6% year-over-year [11] - Gross Backlog reached $419 million in Q1 2025, compared to $330 million in Q1 2024 [21] Revenue Composition and Guidance - Building Infrastructure accounted for 50% of Gross Revenue with a 5.9% year-over-year increase [28] - Transportation accounted for 21% of Gross Revenue with a 29.9% year-over-year increase [28] - Power, Utilities & Energy Services accounted for 19% of Gross Revenue with a 16.1% year-over-year increase [28] - The company maintains FY 2025 Net Revenue guidance of $428 million to $440 million and Adjusted EBITDA guidance of $70 million to $76 million [32]

Core Insights - Bowman Consulting (BWMN) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.20 per share a year ago, representing an earnings surprise of 133.33% [1] - The company posted revenues of $112.93 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.55%, compared to $94.91 million in the same quarter last year [2] - The stock has underperformed the market, losing about 9.9% since the beginning of the year, while the S&P 500 declined by 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $117.31 million, and for the current fiscal year, it is $1.13 on revenues of $483.39 million [7] - The estimate revisions trend for Bowman Consulting is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Business - Services industry, to which Bowman Consulting belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Gross contract revenue for Q1 2025 was $112.9 million, a 19.0% increase from $94.9 million in Q1 2024[7] - Net service billing reached $100.1 million, reflecting a 16.8% increase compared to $85.7 million in the same quarter last year[7] - Adjusted EBITDA for Q1 2025 was $14.5 million, a 19.6% increase from $12.1 million in Q1 2024[7] - Organic net service billing growth was 6% in Q1 2025, compared to 3% in Q1 2024[7] - Adjusted net income attributable to common shareholders decreased to $1,135,000 in Q1 2025 from $2,984,000 in Q1 2024[23] - Basic adjusted earnings per share (Non-GAAP) for Q1 2025 was $0.07, down from $0.22 in Q1 2024[24] Cash Flow and Operations - Cash flows from operations improved significantly to $12.0 million, up from $2.5 million in the prior year[7] - The company reported a net cash provided by operating activities of $12,034,000 in Q1 2025, significantly higher than $2,519,000 in Q1 2024[21] - Cash and cash equivalents at the end of Q1 2025 were $10,700,000, compared to $11,673,000 at the end of Q1 2024[21] Backlog and Orders - The company reported a gross backlog of $418.8 million, which is a 26.9% increase from $329.9 million[7] - New orders in Q2 2025 are currently outpacing those in Q1 2025, indicating strong momentum[4] - The company’s gross backlog by category as of March 31, 2025, was 39% Building Infrastructure, 33% Transportation, 20% Power and Utilities, and 8% Emerging Markets[34] Guidance and Projections - The company maintained its fiscal year 2025 guidance, projecting net revenue between $428 million and $440 million and adjusted EBITDA between $70 million and $76 million[9] Losses - The net loss for Q1 2025 was $1.7 million, slightly higher than the net loss of $1.6 million in Q1 2024[7] - Net loss for Q1 2025 was $1,744,000, compared to a net loss of $1,558,000 in Q1 2024, representing an increase in loss of 11.9%[23] Revenue Growth - Gross contract revenue increased by 19.0% to $112,931,000 in Q1 2025 from $94,907,000 in Q1 2024[28] - Net service billing rose to $100,053,000 in Q1 2025, a 16.7% increase from $85,689,000 in Q1 2024[26] - Organic growth in gross revenue was 6.5% for Q1 2025, with notable increases in Transportation (16.2%) and Emerging Markets (12.9%) compared to Q1 2024[30] Stock Repurchase - The company repurchased $6.7 million of common stock during Q1 2025, with an average price of approximately $25.10 per share[5]

Bowman Consulting (BWMN) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 6, 2025, might help the stock move higher if these key numbers are better than e ...

Core Viewpoint - The analysis compares Bowman Consulting (BWMN) and Cintas (CTAS) to determine which stock is more attractive to value investors, highlighting BWMN's stronger earnings outlook and valuation metrics [1][3]. Valuation Metrics - BWMN has a forward P/E ratio of 20.36, significantly lower than CTAS's forward P/E of 44.31, indicating that BWMN may be undervalued [5]. - The PEG ratio for BWMN is 1.18, while CTAS has a PEG ratio of 3.69, suggesting that BWMN offers better value relative to its expected earnings growth [5]. - BWMN's P/B ratio is 1.73, compared to CTAS's P/B of 17.96, further supporting BWMN's more attractive valuation [6]. Earnings Outlook - BWMN currently holds a Zacks Rank of 1 (Strong Buy), indicating a stronger improvement in its earnings outlook compared to CTAS, which has a Zacks Rank of 3 (Hold) [3][7]. - The estimate revision activity for BWMN has been more favorable than that of CTAS, reinforcing the conclusion that BWMN is the superior option for value investors [7].

