Inquired if order pickup continued into July and about market pricing trends.

Travis Boone confirmed continued general wins in July, with pricing remaining relatively steady and not heading in the wrong direction. He also noted that the win rate stepped up slightly in the Marine business from Q1 to Q2. “Yes. We've seen general continued wins in July. Nothing specifically to write home about or we would have talked about it, but it's been a good group of wins in the first month of the third quarter. As far as pricing, it has generally been stayed relatively steady, nothing heading in the wrong direction.”

Asked for clarification on Concrete segment growth expectations for the second half, given that backlog can be misleading due to quick turnaround.

Travis Boone explained that Concrete projects have a very quick turnaround, often starting within weeks of an opportunity arising, making backlog less indicative of near-term activity. He highlighted over $1 billion in outstanding bids for the Concrete business and strong confidence in its performance. “Oftentimes, we hear about an opportunity, and we're working on it 2 weeks later, 3 weeks later. It's a really quick turnaround. And so not seeing it in the backlog is not an indication of our expectations of what it's going to be just because it comes in quick and converts fast.”

Asked if Q2 Concrete margins are a good run rate and what percentage of Concrete revenue/backlog comes from data centers.

Alison Vasquez stated Q2 Concrete margins (5.5%-6%) were in line with expectations and are a good target for the full year, with potential for expansion. Travis Boone confirmed that roughly 50% of Concrete revenue this quarter came from data centers, up from 40% in Q1, and the pipeline is similar or slightly higher. “It's roughly 50% this quarter for data centers on Concrete, the revenue this year -- or this quarter. ... And just as a reminder, it was 40% in the first quarter.”

ORN

Orion Group Holdings (ORN) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 29, 2026

Source: earnings call transcript

Executive summary

Orion Group Holdings Q2 FY26 — Marine Delays Impact Results, Strong Concrete Performance

Orion Group Holdings reported Q2 FY26 results impacted by client-related project delays in its Marine segment, leading to a GAAP loss and reduced adjusted EBITDA. Despite these timing issues, the Concrete business delivered strong growth, and the company secured over $275 million in new bookings, maintaining a robust pipeline. Management expressed confidence in a strong second half of 2026 and 2027, driven by project ramp-ups and continued market momentum.

Highlights

Concrete business revenue grew over 30% and adjusted EBITDA grew 45% in the quarter.
Bookings for the quarter totaled over $275 million, representing a 1.25x book-to-bill ratio.
Total pursuit pipeline grew to approximately $27 billion, with $1.6 billion in projects quoted awaiting award.
Win rate was well above industry average, stepping up slightly in the Marine business from Q1 to Q2.
McAmis acquisition contributed positively to both top line and EBITDA, and was accretive to EBITDA margins.

Concerns

Q2 results were not in line with expectations due to client delays in the Marine business, impacting gross profit by $3 million YoY.
Marine top line and profitability were down due to timing of project awards, start-ups, and completions.
Q2 adjusted EBITDA was $7.9 million, down from $11 million in the prior year quarter.
GAAP loss for the quarter was $4.1 million, compared to GAAP net income of $0.8 million in Q2 FY25.
Full-year 2026 adjusted EBITDA guidance reset to $50 million-$54 million (15% growth at midpoint), down from prior expectations.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$900 million to $950 million high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$50 million to $54 million high materiality	FY26	High
Full-year 2026 Adjusted EPS	$0.23 to $0.30 high materiality	FY26	High
Full-year 2026 Capital Expenditures	$25 million to $35 million medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Marine Top line and profitability were down primarily due to timing of project awards, start-ups, and completions, leading to lower equipment utilization. Projects are now in full swing. Equipment utilization: lowerProject start-ups: slower-than-expectedAward cycles: elongated	down	—	—	down
Concrete Posted excellent results, benefiting from expansion into site civil services, favorable utilization, and solid execution. Q2 margins were in line with expectations, with full-year target around 6%. Adjusted EBITDA growth: 45%Utilization: favorableProject execution: solid	over 30% top line growth	over 30%	—	between 5.5% and 6%

Orderbook & backlog

Total Backlog $722 million Q2 FY26

New Bookings $275 million Q2 FY26

Deals & partnerships

McAmis (Pacific Rock and Dredge) Acquisition of a company specializing in jetty and breakwater system reconstruction.

