Orion Group Holdings, Inc. ORN is benefiting from rising data center construction activity, which has become a key demand driver for its Concrete segment. Rising investment by hyperscalers and steady project approvals are supporting demand for large-scale concrete work. This trend is also helping the business pursue larger projects and improve execution through a broader service offering.
In the first quarter of 2026, data centers accounted for around 40% of Concrete revenues. The segment generated $106 million in revenues, up from $61.5 million a year ago. Adjusted EBITDA rose to $8.6 million from $2.8 million, with the margin reaching 8%. Concrete also posted a 1.1X book-to-bill ratio and achieved record revenues and adjusted EBITDA, backed by productivity, execution and service expansion.
Data center demand remains relevant to the segment’s growth outlook, given the current mix of backlog and pipeline. Orion Group also secured a $24 million data center project after the quarter ended, which was not yet included in backlog. The company has completed more than 50 data centers and holds a meaningful position in Texas, where development activity remains high. Discussions around large projects with key partners and owners add another layer of potential demand, although visibility can remain limited until projects move closer to execution.
Expansion into site civil, earthwork and underground utilities could further strengthen Orion Group’s position by increasing project scope and improving control over execution. With data center investment supporting larger opportunities, the Concrete segment appears positioned to benefit from both higher project activity and broader service capabilities.
Orion Group’s Position in a Competitive Infrastructure Market
Orion Group operates in a competitive infrastructure and specialty construction market alongside Sterling Infrastructure, Inc. STRL and Tutor Perini Corporation TPC, each serving different areas of the broader infrastructure value chain.
Sterling is benefiting from strong demand across data centers, semiconductor facilities and other mission-critical projects. Growing customer investment, expanding project scopes and a combination of site development and electrical capabilities support growth across key end markets. Sterling’s exposure to large and complex projects also strengthens its position across fast-growing infrastructure markets.
Tutor Perini remains focused on large and complex civil, transportation, healthcare and government projects. A sizable backlog, selective bidding strategy and exposure to major infrastructure programs across domestic and international markets support long-term construction opportunities. Tutor Perini’s experience in technically demanding projects remains central to its competitive position.
Within this landscape, Orion Group leverages specialized marine construction expertise and an expanding presence in concrete and mission-critical infrastructure projects. Orion Group can pursue niche opportunities where technical capabilities and specialized execution remain important differentiators.
ORN Stock’s Price Performance & Valuation Trend
Shares of Orion Group have jumped 49.8% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 index.
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ORN stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 27.37, as evidenced by the chart below.
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Earnings Estimate Revision of ORN
ORN’s earnings estimates for 2026 and 2027 have remained unchanged in the past 30 days. However, the earnings estimates for 2026 and 2027 imply year-over-year growth of 60% and 68.3%, respectively.
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Orion stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).