ORN Orion Group Holdings Inc

Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Highlights for the quarter ended December 31, 2024:

• Contract revenues increased 7.6% to $216.9 million versus the prior year period
• GAAP net income of $6.8 million or $0.17 per diluted share compared to a GAAP net loss of $4.4 million or a loss of $0.13 per diluted share year-over-year
• Adjusted net income of $6.4 million or $0.16 per diluted share versus Adjusted net income of $2.3 million or $0.07 per diluted share in the fourth quarter last year
• Adjusted EBITDA increased 15.3% to $17.1 million compared to the prior year period
• Cash flow from operations of $13.4 million
• Contracted backlog, including awards subsequent to quarter end, totaled $977.3 million

Highlights for the year ended December 31, 2024:

• Contract revenues increased 11.9% to $796.4 million versus the prior year
• GAAP net loss of $1.6 million or a loss of $0.05 per diluted share compared to a GAAP net loss of $17.9 million or a loss of $0.55 per diluted share last year
• Adjusted net income of $5.2 million or $0.15 per diluted share versus an Adjusted net loss of $10.1 million or a loss of $0.31 per diluted share last year
• Adjusted EBITDA increased 75.9% to $41.9 million compared to $23.8 million for the prior year
• Cash flow from operations of $12.7 million compared to $17.2 million for the prior year

See definitions and reconciliation of non-GAAP measures elsewhere in this release.

Management Commentary

“2024 ended on a high note with our team delivering improved performance through the disciplined execution of our strategic objectives. We remain focused on smart, profitable revenue growth and better earnings. For the full year, revenue was up almost 12% to $796.4 million, gross profit improved 48% to $91 million, and Adjusted EBITDA increased 76%,” said Travis Boone, Chief Executive Officer of Orion Group Holdings.

“We did what we said we would do and we have built a cohesive organization that is focused on winning high-value, long-term projects with the right pricing to drive improved profitability. In Marine, our opportunity continues to be immense, and we have a growing pipeline in the Atlantic and Gulf regions as well as the Department of Defense work in the Pacific. Orion Concrete is a great turnaround story and our outstanding work is being recognized by Tier-one general contractors, who trust our team to deliver their projects successfully. With these partners, we are expanding both in scope and geography, ranging from 35 data centers in several states to Costco’s largest distribution center in Florida.”

“Through our high-quality work and commitment to safety, we have strengthened our reputation in our markets, and we are attracting new clients and partners, as well as deepening our longstanding relationships. Our recent contract awards reflect the value of building these strong and enduring relationships. So far in the first quarter of 2025, we have been successful in winning almost $250 million of new contract awards. We have a disciplined approach to winning projects that reflects our value.”

“In 2025, we are focused on continuing to make investments that will help us capture key opportunities within our pipeline, which now sits at approximately $16 billion. Given Marine’s longer lead times on large projects in our backlog, we expect 2025 revenue to be slightly higher than 2024 revenue. While strategically investing in future opportunities, we are focused on continued progress expanding margins in 2025 and building our backlog. We see 2026 as a year of transformational growth.”

Fourth Quarter 2024 Results

Contract revenues of $216.9 million increased $15.3 million or 7.6% from $201.6 million in the fourth quarter last year, primarily due to an increase in revenue in both the Marine and Concrete segments.

Gross profit increased to $30.3 million or 14.0% of revenue, up from $23.0 million or 11.4% of revenue in the fourth quarter of 2023. The increases in gross profit dollars and margin were primarily driven by improved performance of projects in both segments stemming from higher-quality projects and improved execution.

Selling, general and administrative (“SG&A”) expenses were $21.6 million, up from $17.2 million in the fourth quarter of 2023. As a percentage of total contract revenues, SG&A expenses increased to 9.9% from 8.5%. The increases in SG&A dollars and percentage reflect an increase in the fourth quarter of 2024 in compensation expense, business development spending and legal expenses.

Net income for the fourth quarter was $6.8 million ($0.17 per diluted share) compared to a net loss of $4.4 million ($0.13 per diluted share) in the fourth quarter of 2023.

Fourth quarter 2024 net income included $0.4 million ($0.01 diluted loss per share) of non-recurring items. Fourth quarter 2024 adjusted net income was $6.4 million ($0.16 diluted income per share).

EBITDA for the fourth quarter of 2024 was $14.9 million, resulting in a 6.9% EBITDA margin, as compared to EBITDA of $6.5 million, resulting in a 3.2% EBITDA margin for the fourth quarter last year. Adjusted EBITDA increased to $17.1 million, or a 7.9% Adjusted EBITDA margin. This compares to Adjusted EBITDA of $14.8 million, or 7.3% Adjusted EBITDA margin in the prior year period.

