Bowman Consulting Group (BWMN 1.31%), an engineering and infrastructure professional services firm, posted its Q2 2025 earnings report on August 6, 2025. The company delivered record profitability and revenue, surpassing Wall Street forecasts. Non-GAAP diluted earnings per share reached $0.55, handily beating the $0.23 non-GAAP consensus. Gross contract revenue was $122.1 million and up from $104.5 million in Q2 2024. Overall, marked progress in operating margins, and increased its full-year guidance for net revenue to $430–$442 million and adjusted EBITDA to $71–$77 million. This quarter's strong execution sets a new high watermark in the company's financial and operational trajectory.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Diluted, Non-GAAP) | $0.55 | $0.23 | $(0.03) | $(0.58) |
| Revenue (Gross Contract) | $122.1 million | $106.33 million | $104.5 million | 16.8 % |
| Net Income | $6.0 million | $(2.1) million | N/A | |
| Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, Non-GAAP) | $20.2 million | $13.4 million | 50.7 % | |
| Adjusted EBITDA Margin (Non-GAAP) | 18.7 % | 14.3 % | 4.4 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
The Business and Its Recent Priorities
Bowman Consulting Group provides engineering, consulting, surveying, and planning services, specializing in infrastructure, building, transportation, utilities, and natural resource markets. The company’s operations center on delivering technical and professional expertise to public and private sector clients needing design, permitting, and project management on large-scale developments and system upgrades.
Recently, Bowman has focused on broadening its reach across key end markets. This has involved building a diverse pipeline and investing in advanced technologies such as artificial intelligence applications and geospatial mapping. Strong repeat business from long-term clients, combined with targeted acquisitions, has supported both expansion and margin improvement. The company’s strategy also prioritizes systematic adoption of technology, pursuing high-growth verticals such as renewable energy and infrastructure modernization.
Quarter Highlights: Growth, Margins, and Segment Performance
The quarter was notable for outperformance on both revenue and profitability, as non-GAAP EPS of $0.55 and non-GAAP revenue of $108.0 million both exceeded analyst estimates. Net service billing, which excludes pass-through subcontractor costs and is the company’s preferred revenue measure, was $108.0 million (non-GAAP)—Non-GAAP EPS was above the analyst estimate. Gross contract revenue (GAAP) increased 17%, and all principal segments registered significant year-over-year gains: Building Infrastructure grew 7.9%, Transportation was up 28.0%, Power & Utilities climbed 17.1%, and Natural Resources & Imaging jumped 42.0%.
Profitability showed marked progress. Adjusted EBITDA rose 50.7% to $20.2 million, and the adjusted EBITDA margin (non-GAAP) hit a record 18.7%, up 4.4 percentage points from the prior year. The company's focus on organic growth showed results, with organic net service billing up 8.4%, outpacing last year’s 5.8% rate. Operating cash flow was $4.3 million, an increase from $3.1 million in Q2 2024
Strategic acquisitions contributed less revenue than in previous quarters, with $6.5 million in acquired revenue (down 62.9% year over year). This indicates a shift toward organic growth as a primary driver, while management continues to monitor the acquisition pipeline. Backlog reached $438.2 million, up 24.7% from the prior year, with a balanced distribution among the company’s main sectors: 40% Building Infrastructure, 31% Transportation, 21% Power & Utilities, and 8% Natural Resources & Imaging. Orders were especially strong in transportation and energy-related segments, which management underscored as long-term opportunities for the business.
The company invested in innovation through its internal "BIG Fund." These investments are meant to sustain and enhance margin gains over time. Management noted efficiency gains In capital allocation, Bowman repurchased $6.7 million in shares at an average price of about $22.19 per share and authorized a new $25 million buyback plan after the quarter ended. The company does not currently pay a dividend.
Looking Ahead: Guidance and Key Considerations
Management raised its outlook, now expecting net revenue of $430–$442 million and adjusted EBITDA of $71–$77 million. This guidance does not factor in future acquisitions, which are still being pursued but not yet finalized. The company noted 9.8% organic net service billing growth, a 36.1% increase in adjusted EBITDA, and a 250 basis point margin improvement in the first six months of 2025. These trends support management’s optimism for the second half of the year.
Integration of earlier acquired businesses, margin expansion from technology initiatives, and the conversion rate of the growing backlog into revenue will remain areas to monitor in the coming quarters. BWMN does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
