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1. Company Snapshot

1.a. Company Description

Bowman Consulting Group Ltd.provides a range of real estate, energy, infrastructure, and environmental management solutions in the United States.It offers civil and site engineering services, such as conceptual land planning, environmental consulting and permitting, planning/zoning and entitlements, roadway and highway designs, erosion and sediment designs, stormwater management designs, construction administration, traffic studies, floodplain studies, and utility relocation designs; and commissioning and energy efficiency services comprise construction observation, direct systems functional performance testing, system development readiness checklist, post occupancy review, review of construction documents, deferred/seasonal functional testing, final commissioning report, and commissioning review of submittals.


The company also provides construction management services, including constructability review, value engineering, budgeting and cost estimating, interagency and utility coordination, onsite observation and report evaluation, public communication and outreach, and resident engineer services, as well as bid solicitation, documentation, and preparation services; and environmental consulting services consisting of wetlands and waters of the U.S. delineations, natural resources inventories, wildlife and vegetation surveys, threatened and endangered species surveys, endangered species conservation and management, wetland creation and enhancement design, NEPA documentation, section 404/401 permitting and compliance, NPDES permitting, and phase I environmental site assessment.In addition, it offers landscape architecture, land procurement and right-of-way acquisition, structural engineering, surveying and geospatial engineering, and transportation and water resources engineering services, as well as mechanical, electrical, and plumbing engineering services.Bowman Consulting Group Ltd.


was incorporated in 1995 and is headquartered in Reston, Virginia.

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1.b. Last Insights on BWMN

Recent news suggests that Bowman Consulting Group Ltd. is expanding its services through strategic acquisitions, including the purchase of UP Engineering and Surdex for aerial mapping. Additionally, the company has secured contracts for construction oversight, engineering design services, and aerial orthoimagery services, indicating strong demand for its services. However, there is no recent earnings release to analyze. The company's CFO will participate in two investor conferences in March, which may provide further insight into its growth prospects.

1.c. Company Highlights

2. Strong Q3 Earnings with Revenue Growth and Margin Expansion

The company reported a robust third quarter with net revenue reaching $112 million, representing an 11% year-over-year growth. Adjusted EBITDA increased by 8% to $18.3 million, resulting in a margin of 16.3%. Earnings per share (EPS) came in at $0.61, significantly beating estimates of $0.38. The strong financial performance was driven by growth across various end markets, including transportation and power and utilities. The company's backlog grew nearly 18% year-over-year to $448 million, indicating continued demand.

Publication Date: Nov -12

📋 Highlights
  • Revenue & EBITDA Growth:: 11% YoY gross/net revenue growth ($112M Q3) and 7.6% adjusted EBITDA growth ($18.3M, 16.3% margin).
  • GAAP Profitability:: 9-month GAAP net income surged to $6.6M and $10.9M (vs. $0.8M and -$2.9M in prior periods).
  • Backlog Expansion:: Year-over-year backlog growth of 18% to $448M, driven by transportation and power/utilities sectors.
  • Cash Flow Efficiency:: Operating cash flow doubled to $26.5M (vs. $12.4M) and adjusted EBITDA rose 8% to $18.3M.
  • 2026 Guidance:: Targeting $465M–$480M net revenue and 17–17.5% adjusted EBITDA margins amid Power/Utilities growth of 38% YoY.

Segment Performance

The transportation segment remained a stable and resilient end market, delivering double-digit growth year-to-date. The Power, Utilities & Energy division was the fastest-growing market, up 38% year-over-year, driven by investments in electrification, renewables, and grid modernization. The data center business is also seeing strong growth due to increasing demand for data centers and the need for proximity to fiber and natural gas.

Outlook and Guidance

The company reaffirmed its full-year 2025 guidance and initiated 2026 guidance, expecting net revenue between $465 million and $480 million and an adjusted EBITDA margin between 17% and 17.5%. Analysts estimate revenue growth of 8.7% for next year. The company expects to drive revenue growth through a healthy backlog of work and strong sales in shorter-term turn contracts.

Valuation

With a P/E Ratio of 33.94 and an EV/EBITDA of 16.41, the company's valuation appears to be pricing in significant growth expectations. The ROE of 6.7% and ROIC of 7.29% indicate a relatively efficient use of capital. The Free Cash Flow Yield of 5.71% is attractive, suggesting that the company's cash generation capabilities are not fully reflected in its current valuation.

