Executive Summary

Q1 2025 revenue grew 17.4% YoY to $188.7M, while GAAP diluted EPS was $(0.04); Adjusted EPS was $0.01 as Adjusted EBITDA doubled YoY to $8.2M, driven by strong Marine execution and seasonal Concrete softness that management expects to reverse as the year progresses .
Results exceeded S&P Global consensus: revenue $188.7M vs $173.4M consensus* and EPS $0.01 vs $(0.09) consensus*, with four estimates contributing to each metric; management reiterated FY25 guidance (revenue $800–$850M; Adj. EBITDA $42–$46M; Adj. EPS $0.11–$0.17) . Values retrieved from S&P Global.
Backlog increased to $839.7M (vs $729.1M in Q4), with backlog plus post-quarter awards at $890.9M; YTD new awards reached $349M as bid metrics reflected a 39% win rate and 1.59x book-to-bill .
Call commentary flagged favorable tailwinds from U.S. defense/shipbuilding and public infrastructure, proactive tariff mitigation (Buy America/contingencies), sustained AI/data center demand, and FY25 capex of $25–$35M to position for 2026 “transformational growth” .

What Went Well and What Went Wrong

What Went Well
- Marine segment profitability inflected: Marine operating margin 3.8% and Adjusted EBITDA margin 8.6% in Q1, supported by strong project execution (Hawaii, Grand Bahama) .
- New business momentum: $349M YTD awards ($161M Marine, $188M Concrete), backlog to $839.7M and backlog+awards to $890.9M; bid win rate 39% and 1.59x book-to-bill .
- Management reiterated full-year guidance and highlighted robust demand catalysts (defense, shipbuilding, infrastructure, reshoring, data centers/AI). Quote: “We’re off to a strong start… revenue increased 17%… and Adjusted EBITDA doubled” — CEO Travis Boone .
What Went Wrong
- Concrete segment margin pressure: Q1 Concrete operating margin was (6.3)% (seasonal productivity and mix), with segment Adjusted EBITDA margin (4.4)%; management expects improvement through the year .
- SG&A deleverage near-term: SG&A rose to $22.5M (12.0% of revenue) on incentive comp, legal, IT, and lease costs (temporary “bubble” during office consolidation) .
- Operating cash flow negative $3.4M in Q1 (timing/working capital) vs positive $13.4M in Q4; capex stepped up to $9.0M to support growth .

Financial Results

Multi-period actuals

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$226.7	$216.9	$188.7
GAAP Diluted EPS ($)	$0.12	$0.17	$(0.04)
Adjusted EPS ($)	$0.16	$0.16	$0.01
Gross Margin (%)	11.9%	14.0%	12.2%
Adjusted EBITDA ($USD Millions)	$15.2	$17.1	$8.2
Adjusted EBITDA Margin (%)	6.7%	7.9%	4.3%

Q1 2025 actual vs S&P Global consensus

Metric	Q1 2025 Actual	Q1 2025 Consensus*	# of Estimates*
Revenue ($USD Millions)	$188.7	$173.4*	4*
EPS ($)	$0.01	$(0.09)*	4*

Values retrieved from S&P Global.

Segment revenue and margin mix

Metric	Q3 2024	Q4 2024	Q1 2025
Marine Revenue ($M)	$140.0	$144.0	$127.2
Concrete Revenue ($M)	$86.7	$72.9	$61.5
Marine Operating Margin (%)	3.9%	5.0%	3.8%
Concrete Operating Margin (%)	2.6%	3.4%	(6.3)%

Key KPIs

KPI	Q4 2024	Q1 2025
Backlog ($M)	$729.1	$839.7
Backlog + post-quarter awards ($M)	$977.3	$890.9
New awards (YTD) ($M)	—	$349.0
Bid win rate (%)	25.7% (Q4)	39% (Q1)
Book-to-bill (x)	1.18x (Q4)	1.59x (Q1)
Cash from operations ($M)	$13.4	$(3.4)
Capex ($M)	$3.4	$9.0
Cash & equivalents ($M)	$28.3	$13.0
Total Debt ($M)	$23.2	$23.3

Non-GAAP adjustments (Q1 2025): Adjusted net income reconciles from GAAP loss with addbacks for SBC ($1.123M), ERP ($0.605M), severance ($0.03M), process improvements ($0.138M), net of tax and valuation allowance .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$800–$850M	$800–$850M	Maintained
Adjusted EBITDA	FY 2025	$42–$46M	$42–$46M	Maintained
Adjusted EPS	FY 2025	$0.11–$0.17	$0.11–$0.17	Maintained
Capex	FY 2025	$25–$35M	$25–$35M	Maintained

