Orion Group Holdings' Q2 2025: Key Contradictions in Concrete Margins, Defense Spending, and Project Timing

Concrete business margins and performance, defense spending and award timing, marine project timing, concrete segment performance and margin expectations, naval opportunities and timing are the key contradictions discussed in Orion Group Holdings' latest 2025Q2 earnings call.



Revenue and Earnings Growth:
- Orion Group Holdings reported revenue of $205 million for Q2 2025, up 7% year-over-year, with a 9% sequential increase.
- Adjusted EBITDA doubled to $11 million compared to the previous year, with margins improving by 240 basis points to 5.3%.
- The growth was primarily driven by new contract awards in both segments, reflecting a commitment to disciplined profitable growth.

Pipeline Expansion and Opportunities:
- The opportunity pipeline grew from $16 billion last quarter to $18 billion, fueled by diverse growth drivers and multiple sources of public and private funding.
- This reflects strong demand across the markets served and confidence in future growth.
- The expansion is supported by mission-critical projects with good margins for high-quality clients in both the Marine and Concrete segments.

Marine Segment Performance:
- Marine revenues increased by 3% year-over-year and 6% sequentially to $135 million in Q2 2025.
- Marine adjusted EBITDA grew to $12.7 million with a margin of 9.4%.
- The growth was attributed to efficiently closing out projects and project delays from the previous year not recurring in 2025.

Concrete Segment Challenges and Outlook:
- Concrete revenues increased by 14% year-over-year and 14% sequentially to $70 million in Q2 2025.
- Concrete adjusted EBITDA showed a loss of $1.7 million compared to a profit of $4 million in the previous year.
- The reduction was due to favorable project closeout benefits in 2024 that did not reoccur in 2025, but the outlook remains positive with a focus on high-quality clients and long-term growth.

Financial Guidance and Cash Flow:
- The company reaffirmed full-year 2025 guidance, expecting revenue in the range of $800 million to $850 million and adjusted EBITDA in the range of $42 million to $46 million.
- For the back half of the year, there is expected improvement in cash flow conversion, supported by better collections and paydown of borrowings on the revolver.
- The outlook is supported by a strong backlog and healthy pipeline, as well as favorable macroeconomic trends.