ORN Q2 2025: Revenue +7%, EPS $0.02; Cash Tight, Backlog $746M

Q: How did ORN's Q2 2025 revenue and EPS compare to Q2 2024?

Q2 2025 revenue grew 6.8% to $205.3 million ; EPS improved to $0.02 from -$0.20.

Q: What drove Orion's margin improvement in Q2 2025?

Lower cost overruns and better project mix lifted gross margin to 12.6%, up 3.1 percentage points.

Q: What is Orion Group Holdings' current cash and debt position?

As of June 30 2025, cash was $1.7 million ; total debt stood at $36.6 million .

Q: How large is ORN's backlog and when will it be recognized?

Remaining performance obligations are $745.7 million ; management expects 83% within the next 12 months.

Q: Which segment contributed most to profitability?

The Marine segment generated $6.2 million operating income, offsetting losses in the Concrete segment.

Q: What is the status of the Pearl Harbor dry-dock contract?

ORN鈥檚 subcontract value is $458.7 million ; it contributed $33.3 million revenue in Q2 2025 (16% of total).

[10-Q] Orion Group Holdings, Inc Quarterly Earnings Report

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Orion Group Holdings (NYSE: ORN) posted a modest turnaround in Q2 2025. Contract revenue rose 6.8% year-over-year to $205.3 million, with gross profit expanding 41% to $25.8 million as cost discipline lifted gross margin to 12.6% (vs. 9.5%). Operating income swung to $3.4 million from a $2.8 million loss, and net income reached $0.8 million, or $0.02 per share, versus a $6.6 million loss (-$0.20 EPS) in Q2 2024. For the first six months, revenue grew 11.6% to $393.9 million; the net loss narrowed to $0.6 million (-$0.01 EPS) from $12.7 million.

Segment mix shifted. The Marine division delivered 3.3% top-line growth and generated $6.2 million operating profit (prior-year loss), offsetting a $2.8 million operating loss in the Concrete division despite its 14.3% revenue gain. Backlog remains robust at $745.7 million, with 83% expected to convert within 12 months, underpinned by the $458.7 million Pearl Harbor dry-dock subcontract (U.S. Navy accounted for 16% of Q2 revenue).

Liquidity tightens. Cash fell to $1.7 million from $28.3 million as operations burned $9.0 million and capex absorbed $16.2 million. Total debt climbed to $36.6 million (vs. $26.8 million), boosting quarterly interest expense to $2.9 million. Revolver borrowings stand at $10 million, leaving $21.9 million available; compliance with a $15 million minimum liquidity covenant now relies heavily on revolver capacity. Net working capital improved modestly, but negative free cash flow and higher leverage heighten refinancing and covenant-breach risk if cash generation does not improve.

Orion Group Holdings (NYSE: ORN) ha registrato un modesto recupero nel secondo trimestre del 2025. I ricavi da contratti sono aumentati del 6,8% su base annua, raggiungendo 205,3 milioni di dollari, con un utile lordo in crescita del 41% a 25,8 milioni di dollari grazie a una rigorosa gestione dei costi che ha portato il margine lordo al 12,6% (rispetto al 9,5%). L鈥檜tile operativo 猫 passato da una perdita di 2,8 milioni a un guadagno di 3,4 milioni, mentre l鈥檜tile netto ha raggiunto 0,8 milioni di dollari, pari a 0,02 dollari per azione, rispetto a una perdita di 6,6 milioni (-0,20 dollari per azione) nel secondo trimestre 2024. Nei primi sei mesi, i ricavi sono cresciuti dell鈥�11,6% a 393,9 milioni; la perdita netta si 猫 ridotta a 0,6 milioni (-0,01 dollari per azione) da 12,7 milioni.

La composizione dei segmenti 猫 cambiata. La divisione Marine ha registrato una crescita del fatturato del 3,3% e ha generato un utile operativo di 6,2 milioni (rispetto a una perdita nell鈥檃nno precedente), compensando la perdita operativa di 2,8 milioni della divisione Concrete nonostante un incremento del fatturato del 14,3%. Il portafoglio ordini rimane solido a 745,7 milioni, con l鈥�83% previsto in conversione entro 12 mesi, sostenuto dal subappalto da 458,7 milioni per il dry-dock di Pearl Harbor (la Marina degli Stati Uniti ha rappresentato il 16% dei ricavi del secondo trimestre).

La liquidit脿 si riduce. La liquidit脿猫 scesa a 1,7 milioni da 28,3 milioni a causa di un assorbimento di cassa operativo di 9,0 milioni e investimenti in capitale fisso pari a 16,2 milioni. Il debito totale 猫 salito a 36,6 milioni (da 26,8 milioni), aumentando le spese per interessi trimestrali a 2,9 milioni. I prestiti sul fido ammontano a 10 milioni, lasciando una disponibilit脿 residua di 21,9 milioni; il rispetto del vincolo minimo di liquidit脿 di 15 milioni ora dipende fortemente dalla capacit脿 del fido. Il capitale circolante netto 猫 migliorato leggermente, ma il flusso di cassa libero negativo e l鈥檃umento della leva finanziaria aumentano il rischio di rifinanziamento e di violazione dei covenant se la generazione di cassa non migliora.

Orion Group Holdings (NYSE: ORN) registr贸 una leve recuperaci贸n en el segundo trimestre de 2025. Los ingresos por contratos aumentaron un 6,8% interanual hasta 205,3 millones de d贸lares, con una expansi贸n del beneficio bruto del 41% hasta 25,8 millones de d贸lares, gracias a una estricta disciplina de costos que elev贸 el margen bruto al 12,6% (frente al 9,5%). El ingreso operativo pas贸 de una p茅rdida de 2,8 millones a una ganancia de 3,4 millones, y el ingreso neto alcanz贸 0,8 millones, o 0,02 d贸lares por acci贸n, frente a una p茅rdida de 6,6 millones (-0,20 d贸lares por acci贸n) en el segundo trimestre de 2024. En los primeros seis meses, los ingresos crecieron un 11,6% hasta 393,9 millones; la p茅rdida neta se redujo a 0,6 millones (-0,01 d贸lares por acci贸n) desde 12,7 millones.

La composici贸n de los segmentos cambi贸. La divisi贸n Marina registr贸 un crecimiento del 3,3% en ingresos y gener贸 una ganancia operativa de 6,2 millones (tras una p茅rdida el a帽o anterior), compensando una p茅rdida operativa de 2,8 millones en la divisi贸n de Concreto a pesar de su aumento del 14,3% en ingresos. La cartera de pedidos sigue s贸lida en 745,7 millones, con un 83% esperado para convertirse en ingresos en 12 meses, respaldada por el subcontrato de 458,7 millones para el dique seco de Pearl Harbor (la Marina de EE.UU. represent贸 el 16% de los ingresos del segundo trimestre).

La liquidez se ajusta. El efectivo cay贸 a 1,7 millones desde 28,3 millones debido a un consumo operativo de 9,0 millones y gastos de capital de 16,2 millones. La deuda total aument贸 a 36,6 millones (desde 26,8 millones), elevando el gasto por intereses trimestral a 2,9 millones. Los pr茅stamos revolventes est谩n en 10 millones, dejando 21,9 millones disponibles; el cumplimiento del convenio m铆nimo de liquidez de 15 millones depende ahora en gran medida de la capacidad del cr茅dito revolvente. El capital de trabajo neto mejor贸 modestamente, pero el flujo de caja libre negativo y el mayor apalancamiento aumentan el riesgo de refinanciamiento y de incumplimiento de convenios si la generaci贸n de efectivo no mejora.

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Orion Group Holdings (NYSE : ORN) a affich茅 un l茅ger redressement au deuxi猫me trimestre 2025. Le chiffre d'affaires des contrats a augment茅 de 6,8 % en glissement annuel pour atteindre 205,3 millions de dollars, avec un b茅n茅fice brut en hausse de 41 % 脿 25,8 millions de dollars gr芒ce 脿 une discipline rigoureuse des co没ts qui a port茅 la marge brute 脿 12,6 % (contre 9,5 %). Le r茅sultat d'exploitation est pass茅 d'une perte de 2,8 millions 脿 un b茅n茅fice de 3,4 millions, et le r茅sultat net a atteint 0,8 million, soit 0,02 dollar par action, contre une perte de 6,6 millions (-0,20 dollar par action) au deuxi猫me trimestre 2024. Sur les six premiers mois, le chiffre d'affaires a progress茅 de 11,6 % 脿 393,9 millions ; la perte nette s'est r茅duite 脿 0,6 million (-0,01 dollar par action) contre 12,7 millions.

La r茅partition des segments a 茅volu茅. La division Marine a enregistr茅 une croissance du chiffre d'affaires de 3,3 % et g茅n茅r茅 un b茅n茅fice d'exploitation de 6,2 millions (apr猫s une perte l'ann茅e pr茅c茅dente), compensant une perte d'exploitation de 2,8 millions dans la division B茅ton malgr茅 une hausse du chiffre d'affaires de 14,3 %. Le carnet de commandes reste solide 脿 745,7 millions, dont 83 % devraient se concr茅tiser dans les 12 mois, soutenu par le sous-contrat de 458,7 millions pour le bassin 脿 sec de Pearl Harbor (la Marine am茅ricaine repr茅sentait 16 % du chiffre d'affaires du deuxi猫me trimestre).

