Orion Group Holdings Reports 34.5% Increase in Contract Revenues, Net Income Turnaround in Q3 2024

Orion Group Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which operates in the marine and concrete construction sectors, experienced a notable increase in contract revenues, which reached $226.7 million for the three months ended September 30, 2024, up 34.5% from $168.5 million in the same period of 2023. For the nine months ended September 30, 2024, total contract revenues were $579.5 million, reflecting a 13.6% increase compared to $510.2 million in the prior year.

Gross profit for the third quarter of 2024 was $27.1 million, a 41.9% increase from $19.1 million in Q3 2023, with a gross profit margin rising to 11.9% from 11.3%. Operating income also improved significantly, reaching $7.8 million for the third quarter, compared to $2.6 million in the same quarter of the previous year. The company reported a net income of $4.3 million for Q3 2024, a turnaround from a net loss of $0.7 million in Q3 2023.

For the nine-month period, Orion recorded a net loss of $8.4 million, an improvement from a loss of $13.5 million in the same period of 2023. The company’s operating income for the nine months was $1.9 million, a significant recovery from an operating loss of $6.0 million in the prior year.

The marine segment was a key driver of revenue growth, with contract revenues for Q3 2024 reaching $140.0 million, up 73.0% from $80.9 million in Q3 2023, largely due to the Pearl Harbor Project. Conversely, the concrete segment saw a slight decline in revenues, totaling $86.7 million, down 1.0% from $87.6 million in the same quarter of 2023.

As of September 30, 2024, Orion's total assets increased to $430.3 million from $416.9 million at the end of 2023, while total liabilities decreased to $287.9 million from $295.4 million. The company’s total stockholders’ equity rose to $142.4 million, up from $121.5 million.

Strategically, Orion executed a common stock offering on September 12, 2024, raising approximately $26.5 million for working capital and debt repayment. The company also amended its Credit Agreement with White Oak, which includes a $65 million revolving credit facility and a $38 million term loan, to enhance liquidity and financial flexibility.

Overall, Orion Group Holdings demonstrated improved financial performance and strategic positioning in a challenging market environment, with a focus on enhancing operational efficiency and managing costs effectively.