Orion Group Holdings (ORN)
NYSE:ORN
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Orion Group Holdings
(NYSE:ORN)
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Rating:55Neutral
Price Target:
$12.00
▲(1.10% Upside)
Action:ReiteratedDate:03/12/26
ORN scores mid-range: improving operations and a materially stronger balance sheet support the rating, and upbeat 2026 guidance/pipeline are additional positives. Offsetting these, weak recent free-cash-flow performance, very high P/E valuation, and bearish near-term technical momentum limit the overall score.
Positive Factors
Strengthened balance sheet and lower leverage
Orion materially reduced leverage in 2025, cutting debt and improving debt-to-equity to ~0.28x. A stronger capital structure and a new five-year $120M facility lower refinancing risk and funding costs, increasing financial flexibility for bid support, M&A and capital spending over the next 2–6 months.
Negative Factors
Weak and inconsistent free cash flow
Despite better operating cash flow, consecutive years of negative free cash flow and weak cash conversion versus earnings signal persistent working-capital, capex or timing pressures. This undermines sustainable internal funding for growth, increases reliance on external financing, and raises execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened balance sheet and lower leverage
Orion materially reduced leverage in 2025, cutting debt and improving debt-to-equity to ~0.28x. A stronger capital structure and a new five-year $120M facility lower refinancing risk and funding costs, increasing financial flexibility for bid support, M&A and capital spending over the next 2–6 months.
Read all positive factors
Orion Group Holdings (ORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$475.39M
Dividend YieldN/A
Average Volume (3M)400.03K
Price to Earnings (P/E)158.3
Beta (1Y)1.94
Revenue Growth7.02%
EPS GrowthN/A
CountryUS
Employees1,767
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.08
Shares Outstanding40,083,300
10 Day Avg. Volume220,213
30 Day Avg. Volume400,030
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)2.48
Price to Sales (P/S)0.46
P/FCF Ratio-36.49
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda13.34
Forecast
1Y Price Target
$16.67Price Target Upside40.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.39
Revenue Forecast (FY)$915.55M
Orion Group Holdings Business Overview & Revenue Model
Company Description
Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Conc...
How the Company Makes Money
Orion Group Holdings primarily makes money by delivering project-based construction services under customer contracts and recognizing revenue as contract performance obligations are satisfied. The company’s key revenue streams are tied to (1) Mari...
Orion Group Holdings Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational and financial progress—revenue and adjusted EBITDA growth, positive cash flow, margin improvement in Marine, a strengthened balance sheet with a lower-cost $120M credit facility, strategic acquisitions (J.E. McAmus) and asset investment (derrick barge), and a large $23B pipeline. Key challenges were timing-related delays that produced a 0.9x book-to-bill and a reported $11M adjusted EBITDA loss in Concrete (affected by corporate allocations and non-repeat 2024 closeouts). Management framed many issues as timing rather than demand loss, provided constructive 2026 guidance (midpoint growth of ~9% revenue and ~24% adjusted EBITDA), and highlighted integration and execution progress. Overall, the positives (growth, margin recovery in Marine, liquidity improvement, sizable pipeline, and accretive M&A) materially outweigh the timing and segment-specific headwinds.Positive Updates
Full-Year Financial Improvements
Revenue increased to $852,000,000 in FY2025; operating income of $15,000,000; adjusted EBITDA of $45,000,000; adjusted EPS of $0.25; full-year operating cash flow of $28,000,000 and free cash flow of $14,000,000 — all described as notable improvements versus the prior year.
Negative Updates
Backlog Shortfall / Book-to-Bill Below 1.0
Booked just over $763,000,000 in new contracts and change orders for the year, representing a 0.9x book-to-bill ratio (bookings < revenue), and management cited backlog as the primary area that did not meet expectations.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Financial Improvements
Revenue increased to $852,000,000 in FY2025; operating income of $15,000,000; adjusted EBITDA of $45,000,000; adjusted EPS of $0.25; full-year operating cash flow of $28,000,000 and free cash flow of $14,000,000 — all described as notable improvements versus the prior year.
