Orion Group Q1 2026 Earnings Report

Orion Group EPS Results

• Actual EPS: $0.05
• Consensus EPS: -$0.00
• Beat/Miss: Beat by +$0.05
• One Year Ago EPS: N/A

Orion Group Revenue Results

• Actual Revenue: $216.30 million
• Expected Revenue: $198.13 million
• Beat/Miss: Beat by +$18.18 million
• YoY Revenue Growth: N/A

Orion Group Announcement Details

• Quarter: Q1 2026
• Date: 4/28/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, April 29, 2026
• 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 Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q1 results beat expectations with revenue of $216M (+15% YoY), GAAP net income of $4.7M, adjusted EBITDA of $8.7M, adjusted EPS $0.05, and management reaffirmed full‑year 2026 guidance.
• Positive Sentiment: The concrete segment was a standout, rising to $106M revenue and $8.6M adjusted EBITDA (8% margin), with data centers accounting for ~40% of concrete revenue and cited as a central driver of future profitable growth.
• Negative Sentiment: The marine segment softened with Q1 revenue of $110M (vs. $127M prior) and adjusted EBITDA down to $12M (11% margin), which management attributes to project phasing and early‑stage ramp ups — a short‑term margin risk.
• Positive Sentiment: Backlog and pipeline momentum is strong — backlog at $668M (including ~$220M in Q1 awards) and a $24 billion pursuit pipeline evenly spread across 2026–2028+, plus >$200M of April awards not yet under contract.
• Neutral Sentiment: Balance sheet flexibility remains intact with just over $70M debt (including $53M for the J.E. McAmis acquisition) and ~1.5x net leverage; management says priority is organic growth and disciplined M&A.

Presentation

[Operator]

Good day, and welcome to the Orion Group Holdings First Quarter 2026 Financial Results conference call. All participants will be in a listen only mode, should you need assistance please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question you may press star then one one a touchtone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Margaret Boyce, Investor Relations for Orion. Please go ahead, ma'am.

[Margaret Boyce, Director of Investor Relations at Orion Group]

Thank you, operator, and thank you all for joining us today to discuss Orion Group Holdings' first quarter 2026 financial results. We issued our earnings release after market last night. It's available in the investor relations section of our website at oriongroupholdingsinc.com. I'm here today with Travis Boone, Chief Executive Officer of Orion, and Alison Vasquez, Chief Financial Officer. On today's call, management will provide prepared remarks, and then we'll open up the call for your questions. Before we begin, I'd like to remind you that today's comments will include forward-looking statements under the Federal Securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts are forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements.

[Margaret Boyce, Director of Investor Relations at Orion Group]

Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-Q and 10-K. With that, I'll turn the call over to Travis. Travis, please go ahead.

[Travis Boone, President and CEO at Orion Group]

Thank you, Margaret, and good morning, everyone. Thank you for joining us today to discuss our first quarter 2026 results. We delivered a solid start to the year, supported by disciplined operational performance and a healthy $24 billion pipeline of opportunities. This translated into top and bottom-line growth and good cash flow generation. Our teams continue to execute at high level, positioning us well for the remainder of 2026. In our marine segment, demand for mission-critical maritime infrastructure continues to build, particularly across defense and port modernization projects. With the Iran conflict and disruption of traffic through the Strait of Hormuz, American naval superiority and domestic energy and petrochem security are front and center. These are meaningful drivers of public and private maritime build-outs that Orion is well positioned for.

[Travis Boone, President and CEO at Orion Group]

On another note related to the conflict in the Middle East, you may have heard that the administration paused the Jones Act related to the disruption in the Strait of Hormuz. This is a temporary pause specifically related to the transportation of bulk petroleum and fertilizer products. Previous administrations have made similar actions related to emergencies or disasters. While this limited pause of the Jones Act does not impact our business, we are strongly opposed to any and all Jones Act modifications. It does not align with the America First approach the administration has so publicly promoted, and this action has had little to no impact on reducing fuel prices in the United States.