Backlog

Total backlog at December 31, 2024 was $729.1 million, compared to $690.5 million at September 30, 2024 and $762.2 million at December 31, 2023. Backlog for the Marine segment was $582.8 million at December 31, 2024, compared to $537.0 million at September 30, 2024 and $602.5 million at December 31, 2023. Backlog for the Concrete segment was $146.3 million at December 31, 2024, compared to $153.5 million at September 30, 2024 and $159.7 million at December 31, 2023.

Total backlog, including awards issued subsequent to quarter end, increased almost $100 million to $977 million as of the issuance of this release compared to total backlog, including awards issued subsequent to quarter end last year, of $883 million.

Balance Sheet Update

As of December 31, 2024, current assets were $269.3 million, including unrestricted cash and cash equivalents of $28.3 million. Total debt outstanding as of December 31, 2024 was $23.2 million. At the end of the quarter, the Company had no outstanding borrowings under its revolving credit facility.

On March 4, 2025, the Company executed Amendment No. 6 to the Loan Agreement with White Oak Commercial Finance, LLC and the Lenders party thereto. This amendment, among other things, (i) reduces term loan and revolver pricing by 50 basis-points, (ii) provides greater operational and administrative flexibility, including less restrictive financial covenants and (iii) extends the maturity date to May 15, 2028 resetting the prepayment and make-whole.

2025 Financial Guidance

The following forward-looking guidance reflects the Company’s current expectations and beliefs as of March 4, 2025 and is subject to change. The following statements apply only as of the date of this disclosure and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document.

For the full year 2025, Orion currently anticipates the following:

• Revenue in the range of $800 million to $850 million
• Adjusted EBITDA in the range of $42 million to $46 million
• Adjusted EPS in the range of $0.11 to $0.17
• Capital expenditures in the range of $25 million to $35 million

Conference Call Details

Orion Group Holdings will host a conference call to discuss the fourth quarter and full year 2024 financial results at 9:00 a.m. Eastern Time/8:00 a.m. Central Time on Wednesday, March 5, 2025. To participate, please call (844) 481-2994 and ask for the Orion Group Holdings Conference Call. A live audio webcast of the call will also be available on the Investor Relations section of Orion’s website at https://www.oriongroupholdingsinc.com/investor/ and will be archived for replay.

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. The Company’s website is located at: https://www.oriongroupholdingsinc.com.

Backlog Definition

Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress but are not yet complete. The Company cannot guarantee that the revenue implied by its backlog will be realized, or, if realized, will result in earnings. Backlog can fluctuate from period to period due to the timing and execution of contracts. The typical duration of the Company’s projects ranges from three to nine months on shorter projects to multiple years on larger projects. The Company's backlog at any point in time includes both revenue it expects to realize during the next twelve-month period as well as revenue it expects to realize in future years.

Non-GAAP Financial Measures

This press release includes the financial measures “adjusted net income/loss,” “adjusted earnings/loss per share,” “EBITDA,” "Adjusted EBITDA" and “Adjusted EBITDA margin."  These measurements are “non-GAAP financial measures” under rules of the Securities and Exchange Commission, including Regulation G. The non-GAAP financial information may be determined or calculated differently by other companies that use similarly titled measures. By reporting such non-GAAP financial information, the Company does not intend to give such information greater prominence than comparable GAAP financial information. Investors are urged to consider these non-GAAP measures in addition to and not in substitute for measures prepared in accordance with GAAP.

Adjusted net income/loss and adjusted earnings/loss per share should not be viewed as an equivalent financial measure to net income/loss or earnings/loss per share. Adjusted net income/loss and adjusted earnings/loss per share exclude certain items that management believes are one-time items or items whose timing or amount cannot be reasonably estimated. The Company believes these adjusted financial measures are a useful supplement to earnings/loss calculated in accordance with GAAP.

Orion Group Holdings defines EBITDA as net income/loss before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that management believes are one-time items or items whose timing or amount cannot be reasonably estimated. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for the period by contract revenues for the period. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA margin is operating margin, which represents operating income divided by contract revenues. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are used internally to evaluate current operating expense, operating efficiency, and operating profitability on a variable cost basis, by excluding the depreciation and amortization expenses, primarily related to capital expenditures and acquisitions, and net interest and tax expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information regarding the Company's ability to meet future debt service and working capital requirements while providing an overall evaluation of the Company's financial condition. In addition, EBITDA is used internally for incentive compensation purposes. The Company includes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to provide transparency to investors as they are commonly used by investors and others in assessing performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have certain limitations as analytical tools and should not be used as a substitute for operating margin, net income, cash flows, or other data prepared in accordance with GAAP, or as a measure of the Company's profitability or liquidity.