Acquired in February. Fully transitioned to Orion's project controls, financial IT systems. Expected to contribute more heavily in H2 FY26 due to work windows.

Risks & headwinds

Client delays in Marine business Q2 FY26

Gross profit was down $3 million from last year due primarily to lower Marine volume and equipment utilization.

Mitigation:These delays are now behind us. ... These projects are now all in full swing, and we expect good productivity through the second half of the year.

Elongated award cycles Q2 FY26

Marine top line and profitability were down primarily due to the timing of project awards, start-ups and completions

Mitigation:We have reset our full year 2026 guidance to reflect this timing shift. Today, we have very good visibility into the remainder of the year with nearly 90% Marine work under contract

Defense budget legislative hurdles FY27 budget cycle

The President's 2027 $1.5 trillion defense budget proposal made its way through the House last week, but has yet to clear legislative hurdles in the Senate before reconciliation can begin.

Mitigation:While spending levels will be debated, investments across naval infrastructure modernization, Indo-Pacific Command strength, and logistics and port resilience continue to be priorities with solid bipartisan support. We are closely monitoring the U.S. defense budget as we look ahead to programs that will catalyze our long-term growth.

What to watch in Q3 FY26

Marine segment productivity and utilization

H2 FY26

Current below expectations in the second quarter

Target good productivity through the second half of the year

Why it matters

Marine segment profitability was significantly impacted by low utilization in Q2; recovery is key to achieving full-year guidance.

When Marine productivity slows, we sometimes get a double whammy in the lost project profitability along with the correlated lower equipment utilization, and this definitely impacted this quarter's gross profit. These projects are now all in full swing, and we expect good productivity through the second half of the year.

Find out whether ORN delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the confidence in achieving implied back-half margin pickup and opportunities for margin expansion.

Travis Boone stated confidence in the back-half margin pickup, citing that projects causing Q2 delays are now mobilized, 90% of Marine backlog for H2 is under contract, and 80% of overall business is under contract. He noted that full utilization of Marine assets will drive a significant jump in profitability.

“We have 90% of our Marine backlog for the back half of the year under contract and 80% of our business overall is under contract for the back half of the year. And we feel really good about our ability to deliver -- recognizing that it's a big jump up from where we were in the first half.”

asked by Aaron Spychalla · answered by Travis Boone

2 min read 5 chapters

Detailed narrative

Marine Segment Delays and Outlook

The Marine business experienced client-related project delays in Q2 FY26, impacting revenue and profitability. These delays were attributed to issues like site readiness and client-provided materials, leading to lower equipment utilization. However, all affected projects are now fully underway, and management expects strong productivity and a significant ramp-up in the second half of 2026, with nearly 90% of Marine work for the back half already under contract.

Concrete Segment Strength and Expansion

The Concrete business demonstrated robust performance, achieving over 30% top-line growth and 45% adjusted EBITDA growth in Q2 FY26. This growth was driven by expansion into site civil services, favorable utilization, and solid execution, particularly benefiting from the build-out of infrastructure for AI, cloud computing, and domestic manufacturing. The segment's pipeline remains strong, with over $1 billion in bids outstanding.

Strong Bookings and Growing Pipeline

Orion recorded over $275 million in new bookings during the quarter, resulting in a 1.25x book-to-bill ratio and increasing total backlog to $722 million. The overall pursuit pipeline expanded to approximately $27 billion, with $1.6 billion in projects quoted awaiting award, reflecting a significant increase from $1 billion at the beginning of the year. The company's win rate remains well above the industry average.

Strategic Positioning and Market Trends

Orion is strategically positioned to benefit from long-term capital investment themes, including defense, port and transportation infrastructure, energy, and data centers. The company is increasingly pursuing larger, more complex marine infrastructure projects and is seeing a shift towards alternative delivery models in its Concrete business, which leverages its specialized capabilities and early client engagement.

McAmis Acquisition Contribution

The acquisition of McAmis (Pacific Rock and Dredge) is progressing well, with the team contributing positively to both top line and EBITDA in Q2 FY26. The integration into Orion's systems is complete, and McAmis is expected to contribute more heavily in the second half of the year due to the seasonal nature of its work windows, with projects now fully underway.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.