Earnings Reports

Orion Group Reports Net Loss For Fourth Quarter, Year

Orion Group Holdings, Houston, Texas, reported a net loss of $4.4 million, or $0.13 per share, for the fourth quarter of 2023. Excluding non-recurring items, the company said it had net income of $2.6 million, or $0.08 per share.

A year ago, the company reported a net loss of $4.9 million, or $0.15 per share for the fourth quarter of 2022.

For the full year of 2023, Orion reported a net loss of $17.9 million or $0.55 per share. Adjusted for non-recurring items, the loss was $11.4 million, or $0.35 per share. For 2022, the full-year net loss was $12.6 million.

“We are pleased that our fourth-quarter results demonstrated progress against our strategic plan to deliver profitable growth,” CEO Travis Boone said in the earnings announcement. “Fourth-quarter 2023 adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] was $14.8 million or a 7.3 percent adjusted EBITDA margin — a significant year-over-year improvement from fourth quarter 2022 adjusted EBITDA of $3.2 million or an adjusted EBITDA margin of 1.6 percent.

“While our 2023 financial performance improved over the prior year, I think we are in the early stages of what our team can deliver going forward,” Boone continued. “What we accomplished in 2023 has transformed Orion into a more focused, more competitive and more driven company. In a short time, we implemented a disciplined project bidding and delivery strategy; attracted high-caliber business development executives; invested in systems, training and tools; secured a three-year, $103 million credit facility; and closed over $25 million in equipment and real estate sale-leaseback transactions. With these critical building blocks in place, we are prepared to take advantage of our industry tailwinds.”

“In 2024, we expect our financial performance to continue to improve relative to 2023. Given the positive changes we have implemented, the improving market outlook, the quality of our current backlog and the volume of opportunities in our pipeline, we are confident that 2025 will be even stronger than 2024,” he said.

The company reported contract revenues of $201.6 million, up 2.8 percent from $196.2 million in the fourth quarter last year, primarily due to an increase in marine segment revenue related to a drydock project in Pearl Harbor, Hawaii, partially offset by a decrease in concrete segment revenue reflecting the planned wind-down of the company’s central Texas concrete operations.

Orion reported a total backlog as of December 31, 2023, of $762.2 million, compared to $444.8 million as of December 31, 2022. Backlog for the marine segment was $602.5 million, compared to $216.7 million a year earlier.