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, guidance, outlook, assumptions, or goals. In particular, statements regarding our pipeline of opportunities, financial guidance and future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning financial guidance or 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 or maintain compliance with debt covenants, and including any estimates, guidance, 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, ramp-up of contract activity 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. Considering 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, and filings and press releases subsequent to such Annual Report on Form 10-K (including the Company’s 2024 Annual Report on Form 10-K once filed) for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contacts:

Financial Profiles, Inc.Margaret Boyce 310-622-8247orn@finprofiles.comSource: Orion Group Holdings, Inc.

Orion Group Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(In Thousands, Except Share and Per Share Information)(Unaudited)
	Three months ended								Year ended
	December 31,								December 31,
	2024				2023				2024				2023
Contract revenues		216,880				201,594				796,394				711,778
Costs of contract revenues		186,603				178,627				705,234				650,115
Gross profit		30,277				22,967				91,160				61,663
Selling, general and administrative expenses		21,557				17,160				82,537				69,431
Amortization of intangible assets		—				44				—				427
Gain on disposal of assets, net		(912	)			(540	)			(2,898	)			(8,455	)
Intangible asset impairment loss		—				6,890				—				6,890
Operating income (loss)		9,632				(587	)			11,521				(6,630	)
Other (expense) income:
Other income		58				49				357				641
Interest income		110				13				207				103
Interest expense		(3,045	)			(3,985	)			(13,381	)			(11,659	)
Other expense, net		(2,877	)			(3,923	)			(12,817	)			(10,915	)
Income (loss) before income taxes		6,755				(4,510	)			(1,296	)			(17,545	)
Income tax expense (benefit)		1				(145	)			348				330
Net income (loss)	$	6,754			$	(4,365	)		$	(1,644	)		$	(17,875	)
Basic income (loss) per share	$	0.17			$	(0.13	)		$	(0.05	)		$	(0.55	)
Diluted income (loss) per share	$	0.17			$	(0.13	)		$	(0.05	)		$	(0.55	)
Shares used to compute income (loss) per share:
Basic		38,930,587				32,528,213				34,783,256				32,346,992
Diluted		38,943,811				32,528,213				34,783,256				32,346,992

Orion Group Holdings, Inc. and SubsidiariesSelected Results of Operations(In Thousands)(Unaudited)
	Three months ended December 31,
	2024						2023
	Amount			Percent			Amount				Percent
	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	112,433		78.1	%		$	98,275			72.7	%
Private sector		31,526		21.9	%			36,888			27.3	%
Marine segment total	$	143,959		100.0	%		$	135,163			100.0	%
Concrete segment
Public sector	$	7,982		10.9	%		$	2,635			4.0	%
Private sector		64,939		89.1	%			63,796			96.0	%
Concrete segment total	$	72,921		100.0	%		$	66,431			100.0	%
Total	$	216,880					$	201,594
Operating income (loss)
Marine segment	$	7,165		5.0	%		$	4,257			3.1	%
Concrete segment		2,467		3.4	%			(4,844	)		(7.3	)%
Total	$	9,632					$	(587	)
	Year ended December 31,
	2024						2023
	Amount			Percent			Amount				Percent
	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	403,428		77.4	%		$	292,088			73.8	%
Private sector		117,822		22.6	%			103,829			26.2	%
Marine segment total	$	521,250		100.0	%		$	395,917			100.0	%
Concrete segment
Public sector	$	28,193		10.2	%		$	20,297			6.4	%
Private sector		246,951		89.8	%			295,564			93.6	%
Concrete segment total	$	275,144		100.0	%		$	315,861			100.0	%
Total	$	796,394					$	711,778
Operating income (loss)
Marine segment	$	2,318		0.4	%		$	3,670			0.9	%
Concrete segment		9,203		3.3	%			(10,300	)		(3.3	)%
Total	$	11,521					$	(6,630	)

