On this page of StockholderLetter.com we present the latest annual shareholder letter from Orion Group Holdings Inc — ticker symbol ORN. Reading current and past ORN letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
LETTER FROM THE CEO Travis Boone President & CEO TO OUR SHAREHOLDERS, 2024 marked a significant milestone for Orion our 30th anniversary. For more than three decades, we have built a legacy of predictable excellence in delivering marine, industrial and concrete construction projects. From our early days, our journey has been shaped by our dedicated teams, strong partnerships, and an unwavering commitment to quality and safety. As we celebrate this achievement, we are looking forward to optimizing perhaps the greatest opportunity in our corporate history with enthusiasm and determination. Since joining Orion a little over two years ago, I have been fortunate to build a tremendous leadership team to execute our strategic plan. From the outset, our goal was to drive sustainable growth and profitability, enhance operational efficiency, and create long-term value for all our stakeholders. I am proud to say that we did what we said we would do, and our focus on business development and disciplined execution by our team is now delivering strong results. In 2024, revenue increased 12% to $796 million year-overyear, gross profit improved 48% to $91 million, and Adjusted EBITDA increased 76% to $41.9 million with margins improving 200 basis points to 5.3%. Most importantly, we have set ourselves up to address the huge market opportunity in front of us. I ve always said that winning high-value, long-term projects with the right pricing is critical to driving profitability. The contracts we were awarded throughout 2024 and early 2025 reflect both our disciplined bidding and the quality, complexity and diversity of the projects we can win. This gives us confidence that our backlog of the right projects for Orion will continue to grow. At yearend 2024, our backlog stood at $729 million, and over the past two years, our pipeline increased from $3 billion to $16 billion. The depth and breadth of these projects allow us to be highly selective and disciplined in the ones we choose to pursue. With Orion s growing reputation in our markets, we are attracting new partners as well as strengthening our longstanding relationships. I cannot emphasize enough how important it is to have mutual trust with the right partners to successfully complete complex projects. These partners value our expertise and safety record and are a source of coveted repeat business. I credit a lot of this momentum to executing our business development initiative over the past two years. We now have experienced and connected business development leaders in the field to uncover new opportunities to drive growth in both our Marine and Concrete businesses. The Marine market has some very favorable tailwinds for 2025 and beyond infrastructure projects, port expansion and maintenance, coastal rehabilitation and downstream energy projects. Furthermore, the Jones Act also gives us a competitive advantage by requiring that marine work in U.S. territorial waters be performed by U.S. companies. This 105-year-old Act now supports the creation and sustainability of over 650,000 high-paying American jobs in shipbuilding, infrastructure and maritime logistics. In Marine, we have a strong pipeline of opportunities in the Atlantic, Gulf and Pacific regions. We are now engaged in a variety of exciting projects ranging from bridge work over waterways in Texas to environmental restoration work in the Pacific Northwest. The multiyear Pearl Harbor project is the largest contract award in our Company s history, and based on our strong performance in Hawaii, we see additional opportunities for large Navy projects toward the end of 2025 and into the next year. There are very few marine contractors who have the skill, experience, relationships, reputation, and the logistical capacity to work in the Pacific as we do.
