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Orion Group Holdings
(NYSE:ORN)
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Rating:51Neutral
Price Target:
$9.00
▼(-29.08% Downside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improving but still fragile fundamentals (thin margins, negative free cash flow, and higher leverage) and weak technicals with the stock trading well below major moving averages. Earnings call signals strong demand visibility (bookings/backlog/pipeline and high H2 contract coverage) but near-term profitability was pressured and guidance was reset, while valuation remains elevated with a high P/E and no dividend support.
Positive Factors
Backlog & Opportunity Pipeline
A $722M backlog plus a ~$27B pipeline with $1.6B quoted provides durable revenue visibility across multiple quarters. This depth of contracted and prospective work reduces near-term demand risk, supports resource planning, and creates multiple opportunities to convert bids into funded projects over 2–6 months and beyond.
Negative Factors
Very Thin Net Profitability
Net margins under 1% leave earnings highly sensitive to modest cost overruns, project timing, or mix shifts. In project-driven construction, tight profitability constrains the ability to absorb execution missteps and creates volatility in reported results over the next several quarters absent sustained margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Opportunity Pipeline
A $722M backlog plus a ~$27B pipeline with $1.6B quoted provides durable revenue visibility across multiple quarters. This depth of contracted and prospective work reduces near-term demand risk, supports resource planning, and creates multiple opportunities to convert bids into funded projects over 2–6 months and beyond.
Read all positive factors
Orion Group Holdings (ORN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$396.04M
Dividend YieldN/A
Average Volume (3M)470.25K
Price to Earnings (P/E)104.0
Beta (1Y)1.93
Revenue Growth7.05%
EPS Growth-67.59%
CountryUS
Employees2,076
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.09
Shares Outstanding40,495,290
10 Day Avg. Volume436,156
30 Day Avg. Volume470,252
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.48Price Target Upside21.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.27
Revenue Forecast (FY)$930.88M
Orion Group Holdings Business Overview & Revenue Model
Company Description
Orion Group Holdings, Inc. functions as a specialized construction company, contributing its expertise across the building, industrial, and infrastructure sectors. Its operations span a wide geographical area, encompassing the continental United S...
How the Company Makes Money
Orion Group Holdings primarily makes money by performing construction projects under customer contracts and recognizing revenue as work is executed. Key revenue streams include (1) marine construction services—earning contract revenue from buildin...
Orion Group Holdings Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a mix of notable operational strengths and near-term execution/timing challenges. Concrete performance, a large $27B opportunity pipeline (with $1.6B quoted), strong bookings ($275M) and an above-industry win rate are material positives. However, marine timing delays produced lower equipment utilization, a decline in gross profit, a Q2 GAAP loss, and meaningful declines in adjusted EBITDA (-~28%) and adjusted EPS (-~71%). Management emphasized these are timing issues with strong back-half visibility (90% of marine work under contract for H2) and integration benefits from the Pacific Rock & Dredge acquisition. Overall the fundamentals appear intact but the quarter reflected a near-term profitability setback tied to project timing.Positive Updates
Revenue Growth
Total revenue of $222.0M in Q2 FY26, an increase of 8% year-over-year.
Negative Updates
Marine Timing Delays
Marine segment experienced client-related delays (site readiness and client-provided materials) that postponed mobilizations and starts, reducing revenue and equipment utilization in the quarter; management characterized this as a timing issue rather than demand weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $222.0M in Q2 FY26, an increase of 8% year-over-year.