Orion Group Holdings, Inc. and SubsidiariesReconciliation of Adjusted Net Income (Loss)(In thousands except per share information)(Unaudited)
	Three months ended								Year ended
	December 31,								December 31,
	2024				2023				2024				2023
Net income (loss)	$	6,754			$	(4,365	)		$	(1,644	)		$	(17,875	)
Adjusting items and the tax effects:
Net gain on Port Lavaca South Yard property sale		—				—				—				(5,202	)
Share-based compensation		1,079				209				4,009				2,042
ERP implementation		488				568				2,129				1,378
Severance		19				683				104				809
Intangible asset impairment loss		—				6,890				—				6,890
Process improvement initiatives		589				—				982				—
Tax rate of 23% applied to adjusting items (1)		(501	)			(1,921	)			(1,662	)			(1,361	)
Total adjusting items and the tax effects		1,674				6,429				5,562				4,556
Federal and state tax valuation allowances		(2,069	)			277				1,275				3,238
Adjusted net income (loss)	$	6,359			$	2,341			$	5,193			$	(10,081	)
Adjusted EPS	$	0.16			$	0.07			$	0.15			$	(0.31	)

________________________

(1)	Items are taxed discretely using the Company's blended tax rate.

Orion Group Holdings, Inc. and SubsidiariesAdjusted EBITDA and Adjusted EBITDA Margin Reconciliations(In Thousands, Except Margin Data)(Unaudited)
	Three months ended							Year ended
	December 31,							December 31,
	2024				2023				2024				2023
Net income (loss)	$	6,754			$	(4,365	)		$	(1,644	)		$	(17,875	)
Income tax expense (benefit)		1				(145	)			348				330
Interest expense, net		2,935				3,972				13,174				11,556
Depreciation and amortization		5,207				6,996				22,765				23,878
EBITDA (1)		14,897				6,458				34,643				17,889
Share-based compensation		1,079				209				4,009				2,042
Net gain on Port Lavaca South Yard property sale		—				—				—				(5,202	)
ERP implementation		488				568				2,129				1,378
Severance		19				683				104				809
Intangible asset impairment loss		—				6,890				—				6,890
Process improvement initiatives		589				—				982				—
Adjusted EBITDA(2)	$	17,072			$	14,808			$	41,867			$	23,806
Operating income margin		4.4	%			(0.3	)%			1.5	%			(1.0	)%
Impact of depreciation and amortization		2.5	%			3.5	%			2.9	%			3.4	%
Impact of share-based compensation		0.5	%			0.1	%			0.5	%			0.3	%
Impact of net gain on Port Lavaca South Yard property sale		—	%			—	%			—	%			(0.7	)%
Impact of ERP implementation		0.2	%			0.3	%			0.3	%			0.2	%
Impact of severance		—	%			0.3	%			—	%			0.1	%
Impact of intangible asset impairment loss		—	%			3.4	%			—	%			1.0	%
Impact of process improvement initiatives		0.3	%			—	%			0.1	%			—	%
Adjusted EBITDA margin(2)		7.9	%			7.3	%			5.3	%			3.3	%

________________________

(1)	EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.
(2)	Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for share-based compensation, net gain on Port Lavaca South Yard property sale, ERP implementation, severance, intangible asset impairment loss and process improvement initiatives. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

