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TRANSPORTATION POWER & UTILITIES ENERGY BUILDINGS & STRUCTURES NATURAL RESOURCES Fireside Chat | Bank of America | December 10, 2024 Bruce Labovitz Chief Financial Officer INFRASTRUCTURE ENGINEERING FOR THE BUILT ENVIRONMENT NASDAQ: BWMN
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Safe Harbor Statement 2 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS Please note that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements. In addition, on today’s call, we will discuss certain non-GAAP financial information such as Adjusted EBITDA, Adjusted EPS and Net Service Billing. You can find this information, together with the reconciliations to the most directly comparable GAAP information, in our second quarter earnings press release and our 8-K filed with the SEC and on our website at bowman.com .
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Compelling Low Risk Infrastructure Design & Management 3 • Engineering & program management services • Executed traditional IPO in May 2021 • Low risk business with no construction cost exposure • Serves diversified and well funded secular markets • Low capital expenditure with asset -lite profile • Acquisition strategy of adjacency and synergy • Completed & integrated 35+ acquisitions since IPO • Founder led with significant insider ownership Net Service Billing (1) Adjusted EBITDA (1) Adjusted EBITDA Margin, Net (1) (Dollars in Millions) $104 $380 2020 2024E $14 $61 2020 2024E 13% 16% Highlights & Financial Performance (1) Adjusted EBITDA, Adjusted EBITDA Margin, Net and Net Service Billing are non- GAAP measures and are reconciled to their respective closest GAAP measure in the appendix. Estimates (E) based on mid-point of currently published guidance. Infrastructure engineering offers healthy organic growth, attractive margins & generous free cash flow potential
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Focused on Attractive & Well Funded End Market Verticals • Commercial Developments • Industrial Complexes • Municipal Facilities • Data Center & Mission Critical • Big Box Retail and Quick Serve • Healthcare & Wellness • Education - private & public • Residential / Multi-family • Roads, bridges and highway planning for state DOTs and private operators • Tunnel planning, design and improvement projects • Ports, harbors and marine infrastructure engineering • Multi-modal public transit planning for bus, rail & other • Sub-station and transmission design • Utility u ndergrounding for public and private utilities • Gas pipeline design and planning for large -scale public and private utilities • Overhead line scanning and integrity assessments 4 • Renewables & energy transition design solutions • Solar - Utility and Distributed • Battery Energy Storage • EV Charging - Private & Fleet • Microgrids • Wind – Onshore & Offshore NATURAL RESOURCESTR ANSPOR TATION POWER , UTILITIES & ENERGY TRANSITION INFRASTRUCTURE +8.2% YoY+10.5% YoY +7.8% YoY +280.5% YoY • Hydrology and geosciences • Mine Infrastructure Services • Water, Wastewater and Water Reclamation services • Environmental Consulting • Wetlands Delineation • Stream Restoration and Enhancement Design • NEPA Documentation • ~$2.8tn spending required for surface transportation over 10 years (1) • Growing investment in transit • Substantial IIJA Funding yet to be deployed by states • $637bn of investment needed in U.S. electric infrastructure over 10 years (1) • Early-stage IRA (2) funding and tax credits • Aging grid, climate change, increasing demand for electricity, weatherization • Renewables and energy transition • Utility fortification and resiliency investment • +$1tn investment in U.S. water infrastructure over 10 years (1) • ~80% of climate change to impact water and natural resources (1) • Increasing demand for transportation base aggregates • Expanding Net Zero requirements • Increasing demand for data center infrastructure and IT infrastructure • Changing population dynamics and long-term demand for more buildable housing inventory Note: % changes represent year -over-year change from Q1 ’23 to Q1 ‘24 MARKET OVERVIEWKEY DRIVERS
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5 Historically Consistent Growth with Healthy Margins Revenue Organic Gross Contract Revenue (1) YoY Growth (in Millions) (in Millions) Adjusted EBITDA (3) (in Millions) Gross Profit (2) (in Millions) (1) Revenue from acquisitions is treated as acquired revenue for a period of four full quarters post -closing, after which it is considered organic (2) Gross profit is calculated as Gross Contract Revenue less Contract costs. See reconciliation in the appendix (3) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and are reconciled to their respective closest GAAP measure in the appendix $122 $150 $262 $346 2020 2021 2022 2023 7% 23% 32% 75% YoY Growth $122 $138 $193 $316 2020 2021 2022 2023 Gross Margin $56 $75 $135 $176 2020 2021 2022 2023 $14 $16 $34 $37 2020 2021 2022 2023 Adjusted EBITDA Margin (3) 7% 13% 21% 31% 11% 11% 14% 13% 46% 50% 51% 52%
