Orion Group Q2 Earnings Call Highlights

Second-quarter results weakened due to marine project delays: Revenue rose 8% to $222 million, but lower marine volume and equipment utilization drove a $4.1 million GAAP net loss and reduced adjusted EBITDA to $7.9 million. Concrete remained strong, with revenue up more than 30% and adjusted EBITDA up 45%. Full-year revenue guidance was maintained at $900 million-$950 million, while adjusted EBITDA guidance was set at $50 million-$54 million and adjusted EPS at $0.23-$0.30. Management expects a stronger second half, with nearly 90% of anticipated marine work under contract. Orion reported more than $275 million in quarterly bookings, a $722 million backlog and a pursuit pipeline of roughly $27 billion. Concrete demand—particularly from data centers and domestic manufacturing—remains robust, while the J.E. McAmis acquisition is expected to contribute more materially in the second half.

Orion Group NYSE: ORN reported second-quarter 2026 results that reflected continued growth in its concrete business but lower marine activity as several client-related project starts were delayed. Chief Executive Officer Travis Boone said the quarter fell short of both management and investor expectations, characterizing the marine weakness as a timing issue rather than an operational or demand-related problem. He said delayed project mobilizations have since moved forward and that the company expects a stronger second half as new marine work ramps up.

Orion generated second-quarter revenue of $222 million, up 8% from the prior-year period. The company’s concrete operation delivered more than 30% top-line growth and 45% adjusted EBITDA growth, according to Boone, aided by site civil services expansion, favorable utilization and project execution. However, the marine segment experienced lower revenue and profitability due to delayed awards, project startups and completions. Chief Financial Officer Alison Vasquez said several projects faced delayed mobilization because of client issues, including site readiness and the timing of client-provided materials. Marine delays reduced project profitability and equipment utilization, which weighed on gross profit. Total gross profit was $23 million, down $3 million from a year earlier, primarily because of lower marine volume and equipment utilization. Vasquez said the affected projects are now underway and are expected to have good productivity during the second half. The company posted a GAAP net loss of $4.1 million, compared with GAAP net income of $0.8 million in the second quarter of 2025. Vasquez attributed the change primarily to lower marine volume, increased depreciation and amortization, and higher GAAP taxes related to valuation allowance adjustments. Adjusted EBITDA was $7.9 million, compared with $11 million a year earlier. Adjusted earnings per share were $0.02, down from $0.07 in the prior-year quarter.

Management reset its 2026 outlook to account for the shift in marine project timing. Orion maintained its revenue guidance of $900 million to $950 million and its capital expenditure outlook of $25 million to $35 million. The company now expects adjusted EBITDA of $50 million to $54 million and adjusted EPS of $0.23 to $0.30. At the midpoint, the guidance represents 15% adjusted EBITDA growth and 6% adjusted EPS growth over 2025 actual results, Vasquez said. Boone said Orion has “very good visibility” into the remainder of the year, with nearly 90% of expected marine work for the second half under contract. He...