Market Overview - All three major U.S. stock market indices closed slightly higher on February 17, 2026, despite declines in software equities, influenced by a softer-than-expected Consumer Price Index and a stronger-than-anticipated jobs report [1][2] Investment Strategy - The current market uncertainty may lead investors to prefer low-leverage stocks for financial resilience and capital preservation, with recommendations including Orion Group (ORN), Copa Holdings (CPA), Coeur Mining (CDE), Tim S.A. (TIMB), and Evercore (EVR) [3][11] Low-Leverage Stocks - Low-leverage stocks are preferred as they are generally less risky, especially during volatile market conditions. The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency [7][8] Company Highlights - **Orion Group (ORN)**: Acquired J. E. McAmis, Inc. and JEM Marine Leasing LLC for approximately $60 million, with 2026 earnings expected to improve by 63.6% [15][17] - **Copa Holdings (CPA)**: Reported a 9.6% increase in fourth-quarter operating revenues and a 5.3% rise in EPS, with 2026 revenues projected to grow by 11.5% [18][19] - **Coeur Mining (CDE)**: Increased mineral reserves to 4.4 million ounces of gold and 274.4 million ounces of silver, with 2026 earnings expected to jump by 143.3% [20][22] - **Tim S.A. (TIMB)**: Announced acquisition of 51% of I-Systems for approximately $180 million, aiming to expand in the broadband segment, with 2026 revenues expected to rise by 10.3% [23][24] - **Evercore (EVR)**: Reported a 32% increase in fourth-quarter revenues and a 50% rise in adjusted EPS, with 2026 revenues projected to grow by 22.6% [24][25]

Core Viewpoint - Orion Group has acquired J.E. McAmis and JEM Marine Leasing for $60 million, aiming to enhance its marine construction capabilities and capitalize on significant market opportunities in the marine sector [4][7]. Company Overview - McAmis has over five decades of experience in marine solutions, focusing on projects such as jetty and breakwater construction, dredging, and environmental restoration, primarily in Washington and Oregon [2]. - The majority of McAmis' work, estimated at over 80%, is with the U.S. Army Corps of Engineers [1]. Acquisition Details - The acquisition is Orion's first since 2017 and is part of its strategy to become a leading marine construction contractor [3]. - The total consideration for the acquisition is $60 million, comprising approximately $46 million in cash, a $12 million subordinated note, and $2 million in equity [7][20]. - The deal is expected to be accretive while maintaining leverage around one turn, focusing on revenue and capability growth rather than overhead cost synergies [5][13]. Financial Profile - McAmis has a historical revenue run-rate of approximately $38–40 million, with EBITDA margins consistently above 20% [6][10]. - At the time of closing, McAmis had a backlog of about $24 million, which is expected to represent 60% to 65% of its annual revenue [9]. Growth Opportunities - McAmis has an incremental opportunity pipeline exceeding $1.4 billion, primarily consisting of Pacific Northwest projects, with a typical project duration of two to three years [8]. - The acquisition adds specialized equipment and real estate valued at over $34 million, enhancing Orion's operational capabilities [5][16]. Integration and Future Outlook - Orion emphasizes cultural alignment and operational fit in the integration process, with McAmis leadership joining Orion's team [14]. - The company plans to provide consolidated guidance for 2026, including McAmis, in its upcoming financial report [17].

Summary of Orion Acquisition Conference Call Company and Industry Overview - **Company**: Orion Acquisition of J.E. McAmis and JEM Marine Leasing - **Industry**: Marine construction and heavy civil contracting Key Points and Arguments 1. **Acquisition Announcement**: Orion has acquired J.E. McAmis, a specialized heavy civil contractor, enhancing its capabilities in marine construction [2][4] 2. **Strategic Fit**: The acquisition is seen as a strategic move to strengthen Orion's position in the marine construction sector, particularly in the Pacific Northwest [4][13] 3. **Financial Highlights**: - Purchase consideration is $60 million, including $46 million in cash, a $12 million subordinated promissory note, and $2 million in common equity [10] - McAmis has a historical revenue run rate of $40 million with EBITDA margins consistently above 20% [11] - McAmis has a backlog of $24 million and a pipeline of opportunities worth over $1.4 billion [29][15] 4. **Operational Strengths**: McAmis is recognized for its safety record, on-time performance, and strong relationships with federal clients, particularly the U.S. Department of Defense and U.S. Army Corps of Engineers [5][39] 5. **Growth Opportunities**: The acquisition is expected to provide access to new projects and markets, particularly in environmental restoration and coastal protection, aligning with increasing federal investments in infrastructure [8][78] 6. **Cultural Alignment**: The leadership of McAmis is seen as a good cultural fit with Orion, which is crucial for successful integration [9][34] 7. **Integration Strategy**: The integration will focus on leveraging McAmis' expertise across Orion's existing operations, particularly in expanding geographic reach [41][56] 8. **Future M&A Strategy**: Orion plans to continue evaluating acquisition opportunities that align with its strategic goals, emphasizing cultural fit and operational synergies [44][80] Additional Important Content 1. **Equipment and Fleet**: McAmis brings specialized marine equipment valued at over $34 million, enhancing Orion's operational capabilities [5][17] 2. **Project Examples**: McAmis recently completed a $170 million project on the Columbia River, showcasing its ability to handle complex marine construction projects [7] 3. **Federal Work Dependency**: Over 80% of McAmis' revenue comes from projects with the Army Corps of Engineers, indicating a strong reliance on federal contracts [39] 4. **Contingent Consideration**: The acquisition includes performance-based incentives for McAmis' management, ensuring alignment with Orion's growth objectives [54][65] This summary encapsulates the key aspects of the conference call, highlighting the strategic importance of the acquisition and its implications for Orion's future growth and operational capabilities.

