Bowman Consulting Group Ltd.

Previous wording

Gross contract revenue for the three months ended June 30, 2026 and 2025 was $146.1 million and $122.1 million, respectively, representing year-over-year growth of 19.7%. Gross contract revenue derived from our workforce represented 88.3% and 88.5% of gross contract revenue for the three months ended June 30, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net income for the three months ended June 30, 2026 and 2025 was $2.5 million and $6.0 million, respectively. Our Adjusted EBITDA for the three months ended June 30, 2026 and 2025 was $24.1 million on net income of $2.5 million and $20.2 million on net income of $6.0 million, respectively. (see Adjusted EBITDA – non-GAAP below).

Current wording

Gross contract revenue for the three months ended September 30, 2026 and 2025 was $148.7 million and $126.0 million, respectively, representing year-over-year growth of 18.0%. Gross contract revenue derived from our workforce represented 87.9% and 89.0% of gross contract revenue for the three months ended September 30, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net income for the three months ended September 30, 2026 and 2025 was ($2.0) million and $6.6 million, respectively. Our Adjusted EBITDA for the three months ended September 30, 2026 and 2025 was $22.2 million on net loss of ($2.0) million and $18.3 million on net income of $6.6 million, respectively. (see Adjusted EBITDA – non-GAAP below).

Previous wording

Gross contract revenue for the six months ended June 30, 2026 and 2025 was $272.6 million and $235.0 million, respectively, representing year over year growth of 16.0%. Gross contract revenue derived from our workforce represented 89.2% and 88.6% of gross contract revenue for the six months ended June 30, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net income for the six months ended June 30, 2026 and 2025 was ($1.2) million and $4.3 million, respectively. Our Adjusted EBITDA for the six months ended June 30, 2026 and 2025 was $40.9 million on net loss of ($1.2) million and $34.7 million on net income of $4.3 million, respectively.(see Adjusted EBITDA – non-GAAP below).

Current wording

Gross contract revenue for the nine months ended September 30, 2026 and 2025 was $421.3 million and $361.1 million, respectively, representing year over year growth of 16.7%. Gross contract revenue derived from our workforce represented 88.7% and 88.6% of gross contract revenue for the nine months ended September 30, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net income for the nine months ended September 30, 2026 and 2025 was ($3.2) million and $10.9 million, respectively. Our Adjusted EBITDA for the nine months ended September 30, 2026 and 2025 was $63.1 million on net loss of ($3.2) million and $53.0 million on net income of $10.9 million, respectively.(see Adjusted EBITDA – non-GAAP below).

Previous wording

In connection with the extensive investment of time and resources we have made in the automation of certain components of our business, we are now realizing, and expect to continue to realize, productivity improvements that have reduced estimated costs to complete for certain projects in process. Accordingly, management revised estimated costs to complete for those projects, which, consistent with the Company's revenue recognition policy, resulted in cumulative catch-up adjustments that increased gross contract revenue during the three and six months ended June 30, 2026.

Current wording

In connection with the extensive investment of time and resources we have made in the automation of certain components of our business, we are now realizing, and expect to continue to realize, productivity improvements that have reduced estimated costs to complete for certain projects in process. Accordingly, management revised estimated costs to complete for those projects, which, consistent with the Company's revenue recognition policy, resulted in cumulative catch-up adjustments that increased gross contract revenue during the three and nine months ended September 30, 2026.

Previous wording

The majority of our assignments within a contract are lump sum in nature, representing approximately 54% of gross contract revenue for both the three and six months ended June 30, 2026, compared to approximately 61% and 59% for the three and six months ended June 30, 2025, respectively. However, when evaluated at the overall contract or project level, approximately 92% and 92% of gross contract revenue for the three and six months ended June 30, 2026, respectively, was recognized over time. Comparable percentages for the three and six months ended June 30, 2025 were 92% and 91%, respectively. This difference reflects the presence of both hourly and lump sum assignments within individual contracts. Recognizing revenue from lump sum assignments requires management estimates of both total contract value when there are contingent compensation elements of the fee arrangement and expected cost at completion. We closely monitor our progress to completion and adjust our estimates when necessary. We do not recognize revenue from work that is performed at risk with no documented customer commitment.

