0001402829-26-000011
SEC filingOrion Group Holdings, Inc. reported FY 2025 contract revenues of $852.3 million, a 7% increase from $796.4 million in FY 2024. Gross profit improved to $105.6 million (12.4% margin) from $91.2 million (11.4% margin). Operating income was $14.6 million, up from $11.5 million, while net income was $2.5 million, a positive swing from a net loss of $1.6 million in the prior year. The marine segment generated $544.8 million in revenue with $29.9 million operating income, while the concrete segment contributed $307.4 million in revenue but incurred a $15.3 million operating loss. The company generated $28.1 million in operating cash flow, ended the year with $640 million in backlog, and completed the JEM acquisition in February 2026 to expand its marine services.
Orion Group Holdings reported FY 2025 contract revenues of $852.3 million, representing a 7% increase from $796.4 million in FY 2024. Gross profit improved to $105.6 million (12.4% margin) from $91.2 million (11.4% margin), driven by strong project execution and increased utilization. Operating income was $14.6 million, up from $11.5 million, while net income was $2.5 million, a positive swing from a net loss of $1.6 million in the prior year. The company ended the year with $640 million in consolidated backlog ($480 million marine, $160 million concrete) and completed the JEM acquisition in February 2026 to expand its dredging and marine construction capabilities.
Revenue growth of 7% was primarily driven by new awards and higher volume across both business segments. The marine segment generated $544.8 million in revenue (64% of total), a 5% increase from $521.3 million in FY 2024, with growth attributed to new awards and higher volume on marine construction contracts. The concrete segment contributed $307.4 million in revenue (36% of total), a 12% increase from $275.1 million, driven by new awards and higher volume on concrete contracts. The marine segment's revenue mix included $401.1 million from public sector projects and $143.7 million from private sector projects, while the concrete segment derived $37.2 million from public sector and $270.2 million from private sector work.
Gross margin improved to 12.4% from 11.4% in the prior year, reflecting strong project execution and increased utilization. Selling, general and administrative expenses increased to $93.5 million (11.0% of revenue) from $82.5 million (10.4% of revenue), primarily due to spending to support business growth. The marine segment achieved operating income of $29.9 million (5.5% margin), a significant improvement from $2.3 million in FY 2024, driven by increased revenue, strong project execution, and favorable utilization. The concrete segment reported an operating loss of $15.3 million (-5.0% margin), compared to operating income of $9.2 million in FY 2024, primarily due to seasonal weather delays and favorable concrete project close-outs in 2024 that did not reoccur in 2025.
The company generated $28.1 million in operating cash flow during FY 2025, consisting of $43.9 million from net income adjusted for non-cash items, partially offset by $15.8 million of working capital outflows. Investing activities used $13.7 million, with $38.9 million in capital expenditures partially offset by $25.2 million from asset sales. Financing activities used $39.4 million, primarily for debt repayments and lease payments. Free cash flow (operating cash flow minus capital expenditures) was $14.4 million. The balance sheet shows total assets of $414.7 million, total liabilities of $255.6 million, and stockholders' equity of $159.0 million. Working capital was $74.3 million, and the company had $1.6 million in unrestricted cash with $60.0 million available under its revolving credit facility.
Management expects favorable demand trends for both segments in 2026. For the marine segment, drivers include ongoing repair and modernization of aging U.S. marine infrastructure, continued investment in U.S. Navy and federal marine infrastructure, sustained demand from energy-related customers, and potential opportunities from the Water Resources Reform and Development Act. For the concrete segment, demand is supported by population growth in Texas and Florida, ongoing investment in warehouse, distribution, and data center facilities, and selective geographic expansion. The company will update its reportable segments in Q1 2026 to report corporate expenses separately. Key risk factors include project concentration, bonding requirements, labor market conditions, and compliance with debt covenants under the new $120 million UMB Credit Agreement.