Orion Group Q3 2025 Earnings Report

Orion Group EPS Results

• Actual EPS: $0.09
• Consensus EPS: $0.06
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Orion Group Revenue Results

• Actual Revenue: $225.10 million
• Expected Revenue: $224.47 million
• Beat/Miss: Beat by +$631.00 thousand
• YoY Revenue Growth: N/A

Orion Group Announcement Details

• Quarter: Q3 2025
• Date: 10/29/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, October 29, 2025
• Conference Call Time: 9:00AM ET

Orion Group (NYSE:ORN) (NYSE:ORN) is a global provider of specialized staffing and workforce solutions, serving clients across the energy, industrial, and technical sectors. The company offers a range of services including engineering and technical recruitment, information technology staffing, and comprehensive workforce management. Orion Group focuses on delivering qualified talent for complex projects, from exploration and production in the oil and gas industry to large-scale infrastructure and manufacturing initiatives.

Founded in 1972 and headquartered in Jacksonville, Florida, Orion Group has grown its operations to support projects in North America, Europe, the Middle East, and the Asia–Pacific region. The company maintains a network of regional offices and remote site teams to address the staffing needs of clients working in remote or challenging environments. Orion Group’s service offerings encompass contract recruiting, direct hire placements, and managed workforce solutions, designed to help organizations scale their workforces quickly and efficiently.

Orion Group is led by a management team with extensive experience in the staffing and energy industries. The firm emphasizes safety, compliance, and quality assurance in its recruitment processes and workforce delivery. By leveraging industry-specific expertise and global reach, Orion Group aims to match skilled professionals with specialized roles while supporting clients’ operational goals and project timelines.

Orion Group Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: East West Jones sale closed in October, generating over $22 million net cash proceeds management intends to use to pay down debt and for general corporate purposes.
• Positive Sentiment: Backlog finished the quarter at $679 million after adding about $160 million in new awards/change orders, and the company reports a robust pipeline of roughly $1.2 billion of projects awaiting award.
• Positive Sentiment: The Marine segment delivered strong results with $143 million of revenue (up ~6% sequential) and adjusted EBITDA of $18 million (margin up to 12% from 7%), driven by higher‑margin mix, excellent execution, and improved equipment utilization.
• Negative Sentiment: The Concrete segment weakened, with revenue of $82 million (down ~5% year‑over‑year) and a $4 million adjusted EBITDA loss (about a 2% contribution margin), blamed on the absence of prior-year closeout benefits and some weather-related chargeability impacts.
• Positive Sentiment: Management raised full‑year 2025 guidance to $825–860 million revenue, $44–46 million adjusted EBITDA and $0.18–0.22 adjusted EPS, while reiterating $25–35 million CapEx.

Presentation

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

$14 million year to date. We wrapped up the quarter with $21 million of net debt, or just under half a turn of leverage on a trailing twelve-month EBITDA basis, which is a very healthy place for Orion. As the boss covered earlier, in October, we were very happy to close on the sale of the East West Jones property. The transaction resulted in a significant cash upside of over $22 million net of commissions and taxes and a nominal book charge, which will be reflected in our fourth quarter results. We expect to use the proceeds to pay down debt and for general corporate purchase purposes. From a backlog perspective, we added approximately $160 million in new awards and change orders in the quarter, and at quarter end, backlog stood at $679 million. Moving on to segment results.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