February 4, 2026 Investor Presentation: Orion Acquisition of J.E. McAmis Disclaimer This presentation contains, and the officers and directors of the Company may from time to time make, statements that may constitute or include projections or other forward-looking statements within the meaning of the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain ...

Industry Overview - The U.S. marine construction and dredging market is benefiting from ongoing infrastructure spending, coastal protection needs, and port expansion activities [1] - Recent monetary easing may support infrastructure activity by lowering financing costs, which can enhance project execution and revenue visibility through 2026 [2] Company Analysis: Great Lakes Dredge & Dock Corporation (GLDD) - GLDD reported a 12.8% year-over-year increase in contract revenues for the first nine months of 2025, totaling $631.8 million, driven by stronger activity levels and improved project performance [3][8] - The company has a strong backlog of $935 million, with a significant portion related to capital and coastal protection work, and an additional $194 million in low bids pending [4] - GLDD's profitability has improved due to higher-margin projects, efficient execution, and disciplined cost control, alongside a modernized fleet [3][6] - Despite challenges such as a normalized bid market and regulatory issues, GLDD is well-positioned for 2026 with strong liquidity and a diversified project mix [5][6] Company Analysis: Orion Group Holdings, Inc. (ORN) - ORN operates in marine and concrete services, benefiting from balanced exposure to public and private investments, which provides demand stability [7] - The company reported a revenue increase of approximately 7% year-over-year to $619 million, supported by steady activity across its key segments [9] - ORN increased its bonding capacity by $400 million in October 2025, enhancing its ability to pursue larger and more complex projects [11] - Challenges for ORN include earnings pressure from project timing variability and softer profitability in select concrete projects [10] Comparative Analysis - GLDD shows stronger near-term operating momentum with a higher-quality backlog and improving profitability, while ORN has a solid pipeline but faces more variability in margins and project timing [19] - GLDD is trading at a discount compared to ORN on a forward 12-month price-to-earnings (P/E) ratio basis [13] - The Zacks Consensus Estimate for GLDD's 2026 EPS indicates a slight decline of 0.2%, while ORN's estimate implies a significant year-over-year improvement of 44.7% [16][18]

Core Insights - DEME's Dredging & Infra segment has secured two significant marine works contracts in Southern Europe, showcasing its capabilities in environmental remediation and coastal protection [1] Group 1: Italy Contract - In Italy, DEME will undertake marine works for the 38th America's Cup sailing competition in Naples, which includes the construction of offshore breakwaters and seabed remediation at the Bagnoli-Coroglio site [1] Group 2: Spain Contract - In Spain, DEME is set to restore three beaches along the Valencian coastline through a large-scale nourishment project aimed at combating erosion and ensuring long-term shoreline protection [1]

