Orion Group Holdings Inc 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ Orion Group Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands, Except Share and Per Share Information) ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2025 2024 ASSETS ​ (Unaudited) ​ Current assets: ​ ​ Cash and cash equivalents ​ $ 12,956 ​ $ 28,316 Accounts receivable: ​ ​ Trade, net of allowance for credit losses of $ 787 and $ 555 , respectively ​ 142,201 ​ 106,304 Retainage ​ 35,165 ​ 35,633 Income taxes receivable ​ 436 ​ 483 Other current ​ 2,735 ​ 3,127 Inventory ​ 2,130 ​ 1,974 Contract assets ​ 63,580 ​ 84,407 Prepaid expenses and other ​ 7,819 ​ 9,084 Total current assets ​ 267,022 ​ 269,328 Property and equipment, net of depreciation ​ 91,956 ​ 86,098 Operating lease right-of-use assets, net of amortization ​ ​ 23,984 ​ ​ 27,101 Financing lease right-of-use assets, net of amortization ​ ​ 24,638 ​ ​ 25,806 Inventory, non-current ​ 7,421 ​ 7,640 Deferred income tax asset ​ ​ 17 ​ ​ 17 Other non-current ​ 1,272 ​ 1,327 Total assets ​ $ 416,310 ​ $ 417,317 LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ Current liabilities: ​ ​ Current debt, net of debt issuance costs ​ $ 1,274 ​ $ 426 Accounts payable: ​ ​ ​ ​ Trade ​ 110,057 ​ 97,139 Retainage ​ 1,952 ​ 1,310 Accrued liabilities ​ 20,302 ​ 26,294 Income taxes payable ​ 493 ​ 507 Contract liabilities ​ 42,756 ​ 47,371 Current portion of operating lease liabilities ​ ​ 5,700 ​ ​ 7,546 Current portion of financing lease liabilities ​ ​ 11,135 ​ ​ 10,580 Total current liabilities ​ ​ 193,669 ​ ​ 191,173 Long-term debt, net of debt issuance costs ​ 22,042 ​ 22,751 Operating lease liabilities ​ ​ 20,750 ​ ​ 20,837 Financing lease liabilities ​ ​ 9,324 ​ ​ 11,346 Other long-term liabilities ​ 19,674 ​ 20,503 Deferred income tax liability ​ 17 ​ 28 Total liabilities ​ 265,477 ​ ​ 266,638 Stockholders’ equity: ​ ​ Preferred stock -- $ 0.01 par value, 10,000,000 authorized, none issued ​ — ​ — Common stock -- $ 0.01 par value, 50,000,000 authorized, 40,255,806 and 39,681,597 issued; 39,544,575 and 38,970,366 outstanding at March 31, 2025 and December 31, 2024, respectively ​ 403 ​ 397 Treasury stock, 711,231 shares, at cost, as of March 31, 2025 and December 31, 2024, respectively ​ ( 6,540 ) ​ ( 6,540 ) Additional paid-in capital ​ 222,075 ​ 220,513 Retained loss ​ ( 65,105 ) ​ ( 63,691 ) Total stockholders’ equity ​ 150,833 ​ 150,679 Total liabilities and stockholders’ equity ​ $ 416,310 ​ $ 417,317 ​ The accompanying notes are an integral part of these condensed consolidated financial statements ​ 3 ​ Table of Contents Orion Group Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In Thousands, Except Share and Per Share Information) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 Contract revenues ​ $ 188,653 ​ $ 160,672 Costs of contract revenues ​ 165,638 ​ 145,134 Gross profit ​ 23,015 ​ 15,538 Selling, general and administrative expenses ​ 22,545 ​ 18,999 Gain on disposal of assets, net ​ ( 363 ) ​ ( 337 ) Operating income (loss) ​ 833 ​ ( 3,124 ) Other (expense) income: ​ ​ Other income ​ 34 ​ 72 Interest income ​ 193 ​ 17 Interest expense ​ ( 2,334 ) ​ ( 3,374 ) Other expense, net ​ ( 2,107 ) ​ ( 3,285 ) Loss before income taxes ​ ( 1,274 ) ​ ( 6,409 ) Income tax expense (benefit) ​ 140 ​ ( 352 ) Net loss ​ $ ( 1,414 ) ​ $ ( 6,057 ) ​ ​ ​ ​ ​ ​ ​ Basic loss per share ​ $ ( 0.04 ) ​ $ ( 0.19 ) Diluted loss per share ​ $ ( 0.04 ) ​ $ ( 0.19 ) Shares used to compute loss per share: ​ ​ Basic ​ 39,056,396 ​ 32,553,750 Diluted ​ 39,056,396 ​ 32,553,750 ​ The accompanying notes are an integral part of these condensed consolidated financial statements ​ ​ ​ ​ 4 ​ Table of Contents Orion Group Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Stockholders’ Equity (In Thousands, Except Share and Per Share Information) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Treasury Additional ​ ​ ​ ​ ​ ​ Stock ​ Stock Paid-In Retained ​ ​ ​ ​ ​ Shares Amount ​ Shares Amount Capital ​ Loss ​ Total Balance, January 1, 2025 ​ 39,681,597 ​ $ 397 ( 711,231 ) ​ $ ( 6,540 ) ​ $ 220,513 ​ $ ( 63,691 ) ​ $ 150,679 Share-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,123 ​ ​ — ​ ​ 1,123 Exercise of stock options ​ 15,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 108 ​ ​ ​ ​ ​ 108 Issuance of restricted stock ​ 499,036 ​ ​ 5 ​ — ​ ​ — ​ ​ ( 5 ) ​ ​ — ​ ​ — Employee share purchase plan issuance ​ 71,133 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ 