0001628280-26-015252
SEC filingBowman Consulting Group Ltd. reported strong financial results for fiscal year 2025, with gross contract revenue increasing 14.9% year-over-year to $490.0 million. Net income attributable to common shareholders was $12.2 million, a significant improvement from the prior year. The company achieved income from operations of $19.7 million, compared to a loss of $2.0 million in 2024. Key growth drivers included organic revenue growth of $54.7 million (12.8%) and contributions from seven acquisitions completed in 2025. The company maintained a diversified revenue base across building infrastructure (44.9%), transportation (21.2%), power, utilities & energy (22.4%), and natural resources (11.5%) markets. Backlog increased 20.1% to approximately $479 million, providing visibility into future revenue.
Bowman Consulting Group Ltd. delivered strong financial performance in fiscal year 2025, with gross contract revenue increasing to $490.0 million from $426.6 million in 2024, representing 14.9% growth. The company achieved a significant turnaround in profitability, with income from operations of $19.7 million compared to a loss of $2.0 million in the prior year. Net income improved to $12.8 million from $3.0 million in 2024. The company's net margin improved to 2.6% from 0.7% in the prior year. Key performance indicators showed positive trends, with net service billing (non-GAAP) increasing 14.5% to $434.8 million and Adjusted EBITDA (non-GAAP) growing 22.4% to $72.9 million.
Revenue growth was driven by both organic expansion and strategic acquisitions. Organic gross contract revenue increased $54.7 million or 12.8% compared to the prior year. Acquisitions completed in 2025 contributed $8.7 million to revenue growth. The company maintains a diversified revenue mix across four core markets: Building Infrastructure ($220.2 million, 44.9% of total), Transportation ($103.7 million, 21.2%), Power, Utilities & Energy ($109.8 million, 22.4%), and Natural Resources ($56.2 million, 11.5%). All segments showed positive year-over-year growth, with Natural Resources leading at 27.2% increase. Public sector customers represented 29.8% of revenue, up from 26.8% in 2024.
The company improved its margin profile significantly in 2025. Contract costs as a percentage of gross contract revenue decreased to 46.6% from 47.8% in 2024. Direct labor costs represented 27.1% of gross contract revenue, down from 27.7% in the prior year. Operating expenses increased 7.6% to $241.9 million, but as a percentage of revenue decreased due to revenue growth outpacing expense growth. Adjusted EBITDA margin, net (a non-GAAP measure) improved to 16.8% from 15.7% in 2024. The company's effective tax rate was (15.1)% for the year ended December 31, 2025.
Cash flow from operations was strong at $35.8 million, driven by net income of $12.8 million adjusted for non-cash items including $18.8 million in stock-based compensation and $27.6 million in depreciation and amortization. The company used $35.8 million in investing activities, primarily for acquisitions ($35.2 million) and property and equipment purchases ($2.4 million). Financing activities provided $4.3 million, with net borrowing of $58.3 million from the revolving credit facility offset by share repurchases and debt repayments. The company ended the period with $11.1 million in cash and equivalents and total assets of $579.7 million. Total liabilities were $318.6 million, with shareholders' equity of $261.1 million.
The company's backlog increased 20.1% to approximately $479 million as of December 31, 2025, providing visibility into future revenue. The backlog composition shows diversification across markets: Building Infrastructure (32.8%), Transportation (29.3%), Power, Utilities & Energy (24.0%), and Natural Resources (13.9%). The company maintains a $210.0 million revolving credit facility (increased to $250.0 million in March 2026) and believes its sources of liquidity will be sufficient to fund projected cash requirements and strategic initiatives for the next year. Management continues to focus on both organic growth and strategic acquisitions, having completed seven acquisitions in 2025. The company faces risks including competitive pressures, dependence on key personnel, economic cyclicality, and integration challenges from acquisitions.