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Orion Group Holdings (ORN)
NYSE:ORN
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Orion Group Holdings (ORN) AI Stock Analysis

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ORN

Orion Group Holdings

(NYSE:ORN)

Rating:71Outperform
Price Target:
$8.50
▲(12.14% Upside)
Orion Group Holdings' stock score is driven by strong financial performance and positive earnings call sentiment, indicating growth potential. Technical indicators suggest caution, while valuation metrics are moderate. The company's strategic initiatives and robust backlog support a positive outlook.

Orion Group Holdings (ORN) vs. SPDR S&P 500 ETF (SPY)

Orion Group Holdings Business Overview & Revenue Model

Company DescriptionOrion 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 Concrete. The company provides various marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities, cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities. The company also offers on-going maintenance and repair, inspection, emergency repair, and demolition and salvage services to marine transportation facilities. Its marine pipeline service projects include the installation and removal of underwater buried pipeline transmission lines; the installation of pipeline intakes and outfalls for industrial facilities; the construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; the creation of hot taps and tie-ins; and inspection, maintenance, and repair services. The company's bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structures used for erosion control, wetlands creation, and environmental remediation. The company also provides specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services. In addition, it offers light commercial, structural, and other concrete construction services. Orion Group Holdings, Inc. was founded in 1994 and is headquartered in Houston, Texas.
How the Company Makes MoneyOrion Group Holdings generates revenue through various streams primarily by executing contracts in the construction and marine sectors. The Construction segment earns money by securing contracts for large-scale infrastructure projects, which can include highways, bridges, and energy-related facilities. Revenue is recognized based on the completion of contract milestones or on a percentage-of-completion basis. The Marine segment derives income from contracts for dredging and marine construction projects. Key partnerships with government agencies, energy companies, and private sector clients significantly contribute to its revenue, along with a focus on maintaining strong relationships to secure repeat business. Additionally, the company may also benefit from strategic alliances and joint ventures that expand its service capabilities and market reach.

Orion Group Holdings Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance with significant revenue and backlog growth, particularly in the Marine segment. However, challenges such as margin pressures in the Concrete segment and delayed project decisions in the private sector are notable concerns.
Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenue increased by 7% to $205 million, and adjusted EBITDA doubled to $11 million compared to the second quarter of last year.
Strong Backlog and Pipeline
The backlog grew to almost $750 million, and the opportunity pipeline expanded from $16 billion to $18 billion, supported by diverse growth drivers.
Marine Segment Performance
Marine revenues increased 3% over the previous year, and adjusted EBITDA grew to $12.7 million with a 9.4% margin.
Concrete Business Expansion
The Concrete segment showed strong opportunities, especially in data centers, with an expanding client base and new projects spanning energy, consumer goods, and transportation.
New Contract Awards
Contracts awarded include an export dock replacement project in the Pacific Northwest and two projects with the Port of Tampa Bay.
Favorable Political and Economic Climate
Benefits from the One Big Beautiful Bill Act, which appropriates $4.4 billion for infrastructure and includes provisions to lower operating costs and expedite permitting.
Negative Updates
Concrete Segment Margin Challenges
Concrete segment reported a $1.7 million loss in adjusted EBITDA compared to a $4 million profit in the previous year, attributed to favorable project closeout benefits in 2024 that did not recur.
Competitive Pressure in Data Centers
Increased competition from new market entrants in the data center space, affecting margins and market share.
Private Sector Decision Delays
Some private sector clients are delaying project awards due to economic uncertainties and potential interest rate changes.
Weather Impact on Concrete Business
Adverse weather conditions in Texas and Florida negatively affected the Concrete segment's revenue in the first half of the year.
Company Guidance
During the Orion Group Holdings second quarter 2025 financial results conference call, the company provided a positive outlook supported by key metrics. Revenue increased by 7% year-over-year to $205 million, with adjusted EBITDA doubling to $11 million. Sequential revenue growth was 9%, while adjusted EBITDA increased by 34%. The robust performance was attributed to new contract awards across both the Marine and Concrete segments, with a backlog exceeding $750 million. The opportunity pipeline expanded from $16 billion to $18 billion, indicating strong demand. The company reaffirmed its full-year 2025 guidance, projecting revenue between $800 million and $850 million, adjusted EBITDA from $42 million to $46 million, and adjusted EPS ranging from $0.11 to $0.17. Additionally, CapEx is expected to be between $25 million and $35 million. The guidance reflects confidence in the company's growth strategy and market position, driven by public and private funding sources.

