Orion Group Holdings, Inc. ORN reported mixed fourth-quarter 2024 results, wherein adjusted earnings topped the Zacks Consensus Estimate and revenues missed the same. However, both metrics increased on a year-over-year basis.

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The company ended 2024 with improved performance, driven by the disciplined execution of strategic objectives. Going forward, ORN remains focused on achieving profitable revenue growth and stronger earnings. The company’s commitment to high-quality work and safety has strengthened its reputation, attracting new clients and partners while maintaining long-term relationships. Recent contract awards reflect this strategy, with nearly $250 million in new contracts secured in the first quarter of 2025. ORN continues to invest in future opportunities, prioritizing margin expansion and backlog growth in 2025, while expecting significant growth in 2026.

ORN’s Q4 Earnings, Revenue & Backlog Discussion

The company reported adjusted earnings per share (EPS) of 16 cents, surpassing the Zacks Consensus Estimate of 15 cents by 6.7%. The metric increased a whopping 100% from the year-ago quarter’s figure of 8 cents per share.

Contract revenues of $216.9 million missed the consensus mark of $270.4 million by 19.8%. However, the top line increased 7.6% on a year-over-year basis, driven by higher revenues in both Marine and Concrete segments.

Total backlog, as of Dec. 31, 2024, was $729.1 million, down from the 2023-end backlog of $762.2 million.

Segment Details of ORN

Marine: This segment’s revenues increased 6.5% year over year to $144 million. Total backlog of $582.8 million was down from $602.5 million at 2023-end.

Concrete: This segment’s revenues rose 9.8% from the year-ago quarter to $989 million. Total backlog of $146.3 million was down from $159.7 million at 2023-end.

Operating Highlights of Orion

The gross profit increased 14% year over year to $30.3 million in the quarter. Gross margin also expanded 260 basis points (bps) year over year to 14%. This upside was backed by improved performance in both segments, driven by higher-quality projects and better execution.

Selling, general and administrative (SG&A) expenses increased 25.6% from the previous year, primarily due to higher compensation expense, business development spending and legal expenses. SG&A expenses, as a percentage of revenues, was 9.9%, up from 8.5% reported in the year ago quarter.

Adjusted EBITDA in the quarter increased 15.5% year over year to $17.1 million. Adjusted EBITDA margin also expanded 60 bps year over year to 7.9%.

ORN’s 2024 Highlights

Contract revenues were up 11.9% to $796.4 million. Adjusted earnings were 15 cents per share against a loss of 31 cents in 2023. Adjusted EBITDA was $41.9 million, up 75.9% from $23.8 million in 2023.

Liquidity & Cash Flow of ORN

As of Dec. 31, 2024, Orion had cash and cash equivalents of $28.3 million, down from $31 million at 2023-end. Long-term debt, net of debt issuance costs, was $22.8 million, down from $23.7 million at 2023-end.

In 2024, the company provided $12.7 million in cash from operating activities compared with $17.2 million a year ago.

ORN’s 2025 Outlook

The company expects to generate revenues in the range of $800-$850 million in 2025. Adjusted EBITDA is expected to be in the range of $42-$46 million. Adjusted earnings are anticipated to be between 11 cents and 17 cents per share. Capital expenditures for 2025 are expected to be in the range of $25-$35 million.

ORN’s Zacks Rank & Recent Construction Releases

Orion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quanta Services Inc. PWR reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same. Yet both top and bottom lines grew year over year.

PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenues, adjusted EBITDA and EPS growth, along with a record backlog.

Gibraltar Industries, Inc.’s ROCK fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.

ROCK’s quarterly bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing of a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects, given the robust public spending trends at the federal and state levels.

AECOM ACM reported impressive results for first-quarter fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue growth in its design business.

As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth.

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