Current wording

The majority of our assignments within a contract are lump sum in nature, representing approximately 53% and 54% of gross contract revenue for the three and nine months ended September 30, 2026, respectively, compared to approximately 58% and 59% for the three and nine months ended September 30, 2025, respectively. However, when evaluated at the overall contract or project level, approximately 92% and 92% of gross contract revenue for the three and nine months ended September 30, 2026, respectively, was recognized over time. Comparable percentages for the three and nine months ended September 30, 2025 were 91% and 91%, respectively. This difference reflects the presence of both hourly and lump sum assignments within individual contracts. Recognizing revenue from lump sum assignments requires management estimates of both total contract value when there are contingent compensation elements of the fee arrangement and expected cost at completion. We closely monitor our progress to completion and adjust our estimates when necessary. We do not recognize revenue from work that is performed at risk with no documented customer commitment.

Previous wording

Gross contract revenue for the three months ended June 30, 2026, increased $24.0 million or 19.7% to $146.1 million as compared to $122.1 million for the three months ended June 30, 2025. For the three months ended June 30, 2026, gross contract revenue attributable to work performed by our workforce increased $21.0 million, or 19.4% to $129.0 million or 88.3% of gross contract revenue as compared to $108.0 million or 88.5% for the three months ended June 30, 2025 (see Net service billing – non-GAAP). Of the $24.0 million increase in gross contract revenue during the three months ended June 30, 2026, acquisitions represented $7.5 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Current wording

Gross contract revenue for the three months ended September 30, 2026, increased $22.7 million or 18.0% to $148.7 million as compared to $126.0 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, gross contract revenue attributable to work performed by our workforce increased $18.6 million, or 16.6% to $130.7 million or 87.9% of gross contract revenue as compared to $112.1 million or 89.0% for the three months ended September 30, 2025 (see Net service billing – non-GAAP). Of the $22.7 million increase in gross contract revenue during the three months ended September 30, 2026, acquisitions represented $8.0 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Previous wording

For the three months ended June 30, 2026, gross contract revenue from the building infrastructure market increased $0.6 million or 1.1% as compared to the three months ended June 30, 2025. Building Infrastructure includes commercial, municipal and residential infrastructure. The increase in building infrastructure revenue was the result of acquisitions and organic growth. Within the building infrastructure market, 35.5% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 41.3% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 23.2% from municipal assignments. Within residential, 45.1% of gross contract revenue was derived from for-sale homebuilding assignments, 47.4% from residential multi-family and 7.5% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.3% of our total gross contract revenue for the three months ended June 30, 2026. Within commercial, 46.4% of revenue was derived from office and industrial assignments, 46.9% from retail, hospitality, and quick serve restaurants, and 6.7% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, data centers, industrial distribution facilities, schools, and build-for-rent communities.

Current wording

For the three months ended September 30, 2026, gross contract revenue from the building infrastructure market decreased ($3.1) million or (5.5%) as compared to the three months ended September 30, 2025. Building Infrastructure includes commercial, municipal and residential infrastructure. Within the building infrastructure market, 35.4% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 40.7% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 23.9% from municipal assignments. Within residential, 46.6% of gross contract revenue was derived from for-sale homebuilding assignments, 45.3% from residential multi-family and 8.1% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.0% of our total gross contract revenue for the three months ended September 30, 2026. Within commercial, 46.6% of revenue was derived from office and industrial assignments, 46.3% from retail, hospitality, and quick serve restaurants, and 7.1% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, data centers, industrial distribution facilities, schools, and build-for-rent communities.