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9%12% 7% 13% 5% 14% 9% 8% 3% 1% 7% 11% 1% 59% 49% 19% 18% 14% 6 Diversified Revenue Composition Q3 2024 Distribution of Gross Revenue 21% Gross Revenue Growth 23% Net Revenue Growth 8% T4Q Organic Growth in Net Revenue 6% YTD Organic Growth in Net Revenue Building Infrastructure Transportation Emerging MarketsPower, Utilities & Energy Retail, Hospitality & QSR Office & Industrial Data Centers Healthcare Multi - Family For Sale / Single - Family Mixed - Use Emerging Markets (1) Energy Transition & Renewables Traditional Energy Private Public Municipal Q3 2024 $113.9 MM Gross Contract Revenue (1) Emerging Markets includes Mining, Water, Environmental and Mapping
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Disciplined Acquisition Strategy Compounds Organic Growth 7 • 7 acquisitions of $1 MM+ since beginning of 2024 bring total to 35 acquisitions since IPO (1) • Added >$60 million of annualized net service billing from acquisitions each year since 2021 • Experiencing revenue synergy success through integration • Increased utilization through increased work-sharing, collaboration, and assumption of overhead responsibility • High frequency, Low risk approach (1) Through Nov 30, 2024, excludes acquisitions of licensing -only companies (2) Based on management’s estimates of annualized Net Service Billing run rates from each acquisition. Net Service Billing is a n on-GAAP measure and is reconciled to its closest GAAP measure in the appendix.
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Expanding North American Footprint 95+ Locations 2,300+ Professionals Nationwide Attractive Geographies with Professional Depth, Population Growth and Demand for Engineering and Design Services 8 ENR Top500 Design Firm #78 ENR Top500 Pure Designers #63
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Reliable Portfolio of Repeat Customers & Active Projects 9 11,500+ 4,750+ Customers with Active Projects¹ 2+ Average Active Projects per Customer¹ (1) Data based on fiscal year 2023 Concurrently Active Assignments¹
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2024 2023 Change Gross Contract Revenue $113.9 $94.4 +20.6% Net Service Billing1 $101.4 $82.1 +23.4% Gross Margin 52.4% 51.6% +80 bps SG&A % of GCR 45.6% 44.2% +140 bps 2024 2023 Change Net Income $0.8 $1.2 -34.8% Adjusted EBITDA1 $17.0 $15.1 +12.7% Adjusted EBITDA Margin, Net1 16.7% 18.3% -160 bps Adjusted EPS 1 (basic) $0.31 $0.36 -13.9% Most Recent Financial Highlights Q3 2024 Compared To Q3 2023 (1) Non-GAAP financial metrics — See Non -GAAP tables in the corresponding press release for reconciliations (Dollars in millions, except per share data) 10 For the Three Months Ended September 30, For the Three Months Ended September 30,
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Balance Sheet, Tax, and Capitalizati on • $11.7 million Cash on Hand • $84.7 million Net Debt • 1.2x Net Leverage Ratio – N12M Adjusted EBITDA • $12.4 million Cash from Operating Activities • $10.7 million CapEx YTD • $100 million revolver - $68 million available • 497K shares repurchased during Q3 at $23.89 avg • 17.7 million total outstanding shares including all unvested restricted stock grants at 9/30/24 • M&A consideration remains cash, term notes, convertible notes and equity (1) Cash & Leverage 11 (1) Capital Structure (1) as of September 30, 2024
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Forward Visibility from Increasing Gross Backlog 12 (in Millions) (1) Gross backlog growth is defined as the difference between the backlog balance at the end of a specific period and the backlog balance at the beginning of the same period (2) Emerging Markets includes Water, Mining and Natural Resources markets $116 $124 $139 $167 $173 $206 $230 $243 $252 $295 $299 $306 $330 $352 $380 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Gross Backlog Growth Story (1) Building Infrastructure Transportation Power & Utilities Emerging Markets (2) 51% 28% 17% 4% 54% 25% 19% 2% Q2 2024 $352 million Q3 2023 $299 million 46% 29% 15% 10% Q3 2024 $380 million Gross Backlog Growth Mix Note: Backlog represents the total dollar amount of revenues we expect to record in the future from the performance of work under c ontracts we have been awarded. There is no assurance that backlog will be realized as revenues in the amounts reported or, if realized, will result in profits.
