Bowman Announces Authorization of an Increase in its Share Repurchase Program

Rhea-AI Summary

Bowman Consulting Group (NASDAQ:BWMN) has increased its share repurchase program from $10 million to $25 million, with $20.8 million remaining available. The company has also extended the program's termination date from November 16, 2024, to August 31, 2025. Bowman intends to continue investing in organic and strategic acquisitive growth initiatives. The timing and amount of share repurchases will be determined by management based on factors such as share price, market conditions, and capital allocation priorities. The program allows for various repurchase methods, including open market purchases and privately negotiated transactions, but does not obligate Bowman to acquire a specific number of shares.

Positive

• Increased share repurchase program from $10 million to $25 million
• Extended program termination date by over 9 months
• Significant amount ($20.8 million) still available for repurchases
• Commitment to invest in organic and strategic acquisitive growth initiatives

Negative

• None.

Insights

Financial Analyst

Bowman's decision to increase its share repurchase program from $10 million to $25 million signals strong confidence in the company's financial position and future prospects. This 150% increase, coupled with the program's extension to August 2025, suggests management's belief that the stock is undervalued.

The $20.8 million remaining available for repurchases is substantial, representing about 8% of Bowman's current market cap. This could potentially provide significant support for the stock price. However, investors should note that the program doesn't obligate actual repurchases, allowing flexibility based on market conditions and other priorities.

While share buybacks can boost earnings per share and signal confidence, they also reduce cash available for other investments. Bowman's commitment to organic growth and strategic acquisitions alongside buybacks indicates a balanced approach to capital allocation, which is generally viewed positively by the market.

Market Research Analyst

This move by Bowman reflects a broader trend in the engineering services sector, where firms are increasingly using share repurchases to return value to shareholders. It's a strategic response to potential undervaluation in a market that often overlooks mid-cap professional services firms.

The extended timeframe to 2025 provides Bowman with ample opportunity to capitalize on market volatility, potentially acquiring shares at favorable prices. This flexibility is important in a sector sensitive to economic cycles and infrastructure spending trends.

Investors should monitor how this program impacts Bowman's liquidity and debt ratios, as well as its ability to fund growth initiatives. The balance between buybacks and investments in organic growth will be key to long-term value creation in the competitive engineering services landscape.

RESTON, Va.--(BUSINESS WIRE)-- Bowman Consulting Group Ltd. (NASDAQ:BWMN) (“Bowman” or the “Company”), a national engineering services firm supporting owners and developers of the built environment, today announced that its Board of Directors authorized an increase to its previously announced share repurchase program from $10 million to up to $25 million (of which $20.8 million remains available) and extended the termination date of the share repurchase program from November 16, 2024 to August 31, 2025.

The Company intends to continue to invest in organic and strategic acquisitive growth initiatives. The timing and amount of any share repurchases will be determined by management at its discretion based on several factors including share price, market conditions and capital allocation priorities. Shares may be repurchased from time to time through open market purchases, in privately negotiated transactions or by other means, including the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The share repurchase program does not obligate Bowman to acquire a specific number of shares of common stock and may be suspended, modified, or discontinued at any time without notice.

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. For more information, visit bowman.com or investors.bowman.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding the date of commencement and expiry of the share repurchase program, the amount of shares to be repurchased, the methods of such repurchases, if any, pursuant to the share repurchase program and the anticipated execution of the repurchase program consistent with the Company’s strategic initiatives described above are forward-looking statements and represent our views as of the date of this press release. The words “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, “goal” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs, These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipates or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240815770931/en/

Investor Relations Contacts:

Bruce Labovitz

ir@bowman.com

(703) 787-3403

Betsy Patterson

ir@bowman.com

(310) 622-8227

Source: Bowman Consulting Group

FAQ

What is the new authorized amount for Bowman's share repurchase program?

Bowman (BWMN) has increased its share repurchase program authorization from $10 million to $25 million.

When does Bowman's updated share repurchase program expire?

The termination date for Bowman's (BWMN) share repurchase program has been extended to August 31, 2025.

How much of Bowman's share repurchase program remains available?

$20.8 million of Bowman's (BWMN) $25 million share repurchase program remains available for future repurchases.

How will Bowman determine the timing and amount of share repurchases?

Bowman (BWMN) management will determine the timing and amount of share repurchases based on factors such as share price, market conditions, and capital allocation priorities.