Previous wording

For the three months ended June 30, 2026, revenue from transportation increased $3.8 million or 15.3% as compared to the three months ended June 30, 2025. The increase was attributable to new contract awards in transportation from roadways, transits, ports and harbors, program administration and others, along with acquired transportation backlog which we were able to deliver to customers. Within transportation, 77.3% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.1% from private sector roadway customers; 1.6% from ports & harbors customers; 1.1% from bus, rail, and transit customers; and 0.9% from aviation customers. We expect to continue to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Current wording

For the three months ended September 30, 2026, revenue from transportation decreased ($0.8) million or (3.2%) as compared to the three months ended September 30, 2025. Within transportation, 76.6% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.4% from private sector roadway customers; 1.3% from ports & harbors customers; 0.2% from bus, rail, and transit customers; and 2.5% from aviation customers. We expect to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Previous wording

With the convergence of renewable energy with traditional transmission infrastructure and the continued growth we are projecting in the clean energy transition, we have consolidated renewable energy into the power, utilities and energy category (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the three months ended June 30, 2026, revenue from power, utilities, and energy increased $10.2 million or 38.0% as compared to the three months ended June 30, 2025. The additional increase in gross contract revenue from the power, utilities, and energy market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power, utilities, and energy market, 56.9% of our gross contract revenue was derived from customers operating traditional transmission operations, 18.4% was derived from customers focused on alternative energy operations and 24.7% derived from data center customers. The power, utilities, and energy market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power, utilities, and energy provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Current wording

With the convergence of renewable energy with traditional transmission infrastructure and the continued growth we are projecting in the clean energy transition, we have consolidated renewable energy into the power, utilities and energy category (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the three months ended September 30, 2026, revenue from power, utilities, and energy increased $13.7 million or 49.6% as compared to the three months ended September 30, 2025. The additional increase in gross contract revenue from the power, utilities, and energy market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power, utilities, and energy market, 66.3% of our gross contract revenue was derived from customers operating traditional transmission operations, 8.9% was derived from customers focused on alternative energy operations and 24.8% derived from data center customers. The power, utilities, and energy market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power, utilities, and energy provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Previous wording

Our natural resources and imaging (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the three months ended June 30, 2026, revenue from natural resources markets increased $9.5 million or 67.2% as compared to the three months ended June 30, 2025. 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. The updated name reflects the evolved composition of this market. Gross contract revenue within natural resources was 64.3% from imaging and mapping activities, 13.3% from mining activities where we have specialized in copper mining, 19.3% from water resources activities, and 3.1% 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.

Current wording

Our natural resources and imaging (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the three months ended September 30, 2026, revenue from natural resources markets increased $12.9 million or 84.3% as compared to the three months ended September 30, 2025. 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. The updated name reflects the evolved composition of this market. Gross contract revenue within natural resources was 69.3% from imaging and mapping activities, 11.4% from mining activities where we have specialized in copper mining, 14.5% from water resources activities, and 4.8% 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.

Previous wording

For the three months ended June 30, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 28.7% and 35.4% of our gross contract revenue, respectively. 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.

Current wording

For the three months ended September 30, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 28.9% and 35.6% of our gross contract revenue, respectively. 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.

Previous wording

Total contract costs, exclusive of depreciation and amortization, increased $11.9 million or 21.1% to $68.4 million for the three months ended June 30, 2026, as compared to $56.5 million for the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, total contract costs represented 46.8% and 46.3% of total contract revenue, respectively. For the three months ended June 30, 2026 and 2025 total contract costs represented 53.0% and 52.3% of revenue attributable to our workforce, respectively (see Net Service Billing).

Current wording

Total contract costs, exclusive of depreciation and amortization, increased $12.7 million or 21.5% to $71.8 million for the three months ended September 30, 2026, as compared to $59.1 million for the three months ended September 30, 2025. For the three months ended September 30, 2026 and 2025, total contract costs represented 48.3% and 46.9% of total contract revenue, respectively. For the three months ended September 30, 2026 and 2025 total contract costs represented 54.9% and 52.7% of revenue attributable to our workforce, respectively (see Net Service Billing).

Previous wording

Direct payroll costs increased $8.8 million or 20.8% to $51.2 million for the three months ended June 30, 2026, as compared to $42.4 million for the three months ended June 30, 2025. The increase in direct payroll costs is primarily driven by higher revenue and increased headcount to support growth, including contributions from recent acquisitions, as well as merit-based compensation increases. Direct payroll accounted for 74.9% of total contract costs for the three months ended June 30, 2026, a decrease of (0.1) percentage points as compared to 75.0% for the three months ended June 30, 2025.