Financial Data and Key Metrics Changes - The company reported $14 million year-to-date and ended the quarter with $21 million of net debt, indicating a healthy leverage position of just under half a turn on a trailing twelve-month EBITDA basis [1] - The company added approximately $160 million in new awards and change orders during the quarter, resulting in a backlog of $679 million at quarter-end [1] Segment Results and Key Metrics Changes - Marine revenues increased by approximately 2% year-over-year and 6% sequentially to $143 million, with adjusted EBITDA growing over 50% to $18 million, representing a 12% margin compared to 7% in the same quarter of the previous year [2] - Concrete revenues decreased by 5% year-over-year but increased by 17% sequentially to $82 million, with adjusted EBITDA showing a loss of $4 million compared to a profit of $4 million in the previous year [2][3] Market Data and Key Metrics Changes - The company has a robust pipeline with over $1 billion in awards or projects awaiting decisions, which has remained consistent around $1.2 billion throughout the year [8] - Data centers represent about 27% of the concrete business revenue for the quarter, indicating steady activity in this segment [10] Company Strategy and Development Direction - The company is focused on expanding its bonding capacity to bid on larger projects, facilitating growth opportunities in the coming years [35] - The management emphasized that the business is multifaceted, with ongoing projects outside of the Pacific region, including significant work in Texas and South Carolina [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to finish the year strong and highlighted the potential for growth in 2026 and beyond [4] - There have been no significant policy-related shifts affecting the company, although some private sector project movements have occurred due to uncertainties [16][17] Other Important Information - The company expects to use proceeds from the East West Jones property sale, which generated over $22 million, to pay down debt and for general corporate purposes [1] - Full-year 2025 guidance has been updated, with revenue expectations increased to $825 million to $860 million and adjusted EBITDA guidance raised to $44 million to $46 million [3] Q&A Session Summary Question: Can you discuss the pipeline and opportunity size? - Management noted that the pipeline has been consistent, with a strong outlook for next year and significant opportunities for 2026 [7][8] Question: Update on the Deschutes Estuary project? - The project is awarded but not yet booked, expected to start about a year from now [9] Question: Details on the data center opportunity? - Data centers account for 27% of the concrete revenue for the quarter, with ongoing bidding activity [10] Question: Anticipated profitability mix in the backlog? - Management expects concrete to remain profitable, despite previous year comparisons being less favorable [15] Question: Impact of policy changes on major projects? - No significant movements related to policy changes have been observed, although some private sector projects have been affected [16] Question: Thoughts on elevated SG&A expenses? - The increase is attributed to investments in business expansion and some lumpiness in employee costs [25] Question: Expectations for cash flow in the fourth quarter? - The company anticipates good cash flow from the East West Jones sale and has not seen a slowdown in cash collection [26][27] Question: Present value of the dredged spoils agreement? - Details on the agreement will be kept confidential for competitive reasons [34] Question: Increase in project size for data centers? - There has been a notable increase in the size of project opportunities for data centers compared to two or three years ago [36] Question: Long-term vision and demand for marine services? - Management remains confident in the long-term vision and growth opportunities, despite some delays in larger contract opportunities [44][45]

Financial Data and Key Metrics Changes - Year-to-date net debt is $21 million, representing just under half a turn of leverage on a trailing twelve-month EBITDA basis, indicating a healthy financial position for the company [1] - The company closed the sale of the East West Jones property, resulting in over $22 million in cash after commissions and taxes, which will be used to pay down debt and for corporate purposes [1] - The backlog at the end of the quarter stood at $679 million, with approximately $160 million in new awards and change orders added during the quarter [1] Segment Results and Key Metrics Changes - Marine revenues increased by approximately 2% year-over-year and 6% sequentially to $143 million, with adjusted EBITDA growing over 50% to $18 million, reflecting a 12% margin compared to 7% in Q3 2024 [2] - Concrete revenues decreased by 5% year-over-year but increased by 17% sequentially to $82 million, with adjusted EBITDA showing a loss of $4 million compared to a profit of $4 million in Q3 2024 [2][3] - Weather issues impacted chargeability in the Concrete business, resulting in a contribution EBITDA margin of 2% for the quarter [3] Company Strategy and Development Direction - The company is optimistic about finishing the year strong and is excited about growth opportunities in 2026 and beyond, emphasizing the importance of shareholder confidence and employee performance [4] - The company has a robust pipeline with over $1 billion in projects awaiting award decisions, which has remained consistent throughout the year [7] - The company is focusing on expanding its bonding capacity to bid on larger projects, facilitating growth in the coming years [32] Management Comments on Operating Environment and Future Outlook - Management has not observed any significant movement on major projects due to policy changes, indicating stability in the operating environment [13][14] - The deregulation and tax benefits are expected to positively impact commercial clients, enhancing the outlook for the company [15] - Management remains confident in the profitability of the Concrete business despite recent losses, anticipating a more favorable mix in the backlog moving into the fourth quarter [12] Other Important Information - The company has increased its full-year 2025 guidance for revenue to $825 million to $860 million, adjusted EBITDA to $44 million to $46 million, and adjusted EPS to $0.18 to $0.22 [3] - The East West Jones property sale will contribute $23 million in cash, which has already been received, enhancing the company's cash position [22][23] Q&A Session Summary Question: Can you discuss the pipeline and opportunity size? - Management noted that the pipeline has been consistent, with a strong outlook for 2026 and ongoing opportunities for the current year [6][7] Question: Is the Deschutes Estuary project included in the pipeline? - The Deschutes Estuary project is not included in the pipeline as it is in a limbo status until a contract is finalized [8] Question: What is the current status of the data center opportunities? - Data centers represent about 27% of the concrete business revenue for Q3, with steady bidding activity [9] Question: Will there be a more profitable mix in the backlog for concrete? - Management expects concrete to remain in a good place, with confidence in profitability despite recent challenges [12] Question: Have there been any impacts from policy changes? - No significant impacts have been observed from policy changes, with some movement in the private sector due to uncertainties [13][14] Question: What is the outlook for cash flow in the fourth quarter? - The company anticipates good cash flow from the East West Jones sale and has not seen a slowdown in cash collection activities [22][23] Question: How has the size of data center projects changed? - There has been an increase in the size of data center project opportunities compared to two or three years ago, with larger projects now in the mix [33]

