Orion secures nearly $100 million in new awards in October after revenue grows 14%
Key Facts
Orion Group Holdings said it secured nearly $100 million in new awards in October, after the close of the third quarter, with the awards to be added to its fourth-quarter backlog. They include two major critical infrastructure projects, site work for a prominent technology company, a cold storage facility, a hospital and several commercial buildings. Management did not specify the impact of the awards on future revenue. The announcement follows results showing revenue and earnings growth in the third quarter.
Contract revenue was $256.2 million in the third quarter of 2026, up 14% from $225.1 million in the same period a year earlier. Orion said the increase was $31.1 million year over year. Net income under U.S. generally accepted accounting principles rose to $5.5 million, or $0.14 per diluted share, from $3.3 million, or $0.08 per share, in the third quarter of 2025. The results provide a picture of the company's performance in the quarter ended September 30, before the new October awards are recorded in the fourth-quarter backlog.
New awards and contract modifications added to backlog during the third quarter totaled about $179 million. Marine awards included a major repair of a U.S. Navy pier, the next phase of the North Jetty project and two projects in Hawaii. That figure represents activity recorded during the third quarter, while the nearly $100 million refers to awards secured after its close in October. These dates distinguish the work entered into the record in the quarter ended in September from the more recent awards designated for addition in the fourth quarter. The company defines backlog as contracted projects that have not started or are still underway.
On upcoming award opportunities, management said it had $2 billion in submitted bids awaiting decisions at the end of the third quarter, distributed roughly evenly between the marine and concrete segments. Pending bids were slightly more than $1 billion at the start of 2026. Management said the win rate was strong and stable, but noted that the rising volume of bids reflected project owners taking longer to award contracts. This means the abundance of submitted opportunities alone does not determine when they will become contracts or backlog. Orion also expects a design-build project in the Pacific Northwest, with an expected value to the company of about $200 million, to convert to backlog between mid-2027 and late 2027.
Orion was selected for two positions under two U.S. Navy multiple-award marine construction contracts: the VENTI contract, with a total value of $9 billion, and the NAVFAC Northwest Waterfront contract, with a total value of $700 million. The selections allow the company to compete for potential task orders under the two contracts. They do not guarantee that work will be awarded to Orion or generate revenue, according to the company's disclosure. The total value of the two contracts therefore differs from the value of work Orion may actually secure. The company announced both selections in October.
Chief Executive Travis Boone affirmed his expectation that momentum would continue in the fourth quarter and said the company had reaffirmed its 2026 annual guidance. Orion targets revenue of between $900 million and $950 million, adjusted EBITDA of between $50 million and $54 million, and adjusted earnings per share of between $0.23 and $0.30. Boone said: "We expect this momentum to continue into the fourth quarter, and we are pleased to reaffirm our 2026 annual guidance." As of September 30, working capital was $81 million, including $5.7 million in unrestricted cash and cash equivalents, while total debt reached $109 million. The company's shares closed at $8.30 on October 28, 2026.