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Defense/Shipbuilding (Pacific)	Ramp in Pearl Harbor, strong pipeline; transformative growth seen in 2026	Navy MAC procurements moving into late ’25; pipeline to $16B	Tailwinds from administration focus on maritime dominance; large pursuits (~$500M each) targeted late ’25/’26	Strengthening opportunity; timing later but intact .
Tariffs/Macro	Neutral to positive macro; procurement/capex prep for growth	Planning for potential steel tariffs; minimal exposure	Proactive tariff mitigation (Buy America/contingencies); limited impact expected	Managed risk approach maintained.
AI/Data centers	29 data center projects; expanding with partners	Visibility strong; Concrete growth broadening	35 data centers to date; hyperscalers reaffirm AI investments; power availability is gating factor	Demand sustained; footprint expanding.
ERP/Systems	Go-live planned Jan 2025	ERP cutover Jan; enhances visibility and control	Fine-tuning systems; expect efficiency benefits	Execution benefit ramping.
Backlog/Bidding	Backlog steady; Q3 book-to-bill 0.7x; awards in Oct	Backlog $729M; Q4 win rate 25.7%, BTB 1.18x	Backlog $840M; Q1 win rate 39%, BTB 1.59x	Build accelerating.
Cash Flow/Capex	Preparing to lift capex in 2025	Capex $25–$35M; fund growth via operations	Maintaining capex plan; OCF to turn positive in 2025	Investment to support growth.
Concrete margins	Improving trajectory; high single-digit medium-term target	Healthy and growing; high single-digit EBITDA medium-term	Seasonal Q1 dip; expected recovery through year	Seasonal low, improving path.

Management Commentary

“We’re off to a strong start in 2025. On a year-over-year basis, our first quarter revenue increased 17% to $189 million and Adjusted EBITDA doubled.” — Travis Boone, CEO .
“We have seen no pullback in our market opportunities… secured almost $350 million in new wins… projects across the full spectrum… including marine facilities, dredging, bridges, large buildings and data centers.” — Boone .
“The recent tariffs and steps taken to reduce the size of the federal government will not have a material impact on our results for 2025… we were proactive in managing tariff risks starting last summer.” — Boone .
“Adjusted net income was $300,000… Adjusted EBITDA margin improved 180 bps to 4.3%... Marine segment was 8.6%… Concrete negative 4.4%.” — Scott Thanisch, CFO .
“We are reiterating our guidance for the full year 2025… revenue $800–$850 million, with adjusted EBITDA $42–$46 million… CapEx $25–$35 million.” — Thanisch .

Q&A Highlights

Defense timing and size: Federal awards likely late 2025 into 2026; current pursuits around ~$500M each with more expected .
Concrete outlook: Strong order activity; seasonal Q1 trough expected to recover; operating leverage to lift margins through 2025 .
Tariffs/input costs: Buy America coverage plus supplier relationships; contingency for foreign steel; pricing bids to reflect higher input costs .
Cash flow trajectory: OCF improved YoY; expected to turn positive over 2025 .
Balance sheet/liquidity: No revolver draws; ABL capacity generally $40–$60M to support mobilizations; lenders supportive for growth capex .

Estimates Context

S&P Global consensus (4 estimates) vs actuals: Revenue $173.4M* vs actual $188.7M, EPS $(0.09)* vs actual $0.01 — both above expectations . Values retrieved from S&P Global.
Given the beat and reiterated FY guide, sell-side models may raise near-term revenue and EPS, and lift Marine margin trajectory assumptions, while moderating Concrete margin cadence given Q1 seasonality .

Key Takeaways for Investors

Broad-based beat and guide reiteration: Q1 revenue/EPS topped consensus*, and FY25 revenue ($800–$850M), Adj. EBITDA ($42–$46M), and Adj. EPS ($0.11–$0.17) were maintained, de-risking near-term execution . Values retrieved from S&P Global.
Marine driving profitability: Marine margins and execution are the core earnings lever; Concrete should rebound seasonally with volume and operating leverage through 2025 .
Backlog and win-rate momentum: Q1 book-to-bill 1.59x and 39% win rate set up accelerating 2H activity; monitor conversion speed and segment mix .
Secular catalysts intact: Defense/shipbuilding and public infrastructure tailwinds, plus sustained AI/data center demand, support multi-year growth; 2026 remains the step-change year .
Tariff risk mitigated: Buy America and contingency practices limit cost shocks; bids incorporate higher inputs where needed .
Cash and capex: OCF should inflect positive in 2025 as working capital normalizes; capex $25–$35M targets growth projects with high ROIC .
Trading lens: Near-term catalysts include additional large Marine awards, Concrete margin improvement into Q2/Q3, and backlog accrual; watch the cadence of Navy/MAC awards and data center power constraints for timing signals .

Additional Detail (from Q1 2025 8-K/Press Release)

YoY revenue growth of 17.4% driven by large marine contracts and new concrete projects .
GAAP net loss $(1.4)M vs $(6.1)M YoY; Adjusted net income $0.3M with $1.7M of adjusting items (SBC, ERP, severance, process improvements) .
Backlog: Marine $607.4M, Concrete $232.3M, total $839.7M; recent wins post-quarter $51.2M .
Balance sheet: $13.0M cash; $23.3M total debt; zero revolver draws .

Citations

Q1 2025 8-K and press release:
Q1 2025 earnings call transcript:
Q4 2024 press release and call:
Q3 2024 press release and call:
Consensus estimates (S&P Global): GetEstimates for Q1 2025 Revenue/EPS and estimate counts. Values retrieved from S&P Global.

Orion Group Holdings Inc (ORN)·Q1 2025 Earnings Summary