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Updating Guidan ce 13 Issued Net Revenue Adjusted EBITDA November 2023 $345 - $360 MM $56 - $62 MM March 2024 $363 - $378 MM $59 - $65 MM May 2024 $382 - $397 MM $63 - $69 MM August 2024 $375 - $385 MM $58 - $63 MM November 2024 $376 - $386 MM $58 - $63 MM FY 2024 Guidance History Guidance Includes Acquisitions Completed to Date Only Issued Net Revenue Adjusted EBITDA November 2024 $422 - $437 MM $68 - $75 MM FY 2025 Guidance
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Services: Civil & Site Design 14 • Master Planned Communities & Infrastructure • Commercial/Residential Site Development • Site Plans • Grading Plans • Plans & Profiles • Erosion & Sediment Control • Stormwater Management • Floodplain Studies • Drainage Design • Utility Design/Coordination • Utility Relocations • Transportation Planning • Roadway Design • Traffic Engineering • Intersection Improvements • Route/Alignment Studies • Bridge Design • Signals, Lighting & Illumination • ITS & Tollways • Signing & Pavement Marking Plans • Traffic Control Plans • Trails and Multi-Use Paths • Water/Wastewater • Public Involvement / Consensus Building • Access Management Plans • Alternate Delivery Methods • Construction Plans, Permitting & Administration Bowman provides a full range of engineering services, from conceptual design through construction administration and project management. Our in-house multi-disciplined engineers provide our clients with a deep bench of resources and integrated solutions on projects of all types. Bowman engineers have innumerable experience planning and designing the environment we live in
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Services: Geospatial & Survey 15 • Revit or CAD As-Builts • Architecture, Structure, & MEP/Fire Protection • Terrestrial 3D LiDAR Scanning • Mobile 3D LiDAR Scanning • Online Virtual Project Tours • Pre and Post Demo Documentation • Drone Based Aerial Imagery • VR Ready Models • VDC - Clash Detection and Coordination • Pre-Fabrication Surveys • ALTA/NSPS Surveys • Boundary/Topographic Surveys • Route Corridor Studies • Construction Layout/Staking • Utility Location & As-Builts • Full Platting Services • Easements • 3D Laser Scanning/LiDAR • Subsurface Utility Engineering • Pipeline Surveys & As-Builts • Distribution Line Location • Condemnation Surveys • Manned & Unmanned Aircraft Systems • GIS Mapping • GPS/Geodetic Control Surveys • Route/Corridor Surveys • Bathymetric Surveys With more than 120 fully-equipped field survey crews across the nation, Bowman understands the complexities and changing demands of evolving markets and rises to the challenge with the best and brightest professionals and multi- disciplinary teams. From routine boundary surveys to complicated aerial surveys, Bowman utilizes the latest technology
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Services: Right-of-Way Procurement 16 • Feasibility Studies & Right-of- Entry Cost Estimates • Public Information Meeting Support • Right-of-Entry • Title Searches/Title Curative • Appraisals/Appraisal Reviews • Parking, Access & Site Impact Studies • Document Preparations & Parcel File Management • Negotiations • Settlements/Closing/Recordation • Property Management • Relocation Advisory Assistance • Encroachment Resolutions • Expert Witness Court Testimony • Eminent Domain/Condemnation Support • Parcel File Management & Close-Out • Replacement Housing Plans • Easement and Right-of-Entry Training Right-of-way and easements are critical components on all transportation, utility and energy projects, many of which require the acquisition of rights to utilize the land. Bowman is a fully integrated firm that provides land, survey, permitting, and design which allows us to perform all the necessary functions for a project from start to finish. Bowman provides “turn-key” right-of-way and land services from conception to completion for our clients