La liquidit茅 se resserre. La tr茅sorerie est pass茅e de 28,3 millions 脿 1,7 million, les op茅rations ayant consomm茅 9,0 millions et les investissements 16,2 millions. La dette totale a augment茅脿 36,6 millions (contre 26,8 millions), faisant grimper les charges d鈥檌nt茅r锚ts trimestrielles 脿 2,9 millions. Les emprunts sur la ligne de cr茅dit renouvelable s鈥櫭﹍猫vent 脿 10 millions, laissant 21,9 millions de disponible ; le respect de la clause de liquidit茅 minimale de 15 millions d茅pend d茅sormais fortement de cette capacit茅. Le fonds de roulement net s鈥檈st l茅g猫rement am茅lior茅, mais les flux de tr茅sorerie libres n茅gatifs et l鈥檈ndettement accru augmentent les risques de refinancement et de non-respect des engagements si la g茅n茅ration de tr茅sorerie ne s鈥檃m茅liore pas.

Orion Group Holdings (NYSE: ORN) verzeichnete im zweiten Quartal 2025 eine moderate Erholung. Die Vertragsums盲tze stiegen im Jahresvergleich um 6,8 % auf 205,3 Millionen US-Dollar, wobei der Bruttogewinn um 41 % auf 25,8 Millionen US-Dollar zunahm, da Kostendisziplin die Bruttomarge auf 12,6 % (vorher 9,5 %) anhob. Das Betriebsergebnis drehte von einem Verlust von 2,8 Millionen auf einen Gewinn von 3,4 Millionen, und der Nettogewinn erreichte 0,8 Millionen US-Dollar bzw. 0,02 US-Dollar je Aktie, gegen眉ber einem Verlust von 6,6 Millionen (-0,20 US-Dollar je Aktie) im zweiten Quartal 2024. F眉r die ersten sechs Monate stiegen die Ums盲tze um 11,6 % auf 393,9 Millionen; der Nettoverlust verringerte sich auf 0,6 Millionen (-0,01 US-Dollar je Aktie) gegen眉ber 12,7 Millionen.

Die Segmentzusammensetzung 盲nderte sich. Die Marine-Sparte verzeichnete ein Umsatzwachstum von 3,3 % und erzielte einen operativen Gewinn von 6,2 Millionen (Vorjahresverlust), der einen operativen Verlust von 2,8 Millionen in der Concrete-Sparte trotz eines Umsatzanstiegs von 14,3 % ausglich. Der Auftragsbestand bleibt mit 745,7 Millionen robust, wobei 83 % innerhalb von 12 Monaten umgesetzt werden sollen, gest眉tzt durch den 458,7 Millionen schweren Unterauftrag f眉r das Pearl Harbor Trocken-Dock (die US Navy machte 16 % des Q2-Umsatzes aus).

Die Liquidit盲t verengt sich. Die Barmittel sanken von 28,3 Millionen auf 1,7 Millionen, da der operative Cashflow 9,0 Millionen und Investitionen 16,2 Millionen verschlangen. Die Gesamtverschuldung stieg auf 36,6 Millionen (vorher 26,8 Millionen), was die quartalsm盲脽igen Zinsaufwendungen auf 2,9 Millionen erh枚hte. Revolvierende Kredite belaufen sich auf 10 Millionen, wobei 21,9 Millionen verf眉gbar bleiben; die Einhaltung einer Mindestliquidit盲tsvereinbarung von 15 Millionen h盲ngt nun stark von der Revolvierenden Kreditlinie ab. Das Nettoumlaufverm枚gen verbesserte sich leicht, aber negativer freier Cashflow und h枚here Verschuldung erh枚hen das Risiko von Refinanzierungsschwierigkeiten und Covenant-Verst枚脽en, falls die Cash-Generierung nicht zunimmt.

Positive

Net income of $0.8 million vs. prior-year loss, marking the first profitable quarter in over a year.
Gross margin expanded 310 bps to 12.6%, aided by cost controls and improved project mix.
Backlog of $745.7 million provides strong revenue visibility, with 83% executable within 12 months.
Marine segment turnaround produced $6.2 million operating profit versus a $5.5 million loss last year.

Negative

Cash balance collapsed to $1.7 million from $28.3 million, reflecting negative $26.6 million net cash outflow.
Total debt rose 36% to $36.6 million, increasing interest expense and leverage risk.
Concrete segment swung to a $2.8 million operating loss despite higher revenue, signaling execution issues.
Reliance on revolver availability to meet a $15 million minimum liquidity covenant heightens covenant breach risk.

Insights

TL;DR: Return to profitability and margin expansion signal operational progress, but cash burn clouds equity upside.

Revenue growth above 6% combined with a 310 bps margin lift shows management鈥檚 pricing and cost controls gaining traction, particularly in Marine. The swing to positive EPS and backlog visibility near 12-month conversion horizons support a potential re-rating from deep-value territory. However, free-cash-flow deficit, higher leverage (net debt now 鈮�$35 million) and SOFR-linked interest above 10% limit near-term equity optionality. Investors should watch Q3 cash generation and Concrete segment turnaround for confirmation.

TL;DR: Liquidity cushion thin; covenant headroom depends on revolver 鈥� heightened refinancing and rate-shock exposure.

Cash of $1.7 million covers barely half a week of operating costs, forcing reliance on the $65 million ABL. The company met Q2 covenants, yet minimum liquidity ($15 million) is effectively satisfied via undrawn revolver, not cash. Rising working capital tied to the Navy project, capex needs and 10.5% blended borrowing rate could trigger further draws. Any project delay or change order dispute would strain the Fixed-Charge Coverage Ratio commencing 9/30/25. Lenders should monitor borrowing-base quality and pending sale-leaseback liabilities.

07/30/2025 - 11:34 AM

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 1-33891

ORION GROUP HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


Delaware State of Incorporation	26-0097459 IRS Employer Identification Number

2940 Riverby Road, Suite 400 Houston, Texas 77020 Address of Principal Executive Office	(713) 852-6500 Registrant’s telephone number (including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common stock, $0.01 par value per share

ORN

The New York Stock Exchange

NYSE Texas

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days: ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files): Yes ☑ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, "accelerated filer", "smaller reporting company” and "emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer ☐	Accelerated filer ☑
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): ☐ Yes ☑ No

There were 39,735,245 shares of common stock outstanding as of July 25, 2025.

Table of Contents

ORION GROUP HOLDINGS, INC.

Quarterly Report on Form 10-Q for the period ended June 30, 2025

Index


		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets at June 30, 2025 and December 31, 2024	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29
Item 4.	Controls and Procedures	30
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	31
SIGNATURES		33

Table of Contents

Part

PART I.FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Information)


	June 30,		December 31,
	2025		2024
ASSETS		(Unaudited)
Current assets:
Cash and cash equivalents	$	1,732	$	28,316
Accounts receivable:
Trade, net of allowance for credit losses of $1,099 and $555, respectively		168,526		106,304
Retainage		43,944		35,633
Income taxes receivable		875		483
Other current		3,338		3,127
Inventory		1,841		1,974
Contract assets		50,951		84,407
Prepaid expenses and other		8,765		9,084
Total current assets		279,972		269,328
Property and equipment, net of accumulated depreciation		97,677		86,098
Operating lease right-of-use assets, net of accumulated amortization		23,708		27,101
Financing lease right-of-use assets, net of accumulated amortization		23,061		25,806
Inventory, non-current		6,954		7,640
Deferred income tax asset		17		17
Other non-current		1,334		1,327
Total assets	$	432,723	$	417,317
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt, net of debt issuance costs	$	1,160	$	426
Accounts payable:
Trade		111,125		97,139
Retainage		2,847		1,310
Accrued liabilities		22,610		26,294
Income taxes payable		2		507
Contract liabilities		48,762		47,371
Current portion of operating lease liabilities		5,549		7,546
Current portion of financing lease liabilities		10,997		10,580
Total current liabilities		203,052		191,173
Long-term debt, net of debt issuance costs		32,268		22,751
Operating lease liabilities		21,030		20,837
Financing lease liabilities		7,665		11,346
Other long-term liabilities		15,484		20,503
Deferred income tax liability		30		28
Total liabilities		279,530		266,638
Stockholders’ equity:
Preferred stock -- $0.01 par value, 10,000,000 authorized, none issued		—		—
Common stock -- $0.01 par value, 50,000,000 authorized, 40,446,476 and 39,681,597 issued; 39,735,245 and 38,970,366 outstanding at June 30, 2025 and December 31, 2024, respectively		404		397
Treasury stock, 711,231 shares, at cost, as of June 30, 2025 and December 31, 2024, respectively		(6,540)		(6,540)
Additional paid-in capital		223,593		220,513
Retained loss		(64,264)		(63,691)
Total stockholders’ equity		153,193		150,679
Total liabilities and stockholders’ equity	$	432,723	$	417,317

The accompanying notes are an integral part of these condensed consolidated financial statements

