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    ORN
    Earnings call· Jun 2026(Q2 FY26)

    Orion Group Holdings Q2 FY26 earnings call ORN

    Jul 29, 2026 Source

    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

    5

    • 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

    5

    • 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

    4
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $900 million to $950 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $50 million to $54 million
    high materiality
    High
    Full-year 2026 Adjusted EPS
    $0.23 to $0.30
    high materiality
    High
    Full-year 2026 Capital Expenditures
    $25 million to $35 million
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 growthover 30%—between 5.5% and 6%

    Operational metrics

    12
    Revenue
    $222 million8% increase from Q2 FY25
    Q2 FY26

    Generated revenue of $222 million, an 8% increase from the second quarter of last year.

    Gross Profit
    $23 milliondown $3 million from last year
    Q2 FY26

    Gross profit was $23 million, down $3 million from last year due primarily to lower Marine volume and equipment utilization.

    GAAP Net Income (Loss)
    ($4.1 million)compared to GAAP net income of $0.8 million in Q2 FY25
    Q2 FY26

    GAAP loss for the quarter was $4.1 million compared to GAAP net income of $0.8 million in the second quarter of last year, which was caused primarily by reduced volume in our Marine business, increased depreciation and amortization, and an increase in GAAP taxes associated with VA adjustments.

    Adjusted EBITDA
    $7.9 millioncompared to $11 million in Q2 FY25
    Q2 FY26

    Second quarter adjusted EBITDA was $7.9 million compared to $11 million or $0.07 per share in the prior year quarter.

    Adjusted EPS
    $0.02compared to $0.07 per share in Q2 FY25
    Q2 FY26

    Second quarter adjusted EBITDA was $7.9 million and adjusted EPS was $0.02, compared to $11 million or $0.07 per share in the prior year quarter.

    Net Leverage
    2.3x
    Q2 FY26

    Our balance sheet is in good shape with net leverage of 2.3x, providing us with financial flexibility to support our strategic priorities.

    Concrete Revenue Growth
    over 30%
    Q2 FY26

    Our Concrete business posted excellent results, reporting over 30% top line... growth in the quarter

    Concrete Adjusted EBITDA Growth
    45%
    Q2 FY26

    Our Concrete business posted excellent results, reporting... 45% adjusted EBITDA growth in the quarter

    Concrete Data Center Revenue Share
    50%up from 40% in Q1
    Q2 FY26

    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.

    Concrete Segment Operating Margin
    5.5% to 6%
    Q2 FY26

    they're just between 5.5% and 6%, and that's generally what we pencil out for them for the year.

    Marine Work Under Contract
    nearly 90%
    H2 FY26

    Today, we have very good visibility into the remainder of the year with nearly 90% Marine work under contract

    Overall Business Under Contract
    80%
    H2 FY26

    and 80% of our business overall is under contract for the back half of the year.

    Industry KPIs

    8
    MetricValueDetails
    Total backlog$722 millionUSD
    12 month backlog—
    Book to bill ratio1.25xratio
    End market pipeline$27 billionUSD
    Acquisition contributionpositive
    Self perform activity mix—
    Same store organic revenue growth—
    Craft skilled labor headcount capacity—

    Orderbook & backlog

    2
    Total Backlog$722 millionQ2 FY26
    New Bookings$275 millionQ2 FY26

    Deals & partnerships

    1
    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

    3
    Client delays in Marine businessQ2 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 cyclesQ2 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 hurdlesFY27 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

    5

    Marine segment productivity and utilization

    H2 FY26
    Currentbelow expectations in the second quarter
    Targetgood 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.