Orion Group Holdings Awarded $211.7 Million in New Contracts

Rhea-AI Summary

Orion Group Holdings (NYSE: ORN) has secured new contracts worth $211.7 million, comprising $143.5 million in Marine awards and $68.2 million in Concrete awards. The projects are set to commence in 2025 with completion dates through 2026.

Key Marine awards include a $113.7 million contract from Texas Department of Transportation for the State Highway 6 bridge replacement over Lake Waco, and three separate contracts totaling $29.8 million for Port of Houston, Port of Galveston, and a private dredging project. Additionally, Orion received notification for the Deschutes Estuary Restoration project in Washington state (estimated at $350 million, pending funding).

The Concrete segment secured multiple projects including a multi-story development in Houston, a junior high school, industrial warehouses, and food processing building. The company also won a one-million-square-foot data center project in Iowa, marking their 33rd data center project.

Positive

• Secured $211.7 million in new contracts
• Major $113.7 million Texas bridge replacement contract
• Portfolio expansion with 33 data center projects
• Diversification across multiple project types and locations
• Strong backlog growth while maintaining profitable bidding discipline

Negative

• Final pricing still under negotiation for Iowa data center project
• Deschutes Estuary project pending full funding approval

Insights

Financial Analyst

The $211.7M in new contract awards represents a significant expansion of Orion's project portfolio, with particularly strong momentum in high-value infrastructure projects. The $113.7M Texas DOT bridge contract anchors these awards, demonstrating Orion's competitive advantage in complex marine infrastructure projects.

Several strategic elements deserve attention:

• The repeat business from Hanover Development following a 43-story project completion signals strong execution capabilities and client satisfaction in the concrete segment
• The diversification into data centers (33 projects to date) positions Orion in a high-growth infrastructure sector with typically better margins than traditional construction
• The joint venture with Kraemer North America for the Deschutes project shows strategic capability to participate in larger, more complex environmental projects

The geographical distribution of projects across Texas, Washington and Iowa demonstrates successful market expansion beyond core regions. The emphasis on "maintaining discipline around bidding" suggests a focus on margin protection despite growth - a important factor in the current inflationary environment. The mix of public infrastructure, private development and specialized facilities indicates a well-balanced portfolio that could provide more stable revenue streams through different economic cycles.

Construction Industry Analyst

This contract portfolio showcases Orion's evolution into higher-value, technically complex projects. The Lake Waco bridge replacement exemplifies the type of critical infrastructure work that requires specialized marine construction expertise - a high barrier to entry segment where Orion excels.

The strategic significance lies in three key areas:

• Environmental restoration expertise, as demonstrated by the Deschutes project, positions Orion for the growing wave of climate resilience infrastructure spending
• The data center portfolio expansion (33 projects) reflects deep expertise in a technically demanding sector where precision concrete work is critical
• Port infrastructure projects in Houston and Galveston leverage Orion's marine capabilities in essential commerce hubs

The joint venture approach for larger projects like the Deschutes restoration demonstrates sophisticated risk management and the ability to tackle projects beyond typical scale. The combination of time-sensitive port repairs, multi-year bridge projects and complex concrete structures shows strong operational capacity across different project types and timelines.

• $143.5 million in Marine awards
• $68.2 million in Concrete awards
• Not included in the $211.7 million total is Orion’s portion of the Deschutes Estuary Restoration project in Washington state and a one million square foot data center in Iowa
  

HOUSTON, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”, “Orion”), a leading specialty construction company, today announced new Marine and Concrete awards for a total value of approximately $211.7 million. These projects are expected to begin in 2025 with varying completion dates extending through 2026. These awards further reinforce Orion's position as a leader in specialized Marine and Concrete construction.

