ORN earnings analysis
What we found in ORN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 10.33%
- Operating margin
- -0.59%
- Segment
- Marine revenue: $130.842 million, down from $135.302 million (-3.3% YoY); segment operating income: $7.701 million, down from $13.661 million (-43.6%).
- Segment
- Concrete revenue: $91.036 million, up from $69.984 million (+30.1% YoY); segment operating income: $4.199 million, up from $2.593 million (+61.9%).
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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.…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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