Orion Group Holdings Reports 17.4% Revenue Growth and Improved Gross Profit in Q1 2025

Orion Group Holdings, Inc. reported a significant increase in financial performance for the first quarter of 2025, with contract revenues reaching $188.7 million, a 17.4% increase from $160.7 million in the same period last year. The company achieved a gross profit of $23.0 million, up 48.1% from $15.5 million, resulting in a gross margin of 12.2%, compared to 9.7% in the prior year. Despite these improvements, Orion recorded a net loss of $1.4 million, an improvement from a net loss of $6.1 million in the first quarter of 2024. The basic loss per share was $(0.04), compared to $(0.19) in the previous year.

The company’s operational metrics showed notable changes, particularly in its marine segment, which generated $127.2 million in revenues, a 19.6% increase from $106.3 million. This growth was attributed to an uptick in large marine construction contracts. Conversely, the concrete segment saw revenues of $61.5 million, a 13.1% increase, but it reported an operating loss of $3.9 million, down from a profit of $1.7 million in the prior year, primarily due to lower margins and seasonal productivity challenges.

Orion's strategic developments included a focus on improving operational efficiency and bidding practices, which contributed to the marine segment's recovery. The company also reported a backlog of $839.7 million as of March 31, 2025, up from $729.1 million at the end of 2024, indicating a strong pipeline of future work. The backlog is composed of $607.4 million from the marine segment and $232.3 million from the concrete segment, reflecting ongoing demand in both areas.

In terms of liquidity, Orion had $13.0 million in cash and cash equivalents at the end of the quarter, down from $28.3 million at the end of 2024. The company’s working capital decreased to $73.4 million from $78.2 million. Orion has access to approximately $40.7 million under its revolving credit facility, which it utilizes for working capital and capital expenditures. The company remains optimistic about its liquidity position, expecting to maintain adequate resources for operations over the next 12 months.

Looking ahead, Orion Group Holdings anticipates continued growth driven by its strong backlog and ongoing projects. The company is focused on enhancing operational efficiencies and managing costs effectively to improve profitability. However, it remains cautious about potential market fluctuations and the impact of inflation on material costs, which could affect future contract performance and margins.