Bowman Consulting Group Ltd.

Good morning. My name is Rivka, and I will be the conference operator today. At this time, I would like to welcome everyone to the Bowman Consulting Group first quarter 2026 conference call. All lines will be placed on mute for the presentation portion of the call with the opportunity for questions and answers at the end. Please note that many of the comments made today are considered forward-looking statements under federal security laws. As described in the company's filings with the SEC, These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and the company is not obligated to publicly update or revise those forward-looking statements. In addition, on today's call, the company will discuss certain non-GAAP financial information, such as adjusted EBITDA, adjusted net income, and net service billing. You can find this information together with the reconciliations to the most directly comparable GAAP information in the company's earnings press release filed with the SEC and on the company's investor relations website at investors.bowman.com. Management will deliver prepared remarks, after which they will take questions from research analysts. A replay of this call will be available on the company's investor relations website. Mr. Bowman, you may begin your prepared remarks.

Great. Thank you, Rivka. Good morning, everyone, and thank you for joining our first quarter 2026 earnings call. Bruce Labovitz, our CFO, and Dan Swayze, our Chief Operating Officer, are with me today. First, I'd like to welcome all Bowman employees on today's call, including those from Smith & Associates Land Surveying in Las Vegas, who are the newest members of the Bowman team. After my introductory remarks, I'll turn the call over to Bruce, who will cover our financial performance and technology initiatives. Dan will provide more detail on the opportunities we're seeing across our end markets. Now, turning to the first quarter, from a performance standpoint, we delivered double-digit growth in gross contract revenue, net service billing, and adjusted EBITDA. Our backlog reached a record level of over $650 million. These results were driven by both organic execution and continued contribution from our acquisition strategy. We saw growth across our diversified end markets. Demand remains robust, and we continue to benefit from markets where we have deep expertise, strong client relationships, and increasingly integrated service delivery. Our capabilities are increasingly important in high-barrier, high-demand sectors where our expertise, national scale, and ability to self-perform work position us to win and execute consistently. All this reinforces what we're seeing in the business, strong demand, durable revenue streams, and increasing opportunities to expand both organically and through targeted acquisitions. Based on our performance and outlook, we raised our full-year 2026 guidance and now expect over 20 percent revenue growth for the year. For 2026, we expect net revenue to be in the range of $520 to $540 million, And we expect to report adjusted EBITDA margin between 17.25% and 17.75%. So with that, I turn the call over to Bruce.

Thanks, Gary, and good morning, everyone. I'll begin with a review of our financial performance for the first quarter, and then I'll turn the call over to Dan to bridge Q1 to year end. After that, I'll return to share some thoughts on how we're thinking about technology and automation. and begin to draw a line towards its impact on the future of Bowman. The first quarter culminated with a record march that capped off a solid start to 2026. Our results reflect the durability of our end markets, the scalability of our operating platform, and disciplined execution of our long-term strategic plan. Gross contract revenue of $126.5 million represented a 12% increase over Q1 last year. At a 90% net to gross ratio, net service billing was 114.2 million, up 14% year over year. The increase was anchored by 6% organic growth enhanced by strong performance from recent acquisitions. Looking ahead, we expect to see our net to gross ratio come down by about three to five points based on new awards and new service lines with higher sub-cost ratios. Power was our fastest growing sector, with 37% growth of gross revenue year over year. Transportation followed at 13%, with natural resources at 6% and building infrastructure at 1%. Dan will talk more about where growth is coming from. Growth of organic net service billing was 6% year over year, with the highest organic growth rate coming from natural resources at 16%, followed by transportation at 13%, power at 5% and building infrastructure at 2%. I will point out that there's a significant amount of organic growth embedded in power and utilities revenue characterized as inorganic for now. Our mix of gross revenue continues to evolve with power up to 28% and building infrastructure down to 41%. In just one year, data center activities have more than doubled to a bit over 6% of revenue. Over the course of the next few quarters, we do expect to see a noticeable shift in mix as natural resources will expand by virtue of a significant new award being classified in that category. Contract costs represented approximately 48% of gross contract revenue at a 52% gross margin. When we combine a bit of a slow start in January and February with mobilization costs for assignments that begin in Q2, total overhead as a percentage of revenue was up around 50 basis points compared to last year. I'll also point out that 2026 is the year we exit emerging growth company status, which generates some incremental costs this year that will normalize next year. With accelerating revenue and relatively stable overhead, however, we expect to see total overhead once again trend down as a percentage of revenue moving forward. For the quarter, we reported a gap loss of $3.7 million. Unlike adjusted EBITDA, that result includes non-cash amortization of acquired intangibles, acquisition-related expenses, financing costs, and other non-reoccurring items, including those associated with the CEO transition. Adjusted EBITDA was $16.8 million, up nearly 16% at a margin that expanded year-over-year to 14.7%. We generated $11.6 million of cash from operations in the quarter, representing approximately 70% conversion of adjusted EBITDA to cash. It's nice to finally report a quarter with no deferred R&D tax adjustments on the cash flow. During the quarter, we used cash to repurchase approximately $9.2 million of our stock and advance future organic growth initiatives through investments in data capture, automation, and internal use software, among others. Big fund spending on geospatial and data collection assets associated with specific new future revenue opportunities represented about half of our CapEx in the quarter, along with another million or so of OpEx spending, which is not added back to adjusted EBITDA. To accommodate anticipated increases in CapEx this year, we expanded our revolving credit facility to $250 million. which provides sufficient liquidity to support continued investment in organic growth and acquisitions. Backlog increased to approximately 653 million, up 56% year-over-year and 36% sequentially from year-end. Backlog growth in the quarter was entirely organic. Net of one unusually large organically generated contract award, backlog grew at a 20% annualized pace. As Gary mentioned, we're raising our 2026 net revenue guidance to a range of $520 to $540 million and increasing our margin forecast. The guidance increase implies more than 20% growth of organic net revenue this year and nearly 28% year-over-year growth of adjusted EBITDA at the midpoints. In terms of revenue cadence, we expect the remaining three quarters will build on each other as some consequential assignments ramp up through the second half, with third quarter being at or near the midpoint of the second and fourth quarters. It's notable that this is a bit of a change from prior years. With that, I'm going to turn the call over to Dan.