336 ​ ​ ​ ​ ​ 337 Forfeiture of restricted stock ​ ( 10,960 ) ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Net loss — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,414 ) ​ ​ ( 1,414 ) Balance, March 31, 2025 ​ 40,255,806 ​ $ 403 ( 711,231 ) ​ $ ( 6,540 ) ​ $ 222,075 ​ $ ( 65,105 ) ​ $ 150,833 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Treasury Additional ​ ​ ​ ​ ​ ​ Stock ​ Stock Paid-In Retained ​ ​ ​ ​ ​ Shares Amount ​ Shares Amount Capital ​ Loss ​ Total Balance, January 1, 2024 ​ 33,260,011 ​ $ 333 ( 711,231 ) ​ $ ( 6,540 ) ​ $ 189,729 ​ $ ( 62,047 ) ​ $ 121,475 Share-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 358 ​ ​ — ​ ​ 358 Exercise of stock options ​ 46,322 ​ ​ — ​ — ​ ​ — ​ ​ 294 ​ ​ — ​ ​ 294 Issuance of restricted stock ​ 275,954 ​ ​ 3 ​ — ​ ​ — ​ ​ ( 3 ) ​ ​ — ​ ​ — Forfeiture of restricted stock ​ ( 6,942 ) ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Net loss — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 6,057 ) ​ ​ ( 6,057 ) Balance, March 31, 2024 ​ 33,575,345 ​ $ 336 ( 711,231 ) ​ $ ( 6,540 ) ​ $ 190,378 ​ $ ( 68,104 ) ​ $ 116,070 ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements ​ 5 ​ Table of Contents Orion Group Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in Thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 Cash flows from operating activities: ​ ​ Net loss ​ $ ( 1,414 ) ​ $ ( 6,057 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ Operating activities: ​ ​ ​ ​ Depreciation and amortization ​ 3,175 ​ 4,208 Amortization of ROU operating leases ​ ​ 2,477 ​ ​ 2,419 Amortization of ROU finance leases ​ ​ 2,228 ​ ​ 1,811 Amortization of deferred debt issuance costs ​ ​ 395 ​ ​ 553 Deferred income taxes ​ ( 11 ) ​ ( 9 ) Share-based compensation ​ 1,123 ​ 358 Gain on disposal of assets, net ​ ( 363 ) ​ ( 338 ) Allowance for credit losses ​ 232 ​ 4 Change in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ( 35,266 ) ​ 15,202 Income tax receivable ​ 47 ​ — Inventory ​ 63 ​ ( 387 ) Prepaid expenses and other ​ 1,319 ​ 2,169 Contract assets ​ 20,827 ​ 10,548 Accounts payable ​ 13,747 ​ ( 29,399 ) Accrued liabilities ​ ( 6,174 ) ​ ( 16,013 ) Operating lease liabilities ​ ​ ( 1,219 ) ​ ​ ( 2,238 ) Income tax payable ​ ( 14 ) ​ ( 196 ) Contract liabilities ​ ( 4,615 ) ​ ( 5,460 ) Net cash used in operating activities ​ ( 3,443 ) ​ ( 22,825 ) Cash flows from investing activities: ​ ​ Proceeds from sale of property and equipment ​ 341 ​ 280 Purchase of property and equipment ​ ( 9,033 ) ​ ( 1,853 ) Net cash used in investing activities ​ ( 8,692 ) ​ ( 1,573 ) Cash flows from financing activities: ​ ​ ​ ​ Borrowings on credit ​ 3,047 ​ 1,554 Payments made on borrowings on credit ​ ( 3,148 ) ​ ( 1,679 ) Payments on failed sales-leasebacks ​ ​ ( 729 ) ​ ​ — Loan costs from Credit Agreement and prior credit facility ​ ( 323 ) ​ ( 100 ) Payments of finance lease liabilities ​ ​ ( 2,517 ) ​ ​ ( 1,971 ) Proceeds from issuance of common stock under ESPP ​ ​ 337 ​ ​ — Exercise of stock options ​ 108 ​ 294 Net cash used in financing activities ​ ( 3,225 ) ​ ( 1,902 ) Net change in cash, cash equivalents and restricted cash ​ ( 15,360 ) ​ ( 26,300 ) Cash, cash equivalents and restricted cash at beginning of period ​ 28,316 ​ 30,938 Cash, cash equivalents and restricted cash at end of period ​ $ 12,956 ​ $ 4,638 ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for: ​ ​ Interest ​ $ 2,113 ​ $ 1,652 Taxes, net of refunds ​ $ 118 ​ $ ( 148 ) ​ The accompanying notes are an integral part of these condensed consolidated financial statements ​ 6 ​ Table of Contents Orion Group Holdings, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Tabular Amounts in Thousands, Except Share and per Share Amounts) (Unaudited) ​ 1. Description of Business and Basis of Presentation Description of Business Orion Group Holdings, Inc. and subsidiaries (hereafter collectively referred to as the “Company”), is a leading specialty construction company serving the infrastructure, industrial, and building sectors, providing services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through our marine segment and our concrete segment. Our marine segment provides construction and dredging services including marine transportation facility construction, marine pipeline construction, marine environmental structures construction, dredging of waterways, channels and ports, environmental dredging, design, and specialty services