Current wording

Direct payroll costs increased $8.5 million or 18.8% to $53.7 million for the three months ended September 30, 2026, as compared to $45.2 million for the three months ended September 30, 2025. The increase in direct payroll costs is primarily driven by higher revenue and increased headcount to support growth, including contributions from recent acquisitions, as well as merit-based compensation increases. Direct payroll accounted for 74.8% of total contract costs for the three months ended September 30, 2026, a decrease of (1.7) percentage points as compared to 76.5% for the three months ended September 30, 2025.

Previous wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $5.6 million or 17.1% to $38.4 million for the three months ended June 30, 2026 as compared to $32.8 million for the three months ended June 30, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the three months ended June 30, 2026 and 2025, direct labor costs represented 26.3% and 26.9% of gross contract revenue, respectively, and represented 29.8% and 30.4% of the revenue attributable to our workforce, respectively.

Current wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $5.9 million or 17.0% to $40.6 million for the three months ended September 30, 2026 as compared to $34.7 million for the three months ended September 30, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the three months ended September 30, 2026 and 2025, direct labor costs represented 27.3% and 27.5% of gross contract revenue, respectively, and represented 31.1% and 31.0% of the revenue attributable to our workforce, respectively.

Previous wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $3.4 million or 35.8% to $12.9 million for the three months ended June 30, 2026 as compared to $9.5 million for the three months ended June 30, 2025.

Current wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $2.8 million or 26.7% to $13.3 million for the three months ended September 30, 2026 as compared to $10.5 million for the three months ended September 30, 2025.

Previous wording

Sub-consultants and other direct expenses increased $3.1 million or 22.0% to $17.2 million for the three months ended June 30, 2026 as compared to $14.1 million for the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, sub-consultant and other direct expenses represented 11.8% and 11.5% of gross contract revenue, respectively.

Current wording

Sub-consultants and other direct expenses increased $4.1 million or 29.5% to $18.0 million for the three months ended September 30, 2026 as compared to $13.9 million for the three months ended September 30, 2025. For the three months ended September 30, 2026 and 2025, sub-consultant and other direct expenses represented 12.1% and 11.0% of gross contract revenue, respectively.

Previous wording

Total operating expense increased $13.1 million or 23.2% to $69.6 million for the three months ended June 30, 2026 as compared to $56.5 million for the three months ended June 30, 2025.

Current wording

Total operating expense increased $12.0 million or 19.5% to $73.6 million for the three months ended September 30, 2026 as compared to $61.6 million for the three months ended September 30, 2025.

Previous wording

Selling, general and administrative expenses increased $12.5 million or 25.1% to $62.3 million for the three months ended June 30, 2026, as compared to $49.8 million for the three months ended June 30, 2025. Indirect labor increased $4.2 million or 18.3% to $27.1 million as compared to $22.9 million due to increase in headcount along with merit increases.

Current wording

Selling, general and administrative expenses increased $10.8 million or 19.6% to $66.0 million for the three months ended September 30, 2026, as compared to $55.2 million for the three months ended September 30, 2025. Indirect labor increased $3.2 million or 12.5% to $28.8 million as compared to $25.6 million due to increase in headcount along with merit increases. General overhead increased $4.6 million or 23.5% to $24.2 million as compared to $19.6 million due to increased costs associated with the overall growth of the Company.

Previous wording

Depreciation and amortization increased $1.3 million or 20.0% to $7.8 million for the three months ended June 30, 2026 as compared to $6.5 million for the three months ended June 30, 2025. The increase is primarily driven by amortization of new leased assets and higher amortization of acquired intangible assets associated with the RPT acquisition completed in the fourth quarter of 2025, which was not reflected in the prior-year period. The net loss (gain) on the sale of certain IT equipment and automobiles decreased ($0.7) million to ($0.5) million of gain for the three months ended June 30, 2026, as compared to $0.2 million of expense in the three months ended June 30, 2025.