WE RE WINNING WORK IN MULTIPLE STATES WITH OUR BEST PARTNERS Over the last couple of years, Orion Concrete s reputation and name recognition have grown to create real currency in the marketplace. Orion Concrete is no longer just a Texas concrete company there are really no geographic limitations to where our team can operate effectively with our tier-one contractor partners. To date, our Concrete team has been awarded 35 datacenter projects across the U.S. for top hyperscalers, and they are building Costco s largest ever distribution center in Florida. We remain confident that we can grow our Concrete business. We see significant untapped market opportunity as well as projects that have been dormant and are now moving forward. Concrete is a great turnaround story. The business has found its footing and is starting to really move. This is what I envisioned when I took this job. I knew the issues were fixable. Now, Concrete is not just healthier, it s thriving. Our partnerships with world-class construction companies in both Marine and Concrete and our ability to deliver with an exceptional safety record play important roles in winning key projects. I am especially proud that our team has been honored to receive several prestigious industry safety awards, including the Florida Transportation Builders Association Safety Excellence Award for the NASA Causeway Bridge Project, three awards from the American Society of Concrete Contractors, the Liberty Mutual Insurance Company Gold Safety Award for Outstanding Safety Performance, and two awards from the Associated General Contractors of Houston. These awards exemplify our commitment to safety across our business. As an organization intent on building a solid foundation for future growth, most of the heavy lifting is now behind us. During 2024, we took steps to strengthen our balance sheet by raising $26.5 million in a secondary offering. We ended 2024 with $28.3 million in cash. Total debt outstanding was $23.2 million, and we achieved a positive net cash position for the second consecutive quarter. We had no outstanding borrowings under our revolving credit facility at the end of 2024. With our enhanced credit profile, we successfully executed multiple amendments to our credit agreement with our lender on more favorable terms. ENTERPRISE RESOURCE PLANNING In 2024, we made considerable progress on our ERP initiatives. We have been implementing new project management systems and new procurement tools that will allow us to work smarter and more profitably. We have also been migrating our business segments to the same financial platform, which will give us a clear line-of-sight across the entire business. These tools will share information and more accurately monitor the progress of our projects, which will greatly improve the oversight and effective management of our projects on the ground. As our operational improvements gain traction, we expect to generate efficiencies that will support continued growth while benefitting from operating leverage in our fixed costs. While there is still more to do, we expect meaningful progress in 2025 and are very excited for the years ahead. Our team is focused on making investments that will help us capture and profitably deliver on the growing volume of projects in our pipeline of opportunities. The key metric to watch this year is an increase in the backlog, which will give an indication of future revenue. As we enter 2025, I am confident in the strong foundation that we have built, the exceptional capabilities of our people and their total commitment to both quality and safe execution. We appreciate your support, and we are excited to continue this journey together. Sincerely, Travis Boone President & CEO
 • shareholder letter icon 4/1/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/6/2023 ORN Stockholder Letter
 • stockholder letter icon 4/3/2024 ORN Stockholder Letter
 • stockholder letter icon More "Construction" Category Stockholder Letters
 • Benford's Law Stocks icon ORN Benford's Law Stock Score = 95


ORN Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT


LETTER
FROM THE
CEO
Travis Boone
President & CEO
TO OUR SHAREHOLDERS,
2024 marked a significant milestone for Orion     our
30th anniversary. For more than three decades, we
have built a legacy of predictable excellence in
delivering marine, industrial and concrete construction
projects. From our early days, our journey has been
shaped by our dedicated teams, strong partnerships,
and an unwavering commitment to quality and safety.
As we celebrate this achievement, we are looking
forward to optimizing perhaps the greatest opportunity
in our corporate history with enthusiasm and
determination.
Since joining Orion a little over two years ago, I have
been fortunate to build a tremendous leadership team
to execute our strategic plan. From the outset, our
goal was to drive sustainable growth and profitability,
enhance operational efficiency, and create long-term
value for all our stakeholders. I am proud to say that
we did what we said we would do, and our focus on
business development and disciplined execution by
our team is now delivering strong results. In 2024,
revenue increased 12% to $796 million year-overyear, gross profit improved 48% to $91 million, and
Adjusted EBITDA increased 76% to $41.9 million with
margins improving 200 basis points to 5.3%.
Most importantly, we have set ourselves up to address
the huge market opportunity in front of us. I   ve always
said that winning high-value, long-term projects with
the right pricing is critical to driving profitability. The
contracts we were awarded throughout 2024 and early
2025 reflect both our disciplined bidding and the
quality, complexity and diversity of the projects we can
win. This gives us confidence that our backlog of the
right projects for Orion will continue to grow. At yearend 2024, our backlog stood at $729 million, and over
the past two years, our pipeline increased from $3
billion to $16 billion. The depth and breadth of these
projects allow us to be highly selective and disciplined
in the ones we choose to pursue.
With Orion   s growing reputation in our markets, we are
attracting new partners as well as strengthening our
longstanding relationships. I cannot emphasize enough
how important it is to have mutual trust with the right
partners to successfully complete complex projects.
These partners value our expertise and safety record
and are a source of coveted repeat business. I credit a
lot of this momentum to executing our business
development initiative over the past two years. We now
have experienced and connected business
development leaders in the field to uncover new
opportunities to drive growth in both our Marine and
Concrete businesses.