Management Commentary

“As I have said before, we have never seen such a confluence of opportunity in our markets and the team we built over the last two years is really delivering on the promise of that potential,” said Travis Boone, Chief Executive Officer of Orion Group Holdings. “I am especially pleased with the quality and diversity of these recent awards. We are attracting new partners and participating in exciting new projects ranging from bridge work over waterways in Texas to environmental restoration in the Pacific Northwest. We continue to show strength in data centers with 33 projects to date. Importantly, while growing our backlog, we are maintaining our discipline around bidding to ensure profitable long-term returns.”

New Contract Details

Orion Marine Awards: In Orion's Marine segment, the Texas Department of Transportation has approved a contract award of $113.7 million to replace the State Highway 6 bridge over Lake Waco in Central Texas. The contract is anticipated to begin in the first quarter of 2025 with a construction duration of approximately 24 months.

Also in Texas, the Marine business secured three separate contracts for repair of Wharves 20 and 21 for the Port of Houston, improvements to Cruise Terminal 16 for the Port of Galveston, and a significant private dredging project. In total, these awards are valued at $29.8 million, and all three projects are expected to be completed in 2025.

In the Pacific Northwest, Orion’s Washington-based Marine segment received notification of award for a General Contractor/Construction Management contract as a Joint Venture partner with Kraemer North America (KOJV) for the Deschutes Estuary Restoration project in the state capital of Olympia, Washington. The client currently estimates the value of the project at approximately $350 million and is actively pursuing full funding. Restoration of the Deschutes Estuary will improve ecological conditions, help achieve state water quality standards, improve climate resilience and mitigation, and seek to restore recreation and fishing in the waterbody. The KOJV will work closely with the State of Washington through the preconstruction phase to bring innovative construction methods and risk and cost management strategies. Acquiring permits and finalizing design with construction agreements to follow, pending final funding; consequently, Orion’s share of the KOJV contract is still undetermined and not included in the $211.7 million total referenced above.

Orion Concrete Awards: Combined with other contracts in the last two months, the Concrete segment has won over $68.2 million in new projects that will commence in early 2025. Upon successfully completing a 43-story high rise project as a subcontractor for Hanover Development Company in Houston, Texas, Orion Concrete was awarded a contract for a multi-story project award as a subcontractor for Hanover in Houston, Texas.   In collaboration with longstanding partners, Corvus and Harvey, the team also secured a junior high school, industrial warehouses, and food processing building in Houston. Working with our partner Layton Construction, the Concrete team was also awarded a one million square foot data center project for a confidential client in Iowa, which brings Orion’s portfolio of data center projects to 33 total projects, including both active and completed projects. This data center project is not included in the $68.2 million as the final price is being negotiated.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company's marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. https://www.oriongroupholdingsinc.com.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, , are forward-looking statements. Forward-looking statements also include project award announcements, estimated project start dates, anticipated revenues, and contract options which may or may not be awarded in the future. Forward-looking statements involve risks, including those associated with the Company's fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to the Company's 2023 Annual Report on Form 10-K, filed on March 1, 2024, which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contact:

Financial Profiles, Inc.
Margaret Boyce 310-622-8247
mboyce@finprofiles.com

FAQ

What is the total value of new contracts awarded to Orion Group Holdings (ORN) in February 2025?

Orion Group Holdings secured new contracts worth $211.7 million, including $143.5 million in Marine awards and $68.2 million in Concrete awards.

What is the largest single contract awarded to ORN in this announcement?

The largest single contract is $113.7 million from the Texas Department of Transportation for replacing the State Highway 6 bridge over Lake Waco.

How many data center projects has ORN completed or currently working on?

Orion has worked on 33 total data center projects, including both active and completed projects.

When will ORN begin construction on the new Texas bridge project?

The State Highway 6 bridge project is anticipated to begin in the first quarter of 2025 with a construction duration of approximately 24 months.

What is the estimated value of the Deschutes Estuary Restoration project that ORN will participate in?

The Deschutes Estuary Restoration project is estimated at approximately $350 million, though Orion's share is still undetermined and pending full funding.