Current wording

Depreciation and amortization increased $0.9 million or 13.0% to $7.8 million for the three months ended September 30, 2026 as compared to $6.9 million for the three months ended September 30, 2025. The increase is primarily driven by amortization of new leased assets and higher amortization of acquired intangible assets associated with the RPT acquisition completed in the fourth quarter of 2025, which was not reflected in the prior-year period. The net gain on the sale of certain IT equipment and automobiles decreased ($0.1) million to $0.3 million for the three months ended September 30, 2026, as compared to $0.4 million in the three months ended September 30, 2025.

Previous wording

Other expense increased by $4.2 million to $5.8 million of expense for the three months ended June 30, 2026 as compared to $1.6 million for the three months ended June 30, 2025.

Current wording

Other expense increased by $2.7 million to $4.7 million of expense for the three months ended September 30, 2026 as compared to $2.0 million for the three months ended September 30, 2025.

Previous wording

Income tax expense for the three months ended June 30, 2026, decreased by $1.6 million to $(0.2) million benefit, compared to $1.4 million expense for the three months ended June 30, 2025, see Note 2, Income Taxes. Our effective tax rate for the three months ended June 30, 2026, was (6.8)% compared to 18.9% for the three months ended June 30, 2025.

Current wording

Income tax expense for the three months ended September 30, 2026, increased by $4.0 million to $0.7 million expense, compared to $3.3 million benefit for the three months ended September 30, 2025, see Note 2, Income Taxes. Our effective tax rate for the three months ended September 30, 2026, was (54.5%) compared to (102.1)% for the three months ended September 30, 2025.

Previous wording

Income before tax decreased by ($5.1) million for the three months ended June 30, 2026, to $2.3 million compared to $7.4 million for the three months ended June 30, 2025. Net income decreased by ($3.5) million to $2.5 million for the three months ended June 30, 2026, as compared to $6.0 million for the three months ended June 30, 2025.

Current wording

Income before tax decreased by ($4.6) million for the three months ended September 30, 2026, to ($1.3) million of loss compared to $3.3 million of income for the three months ended September 30, 2025. Net income decreased by ($8.6) million to ($2.0) million of loss for the three months ended September 30, 2026, as compared to $6.6 million of income for the three months ended September 30, 2025.

Previous wording

Net service billing increased $21.0 million or 19.4% to $129.0 million for the three months ended June 30, 2026, as compared to $108.0 million for the three months ended June 30, 2025. Net service billing reconciles to gross contract revenue as follows (in thousands):

Current wording

Net service billing increased $18.6 million or 16.6% to $130.7 million for the three months ended September 30, 2026, as compared to $112.1 million for the three months ended September 30, 2025. Net service billing reconciles to gross contract revenue as follows (in thousands):

Previous wording

Adjusted EBITDA increased $3.9 million or 19.2% to $24.1 million for the three months ended June 30, 2026 as compared to $20.2 million for the three months ended June 30, 2025. Adjusted EBITDA reconciles to net income as follows (in thousands):

Current wording

Adjusted EBITDA increased $3.9 million or 21.3% to $22.2 million for the three months ended September 30, 2026 as compared to $18.3 million for the three months ended September 30, 2025. Adjusted EBITDA reconciles to net income as follows (in thousands):

Previous wording

For the three months ended June 30, 2026 and 2025, Adjusted EBITDA includes add backs of $5.4 million and $3.1 million, respectively, relating to non-cash stock compensation expenses from restricted stock awards.

Current wording

For the three months ended September 30, 2026 and 2025, Adjusted EBITDA includes add backs of $6.6 million and $4.5 million, respectively, relating to non-cash stock compensation expenses from restricted stock awards.

Previous wording

Adjusted EBITDA Margin, net represents Adjusted EBITDA (as defined above) as a percentage of net service billing (as defined above). For the three months ended June 30, 2026 and 2025, Adjusted EBITDA Margin, net was 18.7% and 18.7% respectively.