Growth Prospects

The power and utilities segment is on a trajectory to double from 2024 levels, driven by growth in linear projects, transmission corridors, and data centers. The company's diversification into various markets, including data centers and solar business, is expected to drive long-term growth. The company's commitment to acquiring strategic opportunities through M&A activity is also expected to contribute to its growth prospects.

3. NewsRoom

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Bowman Awarded $3.7 Million ADA Ramp Design Contract in Philadelphia

Dec -02

Source: globenewswire.com

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Bowman Awarded $7M Contract to Design West Seattle Fish Passage Infrastructure

Nov -17

Source: globenewswire.com

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Is Bowman Consulting Group (BWMN) Stock Outpacing Its Business Services Peers This Year?

Nov -12

Source: zacks.com

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Bowman Awarded Planning and Transportation Assignments in The Aurora Highlands, CO

Nov -11

Source: globenewswire.com

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Bowman Consulting Group Ltd. (BWMN) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Bowman Consulting (BWMN) Tops Q3 Earnings Estimates

Nov -05

Source: zacks.com

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Bowman Reports Third Quarter 2025 Results; Issues 2026 Guidance

Nov -05

Source: globenewswire.com

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Bowman Consulting Group (BWMN) Expected to Announce Quarterly Earnings on Wednesday

Nov -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.95%)

6. Segments

Building Infrastructure

Expected Growth: 14.0%

Bowman Consulting Group Ltd.'s 14.0% growth in Building Infrastructure is driven by increasing government investments in transportation and public works projects, rising demand for sustainable and resilient infrastructure, and growing adoption of digital technologies such as BIM and construction management software.

Transportation

Expected Growth: 15.0%

Bowman Consulting Group Ltd.'s 15.0% growth in Transportation is driven by increasing infrastructure development, government investments in highway and bridge construction, and rising demand for logistics and supply chain services. Additionally, the growing need for sustainable and environmentally friendly transportation solutions, such as electric and hybrid vehicles, is also contributing to this growth.

Power & Utilities

Expected Growth: 13.0%

Strong demand for renewable energy, increasing investment in grid modernization, and rising electricity consumption driven by electrification of transportation and industrial processes contribute to the 13.0% growth in Power & Utilities segment at Bowman Consulting Group Ltd.

Other Emerging Markets

Expected Growth: 12.0%

Strong economic growth, urbanization, and industrialization in countries like Indonesia, Malaysia, and Thailand drive demand for infrastructure development, leading to increased construction activities and growth in the Other Emerging Markets segment.

7. Detailed Products

Land Development Services

Bowman Consulting Group Ltd. provides land development services, including site planning, zoning, and permitting to help clients navigate the development process.

Transportation Engineering

Bowman Consulting Group Ltd. offers transportation engineering services, including road design, traffic engineering, and transportation planning to improve mobility and safety.

Environmental Services

Bowman Consulting Group Ltd. provides environmental services, including environmental assessments, permitting, and compliance to help clients meet environmental regulations.

Survey and Mapping

Bowman Consulting Group Ltd. offers survey and mapping services, including land surveying, GIS mapping, and 3D scanning to provide accurate spatial data.

Construction Services

Bowman Consulting Group Ltd. provides construction services, including construction management, inspection, and testing to ensure projects are completed on time and within budget.

Geotechnical Engineering

Bowman Consulting Group Ltd. offers geotechnical engineering services, including soil testing, foundation design, and slope stability analysis to ensure structural integrity.

8. Bowman Consulting Group Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bowman Consulting Group Ltd. is medium due to the availability of alternative consulting services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of a large number of consulting firms in the market, giving customers the power to choose from a variety of options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of a large number of suppliers in the market, giving Bowman Consulting Group Ltd. the power to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is medium due to the presence of barriers to entry, such as high startup costs and the need for specialized expertise, which can deter new entrants.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of a large number of consulting firms in the market, leading to intense competition for clients and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.17%
Debt Cost 3.95%
Equity Weight 64.83%
Equity Cost 9.99%
WACC 7.87%
Leverage 54.25%

11. Quality Control: Bowman Consulting Group Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.8/10

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Growth: 7.0

Quality: 4.9

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

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Quality: 3.9

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

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A-Score: 3.6/10

Value: 7.6

Growth: 5.0

Quality: 3.7

Yield: 0.0

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INNOVATE

A-Score: 2.8/10

Value: 7.0

Growth: 2.3

Quality: 3.6

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.37$

Current Price

33.37$

Potential

-0.00%

Expected Cash-Flows