Summary of Orion Marine Conference Call Company Overview - **Company Name**: Orion Marine - **Ticker**: ORN - **Business Segments**: - **Concrete**: Focuses on building structures such as towers and industrial warehouses using concrete, rather than being a ready-mix supplier [5][6] - **Marine**: Engages in marine construction, including projects over water like bridges, ports, and naval work [6][7] Key Points and Arguments - **Turnaround and Growth Strategy**: - The company underwent a significant turnaround over the past three years, focusing on stabilizing operations and preparing for growth [8][9] - The leadership believes there are extraordinary market opportunities in the marine business, positioning the company for growth [9][11] - **Financial Performance**: - The company has shown consistent revenue growth and margin expansion in the trailing twelve months (LTM) metrics [11][12] - Revenue growth is expected to be between 8-12% annually, with potential for higher growth due to market tailwinds [66][67] - **Market Opportunities**: - Significant opportunities exist in port projects due to aging infrastructure and the need for upgrades to accommodate larger cargo ships [23][24] - The company has a strong pipeline of projects funded by the Infrastructure Investment and Jobs Act (IIJA) and other mechanisms [24][25] - **Federal Projects**: - A major project at Pearl Harbor worth $450 million is underway, part of a larger $3.4 billion initiative related to U.S. military presence in the Pacific [32][33] - The U.S. government plans to invest over $100 billion in infrastructure projects in the Pacific over the next 3-10 years [36] - **Private Sector Activity**: - Increased activity in LNG terminals and other industrial projects in the Gulf Coast and Western Canada is noted, providing additional opportunities [38][39] - **Competition and Market Dynamics**: - The company acknowledges increased competition in the data center construction market but maintains a strong position due to its experience and safety record [56][58] - The marine construction sector is expected to see natural price escalations due to limited supply and high demand [95][98] Additional Important Insights - **Capital Allocation and M&A**: - The company is open to acquisitions to fill capability or geographic gaps, although it has not made any acquisitions in the last decade [78][79] - Current leverage is just over one turn, with a comfortable target of around two turns [82][83] - **Operational Discipline**: - Implemented a minimum bid margin threshold to ensure profitability on projects, moving away from low-margin bids [60][61] - Focus on building strong relationships with general contractors, especially in high-pressure data center projects [51][52] - **Future Margin Expectations**: - Marine business expected to maintain double-digit margins, while concrete business aims for upper single-digit margins over the next few years [68][70] - **Visibility and Project Pipeline**: - The company has better visibility in marine projects compared to concrete, with concrete opportunities often arising unexpectedly [54][55] This summary encapsulates the key insights and strategic direction of Orion Marine as discussed in the conference call, highlighting the company's focus on growth, operational improvements, and market opportunities.

Core Viewpoint - Bird Construction Inc. has announced the acquisition of Fraser River Pile & Dredge for an estimated total consideration of $82.3 million, which is expected to enhance Bird's capabilities and growth potential in the infrastructure sector [2][10]. Company Overview - Fraser River Pile & Dredge (FRPD) is Canada's oldest and largest privately-owned marine construction, land foundation, and dredging company, founded in 1911, with over 300 skilled personnel [3]. - FRPD has a strong reputation for safety and quality, with experience in significant projects across Canada, including infrastructure support, dredging, and marine environmental remediation [3]. Strategic Highlights - The acquisition is expected to provide Bird with enhanced self-perform capabilities and a more comprehensive platform for larger-scale projects across Canada [4][5]. - FRPD's expertise in marine infrastructure and land foundation complements Bird's existing capabilities in industrial, infrastructure, and buildings sectors [4][8]. - The combined company is positioned to capitalize on the growing demand for infrastructure projects, including those related to transportation, trade, defense, and energy [6]. Financial Highlights - The estimated cash consideration of $82.3 million will be funded through a new term debt facility, with Bird maintaining its low leverage practice post-transaction [10][11]. - The acquisition is expected to be accretive to Bird's Adjusted Earnings Per Share by approximately 7% on a full-year basis, with potential for further growth from synergies [12][13]. - On a pro forma basis, FRPD is projected to generate approximately $160 million in revenue and $20 million in Adjusted EBITDA [13]. Transaction Approvals - The acquisition is subject to approval under the Competition Act (Canada) and other customary closing conditions, with an expected completion in early Q4 2025 [14]. Investor Communication - Bird will host an investor call to discuss the transaction on September 4, 2025 [15].