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MEP & Energy Engineering 17 • Central Plant • HVAC • Geothermal • Smoke Control & Evacuation • System Evaluation & Analysis • Building Evaluation Reports • Energy Modeling • Solar/Battery Design & Integration • Remote Performance Evaluations & Production Modeling • Medium & Low Voltage Power Distribution • Lightning Design & Protection • Fire / Life Safety • Power Generation & Distribution • UPS System • Short Circuit & Breaker Coordination Studies • Arc Flash Analysis • Building Evaluation Reports • Building Electrification / Decarbonization • Domestic Water • Sanitary/Storm • Sprinkler (including Pre-Action) • Medical Gas Distribution • Medical Vacuum System • Building Evaluation Reports • Rainwater Harvesting • Irrigation Design • Fire Alarm • Sprinkler • Fire Pump • Clean Agent • Life Safety • Commissioning • Retro-Commissioning • Code Compliance • Construction Site Observations Bowman’s mechanical, electrical, plumbing and fire protection experts incorporate the latest technology and best practices to support these systems across all stages of the design and construction process on a wide variety of projects including renewable, commercial, educational, healthcare, municipal and industrial. Our engineers have the experience and expertise to deliver functional, technically challenging, high-quality projects
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Services: Sustainability and Environmental Consulting 18 Ultrasonic Acoustic Deterrents – Wind Turbines Hydrology, hydraulics and wetlands mitigation Natural Resources Surveys & Assessments • Wetland & Waters of the U.S. Delineations • Natural Resources Inventories • Wildlife & Vegetation Surveys • Threatened & Endangered Species Surveys • Habitat Assessments • Forest Stand Delineations • Water Quality Studies • Reclaimed/Recycled Water Analysis • Soils, Geological & Geomorphological Assessment Environmental Planning Management • Natural Resources Management Plans • Endangered Species Conservation & Management • Land & Wildlife Management Plans • Integrated Pest Management (IPM) Plans • Forest Conservation Plans • Wetland Creation/Enhancement Design • Stream Restoration/Enhancement Design • Native Vegetation Restoration • Aquatic Vegetation Management • Aquatic Pesticide Application Plan (APAP) • Conservation Easement Baseline Reports & Inspections Environmental Compliance • Section 404/401 Permitting & Compliance • Wetland & Stream Mitigation Monitoring • NEPA Documentation • Cumulative Effects Assessment • NPDES Permitting • Stormwater Pollution Prevention Plans • Sediment & Erosion Control Plans • Phase I Environmental Site Assessments • Hazardous Waste Management Bowman is committed to having a positive influence on the communities in which we operate and the environment we share. We promote a diverse, inclusive and safe workplace where employees can grow and develop sustainable careers. Comprehensive suite of environmental and sustainability services
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19 Key Initiatives and Long -Term Strategic Commitments Achieving and maintaining double digit organic growth Growing to $500 million net service billing run rate by 5th anniversary of IPO Fully-integrated operations Delivering high teens adjusted EBITDA margins (1) Investing in systems, platforms and processes that accelerate delivery and enhance margin Iteration acceleration and applied learning technology implementation Continuous investment in innovation Well-connected rainmaking talent Seasoned professionals with real-world experience Networked closers Strategic acquisitions that generate revenue synergies Organic Growth & Operational Excellence (1) On Adjusted EBITDA, net Market Leadership Through Technology Investments Wallet-Share Maximization and Business Development Bowman and its employees commit to regular community engagement and collaborationon assessments of the environmental impact of our sustainability initiatives and investments in an expanding suite of environmental services. Social Engagement Governance Sustainability
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N A S D A Q : B W M N B O W M A N C O N S U L T I N G G R O U P L T D .
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A P P E N D I X
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Reconciliation of GAAP to Non-GAAP Financial Measures Adjusted EBITDA Reconciliation 2024 2023 2024 2023 Net (Loss) Income (GAAP) $771 $1,183 $(2,869) $1,086 +Interest Expense 1,938 1,538 5,844 3,545 +Depreciation & Amortization 7,395 4,500 20,572 12,785 +Tax (Benefit) Expense (1,910) (62) (6,543) (1,901) EBITDA $8,194 $7,159 $17,004 $15,515 +Non-Cash Stock Compensation 6,448 7,158 20,386 18,480 +Transaction -Related Expenses - 63 - 186 +Settlements & Other Non- Core Expenses 1,954 560 2,767 674 +Acquisition Expenses 374 117 2,354 928 Adjusted EBITDA $16,970 $15,057 $42,511 $35,783 Adjusted EBITDA Margin, Net 16.7% 18.3% 15.1% 16.0% 22 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS For the Nine Months Ended September 30, (Dollars in thousands) For the Three Months Ended September 30,