Orion Group Holdings Financial Statement Overview

Summary
Orion Group Holdings shows a positive trajectory with improvements in profitability and cash management. Revenue growth and profitability margins are improving, but further enhancements in return on equity and EBIT margins could drive better overall performance. The balance sheet is strong with manageable leverage and solid equity positioning.
Income Statement
72
Positive
Orion Group Holdings has shown a commendable improvement in its income statement metrics. The TTM gross profit margin stands at 11.96%, indicating efficient cost management. Notably, there is a net profit margin of 0.36% for the TTM, reflecting a turnaround from previous losses. Revenue has grown by 3.51% from the previous year, showcasing positive growth momentum. The EBIT margin improved to 1.87% in the TTM, although still modest, it marks a recovery from negative EBIT in prior years.
Balance Sheet
68
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32 in the TTM, indicating moderate leverage. The return on equity is a modest 1.99%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 36.22%, highlighting a strong equity position relative to total assets, which provides a buffer against potential financial risks.
Cash Flow
75
Positive
Orion Group Holdings demonstrates strong cash flow metrics with a significant improvement in free cash flow, up from negative levels in prior periods to $10.79 million in the TTM. The operating cash flow to net income ratio is favorable at 10.69, indicating robust cash generation relative to earnings. This reflects effective cash management practices and enhances financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue837.49M796.39M711.78M748.32M601.36M709.94M
Gross Profit106.15M91.16M61.66M50.74M40.97M84.70M
EBITDA23.50M44.81M24.75M21.14M21.55M60.21M
Net Income10.44M-1.64M-17.88M-12.61M-14.56M20.22M
Balance Sheet
Total Assets432.72M417.32M416.89M367.15M351.75M414.19M
Cash, Cash Equivalents and Short-Term Investments1.73M28.32M30.94M3.78M12.29M1.59M
Total Debt46.40M95.34M85.49M66.56M69.21M65.67M
Total Liabilities279.53M266.64M295.42M229.35M203.65M254.69M
Stockholders Equity153.19M150.68M121.47M137.80M148.10M159.49M
Cash Flow
Free Cash Flow30.75M-1.42M8.27M-5.02M-16.91M31.34M
Operating Cash Flow47.39M12.68M17.18M9.56M69.00K46.03M
Investing Cash Flow-14.04M-11.48M2.17M-9.70M10.63M-3.13M
Financing Cash Flow-25.23M-3.82M7.81M-8.37M6.00K-42.40M

Orion Group Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.58
Price Trends
50DMA
7.90
Negative
100DMA
7.85
Negative
200DMA
7.54
Positive
Market Momentum
MACD
-0.07
Negative
RSI
54.03
Neutral
STOCH
82.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORN, the sentiment is Neutral. The current price of 7.58 is above the 20-day moving average (MA) of 7.03, below the 50-day MA of 7.90, and above the 200-day MA of 7.54, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ORN.

Orion Group Holdings Risk Analysis

Orion Group Holdings disclosed 32 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$793.51M11.0915.93%24.40%61.44%
71
Outperform
$303.58M26.907.90%15.85%
70
Outperform
$164.51M57.685.24%0.61%9.52%-88.22%
64
Neutral
$404.22M-14.26%-0.29%-6.77%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
63
Neutral
$354.31M47.043.32%-8.98%-38.23%
41
Neutral
$221.32M-41.62%-23.35%-49.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORN
Orion Group Holdings
7.58
1.17
18.25%
ESOA
Energy Services of America
9.89
0.10
1.02%
GLDD
Great Lakes Dredge & Dock
11.73
2.43
26.13%
MTRX
Matrix Service Company
14.58
5.44
59.52%
BBCP
Concrete Pumping Holdings
7.64
2.87
60.17%
SLND
Southland Holdings
4.20
0.39
10.24%

Orion Group Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Orion Group Holdings Reports Strong Q2 2025 Results
Positive
Jul 30, 2025

On July 29, 2025, Orion Group Holdings reported its second quarter 2025 financial results, showing a 7% revenue increase to $205 million and a doubling of adjusted EBITDA to $11 million compared to the same quarter in 2024. The company also reaffirmed its full-year 2025 guidance, highlighting a strong backlog of $750 million and new contract wins worth over $450 million in the first half of the year. The results were driven by new contract awards in both the marine and concrete segments, with significant opportunities in the U.S. Navy’s deterrence strategy, port expansions, and the data center sector. Orion’s management expressed confidence in their growth strategy, supported by a strengthened team and a robust opportunity pipeline.

Executive/Board Changes
Orion Group Holdings CFO Transition Announced
Neutral
Jul 1, 2025

Orion Group Holdings announced that Scott Thanisch ceased his roles as Executive Vice President, Chief Financial Officer, and Treasurer on June 23, 2025. He will assist in the transition to his successor, Alison Vasquez, until July 1, 2025. As per his Employment and Separation Agreements, Thanisch will receive severance benefits, including unvested restricted shares, subject to compliance with certain covenants.

Business Operations and StrategyFinancial Disclosures
Orion Group Holdings to Post Q1 2025 Presentation
Positive
Jun 23, 2025

On June 23, 2025, Orion Group Holdings announced its intention to post the first quarter 2025 investor presentation on its website. The company highlighted its robust financial performance, with a significant increase in adjusted EBITDA and revenue compared to the previous year. Orion is well-positioned to benefit from the $1.2 trillion Infrastructure Act, which is expected to drive demand for its services in transportation, ports, waterways, and bridges. The company’s strong backlog and strategic focus on high-margin projects are expected to support its long-term growth and enhance its competitive position in the market.

Executive/Board ChangesBusiness Operations and Strategy
Orion Group Holdings Appoints New CFO Alison Vasquez
Positive
Jun 10, 2025

Orion Group Holdings announced the departure of Scott Thanisch as Executive Vice President, Chief Financial Officer, and Treasurer, effective June 23, 2025, with Alison Vasquez succeeding him. Vasquez, who brings over 25 years of financial experience from her previous roles at KBR, Inc., will join Orion to support its next phase of growth and profitability. The company reiterated its 2025 revenue guidance of $800 million to $850 million and Adjusted EBITDA of $42 million to $46 million, highlighting Vasquez’s role in executing strategic goals to enhance shareholder value.

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.Date of analysis: Sep 05, 2025