[Travis Boone, President and CEO at Orion Group]

The President's 2027 budget proposal released earlier this month includes a $1.5 trillion defense budget, a historic increase to fund the expansion and modernization of U.S. shipyards, dry docks, and waterfront infrastructure, alongside expanding investment in maritime security and uninterrupted global transportation lanes. This budget prioritizes investment in hard assets tied to U.S. national security, a central theme to Orion's long-range growth outlook. Our commercial clients are signaling a growing need for investments that increase energy security and supply diversification, particularly in North America. Buoyed by elevated product prices that support investment economics, we are seeing an acceleration of early work to support energy, chemical, and petrochemical projects that include meaningful marine infrastructure to increase export capacity.

[Travis Boone, President and CEO at Orion Group]

With the addition of J.E. McAmis in February and continued investment in our people and fleet, our team is well-positioned to deliver the maritime infrastructure projects critical to our national defense strategy and commercial resilience. Turning to concrete, this team delivered a fantastic quarter across all key metrics with strong revenue and impressive adjusted EBITDA expansion. Registering a 1.1 times book-to-bill in the quarter and executing with excellence, concrete is firing on all cylinders. Data center development continues to be a primary pillar for this business. Investment by hyperscalers and greenlighting of projects continues to advance at a very brisk pace. In the quarter, data centers accounted for around 40% of concrete revenues. With the current composition of backlog and pipeline, we believe data centers will continue to be a central driver of profitable growth for our concrete segment going forward.

[Travis Boone, President and CEO at Orion Group]

We also continue to see growing opportunities across our other sectors, including advanced manufacturing, transportation, and cold storage. Investments in these areas are driven by reshoring of manufacturing around long-term domestic production strategies, increasing demand for expanded distribution and fulfillment networks, and a favorable regulatory environment. With our recent expansion into site civil, earthwork, and underground utilities, we are seeing the size and scale of concrete pursuits and awards increase while also enhancing execution certainty and control for our clients and our own delivery teams. All in all, an outstanding quarter of bookings, execution, and teamwork for our concrete team. Our backlog is growing and our pursuit pipeline remains healthy, with broad-based opportunities across both segments as we move through the year.

[Travis Boone, President and CEO at Orion Group]

Our $24 billion pursuit pipeline is currently evenly distributed over time, with roughly $8 billion in opportunities for 2026, $8 billion in 2027, and $8 billion in 2028 and beyond. At the end of the quarter, backlog stood at $668 million and included almost $220 million in new awards and change orders booked in the quarter. Representative awards included a couple of mid-sized port modernization and dredging projects, a bridge project for an army base, a couple of good wins for the McAmis team, and a nice mix of concrete projects.

[Travis Boone, President and CEO at Orion Group]

We've continued the bookings momentum into April and have been awarded well over $200 million in new work that is not yet under contract, so it is not in our backlog, including a $100 million port renovation project, a $40 million dredging project, and a $24 million data center project. These new awards set us up nicely for a strong second quarter. With growing backlog and a robust pipeline, we are pleased to reaffirm our full year 2026 guidance. I'll now turn it over to Alison to discuss our financials. Alison?

[Alison Vasquez, CFO at Orion Group]

Thanks, Travis. We're pleased to report first quarter revenue of $216 million, GAAP net income of $4.7 million, adjusted EBITDA of $8.7 million, and adjusted EPS of $0.05 per share. As compared to the first quarter of 2025, these results represent a 15% growth in revenue, 7% growth in adjusted EBITDA, attributable to strong momentum and expansion of services in our concrete segment, and solid, consistent, predictable project execution across the company. Before turning to segment performance, I want to briefly highlight a change to our segment reporting this quarter. We have revised our presentation to begin reporting three segments: marine, concrete, and corporate.