Orion Group Holdings, Inc. and SubsidiariesAdjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment(In Thousands, Except Margin Data)(Unaudited)
	Marine								Concrete
	Three months ended								Three months ended
	December 31,								December 31,
	2024				2023				2024				2023
Operating income (loss)		7,165				4,257				2,467				(4,844	)
Other income		25				49				33				—
Depreciation and amortization		4,288				5,801				919				1,195
EBITDA (1)		11,478				10,107				3,419				(3,649	)
Share-based compensation		976				175				103				34
ERP implementation		325				352				163				216
Severance		19				683				—				—
Intangible asset impairment loss		—				—				—				6,890
Process Improvement initiatives		387				—				202				—
Adjusted EBITDA(2)	$	13,185			$	11,317			$	3,887			$	3,491
Operating income margin		5.0	%			3.2	%			3.4	%			(7.3	)%
Impact of other income		—	%			—	%			—	%			—	%
Impact of depreciation and amortization		3.0	%			4.3	%			1.3	%			1.8	%
Impact of share-based compensation		0.7	%			0.1	%			0.1	%			0.1	%
Impact of ERP implementation		0.2	%			0.3	%			0.2	%			0.3	%
Impact of severance		—	%			0.5	%			—	%			—	%
Impact of intangible asset impairment loss		—	%			—	%			—	%			10.4	%
Impact of process improvement initiatives		0.3	%			—	%			0.3	%			—	%
Adjusted EBITDA margin (2)		9.2	%			8.4	%			5.3	%			5.3	%
	Marine								Concrete
	Year ended								Year ended
	December 31,								December 31,
	2024				2023				2024				2023
Operating income (loss)		2,318				3,670				9,203				(10,300	)
Other income		242				641				115				—
Depreciation and amortization		18,693				18,219				4,072				5,659
EBITDA (1)		21,253				22,530				13,390				(4,641	)
Share-based compensation		3,711				1,958				298				84
Net gain on Port Lavaca South Yard property sale		—				(5,202	)			—				—
ERP implementation		1,393				766				736				612
Severance		104				721				—				88
Intangible asset impairment loss		—				—				—				6,890
Process improvement initiatives		643				—				339				—
Adjusted EBITDA(2)	$	27,104			$	20,773			$	14,763			$	3,033
Operating income margin		0.5	%			0.8	%			3.4	%			(3.3	)%
Impact of other income		—	%			0.2	%			—	%			—	%
Impact of depreciation and amortization		3.6	%			4.6	%			1.5	%			1.9	%
Impact of share-based compensation		0.7	%			0.5	%			0.1	%			—	%
Impact of net gain on Port Lavaca South Yard property sale		—	%			(1.3	)%			—	%			—	%
Impact of ERP implementation		0.3	%			0.2	%			0.3	%			0.2	%
Impact of severance		—	%			0.2	%			—	%			—	%
Impact of intangible asset impairment loss		—	%			—	%			—	%			2.2	%
Impact of process improvement initiatives		0.1	%			—	%			0.1	%			—	%
Adjusted EBITDA margin (2)		5.2	%			5.2	%			5.4	%			1.0	%

________________________

(1)	EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.
(2)	Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for share-based compensation, net gain on Port Lavaca South Yard property sale, ERP implementation, severance, intangible asset impairment loss and process improvement initiatives. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

Orion Group Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows Summarized(In Thousands)(Unaudited)
	Three months ended								Year ended
	December 31,								December 31,
	2024				2023				2024				2023
Net income (loss)	$	6,754			$	(4,365	)		$	(1,644	)		$	(17,875	)
Adjustments to remove non-cash and non-operating items		8,144				16,248				36,018				32,641
Cash flow from net income after adjusting for non-cash and non-operating items		14,898				11,883				34,374				14,766
Change in operating assets and liabilities (working capital)		(1,535	)			33,796				(21,698	)			2,412
Cash flows provided by operating activities	$	13,363			$	45,679			$	12,676			$	17,178
Cash flows (used in) provided by investing activities	$	(2,760	)		$	(3,221	)		$	(11,482	)		$	2,170
Cash flows (used in) provided by financing activities	$	(10,541	)		$	(15,401	)		$	(3,816	)		$	7,806
Capital expenditures (included in investing activities above)	$	(3,447	)		$	(2,231	)		$	(14,091	)		$	(8,909	)

Orion Group Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(In Thousands)(Unaudited)
	Year ended December 31,
	2024				2023
Cash flows from operating activities
Net loss	$	(1,644	)		$	(17,875	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		15,545				18,844
Amortization of ROU operating leases		9,960				6,763
Amortization of ROU finance leases		7,220				5,034
Write-off of debt issuance costs upon debt modification		—				119
Amortization of deferred debt issuance costs		2,015				1,616
Deferred income taxes		(27	)			(103	)
Stock-based compensation		4,009				2,042
Gain on disposal of assets, net		(2,898	)			(8,455	)
Intangible asset impairment loss		—				6,890
Allowance for credit losses		194				(109	)
Change in operating assets and liabilities:
Accounts receivable		1,892				14,129
Income tax receivable		143				(224	)
Inventory		(554	)			(729	)
Prepaid expenses and other		41				(55	)
Contract assets		(2,885	)			(37,619	)
Accounts payable		16,018				(4,507	)
Accrued liabilities		(10,920	)			11,817
Operating lease liabilities		(8,662	)			(6,807	)
Income tax payable		(63	)			48
Contract liabilities		(16,708	)			26,359
Net cash provided by operating activities		12,676				17,178
Cash flows from investing activities:
Proceeds from sale of property and equipment		2,609				11,079
Purchase of property and equipment		(14,091	)			(8,909	)
Net cash (used in) provided by investing activities		(11,482	)			2,170
Cash flows from financing activities:
Borrowings on credit		72,589				106,958
Payments made on borrowings on credit		(73,067	)			(104,431	)
Payments on term loan		(15,000	)			—
Proceeds from failed sale-leaseback arrangement		—				14,702
Payments on failed sale-leaseback arrangement		(5,855	)			—
Proceeds from sale-leaseback financing		—				2,397
Loan costs from Credit Agreement and prior credit facility		(393	)			(6,537	)
Payments of finance lease liabilities		(8,929	)			(4,791	)
Proceeds from issuance of common stock		26,421				—
Payments related to tax withholding for share-based compensation		(479	)			(492	)
Exercises of stock options		897				—
Net cash (used in) provided by financing activities		(3,816	)			7,806
Net change in cash, cash equivalents and restricted cash		(2,622	)			27,154
Cash, cash equivalents and restricted cash at beginning of period		30,938				3,784
Cash, cash equivalents and restricted cash at end of period	$	28,316			$	30,938

