Bowman Consulting Group Ltd. Q4 FY2025 earnings call

Gary welcomed new employees, including RPT Alliance joiners. Bruce discussed financials: double-digit growth in gross, net revenue, adjusted EBITDA. Mentioned net-to-gross ratio 89%, backlog increase. Talked about technology initiatives like BIG Fund, investments in geospatial assets. Dan focused on where they're winning: differentiated capabilities in markets, acquisition strategy creating integrated service teams, strong win rates in data center, power utility, natural resources, transportation segments, leveraging technical depth, geographical reach, etc.

Fourth quarter gross revenue was $129,000,000, with net service billing $14,600,000, up 16.2% y-o-y. Full-year gross and net revenue were $490,000,000 and $434,800,000, up 14.9% and 14.5% respectively. Organic net revenue grew 12.4% full-year. Gross margin Q4 55%, full-year 53.4%. SG&A full-year down 250bps. Backlog up 20% to $479,000,000. Natural Resources had 2927% growth, utilities 1113%, transportation 622%, building infrastructure 96% in Q4. Geospatial operations ~26% of 2025 gross revenue. Around 30% of total gross revenue from government/public funded work.

Increased 2026 full-year net revenue guidance to $495,000,000 - $510,000,000 and adjusted EBITDA margin to 17% - 17.5%. Pro forma organic net revenue growth over 12% for 2026. Revenue expected to be nonlinear, first and fourth quarters ~47% of net revenue, second and third ~53%.

Q: On RPT acquisition and EBITDA margins.

A: Integration of RPT well ahead, extends product offering. Margin driven by timing of labor collection to revenue.

Q: Building segment, gross margins by vertical, natural resources demand.

A: Building segment sees potential with affordable housing focus. Gross margins by vertical expected to remain favorable. Natural resources includes various areas like environmental, mining, etc., with exciting projects.

Q: Organic vs inorganic growth, working capital, tax rate, seasonality.

A: Still committed to inorganic growth, focused on strategic opportunities. Working capital focus on reducing work in process. Effective tax rate in high teen range. Seasonality pattern not necessarily repeatable.

Q: 2026 guidance drivers, CEO transition.

A: Backlog conversion ~70-80% in 12 months, RPT acquisition contributes to growth. CEO transition focuses on communication, retention of key staff.

Q: Competitive pushback, business segments weakness.

A: No significant competitive pushback, no pockets of weakness, workforce fungible across segments.

Q: RPT staffing, geospatial demand, CapEx.

A: RPT staffed up with availability of labor, geospatial in demand with incumbency advantage. CapEx includes investment in geospatial fleet.

Q: EBITDA margin, net leverage, BIG Fund.

A: Focus on expanding margin, net leverage target 1.5x - 2x, BIG Fund ~half committed.