[Alison Vasquez, CFO at Orion Group]

We believe this disaggregation of corporate out of the results of marine and concrete will provide greater transparency into the underlying financial performance of each segment and is much more consistent with how we manage the business. Prior results have been recast to conform to the current presentation, and we've included a full recast of FY 2025 in or investor presentation posted on or website. Our marine segment reported revenue of $110 million and adjusted EBITDA of $12 million, representing an 11% margin, compared to $127 million in revenue and adjusted EBITDA of $17 million in the first quarter of 2025. These decreases were primarily due to the ramp down of several large projects and early starts on new projects kicking off.

[Alison Vasquez, CFO at Orion Group]

Our concrete business had a standout first quarter, as Travis talked about, reporting revenue of $106 million and adjusted EBITDA of $8.6 million, representing an 8% margin, as compared to revenue of $61.5 million and adjusted EBITDA of $2.8 million in the prior year quarter. These results represent a high watermark for both revenue and adjusted EBITDA and are the direct result of outstanding productivity, execution, and momentum. We also benefited from the expansion of services that Travis mentioned earlier. From a balance sheet perspective, we ended the quarter with just over $70 million of debt. That included $53 million of outstanding borrowings under the UMB credit facility, which we used to fund the McAmis acquisition in the quarter. Our net leverage remains at a healthy level, providing meaningful balance sheet flexibility as we look ahead.

[Alison Vasquez, CFO at Orion Group]

All in all, we are pleased to reiterate our full year 2026 guidance initiated last month. That's it for me. Back to you, Travis.

[Travis Boone, President and CEO at Orion Group]

Thanks, Alison. As we move through the year, our focus remains on executing our work safely, maintaining discipline across the organization, and delivering consistent results. I want to thank our shareholders for their continued support and recognize our teams across the business whose work every day drives our performance. Before I open the call for Q&A, I'd like to encourage our stockholders to cast your votes and participate in our virtual annual meeting coming up on May 19th. You can find the details in our proxy materials and on our website. I'd also like to take this opportunity to recognize and thank Tom Amonett and Peggy Foran for their service on our board. Each of them will be retiring from our board at the annual meeting, at which time the size of our board will decrease from eight directors to six directors.

[Travis Boone, President and CEO at Orion Group]

With that, I'd like to open it up for questions. Operator?

[Operator]

Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone please pick up your handset before pressing the keys. If at anytime your question has been addressed and you would like to withdraw your question please press star and then two. At this time, we will pause momentarily to assemble the roster. The first question will come from Tomo Sano with JPMorgan. Please go ahead.

[Tomohiko Sano, Managing Director at JPMorgan]

Hi. Good morning, everyone.

[Travis Boone, President and CEO at Orion Group]

Good morning, Tomo.

[Alison Vasquez, CFO at Orion Group]

Morning.

[Tomohiko Sano, Managing Director at JPMorgan]

Morning. I'd like to ask about the guidance. Given the solid start to the first quarter and the positive project updates in April, there was no upward revisions to your full year guidance. Is this due to conservative assumptions in your outlook, or does it reflect some lag in the marine segment despite the strong performance in concrete? Could you elaborate on the key factors behind maintaining the current guidance, please?

[Alison Vasquez, CFO at Orion Group]

Sure. I'll start and Travis can fill in. I mean, we just initiated the guidance last month, we had a pretty good view then. I think we continue to have a good view. You know, given what Travis talked about in the call with regard to bookings post end of the quarter with the $200+ million, especially more heavily weighted toward marine, we're feeling more confident with just kind of what that path looks like as things come into focus. I would say, you know, from a first quarter perspective, the results came in pretty much right in line with what we expected from a profitability perspective. We felt like it was prudent just to kind of hold where we are. As the year plays out, we'll see as those cards get dealt.

[Travis Boone, President and CEO at Orion Group]

Yeah, Tomo, we, generally, you know, we wanna underpromise and overdeliver. We're, we're gonna take a conservative approach to things like this generally. We're gonna hold the line for now and see how things progress over the next quarter or two.

