Orion Group Holdings (ORN) risk factors, FY2025 10-K

Other

1. 01We may be unable to obtain sufficient bonding capacity for our contracts and the need for performance and surety bonds may adversely affect our business
2. 02We rely on highly competitive and highly regulated government contracts
3. 03Our operations are susceptible to a variety of adverse conditions including weather conditions, natural disasters, health epidemics or pandemics or other contagious outbreaks and terrorist attacks that could negatively impact the markets in which we operate
4. 04Demand for our services may decrease due to economic recession or a reduction of demand in end markets of our customers78% rewritten
5. 05Moreover, even when the underlying economic fundamentals that ordinarily drive the level of construction activity are strong, the level of economic activity in such markets may be suppressedNew
6. 06Interest rates may affect the cost of financing for our customers’ capital projects and investments. These increased costs may affect their capacity and willingness to undertake new investments, and may result in the delay or cancellation of projects they would otherwise undertake
7. 07We may not be able to fully realize the revenue value reported in our backlog
8. 08We could suffer contract losses if we fail to accurately estimate our costs or fail to execute within our cost estimates on fixed-price, lump-sum contracts
9. 09We could suffer penalties on our contracts for late completion
10. 10Our projects could be hindered due to our dependence on third parties to complete many of our contracts
11. 11We may incur higher costs to acquire, manufacture and maintain equipment necessary for our operations
12. 12Our business is subject to significant operating risks and hazards that could result in damage or destruction to property, injuries or loss of life, which could result in losses or liabilities to us
13. 13Our marine segment operates in jurisdictions outside of the U.S. and we intend to continue expanding our operations to more jurisdictions outside of the U.S31% rewritten
14. 14Our current insurance coverage may not be adequate, and we may not be able to obtain insurance at acceptable rates, or at all
15. 15Our operations are subject to environmental laws and regulations that may expose us to significant costs and liabilities
16. 16The anticipated investment in port and marine infrastructure may not be as large as expected, which may result in periods of low demand for our marine construction services
17. 17Restrictions on foreign ownership of our vessels could limit our ability to sell off any portion of our marine construction segment or result in the forfeiture of our vessels or in our inability to continue our operations in United States navigable waters
18. 18Our concrete segment is geographically concentrated in Texas32% rewritten
19. 19A significant portion of our revenues may be concentrated among a small number of projects23% rewritten
20. 20The timing and funding of new contracts may result in volatility in our cash flow and profitability. These factors, as well as others that may cause our actual financial results to vary from any publicly disclosed earnings guidance and forecasts, are outside of our control
21. 21As of December 31, 2025, we had a pipeline of opportunities of approximately $22 billion. We define our pipeline of opportunities as specific projects that we have identified and are tracking as projects of interest
22. 22We conduct a portion of our operations through joint ventures, exposing us to risks and uncertainties, many of which are outside of our control
23. 23Acquisitions and mergers may disrupt our business, and integrating acquired companies may be more difficult, costly, or time-consuming than we expectNew
24. 24Our financial performance will be negatively impacted if we are unable to execute our growth strategyNew
25. 25If we fail to attract, retain and engage appropriately qualified employees, including employees in key positions, our operations and profitability may be harmed. In addition, changes in market compensation rates may adversely affect our profitability
26. 26We may be subject to unionization, work stoppages, slowdowns or increased labor costs64% rewritten
27. 27Our employees in the marine segment are covered by federal laws that provide seagoing employees remedies for job-related claims in addition to those provided by state laws74% rewritten
28. 28compensation statutes, we have greater exposure for claims made by these employees as compared to employers whose employees are not covered by these provisionsNew
29. 29If we fail to comply with immigration laws, such failure could result in significant liabilities, harm our reputation with our customers and disrupt our operations
30. 30Systems and information technology interruption or failure and data security breaches could adversely impact our ability to operate or expose us to significant financial losses and reputational harm
31. 31Adverse changes in tax laws both in the United States and abroad, changes in tax rates or exposure to additional income tax liabilities could have a material adverse effect on our results of operations98% rewritten
32. 32Our indebtedness includes covenants and obligations with regard to our business activities that may restrict our ability to take certain actions which may negatively affect our financial condition31% rewritten
33. 33Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly63% rewritten
34. 34amount borrowed will remain the same, and our net income and operating cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. Additionally, rising interest rates may increase our cost of capital and, therefore, reduce the amount of capital available to fund our operationsNew
35. 35Our bonding requirements may limit our ability to incur indebtedness