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Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In Thousands, Except Share and Per Share Information)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Contract revenues	$	205,286	$	192,167	$	393,939	$	352,839
Costs of contract revenues		179,489		173,886		345,127		319,020
Gross profit		25,797		18,281		48,812		33,819
Selling, general and administrative expenses		22,774		21,135		45,319		40,134
Gain on disposal of assets, net		(409)		(86)		(772)		(423)
Operating income (loss)		3,432		(2,768)		4,265		(5,892)
Other (expense) income:
Interest expense		(2,920)		(3,345)		(5,254)		(6,719)
Other income		117		127		344		216
Other expense, net		(2,803)		(3,218)		(4,910)		(6,503)
Income (loss) before income taxes		629		(5,986)		(645)		(12,395)
Income tax (benefit) expense		(212)		617		(72)		265
Net income (loss)	$	841	$	(6,603)	$	(573)	$	(12,660)

Basic income (loss) per share	$	0.02	$	(0.20)	$	(0.01)	$	(0.39)
Diluted income (loss) per share	$	0.02	$	(0.20)	$	(0.01)	$	(0.39)
Shares used to compute income (loss) per share:
Basic		39,765,051		33,111,987		39,412,681		32,832,868
Diluted		39,791,164		33,111,987		39,412,681		32,832,868

The accompanying notes are an integral part of these condensed consolidated financial statements

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Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In Thousands, Except Share and Per Share Information) (Unaudited)


	Common			Treasury			Additional
	Stock			Stock			Paid-In		Retained
	Shares	Amount		Shares	Amount		Capital		Loss		Total
Balance, January 1, 2025	39,681,597	$	397	(711,231)	$	(6,540)	$	220,513	$	(63,691)	$	150,679
Share-based compensation	—		—	—		—		1,123		—		1,123
Exercise of stock options	15,000							108				108
Issuance of restricted stock	499,036		5	—		—		(5)		—		—
Employee share purchase plan issuance	71,133		1					336				337
Forfeiture of restricted stock	(10,960)		—	—		—		—		—		—
Net loss	—		—	—		—		—		(1,414)		(1,414)
Balance, March 31, 2025	40,255,806	$	403	(711,231)	$	(6,540)	$	222,075	$	(65,105)	$	150,833
Share-based compensation	—		—	—		—		1,519		—		1,519
Exercise of stock options	—		—	—		—		—		—		—
Issuance of restricted stock	454,630		4	—		—		(4)		—		—
Employee share purchase plan issuance	—		—	—		—		—		—		—
Forfeiture of restricted stock	(263,960)		(3)	—		—		3		—		—
Net income	—		—	—		—		—		841		841
Balance, June 30, 2025	40,446,476	$	404	(711,231)	$	(6,540)	$	223,593	$	(64,264)	$	153,193


	Common			Treasury			Additional
	Stock			Stock			Paid-In		Retained
	Shares	Amount		Shares	Amount		Capital		Loss		Total
Balance, January 1, 2024	33,260,011	$	333	(711,231)	$	(6,540)	$	189,729	$	(62,047)	$	121,475
Share-based compensation	—		—	—		—		358		—		358
Exercise of stock options	46,322		—	—		—		294		—		294
Issuance of restricted stock	275,954		3	—		—		(3)		—		—
Forfeiture of restricted stock	(6,942)		—	—		—		—		—		—
Net loss	—		—	—		—		—		(6,057)		(6,057)
Balance, March 31, 2024	33,575,345	$	336	(711,231)	$	(6,540)	$	190,378	$	(68,104)	$	116,070
Share-based compensation	—		—	—		—		1,556		—		1,556
Exercise of stock options	10,246		—	—		—		74		—		74
Issuance of restricted stock	508,910		5	—		—		(5)		—		—
Forfeiture of restricted stock	(8,331)		—	—		—		—		—		—
Payments related to tax withholding for share-based compensation	(3,984)		—	—		—		(34)		—		(34)
Net loss	—		—	—		—		—		(6,603)		(6,603)
Balance, June 30, 2024	34,082,186	$	341	(711,231)	$	(6,540)	$	191,969	$	(74,707)	$	111,063

The accompanying notes are an integral part of these condensed consolidated financial statements

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Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in Thousands)

(Unaudited)


	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities:
Net loss	$	(573)	$	(12,660)
Adjustments to reconcile net loss to net cash used in operating activities:
Operating activities:
Depreciation and amortization		6,274		8,326
Amortization of ROU operating leases		4,848		4,912
Amortization of ROU finance leases		4,360		3,664
Amortization of deferred debt issuance costs		612		995
Deferred income taxes		2		(38)
Share-based compensation		2,642		1,914
Gain on disposal of assets, net		(772)		(423)
Allowance for credit losses		544		162
Change in operating assets and liabilities:
Accounts receivable		(71,339)		(28,135)
Income tax receivable		(392)		(70)
Inventory		819		(261)
Prepaid expenses and other		312		723
Contract assets		33,456		10,910
Accounts payable		13,636		7,291
Accrued liabilities		(1,141)		(14,160)
Operating lease liabilities		(3,179)		(4,492)
Income tax payable		(505)		166
Contract liabilities		1,391		(16,981)
Net cash used in operating activities		(9,005)		(38,157)
Cash flows from investing activities:
Proceeds from sale of property and equipment		1,189		354
Purchase of property and equipment		(16,165)		(6,487)
Net cash used in investing activities		(14,976)		(6,133)
Cash flows from financing activities:
Borrowings on Credit Facility		77,007		29,216
Payments on Credit Facility		(67,212)		(6,809)
Payments on failed sale-leasebacks		(7,204)		—
Loan costs from Credit Agreement and prior credit facility		(323)		(343)
Payments of finance lease liabilities		(5,316)		(4,209)
Proceeds from issuance of common stock under ESPP		337		—
Payments related to tax withholding for share-based compensation		—		(34)
Exercise of stock options		108		368
Net cash (used in) provided by financing activities		(2,603)		18,189
Net change in cash, cash equivalents and restricted cash		(26,584)		(26,101)
Cash, cash equivalents and restricted cash at beginning of period		28,316		30,938
Cash, cash equivalents and restricted cash at end of period	$	1,732	$	4,837

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	4,504	$	2,597
Taxes, net of refunds	$	824	$	206
Noncash investing activity:
Purchase of property and equipment in accounts payable	$	2,118	$	—

The accompanying notes are an integral part of these condensed consolidated financial statements

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Orion Group Holdings, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Thousands, Except Share and per Share Amounts)

(Unaudited)

1.Description of Business and Basis of Presentation

Description of Business

Orion Group Holdings, Inc. and its subsidiaries (hereafter collectively referred to as the “Company”), is a leading specialty construction company serving the infrastructure, industrial, and building sectors, providing services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through our marine and concrete segments. We are headquartered in Houston, Texas with regional offices throughout our operating areas.

Basis of Presentation

The accompanying condensed consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Accordingly, these financial statements do not include certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should be read together with our 2024 Annual Report on Form 10-K. For the periods presented, there were no items of other comprehensive income.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal recurring nature. Interim results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results realizable for the year ending December 31, 2025.

2.Recent Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) issues accounting standards and updates (each, an “ASU”) from time to time to its Accounting Standards Codification (“ASC”), which is the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers applicability to its business. All ASUs are adopted by their respective due dates and in the manner prescribed by the FASB.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disclosure of specific categories in the rate reconciliation and provides additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. This will not impact our financial position or results of operations, but is expected to result in expanded tax disclosures in the full year financial statements for the year ended December 31, 2025.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures. The amendments require entities to provide enhanced disaggregation of certain expense categories presented in the income statement, including details on significant

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components within those categories, to provide greater transparency and decision-useful information to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its consolidated financial statements.

3.Revenue

Contract revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table represents a disaggregation of the Company’s contract revenues by service line for the marine and concrete segments:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Marine Segment
Construction	$	114,830	$	116,025	$	219,312	$	204,814
Dredging		17,700		12,077		34,611		26,747
Specialty services		2,772		2,851		8,542		5,717
Marine segment contract revenues	$	135,302	$	130,953	$	262,465	$	237,278

Concrete Segment
Structural	$	12,582	$	16,895	$	26,303	$	28,468
Light commercial		57,402		44,319		105,171		87,093
Concrete segment contract revenues	$	69,984	$	61,214	$	131,474	$	115,561

Total contract revenues	$	205,286	$	192,167	$	393,939	$	352,839

The Company has determined that it has two reportable segments as described in Note 15, but has disaggregated its contract revenues in the above chart in terms of services provided within such segments. Additionally, both the marine and concrete segments have limited contracts with multiple performance obligations. The Company’s contracts are often estimated and bid as one project and performance is evaluated as one project, not by individual services performed by each.

Additionally, the table below represents contract revenue by type of customer for the three and six months ended June 30, 2025 and 2024, respectively:


	Three Months Ended June 30,								Six Months Ended June 30,
	2025		%		2024		%		2025		%		2024		%
Federal Government	$	39,429	19	%	$	67,021	35	%	$	81,313	21	%	$	120,403	34	%
State Governments		36,322	18	%		15,453	8	%		65,283	17	%		29,437	8	%
Local Government		43,127	21	%		26,892	14	%		80,164	20	%		55,865	16	%
Private Companies		86,408	42	%		82,801	43	%		167,179	42	%		147,134	42	%
Total contract revenues	$	205,286	100	%	$	192,167	100	%	$	393,939	100	%	$	352,839	100	%

On March 10, 2023, the United States Navy awarded the Dragados/Hawaiian Dredging/Orion Joint Venture a contract to complete the construction of a dry dock at Pearl Harbor Naval Shipyard. The Company’s joint venture with Dragados/Hawaiian Dredging is a related-party transaction. The Company’s portion of work as a dedicated subcontractor totals $458.7 million.