[Tomohiko Sano, Managing Director at JPMorgan]

Thank you. If you could talk about adjusted EBITDA margins contracted year-over-year in the first quarter, could you elaborate on your concrete plans for the margin recovery after second quarter, please?

[Alison Vasquez, CFO at Orion Group]

I would say that the margin impacts were attributable to just the phasing of kind of where we are on projects, specifically in marine. I mean, I assume that we're talking about marine, which had a, the margins came down in that business during the quarter. Really just is a, I think attributable to just phasing of where we are on projects. As we, you know, wrapped up many projects toward the end of last year, a lot of goodness will generally come into the numbers we're seeing off. As we kick off new projects, we generally are a bit more conservative in where we kind of set the stakes initially. I would say that it's really kind of more of a timing item.

[Alison Vasquez, CFO at Orion Group]

We don't see, we aren't seeing any signals that there would be any, you know, consistent or persistent margin degradation over time. If anything, we're seeing the opposite just with the pipeline and the number of opportunities that we're seeing on the horizon. I mean, concrete had a pretty monster step up in their EBITDA contribution for the quarter. I'll say that, you know, we benefited in our concrete business from good weather. We, you know, a lot of times we'll talk about bad weather, but I mean, this is a quarter where we benefited from good, strong momentum throughout the quarter, good, strong utilization and activity throughout the quarter that was not interrupted by weather.

[Alison Vasquez, CFO at Orion Group]

As the concrete projects get larger, we have opportunities to keep our teams on programs to allow them just to have consistent utilization and execution over time, which ultimately serves to lift the margins as there aren't all those starts and stops. There weren't, I wouldn't say there are any, you know, big good guys that, you know, helped concrete in the quarter. I would say that the margins that they delivered were really a product of just really strong execution, good momentum, uninterrupted momentum, and I mean, you know, thanks to the skies too.

[Tomohiko Sano, Managing Director at JPMorgan]

Thank you, and congrats on the quarter.

[Travis Boone, President and CEO at Orion Group]

Thanks, Tomo.

[Alison Vasquez, CFO at Orion Group]

Thanks, Tomo.

[Operator]

The next question will come from Aaron Spychalla with Craig-Hallum. Please go ahead.

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

Yeah. Good morning, Travis and Alison. Thanks for taking the questions.

[Travis Boone, President and CEO at Orion Group]

Morning, Aaron.

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

Good morning. First for me, good to hear, you know, the order activity continuing to pick up into April. You noted seeing acceleration for early work on the energy and petrochem side. Just can you talk a little bit about the timeline from, you know, that early work and when those could maybe turn into project awards? Just any thoughts on, you know, what those could look like, size-wise, content-wise?

[Travis Boone, President and CEO at Orion Group]

I think we're seeing a fair amount of activity. I think increased urgency to get projects, you know, with breaking ground and getting going is. There's, you know, I think a lot more conversation about, I think the sort of disruption in the, in the global energy world has woken some things up, as well as kind of, I think probably put some, like I said, put some urgency into getting projects underway.

[Alison Vasquez, CFO at Orion Group]

Yeah. Generally, as we start seeing the early signals of projects coming to us, this is, I mean, mostly on the marine side, where we're seeing our larger commercial clients begin the signals of greenlighting projects. There may be a period of three months, six months, or a year. I would say as we look out onto the horizon, there will be certain projects that will move forward very quickly. There will also be another set of projects that will move forward to try to get the permitting and all the things that they need to do within this administration. I think that also, I mean, there are some timelines that are in there. We do have a good number of clients and programs that we see with the momentum picking up.

[Alison Vasquez, CFO at Orion Group]

On those that are quite serious and are more advanced from a permitting perspective, we would expect those to move forward more quickly.

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

Thanks for that. Maybe second, you know, you kinda highlighted an uptick in activity with the Department of Defense and the Coast Guard. Can you just kinda talk a little bit about what some of those opportunities look like and how you're thinking about timing on those as well?

