Bowman Flips to a Loss as Building Work Recedes

The Tip Desk · November 12, 2026 · 3 min read

Gross contract revenue reached $148.7 million in the September quarter, up 18.0%, while net income swung to a $2.0 million loss.

Bowman Consulting Group (BWMN), a professional services firm delivering engineering and technical consulting for the built environment, reported gross contract revenue of $148.7 million for the three months ended September 30, 2026, up 18.0% from $126.0 million a year earlier.

The year-over-year growth rate slowed from 19.7% in the June quarter. Acquisitions accounted for $8.0 million of the $22.7 million increase. Net service billing, the portion of revenue attributable to the company’s own workforce, was $130.7 million, or 87.9% of gross contract revenue.

Profitability moved the other way. Net income swung to a loss of $2.0 million from net income of $6.6 million a year earlier, and net margin was (1.3)% versus 5.3%. Adjusted EBITDA was $22.2 million, compared with $18.3 million on net income of $6.6 million a year earlier. Sequentially, Adjusted EBITDA declined from $24.1 million in the June quarter, and Adjusted EBITDA margin, net, compressed to 17.0% from 18.7%.

The mix of end markets shifted toward energy and natural resources. Power, Utilities & Energy gross contract revenue increased $13.7 million, or 49.6%, to $41.3 million, accelerating from a 38.0% increase in the June quarter. The market’s share of gross contract revenue rose to 27.8% from 21.9% a year earlier. The company said the additional increase was principally attributable to acquisitions, expansion of a multi-year utility undergrounding assignment in Florida, and increases from gas pipeline and electric transmission projects nationally. Within the market, 66.3% of revenue came from traditional transmission operations, 8.9% from alternative energy operations, and 24.8% from data center customers.

Natural Resources revenue increased $12.9 million, or 84.3%, to $28.3 million, after a 67.2% increase in the June quarter. The market’s share of gross contract revenue rose to 19.0% from 12.2% a year earlier. Imaging and mapping accounted for 69.3% of that market’s revenue, mining 11.4%, water resources 14.5%, and environmental and other natural resources consulting 4.8%.

Building Infrastructure reversed a small June-quarter gain. Gross contract revenue in the market fell $3.1 million, or 5.5%, to $53.7 million, after a 1.1% increase in the June quarter. Its share of gross contract revenue dropped to 36.1% from 45.1% a year earlier. Transportation revenue decreased $0.8 million, or 3.2%, to $25.4 million, after a 15.3% increase in the June quarter. Public sector customers represented 28.9% of gross contract revenue, down from 35.6% a year earlier. Lump-sum assignments represented approximately 53% of gross contract revenue, compared with approximately 58% a year earlier.

The company said it is realizing productivity improvements from automation that have reduced estimated costs to complete for certain projects in process. Management revised those estimates, which, consistent with its revenue recognition policy, resulted in cumulative catch-up adjustments that increased gross contract revenue during the three and nine months ended September 30, 2026. For the nine months ended September 30, 2026, gross contract revenue was $421.3 million, up 16.7% from $361.1 million, and net income was a loss of $3.2 million versus net income of $10.9 million a year earlier.

On August 9, 2026, Bowman entered an Agreement and Plan of Merger with Prive Parent, Inc. and Prive Merger Sub, Inc., buyers affiliated with Bernhard Capital Partners. Stockholders approved the merger on November 4, 2026. Subject to customary closing conditions, the company expected the transaction to close on or around November 6, 2026. On October 15, 2026, the company acquired 100% of the membership interests of Dymaptic for cash, seller notes, and contingent consideration.