Orion Group (ORN) investor relations material

Executive summary

• Q3 revenue rose 14% YoY to $256.2M; net income was $5.5M, while Adjusted EBITDA increased 37% to $17.9M.

• Management reiterated FY26 guidance and said results were tracking toward the upper end of each financial metric range.

• Demand remained strong, but slower customer award timing left $2B of submitted bids awaiting awards, split roughly evenly between Marine and Concrete.

• Q3 awards and change orders totaled $179M; September 30 backlog was $645M.

Financial highlights

• Q3 gross profit was $33.1M and operating income was $8.5M, versus $29.8M and $5.3M a year earlier; diluted EPS was $0.14 and Adjusted EPS was $0.12.

• 9M revenue grew 12% to $694.3M; operating income declined to $6.4M from $9.6M, while Adjusted EBITDA rose to $34.5M from $32.3M.

• 9M net income was $6.0M versus $2.7M, including a $6.0M tax benefit; 9M diluted EPS was $0.15 versus $0.07.

• Consolidated gross profit margin was generally flat YoY; SG&A declined modestly, while borrowing costs rose with the McAmis acquisition and revolver borrowings.

Outlook and guidance

• FY26 guidance: revenue $900M-$950M, Adjusted EBITDA $50M-$54M, Adjusted EPS $0.23-$0.30 and CapEx $25M-$35M; management expects performance toward the upper end of each range.

• Remaining performance obligations were ~$645M, with $473M, or 73%, expected to be recognized in the next 12 months.

• Selected as marine contractor on a fully funded Pacific Northwest design-to-budget project valued at ~$200M; backlog conversion is expected in mid-to-late 2027.

• October post-quarter awards totaled ~$100M across mission-critical, site civil, cold storage, healthcare and commercial work, expected in Q4 backlog.