What Orion Group Holdings, Inc. told the SEC could break it.

Orion's concrete segment — 36.1% of 2025 contract revenue (34.5% in 2024, 44.4% in 2023) — is geographically concentrated in the metropolitan areas of Texas, particularly Houston and Dallas, while its marine segment operates along U.S. coastal regions (including Alaska and Hawaii) and the Caribbean Basin; this concentration means a construction slowdown or adverse conditions in the Texas/Gulf market would disproportionately affect its results.

“Our concrete segment, which accounted for 36.1%, 34.5% and 44.4% of our contract revenues for the years ended December 31, 2025, 2024 and 2023, respectively, is concentrated in the metropolitan areas of the State of Texas, particularly Houston and Dallas.”

Orion's marine and concrete operations are heavily regulated: dredging and placement of dredged/fill material require Clean Water Act Section 404 permits issued by the U.S. Army Corps of Engineers (with EPA), many marine projects need Rivers and Harbors Act Section 10 authorization and CWA Section 401 water-quality certification, and it is subject to the Oil Pollution Act, the Vessel Incidental Discharge Act (VIDA), OSHA workplace-safety rules and Maritime Administration approval for certain vessel/asset sales; permit delays, conditions, enforcement or new regulations could raise costs and disrupt projects.

“Section 404 of the CWA regulates the discharge of dredged or fill material into waters of the United States, and permits for such activities are issued by the U.S. Army Corps of Engineers (“USACE”) under a program jointly administered with the EPA.”

Orion is subject to fluctuations in commodity prices for concrete, steel products and fuel used in its marine and concrete construction projects; although it attempts to secure firm supplier quotes and to build anticipated cost increases into bids (helped by short project durations), it generally does not hedge commodity prices, so under its fixed-price contracts rising concrete/steel/fuel costs and inflation can directly erode project margins.

“We are subject to fluctuations in commodity prices for concrete, steel products and fuel. Although we routinely attempt to secure firm quotes from our suppliers, we generally do not hedge against increases in prices for commodity products.”

Orion performs a portion of its contract work through third-party subcontractors it hires and relies on third-party equipment manufacturers and suppliers for much of the materials used on projects; if it cannot hire qualified subcontractors or find qualified equipment manufacturers/suppliers (or if a subcontractor fails to perform or comply with immigration/labor laws), its ability to complete fixed-price projects on time and on budget could be impaired, exposing it to cost overruns, project losses and reputational/customer harm.

“A portion of the work performed under our contracts is performed by third-party subcontractors we hire. We also rely on third-party equipment manufacturers or suppliers to provide much of the materials used for projects. If we are unable to hire qualified subcontractors or find qualified equipment manufacturers or suppliers, our ability to successfully complete a project could be impaired.”