Read all positive updates
Company Guidance
Orion reset full‑year 2026 guidance to revenue of $900–$950 million, adjusted EBITDA of $50–$54 million (midpoint implies ~15% growth vs. 2025), adjusted EPS of $0.23–$0.30 (midpoint ~6% growth vs. 2025) and capex of $25–$35 million (unchanged). Management pointed to Q2 results and forward visibility supporting the guidance: Q2 revenue $222 million (+8% YoY), gross profit $23 million (down $3M YoY), GAAP loss $4.1M vs. $0.8M GAAP income LY, adjusted EBITDA $7.9M (vs. $11M LY), adjusted EPS $0.02 (vs. $0.07 LY), backlog $722M, bookings >$275M in the quarter (1.25x book‑to‑bill), a $27B pipeline with ~$1.6B quoted awaiting award (up from ~$1.0B at the start of the year), net leverage 2.3x, Concrete segment organic strength (over 30% top‑line and ~45% adjusted EBITDA growth in Q2; roughly 50% of Concrete revenue from data centers this quarter), and management said ~90% of marine work and ~80% of overall business for the back half are under contract, supporting a stronger back half of 2026 and optimism for 2027.Orion Group Holdings Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 896.50M | 852.26M | 796.39M | 711.78M | 748.32M | 601.36M |
| Gross Profit | 105.61M | 105.61M | 91.16M | 61.66M | 50.74M | 40.97M |
| EBITDA | 39.19M | 42.29M | 31.39M | 15.68M | 11.06M | 4.70M |
| Net Income | 3.60M | 2.49M | -1.64M | -17.88M | -12.61M | -14.56M |
Balance Sheet | ||||||
| Total Assets | 496.24M | 414.65M | 417.32M | 416.89M | 367.15M | 351.75M |
| Cash, Cash Equivalents and Short-Term Investments | 2.53M | 1.59M | 28.32M | 30.94M | 3.78M | 12.29M |
| Total Debt | 148.78M | 64.81M | 94.46M | 85.49M | 66.56M | 69.21M |
| Total Liabilities | 331.78M | 255.62M | 266.64M | 295.42M | 229.35M | 203.65M |
| Stockholders Equity | 164.46M | 159.03M | 150.68M | 121.47M | 137.80M | 148.10M |
Cash Flow | ||||||
| Free Cash Flow | -18.43M | -10.80M | -1.42M | 8.27M | -5.02M | -16.91M |
| Operating Cash Flow | 24.37M | 28.07M | 12.68M | 17.18M | 9.56M | 69.00K |
| Investing Cash Flow | -61.02M | -13.70M | -11.48M | 2.17M | -9.70M | 10.63M |
| Financing Cash Flow | 39.14M | -39.39M | -3.82M | 7.81M | -8.37M | 6.00K |
Orion Group Holdings Technical Analysis
Negative
12.69
Price Trends
13.66
Negative
13.11
Negative
12.11
Negative
Market Momentum
-1.18
Positive
31.68
Neutral
33.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORN, the sentiment is Negative. The current price of 12.69 is above the 20-day moving average (MA) of 11.94, below the 50-day MA of 13.66, and above the 200-day MA of 12.11, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORN.
Orion Group Holdings Risk Analysis
Orion Group Holdings disclosed 68 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $268.33M | 26.04 | 14.45% | 0.82% | 19.86% | -49.73% | |
63 Neutral | $490.33M | 67.76 | 3.17% | ― | 2.07% | -38.08% | |
60 Neutral | $326.35M | -21.80 | -10.79% | ― | 13.88% | 34.22% | |
51 Neutral | $396.04M | 104.04 | 2.22% | ― | 7.05% | -67.59% | |
44 Neutral | $30.22M | -0.27 | 1577.14% | ― | -24.31% | -169.16% |
* Industrials Sector Average
ORN
Orion Group Holdings
10.12
3.12
44.57%
ESOA
Energy Services of America
15.68
5.90
60.28%
MTRX
Matrix Service Company
11.73
-3.12
-21.01%
BBCP
Concrete Pumping Holdings
9.68
2.88
42.35%
SLND
Southland Holdings
0.61
-3.86
-86.29%
Orion Group Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Orion Group Holdings Resets Guidance After Q2 Results
Negative
Jul 29, 2026
On July 28, 2026, Orion Group Holdings reported second-quarter 2026 results showing contract revenue up 8% year over year to $221.9 million, driven by strong demand and new awards in its Concrete segment. Despite the revenue growth, the company po...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Orion Shareholders Approve Governance Changes and Incentive Plan
Positive
May 20, 2026
At its May 19, 2026 annual meeting, Orion Group Holdings shareholders approved an amendment to the company’s 2022 Long-Term Incentive Plan, increasing the share pool by 2 million to 5.735 million and broadening award limits to all eligible p...
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.