ORION GROUP HOLDINGS REPORTS THIRD QUARTER 2026 RESULTS
Orion Group Holdings Inc (ORN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ORION GROUP HOLDINGS REPORTS THIRD QUARTER 2026 RESULTS HOUSTON – October 27, 2026 – Orion Group Holdings, Inc. (NYSE: ORN; NYSE TX: ORN) (the “Company” or “Orion”), a leading specialty construction company, today reported its financial results for the third
How this was made
The 30-second read
Why it matters
The Q3 earnings beat and reaffirmed guidance provide a fresh data point for valuation models.
Market read
Strong quarterly performance and new Navy contracts could drive short‑term buying interest.
What to watch
Backlog remains modest and cash balance low, which could constrain future growth.
Orion Group Holdings Reports Third Quarter 2026 Results
Third-quarter contract revenues increased 14%, GAAP net income increased to $5.5 million from $3.3 million, and Adjusted EBITDA increased 37% to $17.9 million. Concrete delivered substantial profitability improvement, while full-year 2026 guidance was reiterated.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Contract revenues, three months ended September 30, 2026GAAP | $256.2M | – | 14% |
| Costs of contract revenues, three months ended September 30, 2026GAAP | $223.0M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $33.14M | – | 11% |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $24.73M | – | – |
| Gain on disposal of assets, net, three months ended September 30, 2026GAAP | −$108K | – | – |
| Operating income, three months ended September 30, 2026GAAP | $8.52M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$2.95M | – | – |
| Other income, three months ended September 30, 2026GAAP | $290K | – | – |
| Other expense, net, three months ended September 30, 2026GAAP | −$2.66M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $5.86M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $388 | – | – |
| Net income, three months ended September 30, 2026GAAP | $5.47M | – | – |
| Diluted income per share, three months ended September 30, 2026GAAP | $0.14 | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $4.98M | – | – |
| Adjusted EPS, three months ended September 30, 2026non-GAAP | $0.12 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $15.62M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $17.92M | – | 37% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 7.0 % | – | – |
| Contract revenues, nine months ended September 30, 2026GAAP | $694.3M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $81.95M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $6.41M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $6.01M | – | – |
| Diluted income per share, nine months ended September 30, 2026GAAP | $0.15 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $7.92M | – | – |
| Adjusted EPS, nine months ended September 30, 2026non-GAAP | $0.20 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $34.53M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 5.0 % | – | – |
| Backlog, September 30, 2026other | $645M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Marine, three months ended September 30, 2026Third-quarter Marine awards included a significant wharf repair for the U.S. Navy, the next phase of construction on the North Jetty project, and two projects in Hawaii. | $161.2M | – | – |
| Concrete, three months ended September 30, 2026Recent Concrete awards included a large concrete paving package, new phases of data center campuses, a college research building, and a water treatment plant. | $94.96M | – | – |
| Marine, nine months ended September 30, 2026Marine end markets remain strong, and the Company is actively engaging early on large, complex projects. | $402.2M | – | – |
| Concrete, nine months ended September 30, 2026Activity remains robust across mission-critical and large-scale infrastructure markets, supported by geographic growth, broader site civil services, and a diverse mix of project awards. | $292.2M | – | – |
Full-year ended December 31, 2026 outlook
- Revenue$900 million to $950 million; 9 % Annual Growth at Midpoint
- NoteAdjusted EBITDA: $50 million to $54 million; 15 % Annual Growth at Midpoint
- NoteAdjusted EPS: $0.23 to $0.30; 6 % Annual Growth at Midpoint
- NoteCapital Expenditures: $25 million to $35 million
- NoteNet income: $8,079 to $12,079
- NoteIncome tax benefit: $(5,400)
- NoteInterest expense, net: $9,000
- NoteDepreciation and amortization: $29,000
- NoteNon-cash share-based compensation: $7,300
- NoteAcquisition and integration costs: $1,800
- NoteERP implementation: $200
- NoteSeverance: $21
- NoteAdjusted net income: $9,160 to $12,260
What drove it
- Contract revenues increased $31.1 million, or 14%, driven by double-digit growth in both operating segments, highly active projects, disciplined execution, favorable operating conditions, and the acquisition of J.E. McAmis.
- Gross profit increased $3.3 million, or 11%, driven primarily by higher revenue volume and increased Concrete profitability attributable to strong execution.
- Third-quarter 2026 backlog included approximately $179 million in new awards.
- The Company won positions on the $9 billion U.S. Navy VENTI MACC and the $700 million NAVFAC Northwest Waterfront MACC.
- Concrete adjusted EBITDA margin was 10.8 % in the third quarter of 2026, compared with 1.8 % in the third quarter of 2025.
Concerns
- Marine adjusted EBITDA margin was 11.6 % in the third quarter of 2026, compared with 17.0 % in the third quarter of 2025; the release cited Marine close-out benefits in 2025 that did not recur in 2026.
- Nine-month consolidated Adjusted EBITDA margin was 5.0 % in 2026, compared with 5.2 % in 2025.
- Net cash used in operating activities was $(10,722) for the nine months ended September 30, 2026.
- Contract assets were $84,205 at September 30, 2026, compared with $31,083 at December 31, 2025.
- The Company stated that MACC selection may not result in work awards, revenues, or profit.
