Bowman Consulting acquires Sierra Overhead Analytics to expand energy practice

RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ:BWMN), a consulting firm with impressive gross profit margins of 52.7% and strong market performance showing a 76% return over the past year, has acquired California-based Sierra Overhead Analytics (SOA) and its technology affiliate ORCaS, Inc., the company announced Monday. According to InvestingPro data, the company maintains a healthy financial position with a "GOOD" overall health score.

The acquisition strengthens Bowman’s capabilities in data center development, climate resiliency, utilities, power and alternative energy markets while expanding its digital services portfolio.

SOA provides technology-centric civil design, precision mapping and hydrology services to energy and infrastructure customers. ORCaS develops proprietary tools enabling specialized design automation, location optimization and hydrological studies for clients including data centers and energy developers.

"Adding these new customers, digital offerings and optimization tools enhances our value proposition and positions Bowman for accelerated organic growth in markets where technology and sustainability are driving increasing demand," said Gary Bowman, founder and CEO of Bowman.

The acquisition includes ORCaS’s suite of tools such as OSCaR, an advanced grading and piling optimization platform, and Hydro Toolbox, which streamlines hydrological analysis with significant time savings. With revenue growth of 19.48% in the last twelve months and analysts maintaining a Strong Buy consensus, Bowman continues to demonstrate strong execution of its growth strategy. InvestingPro subscribers can access 12 additional key insights about Bowman’s growth potential and valuation metrics.

Owen Ransom, president of SOA and ORCaS, stated: "Our teams share a common vision for how engineering and software can work together to solve complex infrastructure challenges."

The transaction was financed through a combination of cash, seller notes and a convertible note. Bowman expects the acquisition to operate at an initial net service billing run rate of approximately $2.2 million and be immediately accretive.

Bowman’s recently launched Office of Innovation will oversee the integration of ORCaS technologies into the company’s operations and service lines.

The engineering services firm, which employs 2,500 people across 100 U.S. locations and commands a market capitalization of $715 million, noted in its press release statement that it plans to continue focusing on acquisitions in energy, transportation, natural resources and adjacent technology-enabled services. For detailed analysis and comprehensive insights about Bowman’s growth trajectory, investors can access the full Pro Research Report available exclusively on InvestingPro.

In other recent news, Bowman Consulting Group Ltd. has been actively securing significant contracts and receiving positive analyst attention. The company has won a contract to provide planning and design services for the redevelopment of the West End Container Yard at Barbours Cut Terminal in the Port of Houston. This project is part of a larger $650 million capital improvement program. Additionally, Bowman has entered into a two-year agreement with the Nebraska Department of Transportation to conduct bridge evaluation services across the state, which includes inspecting up to 500 bridges.

Moreover, Bowman has been awarded a contract by the Illinois Department of Transportation to provide preliminary engineering services for improvements to US 30 in Morrison, Illinois. On the analyst front, B.Riley has increased its price target for Bowman Consulting from $43 to $55, maintaining a Buy rating. Texas Capital Securities has also initiated coverage with a Buy rating and a price target of $59, highlighting Bowman’s expected 20% annual earnings growth driven by infrastructure megatrends and margin expansion. These developments reflect Bowman’s growing presence and reputation in the engineering and consulting sector.

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