Current wording

Adjusted EBITDA Margin, net represents Adjusted EBITDA (as defined above) as a percentage of net service billing (as defined above). For the three months ended September 30, 2026 and 2025, Adjusted EBITDA Margin, net was 17.0% and 16.3% respectively.

Previous wording

Gross contract revenue for the six months ended June 30, 2026, increased $37.6 million or 16.0% to $272.6 million as compared to $235.0 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, gross contract revenue attributable to work performed by our workforce increased $35.1 million, or 16.9% to $243.2 million or 89.2% of gross contract revenue as compared to $208.1 million or 88.6% for the six months ended June 30, 2025 (see Net service billing – non-GAAP). Of the $37.6 million increase in gross contract revenue during the six months ended June 30, 2026, acquisitions represented $16.1 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Current wording

Gross contract revenue for the nine months ended September 30, 2026, increased $60.2 million or 16.7% to $421.3 million as compared to $361.1 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, gross contract revenue attributable to work performed by our workforce increased $53.7 million, or 16.8% to $373.8 million or 88.7% of gross contract revenue as compared to $320.1 million or 88.6% for the nine months ended September 30, 2025 (see Net service billing – non-GAAP). Of the $60.2 million increase in gross contract revenue during the nine months ended September 30, 2026, acquisitions represented $22.9 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Previous wording

For the six months ended June 30, 2026, gross contract revenue from our building infrastructure market increased $0.9 million or 0.9% as compared to the six months ended June 30, 2025. Building infrastructure includes commercial, municipal and residential infrastructure. The increase in building infrastructure revenue is the result of acquisitions. Within the building infrastructure market, 36.4% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 41.4% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 22.2% from municipal assignments including, parks and schools. Within residential, 44.8% of gross contract revenue was derived from for-sale homebuilding assignments, 47.2% from residential multi-family and 8.0% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.6% of our total gross contract revenue for the six months ended June 30, 2026. Within commercial, 47.4% of revenue was derived from office and industrial assignments, 46.9% from retail, hospitality, and quick serve restaurants, and 5.7% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, industrial distribution facilities, schools, and build-for-rent communities.

Current wording

For the nine months ended September 30, 2026, gross contract revenue from our building infrastructure market decreased ($2.2) million or (1.3)% as compared to the nine months ended September 30, 2025. Building infrastructure includes commercial, municipal and residential infrastructure. Within the building infrastructure market, 36.1% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 41.1% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 22.8% from municipal assignments including, parks and schools. Within residential, 45.4% of gross contract revenue was derived from for-sale homebuilding assignments, 46.5% from residential multi-family and 8.1% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.3% of our total gross contract revenue for the nine months ended September 30, 2026. Within commercial, 47.1% of revenue was derived from office and industrial assignments, 46.7% from retail, hospitality, and quick serve restaurants, and 6.2% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, industrial distribution facilities, schools, and build-for-rent communities.

Previous wording

For the six months ended June 30, 2026, revenue from transportation increased $6.7 million or 13.8% as compared to the six months ended June 30, 2025. The increase was attributable to new contract awards in transportation from roadways, transits, ports and harbors, program administration and others, along with acquired transportation backlog which we were able to deliver to customers. Within transportation, 77.1% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.4% from private sector roadway customers; 1.3% from ports & harbors customers; 1.6% from aviation customers; and 0.6% from bus, rail, and transit customers. We expect to continue to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Current wording

For the nine months ended September 30, 2026, revenue from transportation increased $5.8 million or 7.8% as compared to the nine months ended September 30, 2025. The increase was attributable to new contract awards in transportation from roadways, transits, ports and harbors, program administration and others, along with acquired transportation backlog which we were able to deliver to customers. Within transportation, 76.9% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.4% from private sector roadway customers; 1.3% from ports & harbors customers; 1.9% from aviation customers; and 0.5% from bus, rail, and transit customers. We expect to continue to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Previous wording

