Orion Group Holdings, Inc. Company Profile

Background

Orion Group Holdings, Inc. is a leading specialty construction company serving the infrastructure, industrial, and building sectors. The company operates through two primary segments:

• Marine Segment: Provides construction and dredging services related to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels, and ports, environmental dredging, design, and specialty services.

• Concrete Segment: Offers turnkey concrete construction services, including place and finish, site preparation, layout, forming, and rebar placement for large commercial, structural, and other associated business areas.

Headquartered in Houston, Texas, Orion Group Holdings operates across the continental United States, Alaska, Hawaii, Canada, and the Caribbean Basin.

Key Strategic Focus

Orion Group Holdings is committed to:

• Operational Excellence: Enhancing project execution and efficiency across both segments.

• Market Expansion: Pursuing growth opportunities in infrastructure, industrial, and building sectors.

• Financial Strength: Maintaining a healthy balance sheet to support strategic initiatives.

• Safety and Quality: Upholding high standards in safety and project quality.

Financials and Funding

In May 2023, Orion Group Holdings secured a $103 million senior secured asset-based credit facility with White Oak ABL, LLC and White Oak Commercial Finance, LLC. This facility comprises a $65 million revolving credit facility and a $38 million fixed asset term loan. Additionally, the company completed a $13 million equipment sale-leaseback with Gordon Brothers. These financial arrangements aim to enhance liquidity and support growth initiatives.

In September 2024, the company raised approximately $26.4 million through a public offering of 5,589,000 shares of common stock. The net proceeds are intended for working capital and general corporate purposes, including debt repayment.

Pipeline Development

Orion Group Holdings has a robust project pipeline, including:

• Pearl Harbor Drydock Project: In March 2023, the U.S. Navy awarded a $2.8 billion contract to a joint venture including Orion for constructing a dry dock at Pearl Harbor Naval Shipyard. Orion's portion is valued at $450.2 million. As of December 31, 2024, the company recognized approximately $199.4 million in revenue from this project.

• SR 520 Portage Bay Bridge Project: In October 2024, Orion's Pacific Region Marine team secured a $30.6 million subcontract to support Skanska USA in the SR 520, I-5 to Montlake, Portage Bay Bridge project for the Washington State Department of Transportation. Work commenced in Q4 2024 with an expected duration of six months for the first phase.

• Ritz Carlton Residences Project: Orion's Concrete segment was awarded an $18.2 million subcontract for the Ritz Carlton Residences in The Woodlands, Texas. The project began in Q4 2024 and is expected to last approximately two years.

Technological Platform and Innovation

Orion Group Holdings leverages advanced technologies and methodologies to enhance project execution:

• Marine Construction Technologies: Utilizes specialized marine equipment and techniques for complex projects, including dredging and marine infrastructure development.

• Concrete Construction Innovations: Employs modern concrete placement and finishing technologies to ensure quality and efficiency in large-scale projects.

• Safety and Training Programs: Invests in safety technologies and continuous training programs to maintain high safety standards across all operations.

Leadership Team

• Travis J. Boone: President and Chief Executive Officer since 2022. Brings extensive experience in the construction industry, focusing on strategic growth and operational excellence.

• Scott Thanisch: Executive Vice President and Chief Financial Officer since 2022. Oversees financial strategy and management, contributing to the company's financial stability.

• E. Chipman Earle: Executive Vice President, Chief Administrative Officer, Chief Compliance Officer, General Counsel, and Secretary since 2023. Manages legal and compliance functions, ensuring corporate governance and regulatory adherence.

Leadership Changes

In 2022, Travis J. Boone was appointed as President and CEO, bringing a renewed focus on strategic growth and operational efficiency. In 2023, E. Chipman Earle joined as Executive Vice President and General Counsel, enhancing the company's legal and compliance framework.

Competitor Profile

Market Insights and Dynamics

The specialty construction industry is characterized by:

• Infrastructure Investment: Increased government and private sector spending on infrastructure projects.

• Technological Advancements: Adoption of new construction technologies to improve efficiency and safety.

• Regulatory Environment: Compliance with evolving environmental and safety regulations.

Competitor Analysis

Orion Group Holdings competes with regional and national construction companies in both marine and concrete segments. Key competitors include:

• Marine Segment: Regional marine construction firms and national heavy civil contractors.

• Concrete Segment: Local, regional, and national concrete construction companies.

The company's competitive advantages include:

• Turnkey Capabilities: Ability to provide comprehensive services from design to execution.

• Specialized Equipment: Ownership of versatile marine and concrete construction equipment.

• Experienced Workforce