From a segment perspective, Marine revenues increased just about 2% over the third quarter of 2024 and 6% sequentially to $143 million in the quarter. Marine adjusted EBITDA grew over 50% to $18 million in the quarter, which represents a 12% margin this period compared to 7% in the same quarter of 2024. Strong Marine margins are attributable to a greater mix of higher margin revenue, excellent execution and project closeouts, and favorable equipment utilization. Concrete revenues decreased 5% over prior years and were up 17% sequentially to $82 million in the quarter, and Concrete incurred a $4 million loss in adjusted EBITDA for the quarter compared to a $4 million profit in the third quarter of 2024. The reported adjusted EBITDA reduction is primarily attributable to favorable project closeout benefits in 2024 that did not reoccur in 2025.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Some weather issues in the quarter also impacted chargeability in our Concrete business this quarter. For reference, Concrete's contribution EBITDA margin in the quarter was right at 2%. I'll wrap up with our guidance update. We're very pleased to update our full year 2025 guidance as follows: increasing our revenue guide to $825 million to $860 million, increasing our adjusted EBITDA guide to $44 million to $46 million, increasing our adjusted EPS guide to $0.18 to $0.22, and reiterating our CapEx guide of $25 million to $35 million. I'll now pass it back to Travis to wrap it up.

[Travis Boone, President and CEO at Orion Group Holdings]

Thanks, Alison. We have all the pieces in place to finish the year strong, and I'm even more excited about what lies ahead in 2026 and beyond. I want to thank our shareholders for their continued confidence in us and our people for the exceptional work they do every day in the field to deliver safely for our customers. Operator, we're ready to take questions.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question today will come from Aaron Spychalla with Craig-Hallum. Please go ahead.

[Aaron Spychalla, Senior Research Analyst at Craig-Hallum]

Good morning, Travis and Alison. Thanks for taking the questions. First for me, I noticed a slide in the deck on the pipeline, detail on award dates and opportunity size. Can you just maybe talk a little bit about that? Has that split by opportunity size been pretty consistent? Any thoughts on expected traction with some of those larger opportunities?

[Travis Boone, President and CEO at Orion Group Holdings]

Morning, Aaron. Sure, yeah, we can hit on that slide. We have been talking about our pipeline for a while and the increase in size of our pipeline. We have been working to kind of provide some more information on the pipeline based on a lot of questions about it. We just tried to find a way to break it up so people could have a little better feel for what's in there, when it's coming, and the size of the opportunity. Generally speaking, I would say it's fairly consistent. Our pipeline for next year is very strong. Still got some good opportunities this year that we're working on bringing in the door and good, good, very, very strong opportunities for 2026. Anything to add to that?

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Just to reiterate the comment from the call on the over $1 billion of award or projects and opportunities that we have that are in the queue awaiting award decisions. The number has stayed pretty consistent around that $1.2 billion, so over $1 billion, which is a really healthy place for us to be. That number has actually grown through the year if we look back through the earlier part of the year, just because of some of the delays that we're seeing and some of it with some of our clients and some of the pauses that our clients have put on. It's nice to see that bids submitted and awaiting award number continue to be a very robust $1.2 billion.

[Aaron Spychalla, Senior Research Analyst at Craig-Hallum]

Understood. Thanks for the color there. Does that include the opportunity in Washington with the Deschutes Estuary, or can you give an update there on how that is progressing?

[Travis Boone, President and CEO at Orion Group Holdings]

Yeah, good question. That's the Deschutes Estuary project that we won almost a year ago, won, I believe, in late 2024, early 2025 timeframe. It's not included in the pipeline. It's kind of in a weird spot where it's an awarded not booked project because we've won it, but it's not showing, so it doesn't show up in backlog, nor does it show up in our pipeline. It's in kind of a weird limbo spot until we actually get under contract to do the work, which is probably going to be about a year or so out before we actually start that work. Good question.

[Aaron Spychalla, Senior Research Analyst at Craig-Hallum]

Got it. Can you just give a little bit more detail on the data center opportunity? Just how much of the concrete business does that represent today and maybe the pipeline there? Are you seeing quoting pickup, any average deal size pickup, and just how you're thinking about opportunity there as we head into 2026?

[Travis Boone, President and CEO at Orion Group Holdings]

Definitely, it's remained very steady on the data center opportunity side of things. We've been bidding quite a large number of projects on data centers. To your question specifically, it's about 27% of our pipeline is data centers and about 27% of our current revenue in 2020, and the quarter, I should say, for concrete was 27% of concrete's revenue for Q3 was data centers. Lots of continuing activity there with bid opportunities.