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For the three months ended June 30, 2025 and 2024, the United States Navy, included in the Federal Government category, accounted for 16.4% and 28.9% of total contract revenues, respectively. For the six months ended June 30, 2025 and 2024, the United States Navy, included in the Federal Government category, accounted for 16.9% and 26.5% of total contract revenues, respectively.

For the three months ended June 30, 2025 and 2024, the Company’s revenue related to the joint venture subcontract was approximately $33.3 million and $55.5 million, respectively. For the six months ended June 30, 2025 and 2024, the Company’s revenue related to the joint venture subcontract was approximately $66.6 million and $93.5 million, respectively.

The Company does not believe that the loss of any one of its customers would have a material adverse effect on the Company or its subsidiaries and affiliates since no single specific customer sustains such a large portion of receivables or contract revenue over time.

Contract revenues generated outside the United States totaled 5.6% and 8.6% of total revenues for the three months ended June 30, 2025 and 2024, respectively, and 5.9% and 7.4% for the six months ended June 30, 2025 and 2024, respectively, and were primarily located in the Caribbean Basin.

4.Concentration of Risk and Enterprise-Wide Disclosures

Accounts receivable include amounts billed to governmental agencies and private customers and do not bear interest. Balances billed to customers but not paid pursuant to retainage provisions generally become payable upon contract completion and acceptance by the owner.

The table below presents the concentrations of current receivables (trade and retainage) at June 30, 2025 and December 31, 2024, respectively:


	June 30, 2025				December 31, 2024
Federal Government	$	56,499	26	%	$	19,874	14	%
State Governments		19,692	9	%		9,553	7	%
Local Governments		36,760	17	%		24,641	17	%
Private Companies		100,618	48	%		88,424	62	%
Gross receivables		213,569	100	%		142,492	100	%
Allowance for credit losses		(1,099)				(555)
Net receivables	$	212,470			$	141,937

At June 30, 2025, the United States Navy, which is included in the Federal Government category, accounted for 25.8% of total current receivables. At December 31, 2024, the United States Navy, accounted for 11.1% of total current receivables.

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5.Contracts in Progress

Contracts in progress are as follows at June 30, 2025 and December 31, 2024:


	June 30,		December 31,
	2025		2024
Costs incurred on uncompleted contracts	$	1,730,265	$	1,561,338
Estimated earnings		246,552		211,439
		1,976,817		1,772,777
Less: Billings to date		(1,974,628)		(1,735,741)
	$	2,189	$	37,036
Included in the accompanying Consolidated Balance Sheets under the following captions:
Contract assets	$	50,951	$	84,407
Contract liabilities		(48,762)		(47,371)
	$	2,189	$	37,036

Included in contract assets is approximately $5.0 million and $19.8 million at June 30, 2025 and December 31, 2024, respectively, related to claims and unapproved change orders.

Remaining performance obligations represent the transaction price of firm orders or other written contractual commitments from customers for which work has not been performed or is partially completed and excludes unexercised contract options and potential orders. As of June 30, 2025, the aggregate amount of the remaining performance obligations was approximately $745.7 million. Of this amount, the current expectation of the Company is that it will recognize $618.3 million, or 83%, in the next 12 months and the remaining balance thereafter.

6.Property and Equipment

The following is a summary of property and equipment at June 30, 2025 and December 31, 2024:


	June 30,		December 31,
	2025		2024
Construction equipment	$	117,409	$	117,652
Vessels and other equipment		103,878		96,173
Building and improvements		38,701		39,401
Automobiles and trucks		2,080		1,790
Office equipment		1,786		7,562
		263,854		262,578
Less: Accumulated depreciation		(206,833)		(209,234)
Net book value of depreciable assets		57,021		53,344
Construction in progress		15,708		7,806
Land		24,948		24,948
Property and equipment, net of depreciation	$	97,677	$	86,098

Substantially all depreciation expense is included in the cost of contract revenue in the Company’s Condensed Consolidated Statements of Operations. Substantially all of the assets of the Company are pledged as collateral under the Company’s Credit Agreement as discussed in Note 9. Substantially all of the Company’s long-lived assets are located in the United States.

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7.Fair Value

Recurring Fair Value Measurements

The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. Due to their short-term nature, the Company believes that the carrying value of its accounts receivable, other current assets, accounts payable and other current liabilities approximate their fair values.

The Company classifies financial assets and liabilities into the following three levels based on the inputs used to measure fair value in the order of priority indicated:

●

Level 1- fair values are based on observable inputs such as quoted prices in active markets for identical assets or liabilities;

●

Level 2 - fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and

●

Level 3 - fair values are based on unobservable inputs in which little or no market data exists.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value requires judgment and may affect the placement of assets and liabilities within the fair value hierarchy levels.

Our concrete segment has life insurance policies with a combined face value of $11.1 million as of June 30, 2025. These policies are invested in mutual funds and the fair value measurement of the cash surrender balance associated with these policies is determined using Level 2 inputs within the fair value hierarchy and will vary with investment performance. The fair value of the cash surrender value of these policies at June 30, 2025 and December 31, 2024 was $1.3 million and $1.2 million, respectively. These assets are included in the "Other non-current" asset section in the Company’s Condensed Consolidated Balance Sheets.

Other Fair Value Measurements

The fair value of the Company’s debt at June 30, 2025 and December 31, 2024 approximated its carrying value of $36.6 million and $26.8 million, respectively, as interest is based on current market interest rates for debt with similar risk and maturity.

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8.Accrued Liabilities

Accrued liabilities at June 30, 2025 and December 31, 2024 consisted of the following:


	June 30, 2025		December 31, 2024
Accrued salaries, wages and benefits	$	12,546	$	13,931
Accrued liabilities expected to be covered by insurance		3,434		4,250
Sales taxes		2,210		1,605
Property taxes		1,271		1,814
Sale-leaseback arrangement		1,005		2,852
Other accrued expenses		2,144		1,842
Total accrued liabilities	$	22,610	$	26,294

9.Debt

The Company’s obligations under debt arrangements consisted of the following:


	June 30, 2025						December 31, 2024
			Debt Issuance						Debt Issuance
	Principal		Costs⁽¹⁾		Total		Principal		Costs⁽¹⁾		Total
Other debt	$	1,160		—	$	1,160	$	426		—	$	426
Total current debt		1,160		—		1,160		426		—		426
Revolver		10,000		(972)		9,028		—		—		—
Term loan		23,000		(2,237)		20,763		23,000		(3,666)		19,334
Other debt		2,477		—		2,477		3,417		—		3,417
Total long-term debt		35,477		(3,209)		32,268		26,417		(3,666)		22,751
Total debt	$	36,637	$	(3,209)	$	33,428	$	26,843	$	(3,666)	$	23,177

(1)	Total debt issuance costs include underwriter fees, legal fees, syndication fees and fees related to the execution of the Credit Agreement and the termination and repayment of the Company’s prior credit facility.

On May 15, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with White Oak ABL, LLC and White Oak Commercial Finance, LLC, providing for a $65.0 million asset-based revolving credit facility (the “Revolver”) and a $38.0 million fixed asset term loan (the “Term Loan”). The Credit Agreement, as subsequently amended, matures on May 15, 2028 and is secured by substantially all of the assets of the Company and its subsidiaries, including fixed assets and accounts receivable.

The Company has a maximum borrowing capacity under the Revolver of $65.0 million. There is a letter of credit sublimit that is equal to the lesser of $5.0 million and the aggregate unused amount of the revolving commitments then in effect.

The Company is subject to a commitment fee for the unused portion of the maximum borrowing availability under the Revolver. The Revolver termination date is the earlier of the Credit Agreement termination date, May 15, 2028, or the date the outstanding balance is permanently reduced to zero, in accordance with the terms of the Credit Agreement.

As of June 30, 2025, the Company had $10.0 million in borrowings under the Revolver. The Company’s borrowing availability under the Revolver at June 30, 2025 was approximately $21.9 million.

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The Credit Agreement is used to finance working capital and general corporate purposes, capital expenditures, permitted acquisitions and associated transaction fees, and to refinance existing indebtedness. Borrowings under the Revolver may be repaid and reborrowed, subject to the borrowing base and other conditions.

As amended, the Revolver and Term Loan bear interest at rates based on 30-day SOFR plus applicable margins, subject to a SOFR floor. As of June 30, 2025, the applicable margin is 4.25% for the Revolver and 6.50% for the Term Loan, with a 4.00% SOFR floor.

The quarterly weighted average interest rate for the Credit Agreement, as of June 30, 2025 and 2024 was 10.46% and 12.07%, respectively.