The Marine market has some very favorable tailwinds
for 2025 and beyond     infrastructure projects, port
expansion and maintenance, coastal rehabilitation and
downstream energy projects.
Furthermore, the Jones Act also gives us a competitive
advantage by requiring that marine work in U.S.
territorial waters be performed by U.S. companies.
This 105-year-old Act now supports the creation and
sustainability of over 650,000 high-paying American
jobs in shipbuilding, infrastructure and maritime
logistics.
In Marine, we have a strong pipeline of opportunities in
the Atlantic, Gulf and Pacific regions. We are now
engaged in a variety of exciting projects ranging from
bridge work over waterways in Texas to environmental
restoration work in the Pacific Northwest. The multiyear Pearl Harbor project is the largest contract award
in our Company   s history, and based on our strong
performance in Hawaii, we see additional opportunities
for large Navy projects toward the end of 2025 and into
the next year. There are very few marine contractors
who have the skill, experience, relationships,
reputation, and the logistical capacity to work in the
Pacific as we do.

WE   RE WINNING WORK IN
MULTIPLE STATES WITH OUR BEST
PARTNERS
Over the last couple of years, Orion Concrete   s
reputation and name recognition have grown to create
real currency in the marketplace. Orion Concrete is no
longer just a Texas concrete company   there are
really no geographic limitations to where our team can
operate effectively with our tier-one contractor
partners. To date, our Concrete team has been
awarded 35 datacenter projects across the U.S. for
top hyperscalers, and they are building Costco   s
largest ever distribution center in Florida.
We remain confident that we can grow our Concrete
business. We see significant untapped market
opportunity as well as projects that have been
dormant and are now moving forward. Concrete is a
great turnaround story. The business has found its
footing and is starting to really move. This is what I
envisioned when I took this job. I knew the issues
were fixable. Now, Concrete is not just healthier, it   s
thriving.
Our partnerships with world-class construction
companies in both Marine and Concrete and our
ability to deliver with an exceptional safety record play
important roles in winning key projects. I am
especially proud that our team has been honored to
receive several prestigious industry safety awards,
including the Florida Transportation Builders
Association Safety Excellence Award for the NASA
Causeway Bridge Project, three awards from the
American Society of Concrete Contractors, the Liberty
Mutual Insurance Company Gold Safety Award for
Outstanding Safety Performance, and two awards
from the Associated General Contractors of Houston.
These awards exemplify our commitment to safety
across our business.
As an organization intent on building a solid
foundation for future growth, most of the heavy lifting
is now behind us. During 2024, we took steps to
strengthen our balance sheet by raising $26.5 million
in a secondary offering. We ended 2024 with $28.3
million in cash. Total debt outstanding was $23.2
million, and we achieved a positive net cash position
for the second consecutive quarter. We had no
outstanding borrowings under our revolving credit
facility at the end of 2024. With our enhanced credit
profile, we successfully executed multiple
amendments to our credit agreement with our lender
on more favorable terms.
ENTERPRISE RESOURCE PLANNING
In 2024, we made considerable progress on our ERP
initiatives. We have been implementing new project
management systems and new procurement tools
that will allow us to work smarter and more profitably.
We have also been migrating our business segments
to the same financial platform, which will give us a
clear line-of-sight across the entire business. These
tools will share information and more accurately
monitor the progress of our projects, which will greatly
improve the oversight and effective management of our
projects on the ground. As our operational
improvements gain traction, we expect to generate
efficiencies that will support continued growth while
benefitting from operating leverage in our fixed costs.
While there is still more to do, we expect meaningful
progress in 2025 and are very excited for the years
ahead. Our team is focused on making investments that
will help us capture and profitably deliver on the growing
volume of projects in our pipeline of opportunities. The
key metric to watch this year is an increase in the
backlog, which will give an indication of future revenue.
As we enter 2025, I am confident in the strong
foundation that we have built, the exceptional
capabilities of our people and their total commitment to
both quality and safe execution. We appreciate your
support, and we are excited to continue this journey
together.
Sincerely,
Travis Boone
President & CEO



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