Executive Summary

Q2 2025 delivered top-line and margin expansion: revenue $205.3M (+6.8% YoY, +9% QoQ), Adjusted EBITDA $11.0M (+99% YoY), Adjusted EBITDA margin 5.3% (+240 bps YoY). GAAP EPS $0.02; Adjusted EPS $0.07 .
Results beat Wall Street consensus: revenue $205.3M versus $198.3M*, and Adjusted EPS $0.07 versus -$0.03*; beat driven by strong Marine performance and disciplined bidding; guidance reaffirmed .
Backlog ended at $745.7M; Marine $554.8M, Concrete $190.9M; opportunity pipeline grew to $18B from $16B in Q1, supported by public and private funding tailwinds (ports, defense, AI-driven data centers) .
Concrete segment faced weather and prior-year closeout comparisons; Marine margins strengthened on efficient project execution across multiple large jobs; management expects H2 improvement and maintained FY25 guide (Rev $800–$850M; Adj EBITDA $42–$46M; Adj EPS $0.11–$0.17; Capex $25–$35M) .
Catalysts: near-term bookings from Port Tampa Bay and Pacific Northwest export dock project; medium-term Navy awards sliding to 2026 suggest private-sector/data center momentum is the nearer driver; CFO transition viewed as strengthening execution discipline .

What Went Well and What Went Wrong

What Went Well

Marine segment profitability inflected: Adjusted EBITDA $12.7M (9.4% margin) versus $1.5M (1.1%) in Q2 2024; driven by strong execution across multiple large projects beyond Hawaii and Grand Bahama Shipyard .
Opportunity pipeline expanded to $18B with robust demand across ports, coastal rehabilitation, defense, and data centers; CEO: “We continue to see strong demand… our opportunity pipeline grew from $16 billion last quarter to $18 billion today” .
Guidance reaffirmed with most 2025 work under contract; CFO emphasized consistent delivery and backlog health entering H2 .

What Went Wrong

Concrete segment swung to an Adjusted EBITDA loss (-$1.7M; -2.4% margin) versus +$4.0M (6.6%) last year, impacted by the absence of favorable 2024 closeouts and weather in Texas/Florida; management sees competition increasing in data centers .
Working capital usage weighed on cash flow (YTD operating cash flow -$9.0M), with revolver borrowings of $10.0M as of quarter end; CFO expects collections and paydowns to normalize in H2 .
Navy award timing sliding “to the right”; management does not expect awards this fiscal year, pushing potential acceleration into mid-2026, modestly tempering near-term Marine visibility .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025	Consensus Q2 2025
Revenue ($USD Millions)	$192.2	$188.7	$205.3	$198.3*
GAAP EPS ($)	$(0.20)	$(0.04)	$0.02	—
Adjusted EPS ($)	$(0.12)	$0.01	$0.07	-$0.03*
Adjusted EBITDA ($USD Millions)	$5.5	$8.2	$11.0	—
Adjusted EBITDA Margin %	2.9%	4.3%	5.3%	—

Values with asterisks (*) retrieved from S&P Global.

Segment performance:

Metric	Q2 2024	Q1 2025	Q2 2025
Marine Contract Revenues ($M)	$130.95	$127.16	$135.30
Concrete Contract Revenues ($M)	$61.21	$61.49	$69.98
Marine Adjusted EBITDA ($M)	$1.47	$10.90	$12.66
Concrete Adjusted EBITDA ($M)	$4.04	$(2.73)	$(1.68)
Marine Adjusted EBITDA Margin %	1.1%	8.6%	9.4%
Concrete Adjusted EBITDA Margin %	6.6%	-4.4%	-2.4%

KPIs and balance sheet trend:

KPI	Q4 2024	Q1 2025	Q2 2025
Total Backlog ($M)	$729.1	$839.7	$745.7
Marine Backlog ($M)	$582.8	$607.4	$554.8
Concrete Backlog ($M)	$146.3	$232.3	$190.9
Opportunity Pipeline ($B)	~$16	—	$18
Unrestricted Cash ($M)	$28.3	$13.0	$1.7
Total Debt ($M)	$23.2	$23.3	$33.4
Revolver Borrowings ($M)	$0.0	$0.0	$10.0

Non-GAAP definitions: Adjusted EBITDA and Adjusted EPS exclude share-based compensation, ERP implementation, severance, and process improvement initiatives; margins reflect Adjusted EBITDA divided by contract revenues .