Financial Data and Key Metrics Changes - Gross revenue for Q4 2024 was $113 million, a 22% increase year-over-year, while net revenue increased by 23% to $98.6 million [9] - Net income for the quarter rose to $5.9 million, or $0.34 per share, compared to a net loss of $7.7 million in the previous year [10] - Full year gross revenue reached $426.6 million, marking a 23% increase, with net revenue up 25% to $379.7 million [11] - Adjusted EBITDA for the year was $59.5 million, representing a 15.7% margin on net revenue, a 26.6% year-over-year increase [12] Business Line Data and Key Metrics Changes - Building infrastructure remained the largest market, contributing 51% of gross revenue, followed by commercial (23%), residential (18%), and municipal (10%) [13] - Organic growth of net revenue was 8.5% in Q4 and 13% for the year, with emerging markets leading the growth [15] Market Data and Key Metrics Changes - Transportation accounted for 21% of gross revenue, with two-thirds from public client engagements, while power, utilities, and energy represented 18% [14] - The backlog grew over 30% during 2024 to just under $400 million, with new orders in Q1 2025 exceeding $100 million [19] Company Strategy and Development Direction - The company made eight strategic acquisitions in 2024 to enter new geographies and expand service offerings, enhancing expertise in areas like bridge design and sustainability [6] - The focus for 2025 includes strategic investments in M&A, product line expansions, and technology tools to enhance service delivery and organic growth [25] Management's Comments on Operating Environment and Future Outlook - Management noted strong trends in transportation due to IIJA spending and minimal disruptions from federal funding cuts, maintaining a defensive business model [27] - The company anticipates continued growth in oil and gas and mining sectors, with a focus on renewable energy infrastructure [24] Other Important Information - The company repurchased $34 million of stock in 2024, indicating confidence in the value of its equity [18] - Cash flow from operating activities improved significantly, generating nearly $12 million in Q4 and over $24 million for the year [17] Q&A Session Summary Question: Impact of IIJA on transportation vertical - Management observed that IIJA spending is beginning to kick in, with no adverse impacts noted [31] Question: Backlog comparison to past years - Backlog characteristics remain similar to previous years, with steady work contracted and authorized to proceed [33] Question: Investments in service line expansions and technology tools - The company is building a team to implement technology investments that enhance customer engagement and service delivery [37] Question: New orders and verticals driving growth - New orders in Q1 2025 are strong across all markets, with no single market overshadowing others [44][50] Question: Capital allocation strategy - The company is balancing M&A opportunities with stock buybacks and technology investments, assessing the best allocation of capital regularly [55] Question: Progress on gaining wallet share - The company is focusing on increasing geospatial capacity and getting involved earlier in project life cycles to enhance wallet share [62] Question: Update on natural gas pipeline replacement opportunities - The natural gas pipeline market remains active, providing significant recurring revenue [68] Question: Land development business in the D.C. area - The company has diversified significantly, with the D.C. area representing a low single-digit percentage of the overall portfolio [79]