Read all positive updates
Company Guidance
Orion's 2026 guidance targets revenue of $900–$950M (midpoint ~9% above 2025's $852M), adjusted EBITDA of $54–$58M (midpoint ~24% above 2025's $45M), adjusted EPS of $0.36–$0.42 (midpoint ~56% above 2025's $0.25), and capital expenditures of $25–$35M (consistent with 2025). Management cited strong supporting metrics from 2025 including operating income of $15M, operating cash flow of $28M, free cash flow of $14M, net debt of about $6M at year‑end (after closing a new five‑year $120M credit facility—$60M revolver, $20M equipment term loan, $40M M&A term loan—with a $25M uncommitted accordion and borrowing at SOFR+2.5–3%, ~40% lower cost), and subsequent $47M of incremental senior borrowings to fund the J.E. McAmus acquisition. The outlook is bolstered by a $23B pipeline (including $1.4B from J.E. McAmus), a marine pipeline of >$19.4B (up $3B or 21% sequentially), a concrete pipeline >$2.4B, 2025 bookings of just over $763M (0.9x book‑to‑bill), marine revenue of $545M (+4.5% YoY) with $56M adjusted EBITDA (~10% margin; 15% contribution margin), and concrete revenue of $307M (+12%) with a contribution adjusted EBITDA margin (ex‑corporate) of ~4.5% and 46 data‑center projects completed or in progress.Orion Group Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 852.26M | 796.39M | 711.78M | 748.32M | 601.36M |
| Gross Profit | 105.61M | 91.16M | 61.66M | 50.74M | 40.97M |
| EBITDA | 42.66M | 31.39M | 15.68M | 11.06M | 4.70M |
| Net Income | 2.49M | -1.64M | -17.88M | -12.61M | -14.56M |
Balance Sheet | |||||
| Total Assets | 414.65M | 417.32M | 416.89M | 367.15M | 351.75M |
| Cash, Cash Equivalents and Short-Term Investments | 1.59M | 28.32M | 30.94M | 3.78M | 12.29M |
| Total Debt | 44.30M | 94.46M | 85.49M | 66.56M | 69.21M |
| Total Liabilities | 255.62M | 266.64M | 295.42M | 229.35M | 203.65M |
| Stockholders Equity | 159.03M | 150.68M | 121.47M | 137.80M | 148.10M |
Cash Flow | |||||
| Free Cash Flow | -10.80M | -1.42M | 8.27M | -5.02M | -16.91M |
| Operating Cash Flow | 28.07M | 12.68M | 17.18M | 9.56M | 69.00K |
| Investing Cash Flow | -13.70M | -11.48M | 2.17M | -9.70M | 10.63M |
| Financing Cash Flow | -39.39M | -3.82M | 7.81M | -8.37M | 6.00K |
Orion Group Holdings Technical Analysis
Positive
11.87
Price Trends
12.21
Negative
11.39
Positive
9.88
Positive
Market Momentum
>-0.01
Negative
55.59
Neutral
74.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORN, the sentiment is Positive. The current price of 11.87 is above the 20-day moving average (MA) of 11.06, below the 50-day MA of 12.21, and above the 200-day MA of 9.88, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORN.
Orion Group Holdings Risk Analysis
Orion Group Holdings disclosed 34 risk factors in its most recent earnings report. Orion Group Holdings reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion Group Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $389.94M | -30.18 | 3.32% | ― | -8.98% | -38.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $265.68M | 12.61 | 3.91% | 1.11% | 16.80% | -98.32% | |
58 Neutral | $342.60M | -92.28 | -13.58% | ― | 17.16% | 24.10% | |
55 Neutral | $475.39M | 158.32 | 1.60% | ― | 7.02% | ― | |
42 Neutral | $60.07M | -521.01 | -68.71% | ― | -9.10% | 21.10% |
* Industrials Sector Average
ORN
Orion Group Holdings
11.87
6.10
105.72%
ESOA
Energy Services of America
14.60
6.02
70.24%
MTRX
Matrix Service Company
12.15
1.72
16.49%
BBCP
Concrete Pumping Holdings
7.68
1.67
27.79%
SLND
Southland Holdings
1.11
-1.93
-63.49%
Orion Group Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Orion Group Announces Board Changes and Director Retirements
Neutral
Mar 17, 2026
On March 17, 2026, Orion Group Holdings announced that long-serving independent director Thomas N. Amonett, a Board and Audit Committee member since 2007 and former long-time chair of the Nominating Governance Committee, will retire from the Boar...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Orion Group Highlights 2025 Results and McAmis Acquisition
Positive
Mar 4, 2026
On March 4, 2026, Orion Group Holdings posted its fourth-quarter and full-year 2025 investor presentation, highlighting 2025 revenue of $852 million, adjusted EBITDA of $45 million, a year-end backlog of $640 million and a workforce of about 2,000...
Business Operations and StrategyM&A Transactions
Orion Group completes marine contractor acquisition boost
Positive
Feb 4, 2026
On February 3, 2026, Orion Group Holdings completed the approximately $60 million acquisition of heavy civil marine contractor J.E. McAmis, Inc. and JEM Marine Leasing LLC, whose business spans jetty and breakwater construction, dredging, environm...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.