On August 6, 2024, Bowman Consulting Group Ltd (BWMN, Financial) released its 8-K filing detailing financial results for the three and six months ended June 30, 2024. Bowman Consulting Group Ltd is a professional services firm delivering engineering solutions to customers who own, develop, and maintain the built environment. The company provides a wide range of services including planning, engineering, construction management, commissioning, environmental consulting, geospatial, survey, land procurement, and other technical services.
Performance Overview
Bowman Consulting Group Ltd reported a net loss of $2.08 million for Q2 2024, translating to a loss per share of $0.13. This is a significant miss compared to analyst estimates of $0.03 loss per share. The company also reported revenues of $104.5 million, falling short of the estimated $110.06 million.
Despite these challenges, the company highlighted strong sales and a growing backlog. Gary Bowman, Chairman and CEO, noted, "Despite challenges we faced this quarter with conversion of awards to revenue, our sales are strong, our backlog is growing, and our M&A pipeline remains robust."
Financial Achievements and Challenges
Bowman Consulting Group Ltd's backlog increased nearly 5% from the end of the last quarter and 19% year-over-year, excluding backlog acquired in Q2. The company has been selected for multiple large transportation projects, although delays in the contracting process have impacted revenue conversion.
Gary Bowman added, "We remain optimistic that several of these will commence in earnest during the second half of the year. We continue to focus on sustainable, long-term organic revenue growth and margin improvement."
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Gross Contract Revenue | $104.5 million | $82.8 million |
| Net Loss | $(2.08) million | $(0.63) million |
| Loss Per Share | $(0.13) | $(0.05) |
Balance Sheet and Cash Flow
As of June 30, 2024, Bowman Consulting Group Ltd reported total assets of $463.4 million, up from $402.8 million at the end of 2023. The company's cash and equivalents stood at $23.1 million, an increase from $20.7 million at the end of 2023. Total liabilities were $227.8 million, down from $239.5 million at the end of 2023.
Net cash provided by operating activities for the first six months of 2024 was $5.6 million, compared to $2.1 million for the same period in 2023. However, net cash used in investing activities was $20.6 million, primarily due to acquisitions, compared to $15.6 million in the same period last year.
Adjusted Earnings and Guidance
Bowman Consulting Group Ltd reported a non-GAAP adjusted loss per share of $0.03 for Q2 2024, compared to an adjusted earnings per share of $0.15 in Q2 2023. The company has updated its full-year 2024 outlook, expecting net service billing to be in the range of $375 to $385 million and adjusted EBITDA to be between $58 and $63 million.
Analysis and Outlook
While Bowman Consulting Group Ltd has faced challenges in converting awards to revenue, the company's strong sales and growing backlog indicate potential for future growth. The delays in large transportation projects have impacted short-term revenue, but the company remains optimistic about the second half of the year.
Value investors may find Bowman Consulting Group Ltd's focus on sustainable, long-term organic revenue growth and margin improvement appealing. The company's diversification into various markets, including transportation, power and utilities, and water, also provides a buffer against market volatility.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Bowman Consulting Group Ltd for further details.