With the convergence of alternative energy, data centers, and traditional transmission infrastructure, and in light of continued growth we are projecting across these areas, we have consolidated alternative energy and data centers into the power and utilities (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the six months ended June 30, 2026, revenue from power and utilities increased $19.6 million or 37.6% as compared to the six months ended June 30, 2025. The additional increase in gross contract revenue from the power and utilities market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power and utilities market, 58.8% of our gross contract revenue was derived from customers operating traditional transmission operations, 18.4% was derived from customers focused on alternative energy operations, with the remaining 22.8% derived from data center customers. The power and utilities market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power and utilities provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Current wording

With the convergence of alternative energy, data centers, and traditional transmission infrastructure, and in light of continued growth we are projecting across these areas, we have consolidated alternative energy and data centers into the power and utilities (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the nine months ended September 30, 2026, revenue from power and utilities increased $33.3 million or 41.8% as compared to the nine months ended September 30, 2025. The additional increase in gross contract revenue from the power and utilities market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power and utilities market, 61.5% of our gross contract revenue was derived from customers operating traditional transmission operations, 15.0% was derived from customers focused on alternative energy operations, with the remaining 23.5% derived from data center customers. The power and utilities market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power and utilities provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Previous wording

Our natural resources and imaging (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the six months ended June 30, 2026, revenue from natural resources and imaging markets increased $10.4 million or 40.1% as compared to the six months ended June 30, 2025. What was previously classified under emerging sectors has now grown to a scale that warrants separate market recognition. As a result, the emerging sector is now being renamed natural resources and imaging. This updated name reflects the evolving composition of the market. Gross contract revenue within our natural resources and imaging was 57.2% from imaging and mapping activities, 13.8% from mining activities where we have specialized in copper mining, 23.3% from water resources activities, and 5.7% 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.

Current wording

Our natural resources and imaging (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the nine months ended September 30, 2026, revenue from natural resources and imaging markets increased $23.3 million or 56.5% as compared to the nine months ended September 30, 2025. What was previously classified under emerging sectors has now grown to a scale that warrants separate market recognition. As a result, the emerging sector is now being renamed natural resources and imaging. This updated name reflects the evolving composition of the market. Gross contract revenue within our natural resources and imaging was 62.6% from imaging and mapping activities, 12.7% from mining activities where we have specialized in copper mining, 19.4% from water resources activities, and 5.3% 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.

Previous wording

For the six months ended June 30, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 28.9% and 33.8% of our gross contract revenue, respectively. This does not include work done indirectly on public sector projects. Gross contract revenue from projects for public sector clients are included in the end market most aligned with work performed.

Current wording

For the nine months ended September 30, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 28.9% and 34.4% of our gross contract revenue, respectively. This does not include work done indirectly on public sector projects. Gross contract revenue from projects for public sector clients are included in the end market most aligned with work performed.

Previous wording

Total contract costs, exclusive of depreciation and amortization, increased $17.6 million or 15.8% to $129.0 million for the six months ended June 30, 2026, as compared to $111.4 million for the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, total contract costs represented 47.3% and 47.4% of total contract revenue, respectively. For the six months ended June 30, 2026 and 2025 total contract costs represented 53.0% and 53.5% of revenue attributable to our workforce, respectively (see Net Service Billing).

Current wording

Total contract costs, exclusive of depreciation and amortization, increased $30.2 million or 17.7% to $200.7 million for the nine months ended September 30, 2026, as compared to $170.5 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026 and 2025, total contract costs represented 47.6% and 47.2% of total contract revenue, respectively. For the nine months ended September 30, 2026 and 2025 total contract costs represented 53.7% and 53.3% of revenue attributable to our workforce, respectively (see Net Service Billing).

Previous wording

Direct payroll costs increased $15.1 million or 17.9% to $99.5 million for the six months ended June 30, 2026, as compared to $84.4 million for the six months ended June 30, 2025. Direct payroll accounted for 77.1% of total contract costs for the six months ended June 30, 2026, an increase of 1.3 percentage points as compared to 75.8% for the six months ended June 30, 2025.

Current wording

Direct payroll costs increased $23.8 million or 18.4% to $153.3 million for the nine months ended September 30, 2026, as compared to $129.5 million for the nine months ended September 30, 2025. Direct payroll accounted for 76.4% of total contract costs for the nine months ended September 30, 2026, an increase of 0.4 percentage points as compared to 76.0% for the nine months ended September 30, 2025.

