Orion Group (ORN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 14% YoY to $256.2M; Adjusted EBITDA increased 37% to $17.9M, with 120 bps of margin expansion.

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

• Demand and the submitted-bid pipeline were strong, but slower customer award timing left $2B of bids awaiting awards.

Financial highlights

• Gross profit was $33.1M, up 11% YoY; GAAP net income was $5.5M, or $0.14 per diluted share, and Adjusted EPS was $0.12.

• Operating income rose to $8.5M from $5.3M; SG&A declined to $24.7M from $25.1M, while borrowing costs rose primarily due to the McAmis acquisition and revolver borrowings.

• 9M revenue was $694.3M versus $619.0M; GAAP net income was $6.0M versus $2.7M, and Adjusted EBITDA was $34.5M versus $32.3M.

• Concrete's Q3 Adjusted EBITDA margin included ~2 percentage points of favorable project outcomes that management does not assume in expected project margins.

Outlook and guidance

• FY26 guidance: revenue $900M-$950M, Adjusted EBITDA $50M-$54M, Adjusted EPS $0.23-$0.30 and capital expenditures $25M-$35M.

• Management expects momentum to continue into Q4 and the submitted-bid pipeline to grow as task orders under new MACCs take shape.

• A fully funded Pacific Northwest design-to-budget project is expected to be worth ~$200M, with backlog conversion expected in mid-to-late 2027.

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