Guidance Changes

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

Management cited majority of 2025 work already under contract and sustained end-market demand .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24/Q1’25)	Current Period (Q2’25)	Trend
AI/data centers	35+ data centers; expanding scope/geography; pipeline ~$16B	Demand “exceptionally strong” despite new entrants; Concrete margins targeted high-single digit longer term	Positive demand; competitive intensity rising
Supply chain/weather	Normal Q1 seasonality hit Concrete productivity	Tough H1 weather in TX/FL; expect H2 recovery	Headwind easing
Tariffs/macro	Proactively managing tariffs; minimal expected impact	Private clients “tapped the brakes” amid uncertainty; expect H2 conversion improvement	Near-term caution
Regulatory/tax	Policy initiatives supportive (defense/reshoring)	Recent bill eases permitting, tax benefits; helps decision-making	Supportive
Regional expansion	Florida expansion encouraging	New Phoenix office to capitalize on AZ growth	Expanding footprint
Defense/U.S. Navy	Pacific deterrence opportunity highlighted	Navy awards sliding; likely none this FY; hope mid-2026	Timing delayed
Cash flow/working capital	Q4’24 CFO: operating cash flow $13.4M	July collections improving; revolver paydowns; expect good H2	Improving collections

Management Commentary

CEO: “We delivered another strong performance… revenue increasing 7% to $205 million and Adjusted EBITDA doubling to $11 million… Our results were primarily driven by new contract awards in both segments and reflect our commitment to disciplined, profitable growth.” .
“Our opportunity pipeline grew from $16 billion last quarter to $18 billion today… In our Marine segment, we see robust opportunities… In our Concrete segment, demand from the data center sector remains exceptionally strong.” .
CFO: “Marine revenues increased 3%… and marine adjusted EBITDA grew to $12.7 million… Concrete adjusted EBITDA was a $1.7 million loss… excluding corporate SG&A, concrete standalone contribution EBITDA margins ~5% and marine ~13%—in line with expectations.” .
Strategy: New HQ to drive collaboration; bidding discipline and execution underpin margin improvement; Phoenix office to pursue AZ data center/commercial growth .

Q&A Highlights

Pipeline conversion: Private sector delays pushed decisions to H2; expectation for improved award cadence as macro uncertainty and rates ease .
Concrete competitiveness: Data center market remains “hot”; Orion leverages deep GC relationships and execution track record to sustain share despite new entrants .
Navy timing: Awards moving to the right; management does not expect awards this fiscal year; potential mid-2026 timing .
Working capital/FCF: July collections trending better; revolver paydown underway; expect a good back half .
Weather: H1 weather disrupted Concrete; outlook for H2 weather seasonally better, aiding revenue recovery .

Estimates Context

Q2 2025 beat: revenue $205.3M vs $198.3M*, and Adjusted EPS $0.07 vs -$0.03*; beat magnitude ~$+$7.0M on revenue and +$0.10 on EPS. The upside came from Marine project execution and broader award mix, while Concrete was pressured by weather and prior-year closeouts not repeating .
Forward estimates: Given margin trajectory and reaffirmed FY guide, Street may raise H2 EBITDA/EPS paths in Marine, while Concrete revisions could hinge on H2 weather and award flow in data centers.
Values retrieved from S&P Global.

Key Takeaways for Investors

Strong execution in Marine drove margin expansion; multi-project contribution reduces reliance on any single job and supports sustained profitability through H2 .
Concrete headwinds appear transitory (weather and 2024 closeouts); management targets improved H2 and medium-term margin normalization, aided by robust data center pipeline .
Demand remains broad-based; backlog and pipeline support FY guide maintenance with majority of 2025 work under contract—reducing near-term forecast risk .
Near-term catalysts: Port Tampa Bay maintenance dredging and Redwing Berth 301, and Weyerhaeuser Longview export dock project commencement in Q3 2025 .
Policy tailwinds (permitting/tax relief; AI/data center incentives) likely to aid private-sector awards in H2/H1’26; defense awards timing delayed, tempering the pace of Marine defense backlog build .
Cash discipline improving: July collections and revolver paydowns suggest working capital normalization; monitor YTD operating cash flow (-$9.0M) for H2 inflection .
CFO transition adds experienced financial leadership in M&A and execution; viewed as enhancing next-phase growth discipline .

Note: Adjusted metrics are non-GAAP and exclude items such as share-based compensation, ERP implementation, severance, and process improvement initiatives; see company reconciliations for details **[1402829_0001558370-25-009770_orn-20250729xex99d1.htm:6]** **[1402829_328e5a3798954b48a6d7cd3c16b14c07_7]**.

Orion Group Holdings Inc (ORN)·Q2 2025 Earnings Summary