Bowman Consulting Group (NASDAQ:BWMN) executives told investors the company closed fiscal 2025 with “another record year,” highlighting double-digit growth in gross revenue, organic net revenue, and Adjusted EBITDA, alongside a larger backlog and continued diversification across end markets. Management also discussed the integration of the RPT Alliance acquisition, investments in geospatial technology, and an updated outlook for fiscal 2026.
Record year, stronger backlog, and contract momentum
Founder and CEO Gary Bowman said the company advanced its goal of becoming an ENR Top 50 firm, pointing to growth in multiple performance measures and improved public-contract success. Bowman said the company increased its “capture rate for public contracts” with growth of approximately 28% and entered 2026 with record backlog of more than $479 million, described as a 20% improvement over the prior year.
Financial results: revenue growth, margin expansion, and profitability turnaround
CFO Bruce Labovitz reported fourth-quarter gross revenue of $129 million, marking a second consecutive quarter at a revenue run rate above $500 million. Net service billing (which the company uses interchangeably with net revenue) was reported at “under $114.6 million” in the quarter, up 16.2% year over year, with an 89% net-to-gross ratio that increased 200 basis points from the prior year.
For the full year, Labovitz said gross revenue rose 14.9% to $490 million and net revenue increased 14.5% to $434.8 million, while maintaining an 89% net-to-gross ratio. Organic net revenue grew 12.4% for the year, also described as double-digit growth.
Margins improved as well. Gross margin was 55% in the fourth quarter, up 190 basis points year over year, and 53.4% for the full year, up 120 basis points. Labovitz said full-year SG&A declined 250 basis points, and combined overhead (labor plus SG&A) was down 400 basis points, which he tied to business mix and the company’s scaling strategy.
Bowman returned to profitability on a GAAP pre-tax basis, with pre-tax net income of $11.2 million compared with a loss of $8.9 million in the prior year. Net income was $12.8 million versus $3.0 million a year earlier. Labovitz attributed the improvement in pre-tax GAAP profitability to better labor utilization, increased scale, and the company’s integration strategy.
Earnings per share rose sharply, according to management. On a GAAP basis, basic and diluted EPS were $0.74 and $0.73, described as up 300% year over year. On an adjusted basis, basic and diluted EPS were $1.72 and $1.68, up nearly 40%. Labovitz also said share repurchases helped by holding the share count down.
Market mix, organic growth by vertical, and government exposure
Management emphasized continued progress toward diversification. Labovitz said 2025 revenue distribution shifted to transportation at 21.2%, power and utility at 22.4%, natural resources at 11.5%, and building infrastructure down to 44.9%. The company expects that trajectory to continue in 2026.
Geospatial operations represented approximately 26% of 2025 gross revenue and were described as spanning all markets, rather than being treated as a standalone vertical. In addition, Labovitz said around 30% of total gross revenue was derived from government or public-funded work, an area where Bowman expects to continue growing.
Organic net revenue growth in the fourth quarter was 11%, and 12.4% for the full year, excluding specific acquisitions (UPE, III, SOA, LAS, and RPT). By vertical, management reported the following organic growth rates:
- Natural resources: 29% in Q4; 27% for the full year
- Power and utilities: 11% in Q4; 13% for the full year
- Transportation: 6% in Q4; 22% for the full year (with timing impacts from delayed contracting and notices to proceed)
- Building infrastructure: 9% in Q4; 6% for the full year
On the call, Bowman said natural resources includes a range of activity, such as environmental work, mining, water resources, agricultural and ortho imaging, and land services tied to easements and rights-of-way.
Backlog increased to $479 million at Dec. 31, 2025, from $399 million at the end of 2024. Excluding purchased backlog in place at year-end, backlog was $473 million, representing 18.5% growth. Management said every vertical increased, with the largest gain in power and utilities, driven by business development and acquisitions.
RPT integration, technology investment, and 2026 outlook
In the Q&A, management said the integration of RPT Alliance—acquired in an all-cash transaction on Dec. 5—was “well ahead” of other acquisitions and was substantially integrated operationally and financially. Executives said the deal expands Bowman’s offering in LNG and the midstream movement of natural gas, and noted early cross-selling wins. Management also said Bowman has been insourcing work RPT historically outsourced, using internal surveying and other capabilities.
Labovitz discussed working capital as a 2026 focus, noting that at year-end there was a government shutdown that slowed processing and collection for a portion of receivables. He said reducing work in process is an area of emphasis, and that the company’s ERP upgrade in 2025 is expected to help speed processing.
On capital structure, Labovitz said net debt ended the year at $179 million, with leverage of 2.45x trailing 12 months and 2.06x the midpoint of 2026 guidance. He said the company expects to reduce debt through improved operating cash flow. On March 3, Bowman amended its credit facility with Bank of America, TD Bank, and PNC to increase maximum borrowing to $250 million, and management said current liquidity is about $150 million.
Bowman repurchased $18.8 million of stock in 2025 at an average price of $27.51, with Labovitz framing buybacks as a tool to address liquidity and valuation dislocations rather than a standing capital return commitment.
Management also outlined continued investment through its internal technology incubator, the BIG Fund, and discussed initiatives intended to improve efficiency and “decouple revenue growth from headcount growth.” The company highlighted investments in geospatial imaging assets, including scanners and capture vehicles (planes, UAVs, drones, and boats), which executives said can improve collection rates and data processing efficiency by as much as 30% to 40%. The company also discussed integrating in-house tools with those acquired in the ORCaS acquisition and launching “PACK,” a Port Asset Conditions Kit, using a “services-powered-by-software” model.
For fiscal 2026, management said it raised guidance to net revenue of $495 million to $510 million and an Adjusted EBITDA margin of 17% to 17.5%. At an 88% net-to-gross ratio, executives said this implies gross revenue of $563 million to $580 million. Labovitz said the updated guidance includes RPT but does not assume future acquisitions. He also described revenue as expected to be nonlinear across quarters, with the first and fourth quarters totaling about 47% of net revenue and the second and third about 53%.
Finally, management addressed a planned CEO transition, with Bowman stating the senior leadership team and workforce remain aligned and that the company is focused on retention and continuity.
About Bowman Consulting Group (NASDAQ:BWMN)
Bowman Consulting Group Ltd. (NASDAQ: BWMN) is a multidisciplinary professional services firm that provides engineering, environmental, planning and surveying services to public and private sector clients. Its service offerings encompass civil, geotechnical and environmental engineering; land development planning and permitting; construction management; survey and geospatial services; and ecological and water resources consulting. The firm supports infrastructure, real estate, energy, utilities and telecommunications projects, delivering site characterization, design, permitting and construction-phase oversight.
Since its founding in 1980, Bowman Consulting Group has grown organically and through strategic acquisitions to expand its technical capabilities and geographic footprint.