[Aaron Spychalla, Senior Research Analyst at Craig-Hallum]

Understood. Thanks for taking the questions. I will turn it over.

[Operator]

The next question is from Liam Burke with B. Riley Securities. Please go ahead.

[Liam Burke, Managing Director at B. Riley Securities]

Thank you. Good morning, Travis. Good morning, Alison.

[Travis Boone, President and CEO at Orion Group Holdings]

Morning, Liam.

[Liam Burke, Managing Director at B. Riley Securities]

Travis, you had, or Alison touched on the negative operating profit for concrete. We're looking at sequential backlog step up. Could we anticipate a more profitable mix in the backlog as we move into the fourth quarter?

[Travis Boone, President and CEO at Orion Group Holdings]

Yes, definitely. We're expecting concrete to continue to be in a good place. As she mentioned, when you compare it over last year, it doesn't look super favorable based on some big pickups around this time last year. As far as the concrete business, we remain confident in the profitability and the good business that it is.

[Liam Burke, Managing Director at B. Riley Securities]

Thank you. Have you seen any either good or bad movement on major projects due to policy changes with the administration?

[Travis Boone, President and CEO at Orion Group Holdings]

None that affect us, no. We haven't seen any movement related to policy changes. Some of the movement that's happened has been related to moving in the private sector over the last couple of quarters with awarding projects based on kind of uncertainty around tariffs and things like that. There's been some movement in other areas, whether it's the Navy opportunities in the Pacific that I talked about last quarter. Some of that slid out a year based on funding from Congress and some other things. No policy-related shifts or changes.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

I would just add that from a regulatory perspective, the deregulation that we're seeing happening is a benefit to our clients, and some of the tax benefits that are coming in on, you know, deductibility of interest and deductibility of fixed assets, the acceleration of those things, those things should continue to reduce the outlook for our commercial clients especially.

[Liam Burke, Managing Director at B. Riley Securities]

Great. Thank you, Travis. Thank you, Alison.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Of course.

[Operator]

The next question will come from Brent Thielman with D.A. Davidson. Please go ahead.

[Brent Thielman, Equity Research Analyst at D.A. Davidson]

Hey, thanks. Good morning. I guess, Travis or Alison, maybe the first question just back to Marine. I'm trying to think through these really strong results here, the contribution from your two big projects to those margins. I guess really getting to the point of, you know, what we think is a kind of a sustainable margin threshold going forward for the segment, especially considering some of the, you know, somewhat slower bookings here in the last couple of quarters.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Sure. I'll start on that. From a margin perspective, we were really pleased with the Marine's performance in the quarter. I would say that we saw some benefits that came through, some upsides, but I would also add that they were not unusual in terms of the amounts or the magnitude. We had really great performance across the business. We had great performance across the Atlantic and the Gulf. We had really strong performance in dredging, which you'll see just the uptick in those when we publish the queue later today. The dredging was very strong in the quarter, which ultimately benefits us, you know, top line and bottom line because of the very favorable equipment utilization that we get out of that. While there were, you know, a handful of upsides that we recognized in the quarter, I wouldn't say they were meaningful.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

I would say that the more meaningful driver of performance was really the operational performance, really led this quarter by dredging. Hats off to that team.

[Brent Thielman, Equity Research Analyst at D.A. Davidson]

Okay. The elevated SG&A, Alison, as you mentioned, is sort of a factor for the lower year-on-year EBIT performance. I guess your thoughts on where that goes going forward, what is that predominantly focused toward? How do you harvest that investment you're making in the business as we think about that going forward?

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Sure. I would say that a couple of million of that SG&A uptick from a year-over-year perspective is related to investments in the business, like just directly, you know, the advancement of or the expansion into the Atlantic region for concrete, into Phoenix, you know, some of those offices that we're investing in that we're setting up so that they will fuel some of the organic growth that we are expecting going forward. I would say that probably the other big driver is there is some lumpiness associated with how certain employee costs were recorded last year as compared to this year, that created a quarter-over-quarter increase, but from a sequential perspective, pretty consistent and in line.