[Travis Boone, President and CEO at Orion Group]

The uptick in, on the, on the president's budget. Yeah, sorry. Yeah, on the president's budget, it was a huge uplift in the budget for military. Now, of course, the president's budget is a, the way it works, in reality, it's a bit of a wish list that still has to get put in place by Congress. I would say it's directionally that's the way the administration would like to see things go. We'll see how it plays out. It is good signs, good indicators of what is likely to come out of Congress, assuming they can get a budget passed.

[Alison Vasquez, CFO at Orion Group]

Yeah. I mean, even just putting the proposal out there for $1.5 trillion, I mean, we're at $900 now, so even if it goes up to $1 trillion, that's still a very large increase.

[Travis Boone, President and CEO at Orion Group]

Right.

[Alison Vasquez, CFO at Orion Group]

We would expect to benefit from that, especially with just the emphasis on naval superiority, naval dominance, marine infrastructure resilience. Those are all themes that are central to this budget and, I mean, really kind of into the world that we're living in right now. It's very much accentuated by what's going on in the Middle East.

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

Understood. Thanks for that. Then maybe one last for me, just with higher fuel prices, you know, some of the kind of tariff developments on, maybe Section 232 expansions, just any margin or backlog sensitivity, any actions, you know, you might be taking there, on the business side of things?

[Travis Boone, President and CEO at Orion Group]

The fuel side is something we're watching. I mean, we tend to build in contingency in our bids and things like that for fuel spikes. We buy in advance on parts of our business where we burn a lot of fuel, things like that. We're generally, at the moment, okay. We're watching it close. It is something that, you know, if it becomes a very long-term situation.

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

Right

[Travis Boone, President and CEO at Orion Group]

with high fuel prices, you know, we could see some minor impacts. Right now we're in a kind of watch and see mode and make sure we're protecting ourselves as much as we can.

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

Just anything on, you know, maybe like steel or anything, you know, coming out of the Section 232 expansions.

[Travis Boone, President and CEO at Orion Group]

You know, we talked a lot about tariffs, I don't know, about a year ago. We were generally in pretty good shape with how we bid our work to be, again, either with contingencies in place or we have locked in prices. We're generally in pretty good shape on the tariff side of things.

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

All right. Thanks for the color. I'll turn it over.

[Operator]

The next question will come from Min Cho with Texas Capital. Please go ahead.

[Min Cho, Equity Research Analyst at Texas Capital]

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

[Travis Boone, President and CEO at Orion Group]

Good morning.

[Min Cho, Equity Research Analyst at Texas Capital]

Congratulations. Congratulations on your standout quarter for Concrete. I understand that weather was, you know, helped you guys a little bit here. Just given the level of backlog that you have, do you feel like this level of revenue and margins are sustainable in the intermediate term? Again, assuming that, you know, kind of taking weather out of it.

[Travis Boone, President and CEO at Orion Group]

I think the between the backlog and the activity we're seeing and the kind of outreach we're getting from owners as well as our general contractor partners, it seems like it's gonna continue. We don't see a, we don't see a cliff coming or a slowdown happening there. It seems it's very active at the moment. A lot of activity that we expect to see coming in throughout the year.

[Min Cho, Equity Research Analyst at Texas Capital]

That's excellent. Obviously EBITDA of about $9 million, clearly suggesting back half weighted, outlook, can you just talk about like what specific drivers, maybe volume, mix, or margins, that gives you the most confidence in achieving this guidance? And where you could see some risk to, the greatest risk or greatest upside?

[Travis Boone, President and CEO at Orion Group]

Yeah. I think it's a timing thing as far as, you know, our marine business, a little light this quarter, just with timing of projects and things like that as far as, and then, you know, concrete really kicking hard in this quarter. I think we'll see, you know, as far as the confidence goes, between the backlog and the projects we've won already in the, you know, first month of second quarter here. It's been pretty active quarter this second quarter. We're very confident in the pipeline and backlog we should be able to build this year and work we can deliver in the latter half of the year.

