Executive Summary

Orion delivered a solid Q3: revenue $225.1M (flat YoY, +10% QoQ), Adjusted EBITDA $13.1M (−14% YoY, +19% QoQ), and Adjusted EPS $0.09; operating cash flow was strong at $23M with $14M FCF .
EPS beat Street by a wide margin: Primary/Adjusted EPS $0.09 vs $0.02 consensus; revenue was in line at $225.1M vs $225.3M consensus* (beat driven by Marine execution and dredge utilization) .
FY25 guidance raised across revenue ($825–$860M), Adjusted EBITDA ($44–$46M), and Adjusted EPS ($0.18–$0.22); capex maintained at $25–$35M .
Strategic catalysts: $400M expansion of bonding capacity, sale of East/West Jones property for $23.5M (cash to reduce debt), and shortlisting on INDOPACOM MACC vehicles (PDI $15B; Hawaii/Wake $8B) supporting 2026+ pipeline .
Watch items: Concrete underperformed (−$4M adj. EBITDA vs +$4M LY) on lack of 2024 close-out benefits and weather; backlog $679M (slightly below $691M LY) as some awards slid right into 2026 .

What Went Well and What Went Wrong

What Went Well

Marine margin step-up: Marine adj. EBITDA rose to $17.6M with a 12.3% margin (vs 8.2% LY) on stronger dredging utilization and broad regional execution (“across the Atlantic and the Gulf”) .
Robust cash generation and balance sheet: Q3 operating cash flow $23M and $14M FCF; no borrowings on the revolver; proceeds from a $23.5M property sale in October to reduce debt .
Strategic positioning and visibility: Shortlisted on key NAVFAC/INDOPACOM MACCs (PDI $15B, Hawaii/Wake $8B), and management highlighted $1.2B of bids submitted and awaiting award; pipeline cited at ~$18B .

What Went Wrong

Concrete softness: Segment swung to a −$4.4M adj. EBITDA loss (−5.4% margin) from +$3.7M (+4.3%) LY, driven by absence of prior-year favorable closeouts and weather impacts on chargeability .
Higher SG&A: Q3 SG&A increased to $25.1M from $20.8M LY, reflecting growth investments (new offices/expansion) and quarter-specific employee cost timing .
Backlog down modestly YoY: Total backlog $679M vs $691M LY with Marine backlog $477M (vs $537M), as some federal projects, particularly in the Pacific, slid out ~a year .

Financial Results

Consolidated Revenue and EPS

Metric	Q3 2024	Q2 2025	Q3 2025 Actual	Q3 2025 Consensus
Revenue ($M)	$226.7	$205.3	$225.1	$225.3*
GAAP Diluted EPS ($)	$0.12	$0.02	$0.08	—
Primary/Adjusted EPS ($)	$0.16	$0.07	$0.09	$0.02*

Notes: Primary EPS consensus aligns to company Adjusted EPS for Q3 (actual 0.09). Values with asterisk (*) retrieved from S&P Global.

Profitability and Gross Profit

Metric	Q3 2024	Q2 2025	Q3 2025
Adjusted EBITDA ($M)	$15.2	$11.0	$13.1
Adjusted EBITDA Margin (%)	6.7%	5.3%	5.8%
Gross Profit ($M)	$27.1	$25.8	$29.8

Segment Performance (Q3)

Segment	Revenue ($M)	Adj. EBITDA ($M)	Adj. EBITDA Margin (%)
Marine – Q3’24	$140.0	$11.5	8.2%
Marine – Q3’25	$142.9	$17.6	12.3%
Concrete – Q3’24	$86.7	$3.7	4.3%
Concrete – Q3’25	$82.2	$(4.4)	(5.4)%

Backlog and Awards

Metric	Q3 2024	Q3 2025
New awards & change orders in quarter ($M)	—	$160
Backlog – Marine ($M)	$537	$477
Backlog – Concrete ($M)	$154	$202
Backlog – Total ($M)	$691	$679

Cash, Debt, and Liquidity (Quarter-end)

Metric	Q3 2025
Cash & equivalents ($M)	$4.9
Total debt ($M)	$23.6
Revolver borrowings	None
Management net debt reference ($M)	~$21 (TTM leverage < 0.5x)

Cash Flow KPIs (Q3)

Metric	Q3 2025
Cash from Operations ($M)	$23
Free Cash Flow ($M)	$14

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$800–$850M	$825–$860M	Raised
Adjusted EBITDA	FY 2025	$42–$46M	$44–$46M	Raised (midpoint)
Adjusted EPS	FY 2025	$0.11–$0.17	$0.18–$0.22	Raised
Capex	FY 2025	$25–$35M	$25–$35M	Maintained

Reconciliation disclosures for FY25 Adjusted EBITDA/EPS were provided in the release .

