• Revenue: $189 million, a 17% increase year-over-year.
• Adjusted EBITDA: $8.2 million, doubled from the previous year.
• Marine Revenue: Increased over 19%.
• Concrete Revenue: Increased 13%.
• Gross Profit Margin: $23 million or 12.2% of revenue, up from 9.7% last year.
• SG&A Expenses: $22.5 million, up from $19 million, representing 12% of total contract revenues.
• Adjusted Net Income: $300,000 or $0.01 per diluted share.
• GAAP Net Loss: $1.4 million or $0.04 per diluted share.
• Adjusted EBITDA Margin: Improved to 4.3%, up from 2.5% last year.
• Backlog: $840 million as of March 31, 2025.
• Cash Flow from Operations: Negative $3.4 million.
• Total Debt Outstanding: $23.3 million.
• Full Year 2025 Revenue Guidance: $800 million to $850 million.
• Full Year 2025 Adjusted EBITDA Guidance: $42 million to $46 million.
• Full Year 2025 CapEx Guidance: $25 million to $35 million.

• Warning! GuruFocus has detected 9 Warning Signs with BIP.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Orion Group Holdings Inc (NYSE:ORN) reported a strong start to 2025 with first-quarter revenue of $189 million and Adjusted EBITDA of $8 million, reflecting the strength of their operating model.
• The company secured almost $350 million in new wins, including $161 million in marine and $188 million in concrete projects, contributing to a backlog plus awarded work totaling $890 million.
• Orion Group Holdings Inc (NYSE:ORN) experienced a 17% increase in consolidated revenue and a doubling of adjusted EBITDA compared to the previous year.
• The marine segment showed significant improvement with a 19% increase in revenue and an 8.6% adjusted EBITDA margin, up from 0.9% last year.
• The company has strong supplier relationships, particularly in the steel industry, which provides a competitive advantage in managing tariff risks and input costs.

Negative Points

• SG&A expenses increased to $22.5 million, up from $19 million in the comparable period, due to higher incentive compensation, legal, IT, and operating lease expenses.
• The concrete segment experienced a negative 4.4% adjusted EBITDA margin, compared to a positive 5.7% in the prior year period, due to seasonally lower productivity.
• Despite the strong start, the company reported a GAAP net loss of $1.4 million or $0.04 per diluted share for the first quarter of 2025.
• Cash flow from operations was negative $3.4 million, although this was an improvement from negative $22.8 million in the prior year quarter.
• The company anticipates potential pressure on input costs, particularly steel, as prices are expected to increase, which could impact future project bids.

Q & A Highlights

Q: Are you seeing any acceleration in defense spending and shipbuilding, and when do you expect awards in this area? A: Travis Boone, CEO: We anticipate awards in late 2025 or early 2026. There is visibility in federal contracts, and unless there are changes in the administration, this timeline is expected to hold. We are pursuing projects in the $500 million range, with more expected to become active in the coming months.

Q: Can you discuss the outlook for the concrete business and margin expansion goals? A: Travis Boone, CEO: We haven't seen a slowdown in bidding or award activity. We are optimistic about continued demand, and our strong start to the year supports our margin expansion goals. Gordon Thanisch, CFO: With strong wins, we expect volume and operating leverage to improve margins significantly.

Q: How are you managing tariff risks, and do you have any competitive advantages in this environment? A: Travis Boone, CEO: We have been proactive in managing tariff risks by preparing for potential scenarios. Our contracts often require Buy America or Buy American compliance, which helps mitigate tariff impacts. Gordon Thanisch, CFO: Our strong supplier relationships provide a competitive advantage, allowing us to secure favorable pricing.

Q: Can you explain the seasonal factors affecting the concrete segment's performance and the outlook for profitability? A: Gordon Thanisch, CFO: The first quarter typically has lower results due to fewer workable days. We expect natural seasonal improvement and increased profitability as the year progresses. Our guidance aligns with our expectations for the concrete business to return to profitability.

Q: Is the balance sheet and capital position sufficient to support future federal projects? A: Gordon Thanisch, CFO: We have no draws on our revolver, with $40 million to $60 million of capacity. We are in constant dialogue with financing partners and are prepared to acquire equipment as needed, ensuring we have the resources to support future projects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.