Revenue Growth - Gross contract revenue increased to $427 million for the year ended December 31, 2024, representing a five-fold growth over the past 10 years[18]. - Organic gross contract revenue grew by $37.9 million or 10.9% compared to the year ended December 31, 2023[28]. - Approximately 60% of revenue for the year ended December 31, 2024, was derived from repeat customers[19]. - The company had a backlog of approximately $400 million as of December 31, 2024[28]. - The company aims to grow revenue five-fold over the next five years, building on a decade of both acquisitive and organic growth[58]. Market Position and Opportunities - The company ranked 78 on the ENR Top 500 Design Firms list in 2024, up from 87 in 2023[18]. - The U.S. engineering services market is projected to reach $312 billion by 2025, with a CAGR of 6.0% from 2024 to 2030[36]. - The company is positioned to capitalize on approximately $1.6 trillion in funding and incentives from U.S. federal government programs[30]. - The U.S. will need to invest $1 trillion per year in new energy capacity over the next 20 years to support economic growth and energy transition[46]. - The demand for aggregates in construction is expected to increase due to funding from the Infrastructure Investment and Jobs Act[55]. Revenue Composition - Approximately 29% of revenue in 2024 was derived from public sector customer assignments, compared to 21% in 2023[18]. - Transportation services accounted for 20.6% and 21.0% of gross contract revenue for the years ended December 31, 2024 and 2023, respectively[42]. - Power and Utilities represented 17.6% and 18.5% of gross contract revenues for the years ended December 31, 2024 and 2023, respectively[48]. - Building infrastructure constituted 51.5% and 56.3% of gross contract revenue for the years ended December 31, 2024 and 2023, respectively[52]. - Emerging markets represented 10.4% of gross contract revenue in 2024, up from 4.2% in 2023[57]. Acquisitions and Growth Strategy - The company acquired 34 operating companies and three non-operating licensing companies since its IPO in May 2021[29]. - The company plans to continue aggressive growth through acquisitions, focusing on markets with positive outlooks[59]. - Acquisition targets are evaluated based on criteria such as potential for recurring revenue and alignment with strategic growth objectives[64][66]. - In 2024, the company completed eight acquisitions for a total of approximately $79.7 million, including 1,023,786 shares of common stock valued at $33.9 million[92]. - The company maintains a dynamic pipeline for acquisitions, driven by market awareness and existing relationships[64]. Employee and Organizational Development - As of December 31, 2024, the company employed over 2,200 staff across more than 95 offices in the U.S. and two in Mexico[18]. - The company had approximately 2,200 employees as of December 31, 2024, with 93% being full-time employees[111]. - The company engages employees in organic growth through equity participation and incentives tied to performance[63]. - The company is committed to employee health and wellness, providing various innovative and flexible health programs to ensure employee safety and well-being[115]. - The company has focused on talent development, investing significant resources in training and continuous learning to maintain its position as a leading engineering services provider[117]. Financial Management - The company operates with a book-to-bill ratio for net service billing of greater than 1.0 for full years 2024 and 2023[28]. - As of December 31, 2024, the company had $37.0 million outstanding on its Credit Agreement, with interest rates tied to Term SOFR, varying between 6.91% and 8.70% based on the ratio of Funded Debt to EBITDA[343]. - A one percentage point change in the assumed interest rate of the Credit Agreement would change the company's annual interest expense by approximately $0.3 million in 2024[343]. - The company's finance lease obligations with Honour and Enterprise were $28.3 million as of December 31, 2024, bearing fixed interest rates, thus no exposure to market risk related to these obligations[344]. - The company has not entered into derivative financial instruments for trading purposes, indicating a conservative approach to market risk management[342]. Regulatory and Compliance - The company is licensed to operate in all states within the United States either directly or through an affiliate as of December 31, 2024[120]. - The company is subject to various federal, state, and local regulations that could impact its ability to obtain or renew contracts, which may impose added costs on its business[121]. Safety and Risk Management - The company’s professional safety team has established protocols leading to fewer accidents and lower associated costs, enhancing its competitive position[112]. - The company experienced a voluntary turnover rate reflective of the competitive labor market, which does not pose a substantial risk to delivering its backlog[111]. - The company’s backlog is influenced by new contracts and acquisitions, indicating effective growth strategies[102]. Marketing and Customer Relations - The company’s marketing and business development efforts focus on lead generation, cross-selling services, and expanding customer relationships[103]. - The company served a diverse portfolio of customers, with approximately 60% being repeat customers, and the ten largest customers accounting for about 18% of net service billing in both 2024 and 2023[93]. - The company aims to increase the proportion of revenue from long-term projects and multi-year contracts, with 27% of revenue in 2024 derived from public sector customers[94]. Organizational Culture - The company emphasizes a diverse and inclusive workplace to attract and retain qualified talent, which is crucial for its success[114]. - The company encourages in-person collaboration to enhance employee engagement, although it does not mandate full-time in-office attendance[116]. - A scalable organizational infrastructure has been developed to support significant growth without a proportional increase in overhead expenses[62].

