Bowman Consulting Group Ltd. Q4 FY2024 earnings call

• 2024 was very successful with record net service billings, net income, adjusted EBITDA, and adjusted EBITDA margin. Strong fourth quarter, record backlog of $399 million. • Made 8 strategic acquisitions in 2024, entering new geographies and expanding service offerings. Augmented acquisitions with new leadership, systems, and capital. • Geospatial practice area from CERDEX acquisition was a source of new business. • Gross revenue for full year over $400 million, first year over $400M, on track for $500M run rate. • Adjusted EBITDA margin improved for 4th consecutive year, though not at annual goal of high teens yet. • Breakdown of gross revenue by market: Building infrastructure 51%, Transportation 21%, Power, Utilities, and Energy 18%.

Gross revenue for the fourth quarter was $113 million, a 22% increase year-over-year. Net revenue was $98.6 million, up 23%. For the full year, gross revenue was $426.6 million (23% increase), net revenue $379.7 million (25% increase). Building infrastructure was the largest market at 51% of gross revenue, followed by Transportation (21%), Power, Utilities, and Energy (18%). Organic growth of net revenue in the quarter was 8.5%, with emerging markets leading, followed by transportation, power utilities and energy, and building infrastructure.

• 2025 guidance: Forecasts net revenues in range of $428 to $440 million and adjusted EBITDA between $70 and $76 million. • Expect GAAP expense associated with non-cash stock compensation to be reduced in absolute and as percentage of revenue. • Bookings strong in 2025, well distributed across markets, with transportation, power and utilities, and data center demand robust.

• Forward-looking statements subject to numerous risks and uncertainties that could cause future results to differ from those expressed. The company is not obligated to publicly update or revise these forward-looking statements.

Q: Impact of IIJA on transportation vertical and trends?

A: IIJA spending kicking in, no adverse impacts, spending expected to stay sustained. Strong trends in transportation from IIJA and state/local funding.

Q: Backlog comparison to past years and pipeline trending?

A: Backlog characteristically similar to prior years, 80% turn profile in 12 months, no significant delay. Outsourcing opportunities as government sectors look to outsource to</think>companies like Bowman when staffs are cut.

Q: Progress on gaining wallet share and data center market?

A: Surdex acquisition increased geospatial capacity for early incumbency. Data center market is a focus, looking to expand service capabilities in design and life cycle work. Natural gas pipeline replacement market active, expanding with clients.

Q: Land development business in DC area?

A: Diversified, not as substantial a part of business as past. DC market has diverse economy, supply increase temporary, long term fine.