What to watch
- Conversion of approximately $179 million in third-quarter new awards into backlog execution and revenue.
- Marine profitability following the non-recurrence of 2025 close-out benefits.
- Concrete execution and margin performance across data center, infrastructure, paving, research-building, and water-treatment awards.
- Operating cash flow, contract assets, capital expenditures, and debt following the J.E. McAmis acquisition.
- Progress from task-order opportunities under the $9 billion U.S. Navy VENTI MACC and the $700 million NAVFAC Northwest Waterfront MACC.
Balance sheet and cash flow
- Working capital was $81 million as of September 30, 2026.
- Unrestricted cash and cash equivalents were $5.7 million as of September 30, 2026.
- Total debt outstanding was $109 million, with $83 million of outstanding borrowings under the UMB Credit Facility.
- Cash and cash equivalents were $5,671 at September 30, 2026, compared with $1,588 at December 31, 2025.
- Net cash used in operating activities for the nine months ended September 30, 2026 was $(10,722), compared with $14,260 provided by operating activities in 2025.
- Purchase of property and equipment was $(28,109) for the nine months ended September 30, 2026, compared with $(25,510) in 2025.
- Business acquisition, net cash acquired, was $(42,871) for the nine months ended September 30, 2026.
- Net cash used in investing activities was $(70,213) for the nine months ended September 30, 2026, compared with $(23,778) in 2025.
- Net cash provided by financing activities was $83,321 for the nine months ended September 30, 2026, compared with $(13,881) in 2025.
Analysis
Orion reported a strong third quarter. Contract revenues were $256,152, compared with $225,097 in the third quarter of 2025, and the release stated that revenue increased $31.1 million, or 14%. GAAP net income was $5,473, compared with $3,301, while diluted income per share was $0.14, compared with $0.08. Adjusted EBITDA increased 37% to $17,917 from $13,132, and Adjusted EBITDA margin was 7.0 %, compared with 5.8 %.
The operating result reflected broad revenue growth and particularly strong Concrete execution. Concrete third-quarter revenue was $94,959 and its Adjusted EBITDA margin was 10.8 %, compared with 1.8 % in the prior-year quarter. Marine revenue was $161,193, but Marine Adjusted EBITDA margin was 11.6 %, compared with 17.0 %. Orion attributed the gross-profit increase primarily to higher revenue volume and higher Concrete profitability, partially offset by Marine close-out benefits in 2025 that did not recur in 2026.
Backlog was $645 million at September 30, 2026, compared with $640 million at December 31, 2025. Marine backlog was $506 million, compared with $480 million, while Concrete backlog was $139 million, compared with $160 million. Third-quarter backlog included approximately $179 million in new awards. The two new Navy MACC positions expand access to potential federal task orders, although the Company explicitly noted that selection as one of multiple qualified contractors may not result in awarded work, revenue, or profit.
Cash flow and leverage remain important focal points. Orion used $(10,722) in operating activities during the nine months ended September 30, 2026 and used $(70,213) in investing activities, including $(42,871) for the business acquisition, net cash acquired. At quarter end, unrestricted cash and cash equivalents were $5.7 million and total debt outstanding was $109 million, including $83 million under the UMB Credit Facility.
Management reiterated its full-year 2026 guidance for revenue of $900 million to $950 million, Adjusted EBITDA of $50 million to $54 million, Adjusted EPS of $0.23 to $0.30, and capital expenditures of $25 million to $35 million. The reiterated outlook places execution in the fourth quarter, Concrete margin durability, Marine project mix, cash conversion, and progress on the new federal contract vehicles at the center of the remaining-year setup.
Management, verbatim
We delivered a strong third quarter, marked by double-digit revenue growth, expanding profitability and margins, and solid bookings and awards. These results reflect the health of our end markets and our commitment to delivering with predictable excellence.
Travis Boone, President and Chief Executive Officer of Orion
The Concrete segment delivered an outstanding quarter, highlighted by top- and bottom-line growth with excellent margin expansion benefitted by strong execution.
Travis Boone, President and Chief Executive Officer of Orion
In Marine, end markets remain strong, and we are actively engaging early on large, complex projects, sharpening our competitive positioning.
Travis Boone, President and Chief Executive Officer of Orion
Not in the filing
stated, not guessed- Previous-period outlook was not provided; therefore, comparison of reported results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- GAAP operating margin was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Prior-quarter comparisons for reported quarterly financial metrics were not reported.
- Year-over-year percentage changes for individual segment revenue were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Orion Group Holdings is a specialty construction company serving infrastructure, industrial and marine markets.
Ticker impact
Orion Group Holdings reported Q3 2026 results with $256.2M revenue, $5.5M net income and reaffirmed full‑year guidance.
likely upward pressure as investors price in strong results and reaffirmed outlook
Revenue grew 14% YoY, margins expanded and new Navy contracts were won, supporting a bullish view.
Market effects
Construction and defense sectors may see modest upside from Orion's contract wins.
U.S. infrastructure and defense spending outlook reinforced.
Limited to investors tracking U.S. specialty construction firms.
Counterpoint
If the Navy contract pipeline slows, the reaffirmed guidance may not translate into higher earnings.
Key entities
- companyOrion Group Holdings
Specialty construction firm reporting Q3 2026 results.