Financial Performance - Gross contract revenue for Q4 2024 was $113.2 million, a 21.7% increase from $93.0 million in Q4 2023[5] - Net service billing for Q4 2024 reached $98.6 million, up 22.5% from $80.5 million in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $17.0 million, reflecting a 51.8% increase compared to $11.2 million in Q4 2023[5] - The company reported net income of $5.9 million for Q4 2024, compared to a net loss of $7.7 million in Q4 2023[5] - For the full year 2024, adjusted EBITDA was $59.5 million, a 26.6% increase from $47.0 million in 2023[5] - Net income for the year 2024 was $3.034 million, compared to a net loss of $6.624 million in 2023, marking a significant turnaround[23] - Adjusted earnings per share for Q4 2024 were $0.72, up from $0.33 in Q4 2023, reflecting a 118.2% increase[26] - Basic earnings per share for Q4 2024 were $0.34, compared to a loss of $0.59 in Q4 2023[26] Operational Metrics - Full-year 2024 gross backlog increased to $399.0 million, a 30.4% rise from $306.0 million in 2023[5] - Cash flows from operations for Q4 2024 were $11.9 million, compared to a negative cash flow of $0.5 million in Q4 2023[5] - Cash provided by operating activities for the year 2024 was $24.301 million, compared to $11.722 million in 2023, indicating a 107.3% increase[23] - The company reported a total gross revenue of $426.564 million for the year 2024, representing a 23.2% increase from $346.256 million in 2023[34] - The company’s organic growth for gross revenue in 2024 was 6.6%, with notable contributions from the Transportation segment, which grew by 16.7%[36] Strategic Initiatives - The company made eight strategic acquisitions in 2024, contributing approximately $60 million in run-rate net service billing[12] - Bowman is increasing its fiscal year 2025 guidance to a net revenue range of $428 - $440 million and adjusted EBITDA of $70 - $76 million[10] - The company incurred $24.450 million in acquisitions during 2024, slightly down from $25.687 million in 2023[23] Segment Performance - The Emerging Markets segment saw significant growth, with Q4 2024 revenue of $12.939 million, a 152.9% increase from $5.116 million in Q4 2023[34] - For the year ended December 31, 2024, the Building Infrastructure segment accounted for 51.4% of total gross revenue, while Emerging Markets contributed 10.4%[34] - The company’s gross backlog as of December 31, 2024, was composed of 41% Building Infrastructure, 35% Transportation, 15% Power and Utilities, and 9% Emerging Markets[42] Cash and Stock Management - The company repurchased $34.4 million of common stock during the twelve months ended December 31, 2024[6] - The company reported a decrease in cash and cash equivalents to $6.698 million at the end of 2024, down from $20.687 million at the beginning of the period[24] - The weighted average shares outstanding for Q4 2024 were 16,345,248, an increase from 13,043,111 in Q4 2023[21] - The company reported a net cash used in investing activities of $27.466 million for the year 2024, compared to $27.156 million in 2023[23] Expense Management - Total operating expenses for the year 2024 were $224.803 million, an increase from $176.689 million in 2023, representing a 27.2% rise[21]

Investment Preferences - The analyst favors investing in infrastructure and consulting service businesses due to their high margins and asset-light nature [1] - Bowman Consulting Group (NASDAQ: BWMN) is highlighted as a preferred investment target [1] - The analyst focuses on undercovered European and US companies, emphasizing value and income as key components of the investment thesis [1] - A diversified portfolio is recommended, with Europe containing several undercovered companies worth considering [1] - The analyst often adopts a contrarian stance toward prevailing market opinions [1] Analyst Background - The analyst has 20 years of consulting experience across various sectors, including Hi-Tech, Biotech, Healthcare, Mission Critical, Retail, Residential, and Commercial Sectors [1] - The analyst has been investing in the markets for over 15 years [1] - The analyst is associated with BioCGT Investor, who is also an author on Seeking Alpha [1] Disclosure - The analyst has no current stock, option, or derivative positions in the mentioned companies but may initiate a beneficial Long position in BWMN within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2]

Group 1 - The Municipality of Princeton has authorized Bowman Consulting Group, Ltd. to revamp Community Park South, allocating $709,201.50 for design services in the first phase of the project [2][4]. - The project involves renovating a 26-acre area bordered by Route 206, Birch Avenue, Community Park Elementary School, and Community Park Pool [2]. - The selection process for the consulting firm included proposals from nine firms, with four shortlisted for interviews, leading to a unanimous decision in favor of Bowman Consulting Group based on performance and criteria [3][4]. Group 2 - Funding for the initial phase of the project has been included in the 2024 capital budget, indicating a long-term commitment to the park's revitalization [4]. - Councilwoman Michelle Pirone Lambros emphasized the park's significance to the community and the importance of investing in its future for health, fitness, and recreation [5]. - Once the revitalization process begins, officials plan to seek additional funding from state and local federal programs [5].