Bowman Awarded Illinois Tollway System Construction Management Contract

Rhea-AI Summary

Bowman Consulting Group (NASDAQ: BWMN) has secured a multi-year $5 million contract with the Illinois Tollway for systemwide construction management services. The contract encompasses phase III construction management services across the 294-mile tollway system, including construction inspection, bridge repairs, drainage improvements, pavement repairs, and stream channel evaluations. The company will also provide geotechnical inspections, documentation management, and design reviews. Work is scheduled to commence in 2025, with task orders to be issued for individual projects as needed.

Positive

• Secured $5 million multi-year contract with Illinois Tollway
• Contract allows for flexible task order issuance across multiple projects
• Demonstrates ability to secure repeat business from existing customers
• Contributes to organic growth prospects for 2025 and beyond

Negative

• Contract execution doesn't begin until 2025
• Revenue generation dependent on Illinois Tollway issuing task orders

Insights

Financial Analyst

The $5 million Illinois Tollway contract represents a strategic win for Bowman Consulting, enhancing their infrastructure services portfolio and revenue visibility for 2025. The multi-year, on-call nature of the contract provides stable, predictable income while offering potential upside through additional task orders. With a market cap of $474 million, this contract, while modest in size, strengthens Bowman's position in the infrastructure sector and supports their organic growth strategy.

The contract's structure as a task-order based agreement allows for flexible resource allocation and potential expansion beyond the initial value. This approach typically yields higher margins compared to fixed-price contracts due to specialized service delivery. The timing aligns with increased infrastructure spending trends, positioning Bowman to capture additional market share in the transportation infrastructure segment.

RESTON, Va.--(BUSINESS WIRE)-- Bowman Consulting Group Ltd. (the Company or Bowman) (NASDAQ: BWMN), a national engineering services firm delivering infrastructure solutions and program management services to customers who own, develop and maintain the built environment, announced it has been awarded a multi-year assignment with the Illinois Tollway to provide systemwide, on-call construction management services.

Pursuant to the award, Bowman will provide phase III construction management services on an as-needed basis across the Illinois Tollway’s expansive 294-mile system. Services to be provided under the multi-year assignment include construction inspection and supervision for essential infrastructure projects such as bridge repairs, drainage improvements, pavement repairs and stream channel cross-section evaluations. In addition, Bowman will assist with geotechnical inspections, documentation management and design reviews.

“This assignment affirms Bowman’s reputation as a trusted partner with respect to the delivery of high-quality infrastructure solutions and program oversight to the Illinois Tollway,” said Gary Bowman, chairman and CEO of Bowman. “We look forward to once again working with the Illinois Tollway in support of their commitment to maintaining a safe and reliable transportation network for the millions of travelers who depend on them. New awards like this from long-standing customers underscore the confidence we have expressed in our ability to generate meaningful organic growth in 2025 and beyond.”

Under the terms of the $5 million award, Illinois Tollway can issue task orders for individual projects as they are identified, providing Bowman with the ability to address specific priorities across the system in a timely and effective manner. Work under this initial award is scheduled to begin in 2025.

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 2,300 employees in more than 95 locations 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241203851185/en/

General Media Contact:

Renee Narvaez

pr@bowman.com

Investor Relations Contacts:

Bruce Labovitz

blabovitz@bowman.com

Betsy Patterson

bpatterson@bowman.com

Source: Bowman Consulting Group

FAQ

What is the value of Bowman's (BWMN) Illinois Tollway contract?

The contract value is $5 million.

When will Bowman (BWMN) begin work on the Illinois Tollway contract?

Work under this contract is scheduled to begin in 2025.

What services will Bowman (BWMN) provide for the Illinois Tollway?

Bowman will provide phase III construction management services, including construction inspection, bridge repairs, drainage improvements, pavement repairs, stream channel evaluations, geotechnical inspections, documentation management, and design reviews.

How large is the Illinois Tollway system that Bowman (BWMN) will service?

The Illinois Tollway system spans 294 miles.