related to marine construction, fabrication, and dredging. Our concrete segment provides turnkey concrete construction services including concrete surface place and finish, site preparation, layout, forming, and rebar placement for large commercial, structural and other associated business areas. We are headquartered in Houston, Texas with regional offices throughout our operating areas. Although we describe the business in this report in terms of the services the Company provides, its base of customers and the areas in which it operates, the Company has determined that its operations currently comprise two reportable segments pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting . The tools used by the chief operating decision maker (“CODM”) to allocate resources and assess performance are based on two reportable and operating segments: marine and concrete, which operate under the Orion brand and logo. In making this determination, the Company considered the similar economic characteristics of its operations that comprise its marine segment. For the marine segment, the methods used, and the internal processes employed, to deliver marine construction services are similar throughout the segment, including standardized estimating, project controls and project management. This segment has the same customers with similar funding drivers and are subject to similar regulatory regimes driven through Federal agencies such as the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, U.S. Environmental Protection Agency and U.S. Occupational Safety and Health Administration (“OSHA”), among others. Additionally, the segment is driven by macro-economic considerations including the level of import/export seaborne transportation, development of energy-related infrastructure, cruise line expansion and operations, marine bridge infrastructure development, waterway pipeline crossings and the maintenance of waterways. These considerations, and others, are key catalysts for future prospects and are similar across the segment. For the concrete segment, the Company also considered the similar economic characteristics of these operations. The methods used, and the internal processes employed, to deliver concrete construction services are similar throughout the segment, including standardized estimating, project controls and project management. The projects of this segment are subject to similar regulatory regimes such as OSHA. Additionally, this segment is driven by macro-economic considerations, including movements in population, commercial real estate development, institutional funding and expansion, and recreational development, 7 ​ Table of Contents specifically in metropolitan areas of Texas. These considerations, and others, are key catalysts for current operations and future prospects and are similar across the segment. Basis of Presentation The accompanying condensed consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. For the periods presented, there were no items of other comprehensive income, and therefore comprehensive loss is equal to net loss. Readers of this report should also read the Company’s consolidated financial statements, and the notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (“2024 Form 10-K”) as well as Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations also included in its 2024 Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal recurring nature. Interim results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results realizable for the year ending December 31, 2025. In connection with preparing consolidated financial statements for each annual and interim reporting period, the Company is required to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within the one year period following the date that the financial statements are issued. The assessment of the liquidity and going concern requires the Company to make estimates of future activity and judgments about whether the Company is compliant with financial covenant calculations under its debt and other agreements and has adequate liquidity to operate (See Note 9 ). Significant assumptions used in the Company's forecasted model of liquidity include forecasted sales, costs, our ability to manage spending on capital expenditures, our ability to complete certain asset sales and collect claims and unapproved change order revenue. Based on an assessment of these factors, management believes that the Company will have adequate liquidity for its operations for at least the next 12 months. ​ 2. Summary of Significant Accounting Policies The Company’s significant accounting policies are detailed in "Note 2. Summary of Significant Accounting Policies" of its 2024 Annual Report on Form 10-K. Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issues accounting standards and updates (each, an “ASU”) from time to time to its Accounting Standards Codification (“ASC”), which is the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers applicability to its business. All ASUs are adopted by their respective due dates and in the manner prescribed by the FASB. ​ In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments require disclosure of specific categories in the rate reconciliation and 8 ​ Table of Contents provides additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. This will not impact our financial position or results of operations, but is expected to result in expanded tax disclosures in the full year financial statements for the year ended December 31, 2025. In January 2024, the FASB issued ASU No. 2024-03 , Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures . The amendments require entities to provide enhanced disaggregation of certain expense categories presented in the income statement, including details on significant components within those categories, to provide greater transparency and decision-useful information to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its consolidated financial statements. ​ 3. Revenue ​ Contract revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table represents a disaggregation of the Company’s contract revenues by service line for the marine and concrete segments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 Marine Segment ​ ​ Construction ​ $ 104,482 ​ $ 88,789 Dredging ​ 16,911 ​ 14,670 Specialty services ​ 5,770 ​ 2,866 Marine segment contract revenues ​ $ 127,163 ​ $ 106,325 ​ ​ ​ ​ ​ ​ ​ Concrete Segment ​ ​ Structural ​ $ 13,721 ​ $ 11,573 Light commercial ​ 47,769 ​ 42,774 Concrete segment contract revenues ​ $ 61,490 ​ $ 54,347 ​ ​ ​ ​ ​ ​ ​ Total contract revenues ​ $ 188,653 ​ $ 160,672 ​ The Company has determined that it has two reportable segments pursuant to FASB ASC Topic 280, Segment Reporting , but has disaggregated its contract revenues in the above chart in terms of services provided within such segments. In making this determination, the Company considered the similar characteristics of its operations as discussed in Note 1 . Additionally, as discussed, both the marine and concrete segments have limited contracts with multiple performance obligations. The Company’s contracts are often estimated and bid as one project and evaluated as to performance as one project, not by individual services performed by each. Both the marine and concrete segments have a single individual responsible for managing the entire segment, not by service lines of the segments. Resources are allocated by segment and financial and budgetary information is compiled and reviewed by segment, not service line. 9 ​ Table of Contents Marine Segment Construction services include construction, restoration, maintenance, dredging and repair of marine transportation facilities, marine pipelines, bridges and causeways and marine environmental structures. Dredging services generally enhance or preserve the navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Specialty services include design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation and repair. Concrete Segment Structural services include elevated concrete pouring for products such as columns, elevated beams and structural walls. Light commercial services include horizontally poured concrete for products such as slabs, sidewalks, ramps and tilt walls. Other services comprise labor related to concrete pouring such as rebar installation and pumping services and typically support the Company’s structural and light commercial services. ​ 4. Concentration of Risk and Enterprise-Wide Disclosures In both reportable segments accounts receivable include amounts billed to governmental agencies and private customers and do not bear interest. Balances billed to customers but not paid pursuant to retainage provisions generally become payable upon contract completion and acceptance by the owner. ​ The table below presents the concentrations of current receivables (trade and retainage) at March 31, 