Orion Group (NYSE:ORN) executives used a conference call to outline the company’s acquisition of heavy civil and marine contractor J.E. McAmis and JEM Marine Leasing, describing the deal as a strategic expansion of Orion’s specialized marine construction platform and a means to increase scale ahead of what management characterized as significant market opportunities.
Strategic rationale and business overview
President and CEO Travis Boone said the acquisition is Orion’s first since 2017 and reflects the company’s strategy to become the “premier marine construction contractor” in attractive end markets. Boone emphasized McAmis’ safety record, on-time performance, and what he called “healthy margins,” adding that the combination brings a skilled workforce, strategic marine equipment and real estate, and additional capabilities.
According to Boone, McAmis primarily serves federal clients and has long-standing relationships with the U.S. Department of Defense and the U.S. Army Corps of Engineers. In the Q&A, management said the “vast majority” of McAmis’ work is Army Corps of Engineers projects, estimating that more than 80% is Army Corps work.
Pipeline, backlog, and project mix
Management highlighted McAmis’ opportunity set as a key component of the transaction. Boone said McAmis has an “incremental” opportunity pipeline of more than $1.4 billion that does not overlap with Orion’s existing opportunities. In response to an analyst question, Boone described the pipeline as generally consisting of Pacific Northwest projects, largely “jetty-focused or rockwork type” work, with a typical time frame of roughly two to three years.
Chief Financial Officer Allison Vasquez said McAmis had a historical revenue run rate of about $40 million and “healthy backlog.” During the Q&A, management said the company closed the transaction in December 2025 with approximately $24 million in backlog. Vasquez characterized the backlog as profitable and said it would likely represent roughly 60% to 65% of McAmis’ year, with additional work expected to be booked and completed as the year progresses.
Financial profile and deal terms
Boone and Vasquez both pointed to McAmis’ profitability as a key attraction. Boone said that from 2022 to 2024, McAmis posted annual average revenues of $38 million and average EBITDA margins “consistently in the 20%+ range,” with top- and bottom-line growth in each of those years. Vasquez added that Orion expects McAmis to be “very accretive” to Orion, including accretive to Orion’s marine business.
Vasquez detailed the purchase consideration at $60 million, subject to customary adjustments, made up of the following components:
- $46 million of cash, net of cash acquired
- A $12 million subordinated promissory note with a five-year term and 6% interest
- $2 million of Orion common equity
She also described contingent consideration tied to project profitability and backlog execution, including a requirement to realize at least $10 million of profit on projects and backlog, plus a 40% profit share on any additional backlog profit and selected near-term pursuits. Management said the structure is intended to keep the teams aligned during integration and execution.
Financing and balance sheet commentary
Vasquez said Orion funded the $46 million cash portion at closing using borrowings under a new credit facility, consisting of a $40 million acquisition term loan and $6 million drawn on the revolver. She said the borrowings bear interest at SOFR plus 2.75% and mature in 2030.
Discussing leverage, Vasquez said Orion expects leverage ratios to remain in line with its goal of maintaining “responsible leverage.” She added that, following the borrowing for the acquisition, Orion is around one turn of leverage, which she called a healthy level that still provides flexibility for equipment investment or other opportunities.
Integration, fleet, and growth outlook
Management emphasized operational fit and cultural alignment. Boone said Orion views cultural alignment as a major criterion in evaluating M&A and described McAmis leadership as team-oriented and focused on safe execution and project excellence. He also said John McAmis Jr. and Scott Vandegrift have joined Orion’s leadership team.
On synergies, Boone said McAmis operates as a “lean and mean” organization, and he did not expect significant cost synergies from overhead reduction. Instead, management emphasized revenue and capability expansion, including bringing McAmis’ expertise to other geographies where Orion operates and pursuing markets Orion had not previously targeted due to lacking specialized jetty and rockwork capabilities.
Boone said McAmis’ equipment adds specialized assets Orion did not previously have, including ABS barges and other equipment used for rockwork and jetty projects, along with cranes and dump scows. He also noted McAmis has marine equipment and real estate appraised at more than $34 million, including strategic real estate along the Columbia River and access to Pacific Northwest quarries. Management said Orion’s equipment team inspected McAmis’ major equipment and was impressed with the fleet’s condition and maintenance.
Looking ahead, Vasquez said Orion plans to provide full-year consolidated 2026 guidance, inclusive of McAmis, when the company reports fourth-quarter and full-year 2025 results next month. Boone said Orion will continue to consider future accretive acquisition opportunities while weighing them against organic growth investments and potential shareholder returns.
About Orion Group (NYSE:ORN)
Orion Group (NYSE:ORN) is a global provider of specialized staffing and workforce solutions, serving clients across the energy, industrial, and technical sectors. The company offers a range of services including engineering and technical recruitment, information technology staffing, and comprehensive workforce management. Orion Group focuses on delivering qualified talent for complex projects, from exploration and production in the oil and gas industry to large-scale infrastructure and manufacturing initiatives.
Founded in 1972 and headquartered in Jacksonville, Florida, Orion Group has grown its operations to support projects in North America, Europe, the Middle East, and the Asia–Pacific region.
