Company: BWMN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050314
Chunk: 16

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 projected limitation on deductible executive compensation for 2025, a decrease in projected R&D credits generated for 

12

2025, and an increase in forecasted pre-tax book income for 2025 compared to a pre-tax loss for 2024. Additionally, the Company recognized a net discrete benefit of $2.3 million for the nine months ended September 30, 2025, compared to a net discrete benefit of $7.0 million for the nine months ended September 30, 2024. The decrease in net discrete benefit is predominantly the result of lower windfall tax benefits for restricted stock awards and decrease in penalties and interest recorded for uncertain tax positions for the nine months ended September 30, 2025 compared to nine months ended September 30, 2024. The windfall tax benefit for restricted stock awards is $0.5 million for the nine months ended September 30, 2025 compared to $4.4 million for the nine months ended September 30, 2024. Net reversal of penalties and interest on uncertain tax positions is $2.0 million for the nine months ended September 30, 2025, compared to $2.6 million for the nine months ended September 30, 2024. These factors as a function of pre-tax book income of $9.7 million for the nine months ended September 30, 2025, compared to pre-tax book loss of $9.4 million for the nine months ended September 30, 2024 decreased the rate by 23.8% for the nine months ended September 30, 2025, and increased the rate by 74.4% for the nine months ended September 30, 2024.The Company files income tax returns in the U.S. federal jurisdiction and certain states in which it operates. Based on the timing of the filing of certain tax returns, the Company’s federal income tax returns for tax years 2021 and thereafter remain subject to examination by the U.S. Internal Revenue Service. The statute of limitations on the Company’s state income tax returns generally conforms to the federal three-year statute of limitations.SegmentsThe Company operates in one segment based upon the financial information used by its chief operating decision maker in evaluating the financial performance of its business and allocating resources. The single segment represents the Company’s core business of providing engineering and related professional services to its customers. See Note 16 Segment Information for further information on the Company's reportable