[Brent Thielman, Equity Research Analyst at D.A. Davidson]

Okay. Last one, just in consideration of the balance sheet here, you've obviously got the property sale, which comes in at the end of the year. Maybe just your expectations for cash flow in the fourth quarter, I guess, especially as some of these larger projects wind down, presumably receivables come in. Should we or could we see a sort of a big windfall in cash flow into year-end?

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

The East West Jones, for sure, results in just $23 million of cash that drops to the bottom line. That'll go through investing. That'll be an investing activity, not an operating activity, but you know, cash in our treasury, which is nice. That cash, we have already received that cash, so it's nice to have that in our pocket now. From the rest of the business perspective, I don't see really a downturn in the cash collection cadence. The team is really focused on, very keenly identifying, targeting, and going after and reducing our past due balance sheet and really optimizing the working capital on the balance sheet. I think that you can see that while we only report from a quarter-to-quarter perspective, you can see that really in the interest expense and the significant step-down that we had this quarter from an interest expense perspective.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

That step-down is related to just a significant amount of work that the team has put into optimizing the balance sheet so that we could minimize borrowings under the revolver. Do I think that from a fourth-quarter perspective, we could see good cash? We will see good cash from East West Jones. We've not seen a slowdown in cash collection activity in the rest of the business. We have a couple of months to go, so we'll see. So far through October, it's been good.

[Brent Thielman, Equity Research Analyst at D.A. Davidson]

Okay. Great. Thank you.

[Travis Boone, President and CEO at Orion Group Holdings]

Thanks, Brent.

[Operator]

The next question will come from Alex Rygiel with Texas Capital. Please go ahead.

[Alex Rygiel, Managing Director at Texas Capital]

Thank you. Good morning, Travis and Alison, and congratulations on the sale of East West Jones property. That's great news.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Thank you.

[Travis Boone, President and CEO at Orion Group Holdings]

Thanks, Alex. You've been hearing us talk about that for a lot of years.

[Alex Rygiel, Managing Director at Texas Capital]

Good to see you got the sale done. Quick question for you on that. Is there a way for us to think about what the present value of the dredged spoils sort of 10-year agreement is at that site?

[Travis Boone, President and CEO at Orion Group Holdings]

Yeah, we're probably going to keep the details on that just for competitive advantage purposes to ourselves. Part of the reason we were okay taking a lower purchase price on that is because we were able to find a way to kind of use the property again through being able to use it for dredged spoils going forward.

[Alex Rygiel, Managing Director at Texas Capital]

It's good news. As it relates to your expanded bonding capacity, can you talk about the value of bonds you have outstanding right now? I guess what I'm trying to get to here is just what is the kind of remaining opportunity balance that you have with that new bonding capacity?

[Travis Boone, President and CEO at Orion Group Holdings]

I'll say it this way. We had a fair amount of available capacity under our before we got this increase. What this does is just allow us to continue to bid larger projects and facilitate the growth that we see coming here in the next few years. We'll obviously keep working on adding additional bonding capacity to the mix to continue to kind of stay in front of our ability to grow and bid bigger projects.

[Alex Rygiel, Managing Director at Texas Capital]

Lastly, as it relates to the data centers, have you seen a notable increase in the size of the project opportunity for these data centers, and how has that compared to, say, two or three years ago?

[Travis Boone, President and CEO at Orion Group Holdings]

Compared to two or three years ago, I would say definitely there's some bigger ones in the mix now. We did do a large one a couple of years ago in North Texas, and it seems like now there are more of those larger type or larger data centers that we have visibility to in our bidding on. We've talked about the one we're working on in Iowa. It's a large data center, a very large data center.

[Alex Rygiel, Managing Director at Texas Capital]

Thank you very much.

[Operator]

Again, if you have a question, please press star, then one. Our next question will come from Jason Usainer with Bumbershoot Holdings. Please go ahead.