Previous wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $11.0 million or 17.1% to $75.2 million for the six months ended June 30, 2026 as compared to $64.2 million for the six months ended June 30, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the six months ended June 30, 2026 and 2025, direct labor costs represented 27.6% and 27.3% of gross contract revenue, respectively and represented 30.9% and 30.9% of the revenue attributable to our workforce, respectively.

Current wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $16.9 million or 17.1% to $115.8 million for the nine months ended September 30, 2026 as compared to $98.9 million for the nine months ended September 30, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the nine months ended September 30, 2026 and 2025, direct labor costs represented 27.5% and 27.4% of gross contract revenue, respectively and represented 31.0% and 30.9% of the revenue attributable to our workforce, respectively.

Previous wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $4.2 million or 20.8% to $24.4 million as compared to $20.2 million.

Current wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $6.9 million or 22.5% to $37.5 million as compared to $30.6 million.

Previous wording

Sub-consultants and other direct expenses increased $2.4 million or 8.9% to $29.4 million for the six months ended June 30, 2026 as compared to $27.0 million for the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, sub-consultant and other direct expenses represented 10.8% and 11.5% of gross contract revenue, respectively.

Current wording

Sub-consultants and other direct expenses increased $6.6 million or 16.1% to $47.5 million for the nine months ended September 30, 2026 as compared to $40.9 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026 and 2025, sub-consultant and other direct expenses represented 11.3% and 11.3% of gross contract revenue, respectively.

Previous wording

Total operating expense increased $21.9 million or 19.3% to $135.4 million for the six months ended June 30, 2026 as compared to $113.5 million for the six months ended June 30, 2025.

Current wording

Total operating expense increased $33.9 million or 19.4% to $209.0 million for the nine months ended September 30, 2026 as compared to $175.1 million for the nine months ended September 30, 2025.

Previous wording

Selling, general and administrative expenses increased $19.9 million or 19.9% to $120.1 million for the six months ended June 30, 2026, as compared to $100.2 million for the six months ended June 30, 2025. Indirect labor increased $6.8 million or 14.9% to $52.3 million as compared to $45.5 million primarily due to an increase in staffing to accommodate growth. General overhead increased $10.3 million or 28.9% to $45.9 million as compared to $35.6 million due to increased costs associated with the overall growth of the Company.

Current wording

Selling, general and administrative expenses increased $30.6 million or 19.7% to $186.0 million for the nine months ended September 30, 2026, as compared to $155.4 million for the nine months ended September 30, 2025. Indirect labor increased $10.0 million or 14.1% to $81.1 million as compared to $71.1 million primarily due to an increase in staffing to accommodate growth. General overhead increased $14.9 million or 27.0% to $70.1 million as compared to $55.2 million due to increased costs associated with the overall growth of the Company.

Previous wording

Depreciation and amortization increased $3.1 million or 23.7% to $16.2 million for the six months ended June 30, 2026 as compared to $13.1 million for the six months ended June 30, 2025. The net loss (gain) on the sale of certain IT equipment and automobiles decreased ($1.1) million to ($0.9) million of gain for the six months ended June 30, 2026, as compared to $0.2 million of loss for the six months ended June 30, 2025.

Current wording

Depreciation and amortization increased $4.1 million or 20.5% to $24.1 million for the nine months ended September 30, 2026 as compared to $20.0 million for the nine months ended September 30, 2025. The net gain on the sale of certain IT equipment and automobiles increased $0.8 million to $1.1 million for the nine months ended September 30, 2026, as compared to $0.3 million for the nine months ended September 30, 2025.

Previous wording

Other expense increased by $5.5 million to $9.2 million of expense for the six months ended June 30, 2026 as compared to $3.7 million for the six months ended June 30, 2025.

Current wording

Other expense increased by $8.1 million to $13.9 million of expense for the nine months ended September 30, 2026 as compared to $5.8 million for the nine months ended September 30, 2025.