Bowman Consulting 2025 Q1 Earnings Misses Targets as Net Loss Widens 11.9%

Bowman Consulting (BWMN) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The firm reported a net loss of $1.74 million for the quarter, missing market expectations, as it widened compared to the previous year's $1.56 million loss. Despite this, Bowman maintained its full-year guidance, projecting net revenues between $428 million and $440 million, with adjusted EBITDA expected to range from $70 million to $76 million. The company anticipates strong growth momentum throughout the year, especially in the second and third quarters.

Revenue

Bowman Consulting's revenue for the first quarter of 2025 saw a 19.0% increase, rising to $112.93 million from $94.91 million in the same period the previous year. This growth was driven by a significant rise in gross contract revenue, which matched the total revenue figures for the quarter.

Earnings/Net Income

Bowman Consulting posted an EPS of $-0.11 in Q1 2025, consistent with the previous year's figure. However, the net loss expanded to $1.74 million, marking an 11.9% increase from the $1.56 million loss recorded in Q1 2024. The unchanged EPS indicates challenges in achieving profitability.

Price Action

The stock price of Bowman Consulting has edged up 2.61% during the latest trading day, has jumped 8.36% during the most recent full trading week, and has jumped 10.82% month-to-date.

Post-Earnings Price Action Review

Bowman Consulting demonstrates potential for short-term gains following its substantial revenue growth quarter-over-quarter. The company reported a 19% year-over-year revenue increase in Q1 2025, reaching $112.9 million, which may draw investor attention. Despite the stock's rise following the revenue announcement—with a 12.48% change over the past month—the long-term performance has been disappointing, showing a 31.80% decline over the last year. The company's EPS for Q1 2025 was $0.07, missing analyst estimates of $0.13, and a negative EPS revision in the last 90 days suggests weaker-than-expected earnings. Investors should be cautious of the stock's high volatility, with a beta of 1.24, indicating significant price fluctuations and potential risk for those seeking stable returns. While Bowman Consulting shows promise for short-term price increases, investors must weigh the high volatility and recent earnings miss against their investment strategies.

CEO Commentary

Gary Bowman, CEO of Bowman Consulting, expressed satisfaction with the company's strong start to 2025, noting it as the best-performing first quarter on record, driven by a 17% increase in net service billing exceeding $100 million and a 27% year-over-year growth in backlog to nearly $419 million. He emphasized the disciplined growth strategy focused on customers and markets, highlighting the importance of a high net-to-gross ratio and the asset-light business model that enhances cash efficiency. Bowman conveyed optimism regarding the infrastructure demand in the U.S., asserting that the company is well-positioned to capitalize on ongoing federal investments and market dynamics.

Guidance

Bowman Consulting reaffirms its full-year guidance, projecting net revenues in the range of $428 million to $440 million and adjusted EBITDA between $70 million and $76 million. The CEO indicated expectations for strong growth momentum throughout the year, with a pattern of acceleration in the second and third quarters before stabilizing in the fourth quarter.

Additional News

Bowman Consulting Group has secured several significant contracts and made strategic moves in the past weeks. The company announced its attendance at major investor conferences during May 2025, demonstrating its commitment to expanding investor relations. Bowman also secured a $4.2 million transportation contract in Illinois for a major intersection reconstruction project, showcasing its ongoing influence in infrastructure projects. Additionally, Bowman Consulting appointed Virginia L. Grebbien to its Board of Directors, leveraging her extensive experience in the water sector to strengthen its leadership team. These developments highlight Bowman's active engagement in both operational and strategic growth initiatives.