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Bowman Consulting Group, Ltd. (BWMN)
:BWMN
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Bowman Consulting Group (BWMN) AI Stock Analysis

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BWMN

Bowman Consulting Group

(NASDAQ:BWMN)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$50.00
▲(15.55% Upside)
Bowman Consulting Group's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The technical analysis supports a bullish outlook, although the high P/E ratio suggests caution regarding valuation. The absence of corporate events and dividend yield slightly tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Bowman's services, enhancing its market position and supporting long-term financial stability.
Strategic Innovation
Investment in innovation through the BIG Fund positions Bowman to leverage new technologies, driving future growth and competitive advantage.
New Contract Win
Winning the IDOT contract expands Bowman's footprint in Illinois, offering potential for future projects and reinforcing its reputation in infrastructure services.
Negative Factors
Cash Flow Challenges
Decreased cash flow from operations can strain financial flexibility, impacting Bowman's ability to invest in growth and manage liabilities effectively.
Margin Pressure
Rising labor costs may compress margins, affecting profitability and potentially limiting Bowman's ability to reinvest in its business.
Low Net Profit Margin
A low net profit margin suggests inefficiencies or high costs, which could hinder Bowman's ability to generate sustainable profits over the long term.

Bowman Consulting Group (BWMN) vs. SPDR S&P 500 ETF (SPY)

Bowman Consulting Group Business Overview & Revenue Model

Company DescriptionBowman Consulting Group (BWMN) is a multidisciplinary consulting firm specializing in engineering, planning, and environmental services. The company operates primarily within the infrastructure development sector, providing essential services such as land surveying, civil engineering, and environmental assessments to a diverse clientele, including government agencies, private developers, and commercial enterprises. With a focus on delivering innovative solutions that promote sustainable development, Bowman Consulting Group engages in projects that enhance community infrastructure while adhering to regulatory standards.
How the Company Makes MoneyBowman Consulting Group generates revenue primarily through its consulting services, which encompass engineering, planning, environmental assessments, and land surveying. The company charges clients on a fee-for-service basis, where fees are determined by the scope and complexity of projects. Key revenue streams include contracts with government agencies for public infrastructure projects, private sector projects in real estate and development, and specialized environmental consulting services. Additionally, Bowman may enter into strategic partnerships with other firms or government entities, which can enhance its service offerings and expand its project portfolio, further contributing to its earnings.

Bowman Consulting Group Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance with record revenues and margins, significant bookings, and strategic investments in innovation. However, there were challenges related to cash flow management, stock compensation expenses, and potential future margin pressures.
Q2-2025 Updates
Positive Updates
Record-Setting Financial Performance
Second quarter achieved record gross revenue of $122 million, net revenue of $108 million, and adjusted EBITDA of $20.2 million with a margin of 18.7%.
Significant Growth in Core Verticals
17% increase in gross contract revenue, 15% increase in net service billing, and over 8% organic net service billing growth.
Strong Bookings and Backlog Growth
Record bookings well balanced across markets, with a backlog increase to nearly $87 million, 25% higher than the previous year.
Innovation and Investment Initiatives
Formation of Bowman Innovative Growth Fund (BIG Fund) with a $25 million commitment to drive innovation in technology and digital services.
Negative Updates
Cash Flow Challenges
Cash flow from operations was down due to accrued bonuses payment and increased working capital requirements.
Stock Compensation Expense Management
Non-cash stock compensation expense was $3.1 million, down from $6.1 million last year, indicating structural changes in compensation plans.
Margin Pressure Concerns
Potential margin pressure in the second half of the year due to inflationary labor costs.
Company Guidance
During the Bowman Consulting Group's second quarter 2025 earnings call, the company reported a 17% increase in gross contract revenue and a 15% increase in net service billing, with organic net service billing growth at over 8%. The adjusted EBITDA surged by nearly 51%, while the adjusted EBITDA margin hit a record 18.7%, up 440 basis points compared to the previous year. Gross revenue and net revenue for the quarter were $122 million and $108 million, respectively. The company's book-to-bill ratio remained well above 1, and backlog increased by 25% compared to the prior year. Management also raised their 2025 full-year guidance, projecting net revenues between $430 million and $442 million, with adjusted EBITDA ranging from $71 million to $77 million. Additionally, the company highlighted a strategic focus on operational efficiency, labor cost management, and innovation investments through the newly established Bowman Innovative Growth Fund.