[Travis Boone, President and CEO at Orion Group]

I know it's not unlike, probably different reasons, but 2024 was a pretty similar year. You know, a little lighter first half and a pretty heavy second half. It's looking to be a similar type of sort of shape to the graph as a couple of years ago for different reasons.

[Min Cho, Equity Research Analyst at Texas Capital]

Yep. Excellent. Just finally, Alison, what was J.E. McAmis' contribution to adjusted EBITDA in the quarter?

[Alison Vasquez, CFO at Orion Group]

It contributed positively. Their contribution was more in opportunity pursuit and building backlog for the future. They won some really nice awards that they'll continue to execute through 2026 and into 2027. Very importantly, they have been very integral in supporting some other really interesting opportunities that we're looking at. I would say that their contribution was meaningful. Like I said, they did contribute from a profit and a revenue perspective, nominally. I would say that the meaningful part of their contribution was really in just scaling their true expertise across both projects that we have currently in flight right now and also in guiding, advising and, you know, pretty meaningfully supporting some high value pursuits.

[Min Cho, Equity Research Analyst at Texas Capital]

Excellent. Great. Congratulations, and good luck in the next quarter. Thank you.

[Alison Vasquez, CFO at Orion Group]

Thanks, Min.

[Operator]

The next question will come from Gerry Sweeney with Roth Capital. Please go ahead.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Good morning, Travis, Alison, and Margaret. Thanks for taking my call.

[Travis Boone, President and CEO at Orion Group]

Morning, Gerry.

[Alison Vasquez, CFO at Orion Group]

Morning.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

I may do something blasphemous and just start with concrete, if that's okay. I appreciate your the courtesy laugh. Listen, Concrete, great quarter, obviously. I know you're working on the Iowa projects, but I'm really curious as to, you know, what's your visibility on data center work? Some of our other clients are seeing tons of work coming down the pike, especially as sort of the build-out of these facilities start to expand. I'm just curious as, you know, how much visibility you have and what's the market opportunity this year into next year and even maybe a little bit forward.

[Travis Boone, President and CEO at Orion Group]

Yeah

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

as we look at these projects.

[Travis Boone, President and CEO at Orion Group]

Yeah. As we've talked before, but, you know, generally speaking, visibility into data centers is pretty minimal until it's kinda go time, right?

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Yeah

[Travis Boone, President and CEO at Orion Group]

They're fairly secretive about where they are, what they are, who's doing whatever. Everything's kind of a big secret until it's go time. The visibility is always gonna be somewhat limited compared to say, you know, public sector project in the marine side of the business. However, the activity, as you mentioned, you're hearing is heavy. There's activity really kind of going in several directions. It seems like there's a lot of big stuff in the works. We're having lots of conversations about really large projects that with our key partners and some of the owners that we work with regularly. It's looking really good for the year for data centers for us.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Separately, obviously, you know, the Iowa was one that you highlighted previously, and I think as you do that and maybe some other projects, does that sort of elevate you in terms of, you know, reference projects and just bring you more and more into this, into this circle per se?

[Travis Boone, President and CEO at Orion Group]

I mean, Gerry, we've done over 50 data centers now.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Okay

[Travis Boone, President and CEO at Orion Group]

it's a big, we've got a lot of them under our belt, so definitely we're one of the key providers in this space, especially in the Texas market, where there's a lot of them underway and planned. Definitely I wouldn't say we're, you know, making decisions with the owners, but I would say we have a seat at the table at a lot of the early conversations.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Got it. One more question. What about sort of the derivative or knock-on effect? Obviously, as these projects more and more come onto the drawing board and they're hitting sort of shovels in the ground, what does that do to just general capacity in the concrete market and even help margins with other projects? It's gotta be pulling talent and capacity into the data center market and maybe raising pricing or margins in other sectors as well potentially.