The Credit Agreement contains customary affirmative and negative covenants, including limitations on indebtedness, liens, investments, asset sales, and dividends, as well as financial maintenance covenants. The financial covenants, as amended, include a minimum Consolidated Fixed Charge Coverage Ratio and/or Consolidated EBITDA thresholds and a minimum liquidity requirement, each tested periodically.

Financial covenants

Restrictive financial covenants under the amended Credit Agreement include:

●

A Consolidated Fixed Charge Coverage Ratio to not be less than the following during each noted period:

Trailing Four Quarter Test Period Ending September 30, 2025 and each Fiscal Quarter thereafter, to not be less than 1.00 to 1.00.

●

A Revolver Loan Turnover Ratio to not be less than the following during each noted period:

Fiscal Quarter Ending June 30, 2023 and each Fiscal Quarter thereafter, to not be less than 2.50 to 1.00.

●

A Term Loan Loan-to-Value Ratio to not be greater than the following during each noted period:

Fiscal Quarter Ending June 30, 2023 and each Fiscal Quarter thereafter, to not be more than 60%.

●

A Minimum EBITDA to not be less than the following during each noted period:

Trailing Four Quarter Test Period ending June 30, 2025 - $31,691,000.

Under the Credit Agreement, the Company may not permit Liquidity (as defined in the Credit Agreement) to fall below $15.0 million (i) for more than three (3) consecutive Business Days (as defined in the Credit Agreement) nor (ii) as of the close of business on Friday of each week.

In addition, the Credit Agreement contains events of default that are usual and customary for similar arrangements, including non-payment of principal, interest or fees; breaches of representations and warranties that are not timely cured; violation of covenants; bankruptcy and insolvency events; and, events constituting a change of control.

The Company was in compliance with all financial covenants under the Credit Agreement as of June 30, 2025.

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Other debt

The Company has entered into debt agreements with Mobilease for the purpose of financing equipment purchased. As of June 30, 2025 and December 31, 2024, the carrying value of this debt was $1.2 million and $1.4 million, respectively. The agreements are secured by the financed equipment assets and the debt is included as a component of current debt and long-term debt on the Condensed Consolidated Balance Sheets.

On June 23, 2023, the Company closed on a land-sale leaseback contract for the Company’s Port Lavaca South Yard property located in Port Lavaca, Texas for a purchase price of $12.0 million. A portion of the operating lease above the fair value of the land was financed by the Company. As of both June 30, 2025 and December 31, 2024, the carrying value of this debt was $2.4 million.

10.Other Long-Term Liabilities

Other long-term liabilities at June 30, 2025 and December 31, 2024 consisted of the following:


	June 30, 2025		December 31, 2024
Sale-leaseback arrangement	$	13,917	$	19,001
Deferred compensation		1,175		1,194
Other		392		308
Total other long-term liabilities	$	15,484	$	20,503

Sale-Leaseback Arrangements

On May 15, 2023, the Company entered into a $13.0 million sale-leaseback of certain equipment pursuant to which the Company leased-back the equipment for terms ranging from one to three years. The transaction above was recorded as a failed sale-leaseback.

Concurrent with the sale of Company’s Port Lavaca South Yard property, the Company entered into a twenty-year lease agreement whereby the Company leased back the property at an annual rental rate of approximately $1.1 million, subject to annual rent increases of 2.5%. Under the lease agreement, the Company has four consecutive options to extend the term of the lease by five years for each such option. The portion of the above transaction related to the building was recorded as a failed sale-leaseback.

On September 27, 2019, the Company entered into a purchase and sale agreement (the “Purchase and Sale Agreement”). Pursuant to the terms of the Purchase and Sale Agreement, the Company sold its 17300 and 17140 Market Street location in Channelview, Texas for a purchase price of $19.1 million. Concurrent with the sale of the property, the Company entered into a fifteen-year lease agreement whereby the Company leased back the property at an annual rental rate of approximately $1.5 million, subject to annual rent increases of 2.0%. Under the lease agreement, the Company has two consecutive options to extend the term of the lease by ten years for each such option. The transaction above was recorded as a failed sale-leaseback.

Related to the failed sale-leasebacks, the Company recorded liabilities for the amounts received, will continue to depreciate the non-land portion of the assets, and has imputed an interest rate so that the net carrying amount of the financial liability and remaining assets will be zero at the end of the initial lease terms.

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11.Income Taxes

The Company’s effective tax rate is based on expected income, statutory rates and tax planning opportunities available to it. For interim financial reporting, the Company estimates its annual tax rate based on projected taxable income for the full year and records a quarterly tax provision in accordance with the anticipated annual rate.

Income tax (benefit) expense included in the Company’s accompanying Condensed Consolidated Statements of Operations was as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
Income tax (benefit) expense	$	(212)		$	617		$	(72)		$	265
Effective tax rate		(33.7)	%		(10.3)	%		11.2	%		(2.1)	%

The effective rate for the three and six months ended June 30, 2025 differed from the Company’s statutory federal rate of 21% primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

The Company assessed the realizability of its deferred tax assets and determined that it was more likely than not that some portion or all the deferred tax assets would not be realized and therefore recorded a valuation allowance on the net deferred tax assets. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The Company considers the scheduled reversal of deferred tax liabilities, available carryback periods, and tax-planning strategies in making this assessment. For the three and six months ended June 30, 2025 the Company evaluated positive and negative evidence in determining the amount of deferred tax assets more likely than not to be realized. Based on the review of available evidence, management believes that a valuation allowance on the net deferred tax assets at June 30, 2025 remains appropriate.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes provisions, that may impact our tax rate such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The Company is currently assessing the potential impact on its consolidated financial statements.

12.Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during each period. Diluted earnings per share is based on the weighted average number of common shares outstanding as well as the effect of all dilutive common stock equivalents during each period net income is generated. For the three months ended June 30, 2025 and 2024, the Company had 48,940 and 181,025 shares, respectively, that were potentially dilutive in earnings per share calculations. For the six months ended June 30, 2025 and 2024, the Company had 52,103 and 201,550 shares, respectively, that were potentially dilutive in earnings per share calculations. Such dilution is dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. The exercise price for certain stock options awarded by the Company exceeded the average market price of the Company’s common stock for the three and six months ended June 30, 2025 and 2024. Such stock options are antidilutive and are not included in the computation of earnings per share for those periods. The Company reported a net loss for the three months

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ended June 30, 2024 and the six months ended June 30, 2025 and 2024; therefore, all potentially dilutive securities are antidilutive and are excluded from the computation of diluted loss per share for such periods.

The following table reconciles the denominators used in the computations of both basic and diluted earnings per share:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Basic:		.
Weighted average shares outstanding	39,765,051	33,111,987	39,412,681	32,832,868
Diluted:
Total basic weighted average shares outstanding	39,765,051	33,111,987	39,412,681	32,832,868
Effect of potentially dilutive securities:
Common stock options	9,354	—	—	—
Employee stock purchase plan	16,759	—	—	—
Total weighted average shares outstanding assuming dilution	39,791,164	33,111,987	39,412,681	32,832,868

13.Share-Based Compensation

The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans. In general, the Company’s 2022 LTIP provides for grants of restricted stock and performance-based awards to be issued with a per-share price not less than the fair market value of a share of common stock on the date of grant. The Company accounts for forfeitures of awards as they are incurred.

In May 2024 shareholders approved the ESPP, which became effective on September 16, 2024. The Company has reserved a total of 1,000,000 shares under the ESPP, all of which are authorized and available for future issuance under the ESPP. During the six months ended June 30, 2025, there were 71,133 shares issued under the ESPP generating proceeds to the Company of $0.3 million. The Company has an outstanding liability pertaining to the ESPP of $0.3 million as of June 30, 2025, included in accrued expenses, for employee contributions to the ESPP, pending issuance at the end of the offering period.

The table below presents the share-based compensation expense included in the Company’s accompanying condensed consolidated statements of operations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Restricted stock awards	$	1,456	$	1,186	$	2,189	$	1,477
Performance stock units		(25)		370		282		437
Employee share purchase plan		88		—		171		—
Total share-based compensation expense	$	1,519	$	1,556	$	2,642	$	1,914

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Under its approved long-term incentive plan, the Company grants share-based awards to its employees. The following table presents a summary of the Company’s unvested restricted stock awards and performance share units granted under the plan:


	Restricted stock awards			Performance stock units
		Weighted				Weighted
	Number	Average		Number		Average
	of	Fair Value		of		Fair Value
	Shares	Per Share		Shares		Per Share
Nonvested at December 31, 2024	1,008,232	$	6.56	534,231		$	3.65
Granted	205,963	$	5.94	293,073		$	7.17
Vested	(106,475)	$	5.46	—		$	—
Forfeited shares	(10,960)	$	8.56	—		$	—
Nonvested at March 31, 2025	1,096,760	$	6.53	827,304		$	4.89
Granted	454,630	$	8.61	—		$	—
Vested	(208,108)	$	9.11	—		$	—
Forfeited shares	(68,943)	$	6.73	(195,017)		$	4.56
Nonvested at June 30, 2025	1,274,339	$	6.84	632,287	¹	$	5.00

(1)

A maximum of 1.2 million common shares could be awarded based upon the Company’s achievement of set performance-metrics.