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Non-GAAP Adjusted EPS For the three months ended September 30, 23 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS Earnings (loss) per share (GAAP) $0.04 $0.08 $0.04 $0.08 Pre-tax basic per share adjustments $0.35 $0.38 $0.34 $0.35 Adjusted EPS before tax expense $0.39 $0.46 $0.38 $0.43 Tax expense (benefit) per share adjustment $0.05 $0.05 $0.05 $0.04 Adjusted EPS - adjusted net income $0.34 $0.41 $0.33 $0.39 Adjusted EPS allocated to non-vested shares $0.03 $0.05 $0.03 $0.05 Adjusted EPS attributable to common shares $0.31 $0.36 $0.30 $0.34 2024 2023 Basic Diluted 2024 2023
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Non-GAAP Adjusted EPS For the nine months ended September 30, 24 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS Earnings (loss) per share (GAAP) $(0.18) $0.08 $(0.18) $0.07 Pre-tax basic per share adjustments $0.95 $0.97 $0.94 $0.89 Adjusted EPS before tax expense $0.77 $1.05 $0.76 $0.96 Tax expense (benefit) per share adjustment $0.24 $0.14 $0.24 $0.12 Adjusted EPS - adjusted net income $0.53 $0.91 $0.52 $0.84 Adjusted EPS allocated to non-vested shares $0.04 $0.12 $0.04 $0.11 Adjusted EPS attributable to common shares $0.49 $0.79 $0.48 $0.73 2024 2023 Basic Diluted 2024 2023
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Reconciliation of GAAP to Non-GAAP Financial Measures EPS To Adjusted EPS Reconciliatio n 2024 2023 2024 2023 Net (Loss) Income (GAAP) $771 $1,183 $(2,869) $1,086 +Tax Expense (Benefit) (GAAP) (1,910) (62) (6,543) (1,901) (Loss) Income Before Tax Expense (GAAP) $(1,139) $1,121 $(9,412) (815) +Acquisition Related Expenses 1,064 555 4,349 2,177 +Amortization Of Intangibles 3,696 1,948 10,850 5,613 +Non-Cash Stock Comp Related To Pre- IPO 796 1,744 3,473 5,207 +Other Non-Core Expenses 1,954 560 2,767 674 Adjusted (Loss) Income Before Tax Expense $6,371 $5,928 $12,027 $12,856 Adjusted Income Tax (Benefit) Expense 858 620 3,791 1,665 Adjusted Net (Loss) Income $5,513 $5,308 $8,236 $11,191 Adjusted Earnings Allocated To Non- Vested Shares 381 655 650 1,438 Adjusted Net (Loss) Income Attributable To Common Shareholders $5,132 $4,653 $7,586 9,753 25 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS For the Nine Months Ended September30, (Dollars in thousands) For the Three Months Ended September30,
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Reconciliation of GAAP to Non-GAAP Financial Measures Gross Revenue to Net Service Billing Reconciliation 2024 2023 Gross Contract Revenue $113,932 $94,434 Less: Sub-Consultants & Other Direct Expenses $12,569 $12,310 Net Service Billing $101,363 $82,124 Organic Net Service Billing (Trailing four quarters net revenue of $361.6M less $47.9M of acquired) $313,709 $289,664 26 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS For the Three Months Ended September30,(Dollars in thousands) 2024 2023 Gross Contract Revenue $313,341 $253,290 Less: Sub-Consultants & Other Direct Expenses $32,308 $29,811 Net Service Billing $281,033 $223,479 Organic Net Service Billing (Net service billing less acquired net revenue from acquisitions after 9/30/2023) $235,972 $223,478 For the NineMonths Ended September30,(Dollars in thousands)
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Reconciliation of GAAP to Non-GAAP Financial Measures EPS To Adjusted EPS Reconciliation 2024 2023 2024 2023 (Loss) Earnings Per Share (GAAP) Basic $0.04 $0.08 $(0.18) $0.08 Diluted $0.04 $0.08 $(0.18) $0.07 Adjusted (Loss) Earnings Per Share (Non- GAAP) Basic $0.31 $0.36 $0.49 $0.79 Diluted $0.30 $0.34 $0.48 $0.73 Weighted Average Shares Outstanding Basic 16,537,472 12,814,971 15,559,279 12,304,751 Diluted 16,835,337 13,793,120 15,904,025 13,437,841 27 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS For the NineMonths Ended September 30, (Dollars in thousands) For the Three Months Ended September 30,
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Organic Growth of Net Revenue by Vertical 28 DELIVERING INNOVATIVE ENGINEERING SOLUTIONS Vertical Markets T4Q Ended 9/30/24 Nine Months Ended 9/30/24 Emerging Markets 63.3% 47.8% Power, Utilities & Energy 13.7% 6.2% Transportation 17.2% 14.0% Building Infrastructure 1.2% 1.0% Overall 8.3% 5.6%
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Sustainability Efforts – Double Materiality Assessment 29 Bowman and its employee stakeholders have initiated a collaborative assessment of the materiality of sustainability issues with respect to our impact on the environment and our investments in an expanding suite of environmental services. Preliminary results are below. Environmental Governance Social Materiality assessment partner DELIVERING INNOVATIVE ENGINEERING SOLUTIONS