[Jason Usainer, Portfolio Manager at Bumbershoot Holdings]

Good morning. Thanks for taking my questions and congrats on finally closing the East West Jones sale in a great quarter.

[Travis Boone, President and CEO at Orion Group Holdings]

Thank you.

[Jason Usainer, Portfolio Manager at Bumbershoot Holdings]

It was about a year ago that I was asking you during the World Series about this field of dreams vision, and there was kind of clear daylight for significant growth and demand for the marine services coming over the next couple of years and just not a lot of contention. It felt like that you've kind of built the right platform to capitalize it. The question I had then was kind of really around execution and margin profile. It feels like this year, some of those big pursuits with the Navy slid out a little bit. You started to talk about the transformational growth, 2026 and beyond. Not a lot of change in the vision, but just maybe this delayed onset.

[Jason Usainer, Portfolio Manager at Bumbershoot Holdings]

Just to update on the overall long-term vision that you're building and that it's coming on the demand side, everything from your prepared script, the bonding, the pre-approved MAC team, kind of sounds like there's still a lot of clear catalysts that all the growth is coming and you answered it a little bit in the Q&A, but maybe just reiterate anything that could cause shocks to that investment in the Pacific and just sort of this whole vision of demand materializing. To the extent that it does come the way you're envisioning, whether you still think it's likely to translate to some of those long-term profitability targets that you previously laid out.

[Travis Boone, President and CEO at Orion Group Holdings]

Sure. Yeah, thanks, Jason. I think you kind of answered your question for me a little bit, but definitely, the way we saw it a year ago, we still see the same. We still see everything the same, if not even more confident now because we've delivered on getting some things accomplished over the last year that we were working toward. As far as the vision, if you will, it is still the same. The only thing that's changed a little bit is some of those delays and some of the bigger contract opportunities in the Pacific that slid out a year. That's really the only thing that's changed from a year ago. We're continuing to invest and work toward the growth that we, the growth opportunity that we see in front of us. Everything is going as planned.

[Travis Boone, President and CEO at Orion Group Holdings]

Everything that's in our control is going better than planned, I would say. The biggest thing out of our control is those opportunities sliding to the right. We feel like we've executed well on our plan and we've delivered and we're going to continue to do that. When those opportunities do show up, we're going to knock them down and keep going.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Yeah. I would just add to that, Jason, that the beautiful part about this business is it's not singularly threaded. This is a multifaceted business, and the opportunities in the Pacific are exciting and they afford us some pretty interesting growth catalysts in the future. Today we're starting on a large project in Texas on a large bridge project over water. We have a big port project that's going on in South Carolina. There are a number of other opportunities that we pursue and that we win and that we are executing that are outside of the Pacific. The Pacific is exciting, but it's not the only story here.

[Jason Usainer, Portfolio Manager at Bumbershoot Holdings]

Okay. Great. Appreciate the answers and congrats on a great quarter.

[Travis Boone, President and CEO at Orion Group Holdings]

Thanks, Jason.

[Alison Vasquez, EVP and CFO at Orion Group Holdings]

Thanks.

[Operator]

This concludes our question and answer session. I would like to turn the conference back over to Mr. Travis Boone for any closing remarks. Please go ahead.

[Travis Boone, President and CEO at Orion Group Holdings]

Thank you all for joining our call today. We're super excited about where we are as a company and looking forward to coming back to you with our year-end results here in a few months. I also want to thank our team, all of you guys working hard every day to make this business work. Thank you.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Alison Vasquez, EVP and CFO
• Travis Boone, President and CEO

Analysts

• Aaron Spychalla, Senior Research Analyst at Craig-Hallum
• Jason Usainer, Portfolio Manager at Bumbershoot Holdings
• Liam Burke, Managing Director at B. Riley Securities
• Alex Rygiel, Managing Director at Texas Capital
• Brent Thielman, Equity Research Analyst at D.A. Davidson