Bowman Consulting ups share buyback program to $25 million

RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ:BWMN), an engineering services firm, announced today that its Board of Directors has approved an expansion of its share repurchase program, increasing the maximum value of shares that can be bought back from $10 million to $25 million. The program, which previously had $20.8 million remaining for buybacks, has also been extended until August 31, 2025.

The company highlighted that the repurchase initiative is part of its broader strategy, which includes a focus on organic growth and strategic acquisitions. The execution and timing of the buybacks are subject to management's discretion and will be influenced by various factors, such as the company's stock price, prevailing market conditions, and capital allocation priorities.

Bowman has outlined that the repurchases may occur in the open market, through privately negotiated transactions, or other methods that comply with the Securities Exchange Act of 1934 and other applicable legal requirements. The plan includes the potential use of Rule 10b5-1 trading plans, which allow companies to repurchase their shares at times when they might otherwise be prevented from doing so by securities laws.

However, the company clarified that the share repurchase program does not commit it to acquire any specific number of shares and may be adjusted, paused, or terminated at any time without prior notification.

Bowman Consulting Group Ltd., based in Reston, Virginia, operates nationally and employs over 2,200 people across more than 90 offices in the United States. The firm offers a range of services including planning, engineering, geospatial services, construction management, environmental consulting, and more to a diverse clientele involved in the development and maintenance of infrastructure.

This announcement is based on a press release statement and is intended to provide shareholders and the investment community with current information regarding Bowman's financial maneuvers. The details mentioned are forward-looking statements and are subject to risks, uncertainties, and assumptions that could cause actual outcomes to differ materially from those projected.

In other recent news, Bowman Consulting Group Ltd. has seen a series of significant developments. The company's second quarter results and guidance did not meet expectations, leading to a price target reduction to $32 from the previous $43, despite the firm maintaining its Buy rating. Meanwhile, Bowman has made strategic appointments, naming Gabriel Secrest as Vice President of Mining and West Regional Manager.

Bowman has also been active on the acquisition front, acquiring Colorado-based Element Engineering LLC and FCS Group, which are expected to enhance Bowman's national water wastewater practice and public sector services respectively. These acquisitions are projected to be immediately accretive to the company's earnings.

Bowman has also reported a 31% year-over-year increase in net service billing backlog for the first quarter of 2024 and raised its net revenue guidance to between $382 million and $397 million. Analysts from Baird and BofA Securities have given Bowman positive ratings, citing the company's effective growth strategy and low-risk business model.

In addition to these developments, Bowman secured a contract from the Arizona Department of Transportation to provide engineering services for a new pedestrian and bicycle infrastructure project at Arizona State University's Tempe campus. These are some of the recent developments at Bowman Consulting Group Ltd.

InvestingPro Insights

Bowman Consulting Group Ltd. (NASDAQ:BWMN) has recently made a notable move to expand its share repurchase program, signaling confidence in the company's future prospects. In light of this development, insights from InvestingPro can provide investors with a deeper understanding of the company's financial health and market position.

InvestingPro Data:

• Market Capitalization: Bowman's market cap stands at $423.81 million, reflecting the company's size and presence within the engineering services sector.

• Revenue Growth: The firm has experienced a solid revenue growth of 26.53% in the last twelve months as of Q2 2024, indicating a strong expansion in its business operations.

• Gross Profit Margin: With a gross profit margin of 51.32% in the same period, Bowman demonstrates a robust ability to control costs and generate profits from its services.

InvestingPro Tips:

• Analysts have projected that Bowman's net income is expected to grow this year, which could be a driving factor behind the increased share repurchase program.

• Despite some analysts revising their earnings expectations downwards for the upcoming period, the overall sales growth anticipated for the current year suggests that Bowman is on a path to improving its financial performance.

Investors interested in Bowman Consulting Group Ltd. can find additional InvestingPro Tips, including insights into the company's EBITDA valuation multiple and stock performance over various timeframes, at https://www.investing.com/pro/BWMN. There are currently 10 additional tips listed on InvestingPro that can offer further guidance on the company's outlook.

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