On March 20, 2025, the Company granted certain executives a total of 293,073 performance-based units. The performance-based units will potentially vest 100% if the target is met, with 50% of the units to be earned based on the achievement of an absolute adjusted EBITDA target, measured in the final year of a three-year performance period and 50% of the units to be earned based on the achievement of an objective, tiered return on relative total shareholder return, measured over a three-year performance period. The Company evaluates the probability of achieving targeted award levels each reporting period. The fair value of the grants awarded related to the adjusted EBITDA target was $5.89 per share and the fair value of the grants awarded related to the relative total shareholder return target was $8.45 valued using a Monte Carlo simulation model.

The following table presents the assumptions related to the performance share units granted in 2025 related to the relative total shareholder return, as indicated in the previous summary table:


		2025
Grant-date fair value	$	5.89
Risk-free interest rate		3.86	%
Volatility factor		65.52	%
Contractual term (years)		2.78

In the six months ended June 30, 2025, there were 15,000 options exercised generating proceeds to the Company of $0.1 million. In the three months ended June 30, 2024, there were 10,246 options exercised generating proceeds to the Company of $0.1 million. In the six months ended June 30, 2024, there were 56,568 options exercised generating proceeds to the Company of $0.4 million.

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The following table presents a summary of the unrecognized compensation cost, and the related weighted average recognition period associated with unvested awards and units as of June 30, 2025:


		Restricted stock awards		Performance stock units
Unrecognized compensation cost	$	7,475	$	2,815
Weighted average period for recognition (years)		2.34		1.90

14.Commitments and Contingencies

The Company is involved in various legal and other proceedings that are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations or cash flows. Management believes that it has recorded adequate accrued liabilities and believes that it has adequate insurance coverage or has meritorious defenses for these claims and contingencies.

15.Segment Information

The Company has determined that it has two reportable segments pursuant to ASC Topic 280, Segment Reporting. The tools used by the chief operating decision maker (“CODM”) to allocate resources and assess performance are based on two reportable and operating segments: marine and concrete, which operate under the Orion brand and logo.

In making this determination, the Company considered the similar economic characteristics of each segment’s operations, including internal processes, customer base, regulatory oversight, and macroeconomic factors that drive each. Both the marine and concrete segments have a single individual responsible for managing the entire segment. Resources are allocated by segment and financial and budgetary information is compiled and reviewed by segment.

Marine Segment

Our marine segment provides construction, dredging and specialty services. Construction services include construction, restoration, maintenance, dredging and repair of marine transportation facilities, marine pipelines, bridges and causeways and marine environmental structures. Dredging services generally enhance or preserve the navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Specialty services include design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation and repair.

Concrete Segment

Our concrete segment provides turnkey concrete construction services, including concrete surface place and finish, site preparation, layout, forming, and rebar placement for large commercial, structural and other associated business areas.

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Segment information for the periods presented is provided as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	Amount		Amount		Amount		Amount

Marine	(dollar amounts in thousands)				(dollar amounts in thousands)
Contract revenues	$	135,302	$	130,953	$	262,465	$	237,278
Cost of contract revenues		115,156		120,878		223,794		220,998
Gross profit		20,146		10,075		38,671		16,280
Selling, general and administrative expenses		14,141		15,604		28,059		26,759
Gain on disposal of assets, net		(225)		(62)		(396)		(146)
Operating income (loss)	$	6,230	$	(5,467)	$	11,008	$	(10,333)


Total assets	$	345,833	$	322,031	$	345,833	$	322,031
Property and equipment, net	$	93,676	$	80,115	$	93,676	$	80,115
Depreciation and amortization	$	4,373	$	4,922	$	8,904	$	9,852
Capital expenditures	$	6,875	$	3,269	$	15,846	$	4,776

Concrete
Contract revenues	$	69,984	$	61,214	$	131,474	$	115,561
Cost of contract revenues		64,333		53,008		121,333		98,022
Gross profit		5,651		8,206		10,141		17,539
Selling, general and administrative expenses		8,633		5,531		17,260		13,375
Gain on disposal of assets, net		(184)		(24)		(376)		(277)
Operating (loss) income	$	(2,798)	$	2,699	$	(6,743)	$	4,441


Total assets	$	86,890	$	91,988	$	86,890	$	91,988
Property and equipment, net	$	4,001	$	5,860	$	4,001	$	5,860
Depreciation and amortization	$	858	$	1,049	$	1,730	$	2,138
Capital expenditures	$	257	$	1,365	$	319	$	1,711

There were $0.6 million and $1.1 million in intersegment revenues between the Company’s two reportable segments for the three months ended June 30, 2025 and 2024, respectively. There were $1.6 million and $1.7 million in intersegment revenues between the Company’s two reportable segments for the six months ended June 30, 2025 and 2024, respectively.

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16.Leases

The Company has operating and finance leases for office space, equipment and vehicles.

Leases recorded on the balance sheet consists of the following:


	June 30,		December 31,
Leases	2025		2024
Assets
Operating lease right-of-use assets, net (1)	$	23,708	$	27,101
Financing lease right-of-use assets, net (2)		23,061		25,806
Total assets	$	46,769	$	52,907
Liabilities
Current
Operating	$	5,549	$	7,546
Financing		10,997		10,580
Total current		16,546		18,126
Noncurrent
Operating		21,030		20,837
Financing		7,665		11,346
Total noncurrent		28,695		32,183
Total liabilities	$	45,241	$	50,309

(1)	Operating lease right-of-use assets are recorded net of accumulated amortization of $30.4 million and $25.6 million as of June 30, 2025 and December 31, 2024, respectively.

(2)	Financing lease right-of-use assets are recorded net of accumulated amortization of $21.3 million and $17.0 million as of June 30, 2025 and December 31, 2024, respectively.

Other information related to lease term and discount rate is as follows:


	June 30,		December 31,
	2025		2024
Weighted Average Remaining Lease Term (in years)
Operating leases	8.79		8.35
Financing leases	2.20		2.40
Weighted Average Discount Rate
Operating leases	11.39	%	10.66	%
Financing leases	9.15	%	8.74	%

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The components of lease expense are as follows:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Operating lease costs:
Operating lease cost	$	3,071	$	3,051	$	6,206	$	6,042
Short-term lease cost (1)		1,451		945		2,672		1,850
Financing lease costs:
Interest on lease liabilities		449		424		870		831
Amortization of right-of-use assets		2,132		1,853		4,360		3,664
Total lease cost	$	7,103	$	6,273	$	14,108	$	12,387

(1)	Includes expenses related to leases with a lease term of more than one month but less than one year.

Supplemental cash flow information related to leases is as follows:


	Six Months Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,638	$	5,656
Operating cash flows for finance leases	$	870	$	831
Financing cash flows for finance leases	$	5,316	$	4,209
Non-cash activity:
ROU assets obtained in exchange for new operating lease liabilities	$	2,287	$	13,815
ROU assets obtained in exchange for new financing lease liabilities	$	2,182	$	4,208

Maturities of lease liabilities are summarized as follows:


	Operating Leases		Finance Leases
Year ending December 31,
2025 (excluding the six months ended June 30, 2025)	$	4,445	$	6,138
2026		1,771		8,195
2027		5,744		2,769
2028		4,403		1,442
2029		3,678		2,133
Thereafter		28,591		64
Total future minimum lease payments		48,632		20,741
Less - amount representing interest		22,053		2,079
Present value of future minimum lease payments		26,579		18,662
Less - current lease obligations		5,549		10,997
Long-term lease obligations	$	21,030	$	7,665

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Unless the context otherwise indicates, all references in this Quarterly Report on Form 10-Q to “Orion,” “the Company,” “we,” “our,” or “us” are to Orion Group Holdings, Inc. and its subsidiaries as a whole.

Certain information in this Quarterly Report on Form 10-Q, including but not limited to Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), may constitute forward-looking statements as such term is defined 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.

All statements other than statements of historical facts, including those that express a belief, expectation, or intention are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, our pipeline of opportunities, conversion of backlog, revenues, income and capital spending. Our forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes.

We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control, including unforeseen productivity delays and other difficulties encountered in project execution, challenges incurred by virtue of our position as a substantial subcontractor that reports to a significantly larger project contractor, levels of government funding or other governmental budgetary constraints, contract modifications and changes, including change orders and contract cancellation at the discretion of the customer, and the general economic impact of tariffs and trade wars. These and other important factors, including those described under “Risk Factors” in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 may cause our actual results, performance- or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q speak only as of the date of this report; we disclaim any obligation to update these statements unless required by securities law, and we caution you not to rely on them unduly.

MD&A provides a narrative analysis explaining the reasons for material changes in the Company’s (i) financial condition since the most recent fiscal year-end, and (ii) results of operations during the current fiscal year-to-date period and current fiscal quarter as compared to the corresponding periods of the preceding fiscal year. In order to better understand such changes, this MD&A should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in our 2024 Form 10-K, Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K and with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q.

Overview

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services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through our marine segment and our concrete segment.

Our contracts are obtained primarily through competitive bidding in response to “requests for proposals” by federal, state and local agencies and through negotiation and competitive bidding with private parties and general contractors. Our bidding activity and strategies are affected by factors such as our backlog, current utilization of equipment and other resources, job location, our ability to obtain necessary surety bonds and competitive considerations. The timing and location of awarded contracts may result in unpredictable fluctuations in the results of our operations.

