10-Q · April 29, 2026
Orion Group Holdings reported strong Q1 2026 results, with revenues of $216.3 million and EPS of $0.05, both exceeding estimates. The concrete segment saw significant growth, while the marine segment declined.…
Earnings analysis · 10-Q
ORN earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Orion grew Q2 revenue 8.1% year over year to $221.878 million, but the mix shift toward concrete did not offset delayed marine starts and lower equipment utilization: gross profit fell 11.1% and operating income turned…
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Orion grew Q2 revenue 8.1% year over year to $221.878 million, but the mix shift toward concrete did not offset delayed marine starts and lower equipment utilization: gross profit fell 11.1% and operating income turned into a $1.315 million loss. Concrete revenue rose 30.1%, whereas marine revenue declined 3.3% and marine operating income fell 43.6%. Liquidity is tighter following the JEM acquisition, with $2.5 million of unrestricted cash, $78.0 million of borrowings, and negative $32.807 million of first-half free cash flow.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue increased 8% year over year
Q2 contract revenue rose $16.592 million, or 8.1%, year over year to $221.878 million, driven by concrete demand, new awards and higher volumes.
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Concrete delivered strong growth
Concrete revenue increased $21.052 million to $91.036 million, while segment operating income rose $1.606 million to $4.199 million, aided by site-civil expansion and project execution.
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Working capital expanded
Working capital increased $17.7 million to $92.0 million at June 30, 2026, from $74.3 million at December 31, 2025.
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JEM acquisition broadens marine platform
The company completed the JEM acquisition for $44.9 million in cash consideration plus a $12.0 million subordinated note; cash used for the acquisition totaled $42.9 million during the first six months.
What to watch
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Margins contracted despite higher revenue
Gross profit fell $2.870 million, or 11.1%, to $22.927 million despite revenue growth. Gross margin contracted to 10.33% from 12.57%, as lower marine volume and equipment utilization outweighed concrete execution gains.
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Operating loss replaced prior-year profit
Consolidated operating results swung to a $1.315 million loss from $3.432 million of income; operating margin declined to negative 0.59% from positive 1.67%. Net loss was $4.145 million.
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Marine weakness pressured profitability
Marine revenue declined $4.460 million to $130.842 million and marine operating income fell $5.960 million to $7.701 million, reflecting delayed project starts and lower equipment utilization.
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Cash generation and liquidity remain constrained
Operating cash flow was negative $12.699 million in the first half, capital expenditures were $20.108 million, and resulting free cash flow was negative $32.807 million. Unrestricted cash was only $2.5 million at June 30, 2026.
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Leverage increases interest-rate exposure
Outstanding UMB Credit Agreement borrowings were $78.0 million at a 6.12% weighted-average ending rate; a 100-basis-point SOFR increase would add approximately $0.8 million to annual interest expense.
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No disclosed risk-factor updates
Item 1A reports no material changes to the risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing identifies fixed-price contract exposure to concrete, steel and fuel costs, while Q2 gross profit declined $2.870 million.
Management's outlook
The 10-Q does not provide a quantitative earnings or revenue outlook; it states that management believes it has adequate liquidity for at least the next 12 months.
Earlier filings 4
10-K · March 4, 2026
Orion describes a two-pronged strategy focused on marine and concrete construction, disciplined bidding and margin expansion since 2022, and selective geographic expansion. Contract revenues rose to $852,260 (in…
10-Q · July 30, 2025
Orion reported Q2 contract revenue of $205.286M (up from $192.167M a year ago and up vs Q1 2025) with gross profit improving to $25.797M and operating income turning positive to $3.432M (vs an operating loss of $2.768M…
10-K · March 6, 2025
Orion’s 10‑K shows contract revenues increased to $796.4M in 2024 from $711.8M in 2023 (an $84.6M, ~11.9% increase), driven largely by a step‑up in U.S. government work (federal revenue $234.2M, 30% of 2024). The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.