[Travis Boone, President and CEO at Orion Group]

Yeah. I think the data center world, and we're seeing it in Texas for sure, where it's not just Concrete, but a lot of the trades that work on these projects, you know, there are struggles to find people, find resources, even things like housing and food in some of these more remote areas for all the workers that have to be on these sites. It's definitely, you know, there's resource challenges, whether it be people, equipment, materials, whatever. I think the owners are finding a way to make it happen. The owners, the general contractors and the teams on the site are finding ways to make it happen.

[Travis Boone, President and CEO at Orion Group]

It's a kind of do or die sort of approach that these owners have, and everybody's finding a way.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Got it. That's it for me. I'm gonna save my marine questions for the follow-up, if that's okay.

[Travis Boone, President and CEO at Orion Group]

All right. Sounds good. Thanks.

[Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital]

Thanks, guys. I appreciate it.

[Operator]

Again, if you have a question, please press star and then one. The next question will come 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]

Morning, Liam.

[Alison Vasquez, CFO at Orion Group]

Morning.

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

Your operating cash flow year-over-year was very strong on what would typically be a slower cash flow quarter. As we look into the balance of the year, is there any priority to delevering even though the balance sheet is still in pretty good shape?

[Alison Vasquez, CFO at Orion Group]

I think the balance sheet is in good shape. I mean, we'll look at opportunities over time. I mean, I would like to, you know, potentially carry a little bit less. I mean, I think we're in a very healthy place. We're right at 1.5 times net leverage. I think that's a good place for us to be. We might have opportunities to bring that down, but that's not our highest priority.

[Alison Vasquez, CFO at Orion Group]

I would say our priority in terms of our capital deployment would be in, opportunities to expand, you know, just our positioning from an organic growth perspective and whether that means, you know, some investments in key equipment, key people, key, you know, key things that we need to be able to, ensure that we are well-positioned for the pipeline and converting the organic pipeline, maintaining that healthy balance sheet and then, you know, potentially, you know, other options. I would say that, sitting at a 1.5 times net leverage is a good place for Orion to be, especially with the, you know, interest rates that we negotiated earlier this year. I think that we're real comfortable right there. It's always something that we factor into, you know, from a capital allocation strategy.

[Alison Vasquez, CFO at Orion Group]

Usually we find some productive uses, and especially in a growing business that will require, you know, some amount of working capital, contributions. We'll probably tend to run around that one and a half times, I would expect, on a steady state.

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

I would gather with your organic opportunities, plus, it sounds like McAmis is coming on very nicely, both from an addition and plus the synergies you're gaining. M&A is not one of the options in terms of allocation?

[Alison Vasquez, CFO at Orion Group]

I wouldn't say that. Travis, I mean. Well, I'll let you. You start, Travis, and then I'll.

[Travis Boone, President and CEO at Orion Group]

Yeah. Well, she said it. Yeah, I wouldn't say that. You know, we're gonna be, as far as M&A goes, we're gonna be very disciplined about the, you know, the things we look at. But if something comes along that makes good sense and is a reasonable bite, we would, we might be interested in it.

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

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

[Alison Vasquez, CFO at Orion Group]

All right.

[Alison Vasquez, CFO at Orion Group]

Thanks, Liam.

[Travis Boone, President and CEO at Orion Group]

Thank you.

[Operator]

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

[Travis Boone, President and CEO at Orion Group]

Thanks everyone for taking the time to join the call today. We look forward to speaking with you in the next quarter.

[Operator]

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

Participants

Executives

• Alison Vasquez, CFO
• Margaret Boyce, Director of Investor Relations
• Travis Boone, President and CEO

Analysts

• Aaron Spychalla, Senior Research Analyst at Craig-Hallum
• Gerry Sweeney, Managing Director and Senior Research Analyst at Roth Capital
• Liam Burke, Managing Director at B. Riley Securities
• Min Cho, Equity Research Analyst at Texas Capital
• Tomohiko Sano, Managing Director at JPMorgan