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Bowman Consulting ups stock buyback to $35 million

Published 02/12/2024, 22:18
BWMN
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RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ:BWMN), an engineering services firm with a market capitalization of approximately $468 million, has announced an increase in its share repurchase program, upping the total from $25 million to $35 million. This decision was made by the company's Board of Directors on November 29, 2024, with approximately $16 million of the repurchase amount still available. The program is set to expire on July 31, 2025. According to InvestingPro analysis, the stock is currently trading slightly below its Fair Value.

The company has expressed its intention to continue investing in organic growth and strategic acquisitions, building on its impressive revenue growth of 23.5% over the last twelve months. The repurchase of shares will be at the discretion of management, taking into account factors such as stock price, market conditions, and capital allocation priorities. Repurchases may occur in the open market, through private transactions, or other means, and could utilize trading plans that comply with Rule 10b5-1 under the Securities Exchange Act of 1934.

Bowman, headquartered in Reston, Virginia, operates nationwide with over 2,300 employees across more than 95 offices. The firm provides a wide range of services including planning, engineering, geospatial, construction management, and environmental consulting to various regulated markets, maintaining a strong gross profit margin of 51.5%. Shares of Bowman are traded on the Nasdaq stock exchange under the ticker BWMN. InvestingPro subscribers can access detailed financial analysis and eight additional ProTips about BWMN's performance and outlook.

The share repurchase program is flexible and does not commit Bowman to buy a specific number of shares. The program may be adjusted, paused, or terminated at any time without prior notice.

This announcement contains forward-looking statements that are subject to risks and uncertainties, including the execution of the share repurchase program and its alignment with the company's strategic initiatives. Factors that could affect these forward-looking statements include changes in market demand, economic conditions, industry competition, regulatory changes, and other risks detailed in the company's SEC filings.

The information for this article is based on a press release statement from Bowman Consulting Group.

In other recent news, Bowman Consulting Group Ltd. has reported a strong third quarter in 2024, with net revenue surpassing $100 million, marking a significant year-over-year growth. The company's financial health was further underscored by a 27% increase in backlog, driven by robust new bookings and large transportation contracts. In light of these developments, Bowman has raised its 2024 revenue outlook and set an optimistic revenue forecast for 2025, reflecting confidence in continued expansion.

The company's gross revenue rose 21% to $113.9 million, while net revenue increased 23% to $101 million. Adjusted EBITDA for Q3 was nearly $17 million, with a healthy balance sheet showing $12 million in cash. Bowman's executives have highlighted an uptick in demand for services related to electrification and decarbonization in power markets.

Bowman Consulting Group aims for a $500 million annual gross revenue run rate within five years post-IPO, anticipating organic growth of 5% to 9% in 2025. The company expects positive impacts from upcoming election on infrastructure spending and regulatory changes. Lastly, Bowman's backlog for 2025 is larger than in previous years, with no anticipated permitting hurdles.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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