Bowman Consulting secures $7.5 million UNM services contract

RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ: BWMN), a provider of engineering services with a market capitalization of $401 million and annual revenue of $406 million, has secured a four-year contract to deliver on-call engineering design services for the University of New Mexico (UNM), with a total cap of $7.5 million. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value metrics.

The agreement, which encompasses a range of engineering disciplines, allows Bowman to offer surveying, civil engineering, and subsurface utility engineering (SUE) services across UNM’s network of campuses and facilities. These include the main campus, branch campuses, UNM Hospital, the Science & Technology Park, South Campus, the Comprehensive Cancer Center, and the Health Sciences Center. The firm’s services will support UNM’s campus expansion, facility upgrades, and infrastructure planning efforts.

Bowman’s role at the UNM Hospital is particularly noteworthy as it involves subsurface utility mapping and surveying to aid construction and expansion projects. The company will also implement drone imaging and geographic information system (GIS) modeling technologies to maintain detailed digital records of the university’s utility infrastructure.

Gary Bowman, chairman and CEO of Bowman, highlighted the contract as an example of the firm’s dedication to fostering client relationships and driving growth. He emphasized Bowman’s investment in advanced technologies, which boosts their surveying, SUE, and GIS modeling capabilities, positioning them to meet UNM’s infrastructure needs with sustainable and efficient solutions.

This new contract builds on a longstanding relationship between UNM and High Mesa, a company acquired by Bowman, which has contributed to numerous projects at the university over the years. The deal reinforces Bowman’s presence in the higher education sector and solidifies its reputation as a reliable engineering solutions provider.

Bowman Consulting Group, headquartered in Reston, Virginia, operates nationwide, offering a broad spectrum of infrastructure, technology, and program management solutions. Employing over 2,300 staff across more than 100 locations in the U.S., the firm caters to a variety of regulated markets. While the stock has experienced an 8.5% decline over the past week, analysts maintain positive growth expectations for both sales and net income this year. Detailed analysis and comprehensive valuation metrics are available in the Pro Research Report on InvestingPro, which provides deep-dive analysis of 1,400+ top US stocks.

This contract signifies a strategic enhancement of Bowman’s service offerings in the educational sector and its commitment to supporting the infrastructure needs of academic institutions. The information is based on a press release statement from Bowman Consulting Group.

In other recent news, engineering services firm Bowman Consulting Group has been making notable strides. The company has secured a two-year contract to perform a comprehensive aerial mapping project for the State of Oklahoma. This initiative, the first of its kind in nearly three decades, will provide high-resolution geospatial data to support various state operations and public use. The project involves capturing digital orthoimagery over approximately 70,000 square miles and is expected to aid agencies such as the Oklahoma Department of Transportation and Emergency 911 services.

In another development, Bowman has increased its share repurchase program from $25 million to $35 million. Approximately $16 million of the repurchase amount is still available, and the program is set to expire on July 31, 2025. The decision to increase the repurchase program aligns with the company’s intention to continue investing in organic growth and strategic acquisitions.

These recent developments highlight Bowman’s growth strategy and ongoing commitment to integrating acquired capabilities, as noted by CEO Gary Bowman. Both the aerial mapping contract and the increased share repurchase program reflect Bowman’s strategic initiatives and its ability to leverage its expertise in the engineering services sector.

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