Bowman Consulting 2025 Q3 Earnings Surges in Net Income as Revenue Grows 10.6%

Bowman Consulting (BWMN) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with revenue rising 10.6% year-over-year to $126.03 million but missing Wall Street’s $130.2 million estimate. The company reaffirmed 2025 guidance and provided updated 2026 targets. Earnings per share (EPS) surged 850% to $0.38, driven by a 758.4% increase in net income to $6.62 million.

Revenue

Revenue growth was broad-based, with transportation and power/utilities segments leading performance. Transportation revenue grew over 20%, while power/utilities also expanded by more than 20%. Building infrastructure and energy services contributed to the 11% year-over-year net revenue increase. However, gross contract revenue fell short of analyst expectations, highlighting mixed performance despite strong organic growth in core sectors.

Earnings/Net Income

The 850% EPS increase underscores improved profitability, supported by disciplined cost management and technology-driven efficiency gains. The significant net income jump reflects strong operational leverage and a resilient business model, particularly in recurring public sector work.

Post-Earnings Price Action Review

The strategy of buying BWMN shares post-earnings and holding for 30 days delivered a 7.3% average return but came with notable risks. Over 36 months, the approach yielded a 28.8% cumulative return (9.2% annualized), though a 35.2% drawdown occurred during a revenue miss. Volatility remains a key concern, as the stock fell 18% following the Q3 report. Investors must weigh the potential for long-term gains against the likelihood of sharp corrections tied to earnings surprises or broader market shifts.

CEO Commentary

CEO Gary Bowman highlighted surpassing $500 million in annualized gross revenue and a 11% year-over-year backlog increase to $448 million. Strategic priorities include AI-enabled tools, the BIG Fund for innovation, and disciplined M&A to strengthen transportation and energy market positions.

Guidance

Bowman reaffirmed 2025 net revenue guidance of $430–$442 million and set 2026 targets of $465–$480 million with adjusted EBITDA margins of 17–17.5%. The company emphasized sustainability of GAAP profitability and cash flow conversion as growth drivers.

Additional News

Bowman Consulting expanded its power and data center practices through the acquisition of Sierra Overhead Analytics, enhancing service offerings. The stock’s 78% year-to-date gain reflects strong investor sentiment, though analysts caution about near-term risks from government shutdowns. With seven "buy" ratings and a median 12-month price target of $45, the stock remains attractively positioned for growth.