Dec 31, 2024

Orion Group Q4 2024 Earnings Report

Orion Group Holdings reported increased revenue and profitability for Q4 2024.

Key Takeaways

Orion Group Holdings achieved a 7.6% revenue growth in Q4 2024, reaching $216.9 million. The company posted a net income of $6.8 million, reversing the prior year's loss. Adjusted EBITDA increased by 15.3% to $17.1 million. The company's backlog stood at $977.3 million, including new awards secured after quarter-end.

Contract revenues increased by 7.6% year-over-year to $216.9 million.

GAAP net income was $6.8 million, compared to a net loss of $4.4 million in Q4 2023.

Adjusted EBITDA grew by 15.3% to $17.1 million.

Backlog, including new contract awards, reached $977.3 million.

Total Revenue
$217M
Previous year: $202M
+7.6%
EPS
$0.16
Previous year: $0.08
+100.0%
Adjusted EBITDA
$17.1M
Previous year: $14.8M
+15.5%
Backlog
$977M
Previous year: $762M
+28.2%
Gross Profit
$30.3M
Previous year: $23M
+31.6%
Cash and Equivalents
$28.3M
Previous year: $30.9M
-8.4%
Free Cash Flow
$9.92M
Previous year: $50.3M
-80.3%
Total Assets
$417M
Previous year: $417M
+0.1%

Orion Group

Orion Group

Orion Group Revenue by Segment

Forward Guidance

Orion expects revenue growth and margin expansion in 2025, with revenue projected between $800 million and $850 million. Adjusted EBITDA is forecasted between $42 million and $46 million, while adjusted EPS is expected to range from $0.11 to $0.17.

Positive Outlook

  • Revenue forecasted between $800 million and $850 million, slightly higher than 2024.
  • Adjusted EBITDA projected between $42 million and $46 million.
  • Continued investment in strategic projects to drive future growth.
  • Strong pipeline of $16 billion in potential contracts.
  • Expanded project awards, including $250 million in new contracts in early 2025.

Challenges Ahead

  • Margin expansion remains a focus but could be impacted by higher costs.
  • Increased SG&A expenses, which grew to 9.9% of revenue in Q4 2024.
  • Backlog slightly decreased year-over-year, despite new awards.
  • Operational risks in marine and concrete projects affecting profitability.
  • Potential impact of interest expenses on net income.

Revenue & Expenses

Visualization of income flow from segment revenue to net income