Orion Group NYSE: ORN reported first-quarter 2026 results that management said reflected a “solid start to the year,” with growth in revenue and earnings supported by project execution and a large pipeline of potential work. The company also reaffirmed its full-year 2026 guidance, citing visibility into backlog and recent awards, while maintaining a conservative posture so early in the year.
First-quarter results and segment mix
Chief Financial Officer Alison Vasquez said Orion posted 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. Compared with the first quarter of 2025, Vasquez said revenue increased 15% and adjusted EBITDA rose 7%, which she attributed primarily to “strong momentum and expansion of services in our concrete segment” along with “solid, consistent, predictable project execution across the company.”
Orion’s marine segment reported revenue of $110 million and adjusted EBITDA of $12 million, an 11% margin. Vasquez said marine results were down from $127 million in revenue and $17 million in adjusted EBITDA in the year-ago quarter “primarily due to the ramp down of several large projects and early starts on new projects kicking off.”
The concrete segment delivered what management repeatedly described as an outsized quarter. Vasquez said concrete revenue increased to $106 million from $61.5 million a year earlier, while adjusted EBITDA rose to $8.6 million from $2.8 million, producing an 8% margin. Vasquez called the quarter “a high watermark for both revenue and adjusted EBITDA” and said performance reflected “outstanding productivity, execution, and momentum,” as well as the expansion of services the company has been pursuing.
Reporting changes and balance sheet update
Vasquez also highlighted a change to segment reporting. Beginning this quarter, Orion is reporting three segments: marine, concrete, and corporate. She said separating corporate from the operating segments is intended to “provide greater transparency” and align reporting with how management runs the business. Prior periods have been recast, and Vasquez said a full recast of fiscal 2025 is included in the company’s investor presentation posted on its website.
On the balance sheet, Vasquez said Orion ended the quarter with “just over $70 million of debt,” including $53 million of borrowings under its UMB credit facility used to fund the J.E. McAmis acquisition. She said net leverage remains at “a healthy level,” giving the company flexibility.
Backlog, pipeline, and post-quarter awards
President and CEO Travis Boone said Orion’s pursuit pipeline totals $24 billion and is “evenly distributed over time,” with roughly $8 billion tied to 2026 opportunities, $8 billion to 2027, and $8 billion to 2028 and beyond. Boone said backlog was $668 million at quarter end and included nearly $220 million of new awards and change orders booked during the quarter.
Boone also pointed to momentum continuing into April. He said Orion had been awarded “well over $200 million in new work that is not yet under contract,” and therefore not included in backlog, including:
- $100 million port renovation project
- $40 million dredging project
- $24 million data center project
Boone said these awards “set us up nicely for a strong second quarter,” and with growing backlog and a robust pipeline, the company reaffirmed its full-year 2026 guidance.
End-market commentary: defense, energy, and data centers
Boone said demand in the marine segment is building for “mission-critical maritime infrastructure,” particularly in defense and port modernization. He tied the environment to geopolitical and energy-security concerns, saying disruptions around the Strait of Hormuz have put “American naval superiority and domestic energy and petrochem security” in focus.
Boone also addressed the administration’s temporary pause of the Jones Act related to transportation of bulk petroleum and fertilizer products, saying it does not impact Orion’s business. However, he added the company is “strongly opposed to any and all Jones Act modifications.”
In discussing the President’s 2027 budget proposal, Boone said it includes a $1.5 trillion defense budget proposal and priorities around shipyards, dry docks, waterfront infrastructure, and maritime security. Boone noted that the proposal must still go through Congress and characterized the budget as “a bit of a wish list,” though he said it was a positive directional indicator. Vasquez added that even an increase from current levels would be substantial, noting defense spending is “at $900 now,” and saying that “even if it goes up to $1 trillion, that's still a very large increase.”
On the commercial side, Boone said clients are signaling a need for investments that increase energy security and supply diversification, and that Orion is seeing “an acceleration of early work” tied to energy, chemical, and petrochemical projects that require marine infrastructure to expand export capacity. Vasquez said early signals can translate into projects over a wide range of timelines—“three months, six months, or a year”—depending on factors such as permitting status and client readiness.
Within concrete, Boone said data centers remain a primary driver. He said data centers represented about 40% of concrete revenue in the quarter and that, given backlog and pipeline, Orion expects data centers to remain “a central driver of profitable growth.” In response to analyst questions about visibility, Boone said data center visibility is typically limited until projects are ready to proceed, describing the customer base as “fairly secretive.” Still, he said activity is “heavy,” and Orion is in discussions around “really large projects.” Boone added that Orion has completed “over 50 data centers,” particularly in Texas, giving it a “seat at the table” in early conversations.
Guidance posture, margins, and capital allocation
Analysts asked why Orion did not raise guidance after what management described as a strong quarter and meaningful April award activity. Vasquez said guidance was initiated only last month and first-quarter profitability came in “pretty much right in line” with expectations. Boone added the company generally prefers to “underpromise and overdeliver” and will “take a conservative approach,” holding guidance steady for now while monitoring progress over the next quarter or two.
On margin dynamics, Vasquez attributed the year-over-year margin pressure in marine to project phasing, including the wrap-up of prior work and early stages of new projects where the company tends to be more conservative. She said Orion is not seeing signs of “consistent or persistent margin degradation over time.” In concrete, she said results benefited from favorable weather and “uninterrupted momentum,” but emphasized margins were primarily driven by execution and utilization.
Discussing cash flow and leverage, Vasquez said Orion’s capital priorities are centered on supporting organic growth through investments in equipment and people while maintaining balance sheet flexibility. She said the company is comfortable around 1.5x net leverage and suggested deleveraging is not the top priority. On M&A, Boone said the company would remain disciplined but could pursue opportunities that make sense.
Separately, Boone said Orion is monitoring fuel prices and uses contingencies in bids and advance purchasing strategies to manage volatility, adding that the company is “generally, at the moment, okay.” On tariffs and input costs such as steel, Boone said Orion is “generally in pretty good shape” based on bid structure, contingencies, and locked-in pricing.
In closing remarks, Boone encouraged shareholders to participate in the company’s virtual annual meeting on May 19 and noted that board members Tom Amonett and Peggy Foran plan to retire at the meeting, reducing the board size from eight directors to six.
About Orion Group NYSE: ORN
Orion Group 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.
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