Orion Group (ORN) 24th Annual Diversified Industrials & Services Conference summary

Business Overview and Leadership

• Operates in two segments: concrete construction (buildings, data centers, industrial) and marine construction (bridges, ports, Navy projects, pipelines), with 2024 revenue of $796M and adjusted EBITDA of $42M.

• Recognized as a top contractor in marine and transportation, with a strong backlog of $729M at year-end 2024 and a diversified customer base including major energy, government, and technology clients.

• Leadership and management team have significant experience from large engineering and construction firms, driving execution, turnaround, and growth.

• Recent years focused on stabilizing operations, professionalizing teams, and improving back-office and front-office functions.

• Strategic plan underway, emphasizing geographic expansion, fleet upgrades, and talent development.

Market Opportunities and Industry Trends

• Significant opportunities in U.S. ports due to aging infrastructure and larger ships, with funding from IIJA and other sources, and major federal projects in the Pacific, especially for the Navy, driven by geopolitical tensions and deterrence strategies.

• Major tailwinds from the $1.2T Infrastructure Act, U.S. Navy Pacific expansion, and port upgrades, with multi-year project flow expected.

• Private sector demand strong for LNG, petrochemical, and industrial projects, especially along the Gulf Coast, and growing demand for coastal rehabilitation, energy security, and data center construction.

• Data center market growth, driven by AI and cloud computing, is fueling concrete segment opportunities.

• Shipbuilding incentives and tax legislation provide additional tailwinds, though impact is more indirect and long-term.

Segment Performance and Financials

• Marine segment generated $521M in 2024 revenue with a 5.2% adjusted EBITDA margin; backlog at $555M as of June 2025.

• Concrete segment delivered $275M in 2024 revenue and a 5.4% adjusted EBITDA margin; backlog at $191M as of June 2025.

• First half 2025 revenue grew 12% year-over-year, with adjusted EBITDA up 90% and margin expanding by 220bps.

• Fiscal 2025 guidance: $800M–$850M revenue, $42M–$46M adjusted EBITDA, $0.11–$0.17 adjusted EPS, and $25M–$35M capex.

• Opportunity pipeline has grown to $18B, with 87.5% in marine and 75% in the public sector.