Most of our revenue is derived from fixed-price contracts. We record revenue on construction contracts over time, measured by the percentage of actual contract costs incurred to date to total estimated costs for each contract. There are a number of factors that can create variability in contract performance and therefore impact the results of our operations. The most significant of these include the following:

●

completeness and accuracy of the original bid;

●

increases in commodity prices such as concrete, steel and fuel;

●

customer delays, work stoppages, and other costs due to weather and environmental restrictions;

●

subcontractor performance;

●

unforeseen site conditions;

●

availability and skill level of workers; and

●

a change in availability and proximity of equipment and materials.

All of these factors can have a negative impact on our contract performance, which can adversely affect the timing of revenue recognition and ultimate contract profitability. We plan our operations and bidding activity with these factors in mind and they generally have not had a material adverse impact on the results of our operations in the past.

Consolidated Results of Operations

Backlog Information

Our contract backlog represents our estimate of the revenues we expect to realize under the portion of contracts remaining to be performed. Given the typical duration of our contracts, which is generally less than a year, our

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backlog at any point in time usually represents only a portion of the revenue that we expect to realize during a twelve-month period. We have not been adversely affected by contract cancellations or modifications in the past, however we may be in the future, especially in periods of economic uncertainty.

Backlog as of the periods ended below are as follows (in millions):


	June 30, 2025		December 31, 2024
Marine segment	$	554.8	$	582.8
Concrete segment		190.9		146.3
Consolidated	$	745.7	$	729.1

Backlog is not necessarily indicative of future results. In addition to our backlog under contract, we also have a substantial number of projects in negotiation or pending award at any given time.

Income Statement Comparisons

Three months ended June 30, 2025 compared with three months ended June 30, 2024.


	Three Months Ended June 30,
	2025		2024
	Amount		Amount

	(dollar amounts in thousands)
Contract revenues	$	205,286	$	192,167
Cost of contract revenues		179,489		173,886
Gross profit		25,797		18,281
Selling, general and administrative expenses		22,774		21,135
Gain on disposal of assets, net		(409)		(86)
Operating income (loss)		3,432		(2,768)
Other (expense) income:
Interest expense		(2,920)		(3,345)
Other income		117		127
Other expense, net		(2,803)		(3,218)
Income (loss) before income taxes		629		(5,986)
Income tax (benefit) expense		(212)		617
Net income (loss)	$	841	$	(6,603)

Contract Revenues. Contract revenues for the three months ended June 30, 2025 of $205.3 million increased $13.1 million, or 6.8%, as compared to $192.2 million in the prior year period. The increase was primarily due to new awards and higher volume across the marine and concrete segments.

Gross Profit. Gross profit was $25.8 million for the three months ended June 30, 2025 compared to $18.3 million in the prior year period, an increase of $7.5 million, or 41.1%. The increase in gross profit was primarily driven by increased revenue, improvement in marine projects, and reduced indirect expenses, partially offset by favorable concrete project close-outs in 2024 that did not reoccur in 2025.

Selling, General and Administrative Expense. Selling, general and administrative (“SG&A”) expenses were $22.8 million for the three months ended June 30, 2025 compared to $21.1 million in the prior year period, an increase of $1.7 million or 7.8%. The increase in SG&A was primarily due to increased spending to support business growth.

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Gain on Disposal of Assets, net. During the three months ended June 30, 2025 and 2024 we realized $0.4 million and $0.1 million, respectively, of net gains on disposal of assets.

Other Income, net of Expense. Other expense primarily reflects interest on our borrowings, partially offset by interest income and non-operating gains or losses.

Income Tax (Benefit) Expense. We recorded a tax benefit of $0.2 million in the three months ended June 30, 2025, compared to a tax expense of $0.6 million in the prior year period. Our effective tax rate for the three months ended June 30, 2025 differs from the federal statutory rate primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Six months ended June 30, 2025 compared with six months ended June 30, 2024.


	Six Months Ended June 30,
	2025		2024
	Amount		Amount

	(dollar amounts in thousands)
Contract revenues	$	393,939	$	352,839
Cost of contract revenues		345,127		319,020
Gross profit		48,812		33,819
Selling, general and administrative expenses		45,319		40,134
Gain on disposal of assets, net		(772)		(423)
Operating income (loss) from operations		4,265		(5,892)
Other (expense) income:
Interest expense		(5,254)		(6,719)
Other income		344		216
Other expense, net		(4,910)		(6,503)
Loss before income taxes		(645)		(12,395)
Income tax (benefit) expense		(72)		265
Net loss	$	(573)	$	(12,660)

Contract Revenues. Contract revenues for the six months ended June 30, 2025 of $393.9 million increased $41.1 million or 11.6% as compared to $352.8 million in the prior year period. The increase was primarily due to new awards and higher volume across the marine and concrete segments.

Gross Profit. Gross profit was $48.8 million for the six months ended June 30, 2025 compared to $33.8 million in the prior year period, an increase of $15.0 million, or 44.3%. The increase in gross profit was primarily driven by increased revenue, improvement in marine projects, and reduced indirect expenses, partially offset by favorable concrete project close-outs in 2024 that did not reoccur in 2025.

Selling, General and Administrative Expense. SG&A expenses were $45.3 million for the six months ended June 30, 2025 compared to $40.1 million in the prior year period, an increase of $5.2 million, or 12.9%. The increase in SG&A was primarily due to increased spending to support business growth.

Gain on Disposal of Assets, net. During the six months ended June 30, 2025 and 2024 we realized $0.8 million and $0.4 million, respectively, of net gains on disposal of assets.

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Other Income, net of Expense. Other expense primarily reflects interest on our borrowings, partially offset by interest income and non-operating gains or losses.

Income Tax (Benefit) Expense. We recorded a tax benefit of $0.1 million in the six months ended June 30, 2025, compared to a tax expense of $0.3 million in the prior year period. Our effective tax rate for the six months ended June 30, 2025 differs from the federal statutory rate primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

Segment Results

The following table sets forth, for the periods indicated, statements of operations data by segment, segment revenues as a percentage of consolidated revenues and segment operating income (loss) as a percentage of segment revenues.

Three months ended June 30, 2025 compared with three months ended June 30, 2024.


	Three Months Ended June 30,
	2025		2024
	Amount		Amount

	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	107,243	$	103,341
Private sector		28,059		27,612
Marine segment total	$	135,302	$	130,953
Concrete segment
Public sector	$	11,635	$	6,025
Private sector		58,349		55,189
Concrete segment total	$	69,984	$	61,214
Total	$	205,286	$	192,167

Operating income (loss)
Marine segment	$	6,230	$	(5,466)
Concrete segment		(2,798)		2,698
Total	$	3,432	$	(2,768)

Marine Segment

Revenues for our marine segment for the three months ended June 30, 2025 were $135.3 million compared to $131.0 million for the three months ended June 31, 2024, an increase of $4.3 million, or 3.3%. The increase was primarily due to new awards and higher volume on our marine construction contracts.

Operating income for our marine segment for the three months ended June 30, 2025 was $6.2 million, compared to an operating loss of $5.5 million for the three months ended June 30, 2024, an increase of $11.7 million. The increase in gross profit was primarily driven by increased revenue, reduced indirect expenses, and project delays in 2024 that did not reoccur in 2025.

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Concrete Segment

Revenues for our concrete segment for the three months ended June 30, 2025 were $70.0 million compared to $61.2 million for the three months ended June 30, 2024, an increase of $8.8 million, or 14.3%. This increase was primarily due to new awards and higher volume on our concrete contracts.

Operating loss for our concrete segment for the three months ended June 30, 2025 was $2.8 million, compared to operating income of $2.7 million for the three months ended March 31, 2024, a decrease of $5.5 million. This decrease was primarily driven by favorable concrete project close-outs in 2024 that did not reoccur in 2025.

Six months ended June 30, 2025 compared with six months ended June 30, 2024.


	Six Months Ended June 30,
	2025		2024
	Amount		Amount

	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	207,464	$	196,276
Private sector		55,001		41,002
Marine segment total	$	262,465	$	237,278
Concrete segment
Public sector	$	19,296	$	9,429
Private sector		112,178		106,132
Concrete segment total	$	131,474	$	115,561
Total	$	393,939	$	352,839

Operating income (loss)
Marine segment	$	11,008	$	(10,333)
Concrete segment		(6,743)		4,441
Total	$	4,265	$	(5,892)

Marine Segment

Revenues for our marine segment for the six months ended June 30, 2025 were $262.5 million compared to $237.3 million for the six months ended June 30, 2024, an increase of $25.2 million, or 10.6%. The increase was primarily due to new awards and higher volume on our marine construction contracts.

Operating income for our marine segment for the six months ended June 30, 2025 was $11.0 million, compared to an operating loss of $10.3 million for the six months ended June 30, 2024, an increase of $21.3 million. The increase in gross profit was primarily driven by increased revenue, reduced indirect expenses, and project delays in 2024 that did not reoccur in 2025.