Earnings Call Themes & Trends

Topic	Q1 2025 (Prior-2)	Q2 2025 (Prior-1)	Q3 2025 (Current)	Trend
AI/data centers	Strong demand; 5 DC wins; >35 delivered; no slowdown; power availability gating in some locales	Demand “exceptionally strong”; new market entrants; leveraging GC relationships	~27% of Concrete Q3 revenue and ~27% of pipeline tied to data centers; larger deals emerging (Iowa)	Positive; larger deal sizes; sustained pipeline
Tariffs/macro	Proactive mitigation; no material 2025 impact; supplier relationships key	Private awards delayed by macro/tariff uncertainty but expected to resume in 2H	No policy-driven project changes; some private delays; deregulation/tax benefits help clients	Mixed near-term timing; constructive policy backdrop
Pacific Navy/INDOPACOM	Expect late-2025/early-2026 awards; pursuing ~$500M projects	Awards sliding right; limited 2025 awards expected; 2026 potential	Shortlisted on $15B PDI and $8B HI/Wake MACCs; larger task orders mid/late-2026	Visibility improving; timing shifted right
Marine performance	Q1 Marine margins strong on HI/Bahamas; achievable regularly	Multiple large projects beyond HI/Bahamas supporting margins	Dredging utilization drove 12% Marine margin; broad regional execution	Durable, execution-led
Concrete profitability	Q1 seasonal softness; path to profitability over year	Weather in TX/FL pressured 1H; expect back-half recovery	Q3 loss on lack of 2024 closeouts; weather impacted chargeability; expect mix improvement	Stabilizing; weather and mix watch

Management Commentary

“We delivered another strong third quarter marked by top- and bottom-line results, robust cash generation, good bookings, and market-leading safety… expanding our bonding capacity by $400 million… closing the sale of the East and West Jones property in October.” – CEO Travis Boone .
“Our aggregate pipeline is a healthy $18 billion with over $1 billion of opportunities that we have submitted and are awaiting award… shortlisted on… $15 billion Pacific Deterrence Initiative… and $8 billion Hawaii Wake Island MACC.” – CEO .
“Marine adjusted EBITDA grew over 50% to $18 million… strong margins attributable to… higher margin revenue, excellent execution… and favorable equipment utilization.” – CFO Alison Vasquez .
“We wrapped up the quarter with $21 million of net debt, or just under half a turn of leverage… [and] closed on the sale of the East West Jones property… cash upside of over $22 million net of commissions and taxes.” – CFO .

Q&A Highlights

Pipeline and awards: Bids submitted and awaiting award ~$1.2B; some client delays, but pipeline for 2026 “very strong” .
Data centers: ~27% of Concrete Q3 revenue and pipeline; deal sizes increasing; Iowa project underway .
Marine margins: Strength driven by dredging/utilization and execution; benefits not “unusual,” suggesting sustainability .
SG&A investments: Growth-related (Atlantic region for Concrete, Phoenix office); some quarterly lumpiness in employee costs .
Cash and balance sheet: $23.5M property sale cash already received; expect healthy 4Q cash collection cadence; lower interest expense reflects working capital optimization .

Estimates Context

Q3 2025 results vs S&P Global consensus: Revenue $225.1M vs $225.3M* (in line); Primary/Adjusted EPS $0.09 vs $0.02* (material beat) .
Implications: The EPS beat and raised FY25 ranges for revenue, Adjusted EBITDA and Adjusted EPS suggest upward estimate revisions for Q4/FY, while Concrete variability and backlog timing could temper expectations near term .

Values marked with an asterisk (*) were retrieved from S&P Global via our estimates tool.

Key Takeaways for Investors

Material EPS beat with in-line revenue: Marine execution (especially dredging utilization) and lower interest expense drove the upside; revenue was stable despite a soft Concrete print .
FY25 guidance raised: Revenue to $825–$860M, Adjusted EBITDA to $44–$46M, Adjusted EPS to $0.18–$0.22; execution confidence into year-end remains high .
Marine outlook constructive: Shortlisting on INDOPACOM MACCs and broad regional strength underpin multi-year visibility; larger task orders expected to be procured in mid/late 2026 .
Concrete is volatile but strategically important: Data centers remain a sizable, growing opportunity (~27% of pipeline and Q3 revenue), though weather/mix can swing quarterly results .
Balance sheet optionality: Expanded bonding capacity (+$400M) and property sale proceeds to reduce debt create capacity to pursue larger, higher-ROIC projects .
Trading setup: Narrative skewed positively by guidance raise and EPS beat; watch Concrete recovery trajectory and timing of Navy-related task orders as incremental catalysts .

Additional Detail and Sources:

Earnings press release and full financial tables, including non-GAAP reconciliations and guidance bridges .
8-K furnishing the full transcript due to technical issues on the live call and transcript content including prepared remarks and Q&A -.
Q2 and Q1 earnings calls used for trend context and prior guidance levels - -.

Orion Group Holdings Inc (ORN)·Q3 2025 Earnings Summary