Orion (US:ORN)2025-10-29 20:46Revenue and Profit - Contract revenues for the three months ended September 30, 2025, were $225.1 million, a decrease of $1.6 million or 1% compared to $226.7 million in the prior year period [102]. - Gross profit for the three months ended September 30, 2025, was $29.8 million, an increase of $2.7 million or 10% from $27.1 million in the prior year period, driven by strong project execution and favorable utilization [103]. - Contract revenues for the nine months ended September 30, 2025, were $619 million, an increase of $39.5 million or 7% compared to $579.5 million in the prior year period, primarily due to new awards and higher volume across the business [106]. - Gross profit for the nine months ended September 30, 2025, was $78.6 million, an increase of $17.7 million or 29% from $60.9 million in the prior year period, driven by strong project execution and favorable utilization [107]. - Net income for the three months ended September 30, 2025, was $3.3 million, down from $4.3 million in the prior year period, impacted by increased SG&A expenses and lower revenues [102]. Expenses - Selling, general and administrative (SG&A) expenses increased to $25.1 million for the three months ended September 30, 2025, up $4.3 million or 20.2% from $20.8 million in the prior year period due to increased spending to support business growth [104]. - Interest expense for the three months ended September 30, 2025, was $2.1 million, a decrease from $3.6 million in the prior year period, reflecting improved borrowing costs [102]. Segment Performance - Operating income for the marine segment for the three months ended September 30, 2025, was $11.0 million, an increase of $5.5 million from $5.5 million in the prior year period, attributed to strong project execution [114]. - The concrete segment reported revenues of $82.2 million for the three months ended September 30, 2025, down from $86.7 million in the prior year period, with an operating loss of $5.7 million compared to an operating income of $2.3 million in the prior year [115][116]. - Marine segment revenues increased by $28.1 million, or 7%, to $405.4 million for the nine months ended September 30, 2025, compared to $377.3 million in 2024 [118]. - Operating income for the marine segment improved by $26.8 million to $22.0 million for the nine months ended September 30, 2025, from an operating loss of $4.8 million in 2024 [119]. - Concrete segment revenues rose by $11.4 million, or 6%, to $213.6 million for the nine months ended September 30, 2025, compared to $202.2 million in 2024 [120]. - Operating loss for the concrete segment was $12.4 million for the nine months ended September 30, 2025, a decrease of $19.1 million from an operating income of $6.7 million in 2024 [121]. Backlog and Working Capital - The consolidated backlog as of September 30, 2025, was $679 million, down from $729 million as of December 31, 2024, with the marine segment backlog at $477 million and concrete segment backlog at $202 million [100]. - Working capital decreased to $71.9 million as of September 30, 2025, from $78.2 million at December 31, 2024 [122]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities were $14.3 million for the nine months ended September 30, 2025, compared to a cash outflow of $0.7 million in 2024 [124]. - Capital expenditures for the nine months ended September 30, 2025, were $25.5 million, up from $10.6 million in 2024 [127]. Liquidity and Borrowings - The company had $23.0 million in outstanding borrowings under its Credit Agreement as of September 30, 2025, with a weighted average interest rate of 10.89% [134]. - The company believes it will have adequate liquidity for its operations for at least the next 12 months as of September 30, 2025 [123]. - The company entered into a $103.0 million Credit Agreement with White Oak on May 15, 2023, which includes a $65 million revolving credit line [129].