Concrete Segment

Revenues for our concrete segment for the six months ended June 30, 2025 were $131.5 million compared to $115.6 million for the six months ended June 30, 2024, an increase of $15.9 million, or 13.8%. This increase was primarily due to new awards and higher volume on our concrete contracts.

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Operating loss for our concrete segment for the six months ended June 30, 2025 was $6.7 million, compared to operating income of $4.4 million for the six months ended June 30, 2024, a decrease of $11.1 million. This decrease was primarily driven by favorable concrete project close-outs in 2024 that did not reoccur in 2025.

Liquidity and Capital Resources

Changes in working capital are normal within our business given the varying mix in size, scope, seasonality and timing of delivery of our projects. At June 30, 2025, our working capital was $76.9 million, as compared to $78.2 million at December 31, 2024. As of June 30, 2025, we had unrestricted cash on hand of $1.7 million. Our borrowing availability under the revolving portion of our Credit Agreement at June 30, 2025 was approximately $21.9 million.

Our primary liquidity needs are to finance our working capital and fund capital expenditures. Historically, our sources of liquidity have been cash provided by our operating activities, sale of underutilized assets, borrowings under our credit facilities, and equity issuances. The assessment of our liquidity requires us to make estimates of future activity and judgments about whether we are compliant with financial covenant calculations under our debt and other agreements and have adequate liquidity to operate. Significant assumptions used in our forecasted model of liquidity include forecasted sales, costs, and capital expenditures, as well as expected timing and proceeds of planned asset sale transactions. As of June 30, 2025, management believes the Company will have adequate liquidity for its operations for at least the next 12 months.

Cash Flow

The following table provides information regarding our cash flows and our capital expenditures for the three and six months ended June 30, 2025 and 2024:


	Six months ended
	June 30,
	2025		2024
Net income (loss)	$	(573)	$	(12,660)
Adjustments to remove non-cash and non-operating items		18,510		19,512
Cash flow from net income after adjusting for non-cash and non-operating items		17,937		6,852
Change in operating assets and liabilities (working capital)		(26,942)		(45,009)
Cash flows used in operating activities	$	(9,005)	$	(38,157)
Cash flows used in investing activities	$	(14,976)	$	(6,133)
Cash flows (used in) provided by financing activities	$	(2,603)	$	18,189

Capital expenditures (included in investing activities above)	$	(16,165)	$	(6,487)

Operating Activities. During the six months ended June 30, 2025 we used approximately $9.0 million of cash in our operating activities. The net cash outflow was comprised of $26.9 million of outflows related to changes in net working capital, partially offset by $17.9 million of cash inflows from net income, after adjusting for non-cash items. The changes in net working capital, which are reflected as changes in operating assets and liabilities in our Condensed Consolidated Statements of Cash Flows, were primarily driven by a $58.8 million cash outflow related to a decrease in our net position of accounts receivable and accounts payable plus accrued liabilities during the period and a $3.2 million decrease in operating lease liabilities, partially offset by $34.8 million of cash inflows pursuant to the relative timing and significance of project progression and billings during the period.

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Investing Activities. During the six months ended June 30, 2025, we used approximately $15.0 million of cash in our investing activities. Capital asset additions and betterments to our fleet were $16.2 million and $6.5 million in the six months ended June 30, 2025 and 2024, respectively.

Financing Activities. During the six months ended June 30, 2025, we used approximately $2.6 million of cash in our financing activities. During the six months ended June 30, 2025, we had borrowings on credit of $77.0 million and repayments of $67.0 million on the White Oak revolving credit line, payments on finance lease liabilities of $5.3 million, payments made on failed sale-leaseback arrangements of $7.2 million.

Sources of Capital

On May 15, 2023, we entered into a new three-year $103.0 million Credit Agreement with White Oak, which includes a $65.0 million asset based revolving credit line and a $38.0 million fixed asset term loan. Please see “Note 9 – Debt” in our unaudited condensed consolidated financial statements for a more detailed description of the Credit Facility.

We were in compliance with all financial covenants under the amended agreement as of June 30, 2025.

Bonding Capacity

We are often required to provide various types of surety bonds that provide additional security to our customers for our performance under certain government and private sector contracts. Our ability to obtain surety bonds depends on our capitalization, working capital, past performance and external factors, including the capacity of the overall surety market. At June 30, 2025, the capacity under our current bonding arrangement was $1.1 billion, with approximately $485 million of projects being bonded. While we believe that our current bonding capacity is sufficient to satisfy current demand for our services, any new major project opportunities may require us to seek additional bonding capacity in the future. We believe our balance sheet and working capital position will allow us to access additional bonding capacity as needed in the future.

Effect of Inflation

We are subject to the effects of inflation through increases in the cost of raw materials, and other items such as fuel, concrete and steel. Due to the relative short-term duration of our projects, we are generally able to include anticipated cost increases in the pricing of our bids.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the normal course of business, our results of operations are subject to risks related to fluctuations in commodity prices and fluctuations in interest rates. Historically, our exposure to foreign currency fluctuations has not been material and has been limited to temporary field accounts located in foreign countries where we perform work. Foreign currency fluctuations were immaterial in this reporting period.

Commodity price risk

We are subject to fluctuations in commodity prices for concrete, steel products and fuel. Although we routinely attempt to secure firm quotes from our suppliers, we generally do not hedge against increases in prices for commodity products. Commodity price risks may have an impact on our results of operations due to the fixed-price nature of many of our contracts, although the short-term duration of our projects may allow us to include cost increases to the pricing of our bids.

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Interest rate risk

At June 30, 2025, we had $33.0 million in outstanding borrowings under our Credit Agreement, with a weighted average ending interest rate of 10.25%. Based on the amounts outstanding under our Credit Agreement as of June 30, 2025, a 100 basis-point increase in SOFR (or an equivalent successor rate) would increase the Company’s annual interest expense by approximately $0.3 million.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required, the Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Control over Financial Reporting

During the quarter ended June 30, 2025, we implemented new reporting systems and made changes to related internal controls. There have been no other changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II.OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For information about litigation involving us, see Note 14 to the condensed consolidated financial statements in Part I of this report, which we incorporate by reference into this Item 1 of Part II.

ITEM 1A.RISK FACTORS

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors”, of our 2024 Form 10-K.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales or issuer purchases of equity securities in the period ended June 30, 2025.

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ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit Number		Description
3.1		Amended and Restated Certificate of Incorporation of Orion Group Holdings, Inc. (incorporated herein by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission on August 5, 2016 (File No. 001-33891)).
3.2		Amended and Restated Bylaws of Orion Group Holdings, Inc. (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on March 25, 2025 (File No. 001-33891)).
10.1†		Offer Letter for Alison Vasquez dated May 24, 2025 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 10, 2025 (File No. 001-33891)).
10.2†		Separation Agreement dated June 30, 2025 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 1, 2025 (File No. 001 33891)).
*31.1		Certification of the Chief Executive Officer Pursuant to Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2		Certification of the Chief Financial Officer Pursuant to Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**32.1		Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to Title 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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Exhibit Number		Description
*101.INS		XBRL Instance Document.
*101.SCH		Inline XBRL Taxonomy Extension Schema Document.
*101.CAL		Inline XBRL Extension Calculation Linkbase Document.
*101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith

** Furnished herewith

† Management contract or compensatory plan or arrangement

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.


		ORION GROUP HOLDINGS, INC.

July 30, 2025	By:	/s/ Travis J. Boone
		Travis J. Boone President and Chief Executive Officer

July 30, 2025	By:	/s/ Alison G. Vasquez
		Alison G. Vasquez Executive Vice President and Chief Financial Officer

Source:

FAQ

How did ORN's Q2 2025 revenue and EPS compare to Q2 2024?

Q2 2025 revenue grew 6.8% to $205.3 million; EPS improved to $0.02 from -$0.20.

What drove Orion's margin improvement in Q2 2025?

Lower cost overruns and better project mix lifted gross margin to 12.6%, up 3.1 percentage points.

What is Orion Group Holdings' current cash and debt position?

As of June 30 2025, cash was $1.7 million; total debt stood at $36.6 million.

How large is ORN's backlog and when will it be recognized?

Remaining performance obligations are $745.7 million; management expects 83% within the next 12 months.

Which segment contributed most to profitability?

The Marine segment generated $6.2 million operating income, offsetting losses in the Concrete segment.

What is the status of the Pearl Harbor dry-dock contract?

ORN鈥檚 subcontract value is $458.7 million; it contributed $33.3 million revenue in Q2 2025 (16% of total).

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How did ORN's Q2 2025 revenue and EPS compare to Q2 2024?

What drove Orion's margin improvement in Q2 2025?

What is Orion Group Holdings' current cash and debt position?

How large is ORN's backlog and when will it be recognized?

Which segment contributed most to profitability?

What is the status of the Pearl Harbor dry-dock contract?

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[10-Q] Orion Group Holdings, Inc Quarterly Earnings Report

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FAQ

How did ORN's Q2 2025 revenue and EPS compare to Q2 2024?

What drove Orion's margin improvement in Q2 2025?

What is Orion Group Holdings' current cash and debt position?

How large is ORN's backlog and when will it be recognized?

Which segment contributed most to profitability?

What is the status of the Pearl Harbor dry-dock contract?

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