Bowman Consulting Group Financial Statement Overview

Summary
Bowman Consulting Group exhibits solid financial health with consistent revenue growth and strong cash flow management. Profitability margins are improving, but there is potential for further enhancement. The balance sheet reflects a stable financial position with a prudent approach to debt management.
Income Statement
75
Positive
Bowman Consulting Group shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.96%. The gross profit margin remains strong at 51.28%, indicating efficient cost management. However, the net profit margin is relatively low at 2.37%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over time, reflecting better operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.45, indicating a balanced approach to leveraging. Return on equity is modest at 4.45%, suggesting moderate profitability from shareholders' investments. The equity ratio stands at 46.39%, showing a stable capital structure with a good portion of assets financed by equity.
Cash Flow
80
Positive
Bowman Consulting Group demonstrates strong cash flow management, with a free cash flow growth rate of 4.93% in the TTM period. The operating cash flow to net income ratio is 0.23, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is high at 88.37%, highlighting effective cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue462.18M426.56M346.26M261.71M149.97M122.02M
Gross Profit237.02M222.80M176.03M135.13M75.44M55.51M
EBITDA40.37M25.97M17.66M17.29M6.41M4.04M
Net Income10.94M2.80M-6.62M5.00M299.00K990.00K
Balance Sheet
Total Assets538.25M505.88M402.79M255.76M138.17M63.64M
Cash, Cash Equivalents and Short-Term Investments15.54M6.70M20.69M13.28M20.62M386.00K
Total Debt112.23M150.44M140.69M81.03M28.01M18.90M
Total Liabilities288.60M259.77M239.50M132.90M59.76M46.50M
Stockholders Equity249.64M246.12M163.28M122.86M78.41M17.14M
Cash Flow
Free Cash Flow30.94M23.68M9.63M8.27M3.81M9.43M
Operating Cash Flow35.01M24.30M11.72M9.17M4.72M10.77M
Investing Cash Flow-8.72M-27.47M-27.16M-18.75M-21.53M-2.41M
Financing Cash Flow-33.89M-10.82M22.84M2.25M37.05M-8.48M

Bowman Consulting Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.27
Price Trends
50DMA
42.33
Positive
100DMA
37.46
Positive
200DMA
30.43
Positive
Market Momentum
MACD
0.46
Positive
RSI
53.22
Neutral
STOCH
42.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMN, the sentiment is Positive. The current price of 43.27 is above the 20-day moving average (MA) of 42.98, above the 50-day MA of 42.33, and above the 200-day MA of 30.43, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 42.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWMN.

Bowman Consulting Group Risk Analysis

Bowman Consulting Group disclosed 55 risk factors in its most recent earnings report. Bowman Consulting Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bowman Consulting Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$746.78M69.874.26%19.48%
$1.10B32.2923.26%8.06%32.33%
$771.75M10.7815.93%24.40%61.44%
$429.73M44.636.31%7.02%
$421.59M-14.15-19.20%5.64%-16.41%
$10.79B15.437.44%2.01%2.89%-14.66%
$328.92M39.353.32%-8.98%-38.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BWMN
Bowman Consulting Group
43.29
21.62
99.77%
GLDD
Great Lakes Dredge & Dock
11.35
-0.26
-2.24%
MTRX
Matrix Service Company
15.02
3.88
34.83%
ORN
Orion Group Holdings
10.77
4.47
70.95%
LMB
Limbach Holdings
94.48
20.90
28.40%
BBCP
Concrete Pumping Holdings
6.39
1.52
31.21%

Bowman Consulting Group Corporate Events

Bowman Consulting’s Record Earnings and Future Outlook
Aug 13, 2025

Bowman Consulting Group’s recent earnings call painted a picture of robust financial health, marked by record revenues and impressive organic growth across its segments. The company showcased a strong balance sheet and innovative investments, though concerns linger around cash flow variability and potential margin pressures due to rising labor costs. Adjustments in stock-based compensation suggest structural changes in employee incentives, adding another layer to the company’s evolving financial landscape.

Bowman Consulting Reports Record Q2 2025 Results
Aug 8, 2025

Bowman Consulting Group Ltd., a national engineering services and program management firm, provides infrastructure engineering, technical services, and project management solutions across various regulated markets in the United States.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 25, 2025