Orion Group Holdings Secures $120M Facility to Fuel Growth Strategy

HOUSTON, TX – December 29, 2025 – Orion Group Holdings, Inc. (NYSE: ORN) has finalized a new, five-year $120 million Senior Credit Facility, a strategic financial maneuver poised to accelerate the specialty construction company’s growth ambitions. The deal, led by UMB Bank, not only increases Orion’s borrowing power but also significantly reduces its cost of capital, providing substantial flexibility as it navigates a dynamic construction landscape.

The new credit facility replaces a previous agreement and provides a fresh war chest for the Houston-based firm, which specializes in complex marine and concrete projects. The transaction marks a key milestone in the company's ongoing turnaround and its strategy to capitalize on robust infrastructure demand.

“We are pleased to announce this refinancing, a key milestone in the Company’s growth strategy,” said Travis Boone, President and Chief Executive Officer of Orion, in the company's official announcement. “The new Credit Facility increases Orion’s financial flexibility with expanded liquidity and greater borrowing capacity at a lower overall cost of capital.”

A New Era of Financial Flexibility

The details of the refinancing reveal a significant upgrade to Orion’s capital structure. The new $120 million facility with UMB Bank replaces a $103 million agreement established in May 2023 with White Oak Commercial Finance. While the previous facility was instrumental in navigating a challenging period, the new terms represent a clear vote of confidence in Orion’s current financial health and future prospects.

Critically, the interest rate on the new borrowings is set at the Secured Overnight Financing Rate (SOFR) plus a margin of 2.5% to 3.0%, a dramatic reduction of approximately 225 basis points, or 2.25%, compared to the prior agreement. The previous facility carried much higher rates, with its revolver at SOFR plus 5.5% and its term loan at SOFR plus 8.0%, along with a 4.0% SOFR floor. This substantial reduction in borrowing costs is expected to translate into millions of dollars in annual interest savings, directly benefiting the company's bottom line and freeing up cash flow for reinvestment.

The new five-year facility, maturing in December 2030, is structured to directly support Orion’s operational and strategic needs. It is composed of a $60 million revolving line of credit for working capital, a $20 million equipment term loan, and a $40 million acquisition term loan. This dedicated acquisition facility signals a clear intent to pursue growth through M&A. Furthermore, the agreement includes a $25 million uncommitted accordion option, giving Orion the ability to quickly access additional capital to seize future opportunities.

Proceeds from the new facility were used to repay the $23 million outstanding under the prior agreement. In executing the early termination, Orion incurred a one-time “make whole payment” of approximately $1.1 million, a strategic cost deemed worthwhile for the long-term benefits of enhanced financial stability and lower borrowing expenses.

Fueling an Ambitious Growth Strategy

This refinancing is not merely a balance sheet adjustment; it is the financial engine for Orion’s next phase of expansion. With dedicated capital for acquisitions and equipment, the company is well-positioned to execute its multi-faceted growth strategy, which includes greenfield expansion, vertical integration, and strategic M&A within its core markets.

Orion operates through two primary segments:

• Marine Segment: A leader in marine transportation facility construction, dredging, and marine pipeline services. This segment is poised to benefit from significant public and private investment in port infrastructure and coastal resilience. The company is a key contractor on a massive $2.8 billion dry dock construction project at Pearl Harbor Naval Shipyard, holding a contract portion valued at over $450 million, underscoring its expertise in large-scale, critical infrastructure.

• Concrete Segment: Providing turnkey concrete services for large commercial and structural projects. After a period of focusing on disciplined bidding to improve margins, this segment is positioned to contribute to growth in thriving commercial markets.

The $40 million acquisition loan provides the immediate firepower to pursue targets that could expand Orion's geographic footprint or add complementary service lines. The company has historically used acquisitions to grow, and this new facility revitalizes that capability, allowing it to act decisively in a fragmented industry.

From Turnaround to Takeoff

The significance of the UMB deal is magnified when viewed against the backdrop of Orion's recent history. The company has executed a remarkable financial turnaround. For the full year 2024, Orion reported contract revenues of $796.4 million, an 11.9% increase over the prior year, and saw its gross profit surge by 47.8% to $91.2 million. Most notably, it swung from a $6.6 million operating loss in 2023 to an $11.5 million operating income in 2024.

This strong performance stands in stark contrast to just a few years ago. In early 2023, the company’s filings disclosed substantial doubt about its ability to continue as a “going concern” due to liquidity challenges. Management successfully navigated that period through operational improvements, a 2024 public stock offering that raised $26.4 million, and the initial refinancing with White Oak. This new facility with UMB Bank serves as the capstone to that turnaround, transitioning the company from a defensive posture to an offensive one, backed by a stronger balance sheet and a more favorable cost structure.

A Strategic Partnership for Progress

The choice of UMB Bank as a partner is also noteworthy. The bank has expressed a clear interest in fostering growth within key industrial sectors. Michael Garner, Regional President for Texas and Oklahoma at UMB Bank, highlighted this collaborative approach.

“UMB is honored to provide the Credit Facility to Orion that will help fuel its plans for future growth,” Garner stated. “Thriving businesses are essential to our communities, and we are thrilled to deliver the resources and access to capital to help them achieve their goals. I can’t wait to see where the Orion team goes in this next phase of their business.”

This partnership provides Orion not just with capital, but with a financial ally aligned with its long-term vision. For UMB, it represents a significant commitment to the specialty construction sector and a high-profile partnership with a recovering and growing industry leader.

With a strengthened financial foundation, a clear strategic roadmap, and favorable industry tailwinds from sustained infrastructure investment, Orion Group Holdings appears fully equipped to build upon its recent momentum. The new credit facility provides the tools and flexibility needed to pursue larger projects, explore strategic acquisitions, and solidify its market leadership in the years ahead.