Bowman acquires Lazen Power Engineering to expand transmission line capabilities

RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ:BWMN), a company that has delivered an impressive 90% return to investors over the past year, announced Monday it has acquired Lazen Power Engineering, a Florida-based firm specializing in high-voltage transmission line infrastructure design. According to InvestingPro data, Bowman operates with strong fundamentals, maintaining a healthy 52.7% gross profit margin.

The acquisition establishes Bowman’s presence in the high-voltage transmission line segment of the power industry and enhances the company’s technical expertise in utility design and maintenance.

Lazen Power Engineering, founded in 2014 and based in Orlando, provides overhead transmission line design and project management services to regional utilities across the United States. Its services include fire risk mitigation, greenfield design, reconductor upgrades, clearance improvements, and asset inspections.

"The addition of Lazen and its team of highly skilled professionals immediately establishes our capability in overhead transmission line design and lays important groundwork for future growth of our energy practice," said Gary Bowman, founder and CEO of Bowman.

Mohammed Issa, founder of Lazen, stated, "Joining Bowman gives our team the opportunity to be part of a larger platform while continuing to focus on the specialized needs of our clients."

The acquisition was financed with a combination of cash, seller notes, and equity. Bowman expects Lazen to operate at a net service billing run rate of approximately $2.0 million and be immediately accretive. The company, currently valued at $722.63 million, has demonstrated strong growth with revenue increasing 19.48% over the last twelve months. InvestingPro analysis reveals 12 additional key insights about Bowman’s financial health and growth prospects, available to subscribers.

This purchase complements Bowman’s recent acquisition of e3i Engineers, which expanded the company’s capabilities in data center and interior energy infrastructure design. The combined expertise enhances Bowman’s ability to deliver solutions to utilities and power consumers at a time of increasing demand for reliable energy.

Headquartered in Reston, Virginia, Bowman employs 2,500 people across 100 U.S. locations, providing planning, engineering, geospatial, construction management, commissioning, environmental consulting, and land procurement services.

The information in this article is based on a company press release statement.

In other recent news, Bowman Consulting Group Ltd. has made significant strides with several developments. The company has acquired California-based Sierra Overhead Analytics and its technology affiliate ORCaS, Inc., enhancing its capabilities in various sectors, including data center development and climate resiliency. Additionally, Bowman has secured a contract to provide planning and design services for the West End Container Yard at the Port of Houston’s Barbours Cut Terminal, a part of a $650 million capital improvement program. Furthermore, Bowman has been selected by the Nebraska Department of Transportation for a two-year contract to provide statewide bridge evaluation services, covering approximately 300 to 500 bridges.

In terms of analyst activity, B.Riley has raised its price target for Bowman Consulting to $55 from $43, maintaining a Buy rating, citing the company’s strong national reputation and ability to qualify for larger projects. Texas Capital Securities has also initiated coverage on Bowman with a Buy rating and a price target of $59, highlighting the firm’s potential for approximately 20% annual earnings growth driven by infrastructure-related trends and margin expansion. These recent developments reflect Bowman’s ongoing efforts to expand its service offerings and capitalize on growth opportunities.

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