Orion Group Holdings, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(In Thousands, Except Share and Per Share Information)
	December 31,				December 31,
	2024				2023
	(Unaudited)
Current assets:
Cash and cash equivalents	$	28,316			$	30,938
Accounts receivable:
Trade, net of allowance for credit losses of $555 and $361, respectively		106,304				101,229
Retainage		35,633				42,044
Income taxes receivable		483				626
Other current		3,127				3,864
Inventory		1,974				2,699
Contract assets		84,407				81,522
Prepaid expenses and other		9,084				8,894
Total current assets		269,328				271,816
Property and equipment, net of depreciation		86,098				87,834
Operating lease right-of-use assets, net of amortization		27,101				25,696
Financing lease right-of-use assets, net of amortization		25,806				23,602
Inventory, non-current		7,640				6,361
Deferred income tax asset		17				26
Other non-current		1,327				1,558
Total assets	$	417,317			$	416,893
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt, net of issuance costs	$	426			$	13,453
Accounts payable:
Trade		97,139				80,294
Retainage		1,310				2,527
Accrued liabilities		26,294				37,074
Income taxes payable		507				570
Contract liabilities		47,371				64,079
Current portion of operating lease liabilities		7,546				9,254
Current portion of financing lease liabilities		10,580				8,665
Total current liabilities		191,173				215,916
Long-term debt, net of debt issuance costs		22,751				23,740
Operating lease liabilities		20,837				16,632
Financing lease liabilities		11,346				13,746
Other long-term liabilities		20,503				25,320
Deferred income tax liability		28				64
Total liabilities		266,638				295,418
Stockholders’ equity:
Preferred stock -- $0.01 par value, 10,000,000 authorized, none issued		—				—
Common stock -- $0.01 par value, 50,000,000 authorized, 39,681,597 and 33,260,011 issued; 38,970,366 and 32,548,780 outstanding at December 31, 2024 and December 31, 2023, respectively		397				333
Treasury stock, 711,231 shares, at cost, as of December 31, 2024 and December 31, 2023, respectively		(6,540	)			(6,540	)
Additional paid-in capital		220,513				189,729
Retained loss		(63,691	)			(62,047	)
Total stockholders’ equity		150,679				121,475
Total liabilities and stockholders’ equity	$	417,317			$	416,893

Orion Group Holdings, Inc. and SubsidiariesGuidance – Adjusted EBITDA Reconciliation(In Thousands)(Unaudited)
	Year Ending
	December 31, 2025
		Low				High
Net (loss) income	$	(2,226	)		$	1,533
Income tax benefit		(291	)			(50	)
Interest expense, net		9,815				9,815
Depreciation and amortization		25,613				25,613
EBITDA (1)		32,911				36,911
Share-based compensation		7,604				7,604
ERP implementation		1,485				1,485
Adjusted EBITDA(2)	$	42,000			$	46,000
________________________(1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.(2) Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for share-based compensation and ERP implementation.
Orion Group Holdings, Inc. and SubsidiariesGuidance – Adjusted EPS Reconciliation(In thousands except per share information)(Unaudited)
	Year Ending
	December 31, 2025
		Low				High
Net (loss) income	$	(2,226	)		$	1,533
Adjusting items and the tax effects:
Share-based compensation		7,604				7,604
ERP implementation		1,485				1,485
Tax rate of 23% applied to adjusting items (1)		(2,090	)			(2,090	)
Total adjusting items and the tax effects		6,999				6,999
Federal and state tax valuation allowances		(471	)			(1,632	)
Adjusted net (loss) income	$	4,302			$	6,900
Adjusted EPS	$	0.11			$	0.17
________________________(1) Items are taxed discretely using the Company's blended tax rate.