Key Points
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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%.
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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.
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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.
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“These delays are now behind us,” Boone said. “We often talk about construction being a lumpy business. This quarter is a good example.”
Quarterly Results Reflect Marine Delays
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.
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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.
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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.
Guidance Maintains Revenue Outlook
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 added that 80% of overall company business for the back half is under contract. Management expects improved utilization of marine equipment and labor to support a significant step-up in revenue and margins.
Vasquez said the company’s balance sheet remained in good condition, with net leverage of 2.3 times, providing flexibility for its strategic priorities.
Bookings, Backlog and Market Pipeline Expand
Orion recorded more than $275 million of bookings during the quarter, representing a 1.25 times book-to-bill ratio. Quarter-end backlog totaled $722 million.
New awards included a port terminal expansion project in Alabama, a dredging project in the U.S. Virgin Islands, jetty projects secured by J.E. McAmis Inc., and additional phases of data center work. Orion acquired J.E. McAmis in February.
The company’s pursuit pipeline grew to about $27 billion, including nearly $1.6 billion of quoted projects awaiting award. Boone said the quoted-project figure was about $1 billion at the beginning of the year and represents nearer-term award opportunities.
Management said opportunities are balanced across defense, ports, commercial customers, energy, oil and gas, chemicals, and state and local agencies. Boone also pointed to a continuing shift toward larger, more technically complex projects and alternative delivery structures such as design-build, progressive design-build and construction manager/general contractor arrangements.
While Boone cited potential defense infrastructure spending as a long-term opportunity, he noted that the proposed 2027 federal defense budget still faces Senate and reconciliation steps. He said naval modernization, Indo-Pacific capabilities, logistics and port resilience remain priorities with bipartisan support.
Concrete Momentum and McAmis Integration
Management said concrete demand remains strong, particularly in data centers, domestic manufacturing and related physical infrastructure. About 50% of concrete revenue in the second quarter came from data centers, compared with 40% in the first quarter, Boone said. The company has more than $1 billion of outstanding concrete bids.
Concrete projects generally move from bidding to execution quickly, Boone said, making backlog a less useful indicator for the segment than it is for marine operations. Vasquez said Orion is targeting full-year concrete margins near 6%, with the second-quarter margin in the 5.5% to 6% range.
Orion also said its newer site civil services offering is gaining traction. Boone said clients value being able to engage one contractor for both site civil and concrete scope, while Vasquez said the approach can simplify execution and reduce risk for customers.
Regarding J.E. McAmis, management said the integration is progressing well. The acquired business has transitioned to Orion’s project controls, financial and IT systems and contributed positively to both revenue and EBITDA during the quarter. Its primary work season began in late June or early July, and management expects its activity to increase materially through the second half of the year.
Boone said Orion remains confident in its longer-term strategy despite the second-quarter timing disruptions, citing high win rates, a growing pipeline and expected marine infrastructure investment across defense, ports, transportation and energy markets.
About Orion Group (NYSE:ORN)
Orion Group (NYSE:ORN) is a global provider of specialized staffing and workforce solutions, serving clients across the energy, industrial, and technical sectors. The company offers a range of services including engineering and technical recruitment, information technology staffing, and comprehensive workforce management. Orion Group focuses on delivering qualified talent for complex projects, from exploration and production in the oil and gas industry to large-scale infrastructure and manufacturing initiatives.
Founded in 1972 and headquartered in Jacksonville, Florida, Orion Group has grown its operations to support projects in North America, Europe, the Middle East, and the Asia–Pacific region.
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The article “Orion Group Q2 Earnings Call Highlights” was originally published by MarketBeat.
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