Orion Group Holdings Reports First Quarter 2025 Results

Core Insights - Orion Group Holdings, Inc. reported a strong start to 2025 with a 17% year-over-year increase in revenue to $189 million and a doubling of Adjusted EBITDA, reflecting the effectiveness of its operating model and strategic execution [4][6][9] - The company secured $349 million in new contract awards year-to-date, indicating robust demand in its markets, particularly in Marine and Concrete segments [5][9] - Orion maintains its full-year 2025 revenue guidance of $800 million to $850 million and Adjusted EBITDA guidance of $42 million to $46 million, while preparing for transformational growth in 2026 and beyond [5][9] Financial Performance - Contract revenues for Q1 2025 were $188.7 million, up $28 million or 17.4% from $160.7 million in Q1 2024, driven by large marine construction contracts and new concrete projects [6][9] - Gross profit increased to $23 million, representing 12.2% of revenue, compared to $15.5 million or 9.7% of revenue in Q1 2024, primarily due to improved indirect expenses in the marine segment [7][9] - Selling, general and administrative expenses rose to $22.5 million, up from $19 million in Q1 2024, reflecting increased incentive compensation and other operational costs [8][9] Adjusted Metrics - The company reported a GAAP net loss of $1.4 million or $0.04 per diluted share, an improvement from a net loss of $6.1 million or $0.19 per diluted share in the prior year [9][10] - Adjusted net income for Q1 2025 was $0.3 million or $0.01 per diluted share, compared to an adjusted net loss of $3.6 million or $0.11 per diluted share in Q1 2024 [9][10] - Adjusted EBITDA for the first quarter increased by 100.4% to $8.2 million, with an Adjusted EBITDA margin of 4.3%, compared to 2.5% in the prior year [11][9] Backlog and Future Contracts - Total backlog as of March 31, 2025, was $839.7 million, up from $729.1 million at the end of 2024 and $756.6 million a year earlier, indicating strong future revenue potential [12][9] - Recent contract wins post-quarter end totaled $51.2 million, further enhancing the company's project pipeline [13][9] Balance Sheet Overview - As of March 31, 2025, current assets were $267 million, with unrestricted cash and cash equivalents of $13 million, and total debt outstanding was $23.3 million [14][9] - The company had no outstanding borrowings under its revolving credit facility at the end of the quarter, indicating a strong liquidity position [14][9]