Company: BWMN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050314
Chunk: 49

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 imaging markets decreased ($0.5) million or (3.3%) as compared to the three months ended September 30, 2024. What had previously been classified under emerging sectors grew to a scale that warranted separate market recognition. Accordingly, the emerging sector was renamed natural resources and imaging. The updated name reflects the evolved composition of this market. Gross contract revenue within our natural resources and imaging was 48.9% from imaging and mapping activities, 12.6% from mining activities where we have specialized in copper mining, 24.0% from water resources activities, and 14.5% from environmental and other natural resources consulting. Scarcities in water resources and the increasing need for water management gives us confidence that we will be able to increase revenue accordingly. With recent and future acquisitions, we expect to experience continued growth from investment in various natural resources and imaging services.

For the three months ended September 30, 2025 and 2024, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 35.6% and 32.3% of our gross contract revenue, respectively. A portion of that increase is due to the reclassification of contracts for the Pike Corporation from the private sector to the public sector. This does not include work done indirectly on public sector projects. Gross contract revenue from projects for public sector customers are included in the end market most aligned with work performed.

Contract costs (exclusive of depreciation and amortization)

Total contract costs, exclusive of depreciation and amortization, increased $4.8 million or 8.8% to $59.1 million for the three months ended September 30, 2025, as compared to $54.3 million for the three months ended September 30, 2024. For the three months ended September 30, 2025 and 2024, total contract costs represented 46.9% and 47.7% of total contract revenue, respectively. For the three months ended September 30, 2025 and 2024 total contract costs represented 52.7% and 53.6% of revenue attributable to our workforce, respectively (see Net Service Billing).

Direct payroll costs increased $3.5 million or 8.4% to $45.2 million for the three months ended September 30, 2025, as compared to $41.7 million for the three months ended September 30, 2024. Direct payroll accounted for 76