2025 and December 31, 2024, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ December 31, 2024 Federal Government $ 43,336 24 % $ 19,874 14 % State Governments ​ 16,835 10 % 9,553 7 % Local Governments ​ 28,977 16 % 24,641 17 % Private Companies ​ 89,005 50 % 88,424 62 % Gross receivables ​ ​ 178,153 ​ 100 % ​ 142,492 ​ 100 % Allowance for credit losses ​ ​ ( 787 ) ​ ​ ​ ​ ( 555 ) ​ ​ ​ Net receivables ​ $ 177,366 ​ ​ $ 141,937 ​ ​ ​ At March 31, 2025, the United States Navy, which is included in the Federal Government category, accounted for 21.8 % of total current receivables. At December 31, 2024, the United States Navy, accounted for 11.1 % of total current receivables. ​ 10 ​ Table of Contents Additionally, the table below represents concentrations of contract revenue by type of customer for the three months ended March 31, 2025 and 2024, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 % 2024 % Federal Government $ 41,884 22 % $ 53,382 33 % State Governments 28,961 15 % 13,984 9 % Local Government 37,037 20 % 28,973 18 % Private Companies 80,771 43 % 64,333 40 % Total contract revenues $ 188,653 100 % $ 160,672 100 % ​ For the three months ended March 31, 2025, the United States Navy, which is included in the Federal Government category, accounted for 17.7 % of total contract revenues. For the three months ended March 31, 2024, the United States Navy, which is included in the Federal Government category, accounted for 23.7 % of total contract revenues. With the exception of the Unites States Navy, the Company does not believe that the loss of any one of its customers would have a material adverse effect on the Company or its subsidiaries and affiliates since no single specific customer sustains such a large portion of receivables or contract revenue over time. On March 10, 2023, the United States Navy awarded the Dragados/Hawaiian Dredging/Orion Joint Venture a $ 2.8 billion contract to complete the construction of a dry dock at Pearl Harbor Naval Shipyard. The Company’s portion of work as a dedicated subcontractor totals $ 454.5 million. For the three months ended March 31, 2025 and 2024, the Company’s revenue related to the joint venture subcontract was approximately $ 33.3 million and $ 38.0 million, respectively The concrete segment primarily purchases concrete from select suppliers. The loss of any one of these suppliers could adversely impact short-term operations. Contract revenues generated outside the United States totaled 6.3 % and 6.0 % of total revenues for the three months ended March 31, 2025 and 2024, respectively, and were primarily located in the Caribbean Basin. ​ 5. Contracts in Progress Contracts in progress are as follows at March 31, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2025 ​ 2024 Costs incurred on uncompleted contracts ​ $ 1,509,260 ​ $ 1,561,338 Estimated earnings ​ 204,590 ​ 211,439 ​ ​ 1,713,850 ​ 1,772,777 Less: Billings to date ​ ( 1,693,026 ) ​ ( 1,735,741 ) ​ ​ $ 20,824 ​ $ 37,036 Included in the accompanying Consolidated Balance Sheets under the following captions: ​ ​ Contract assets ​ $ 63,580 ​ $ 84,407 Contract liabilities ​ ( 42,756 ) ​ ( 47,371 ) ​ ​ $ 20,824 ​ $ 37,036 ​ 11 ​ Table of Contents Included in contract assets is approximately $ 17.1 million and $ 19.8 million at March 31, 2025 and December 31, 2024, respectively, related to claims and unapproved change orders. See Note 2 to the Company’s consolidated financial statements for discussion of the accounting for these claims. Remaining performance obligations represent the transaction price of firm orders or other written contractual commitments from customers for which work has not been performed or is partially completed and excludes unexercised contract options and potential orders. As of March 31, 2025, the aggregate amount of the remaining performance obligations was approximately $ 839.7 million. Of this amount, the current expectation of the Company is that it will recognize $ 644.7 million, or 77 %, in the next 12 months and the remaining balance thereafter. ​ 6. Property and Equipment The following is a summary of property and equipment at March 31, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2025 ​ 2024 Automobiles and trucks ​ $ 1,789 ​ $ 1,790 Building and improvements ​ 39,411 ​ 39,401 Construction equipment ​ 117,908 ​ 117,652 Vessels and other equipment ​ 97,232 ​ 96,172 Office equipment ​ 7,563 ​ 7,562 ​ ​ 263,903 ​ 262,578 Less: Accumulated depreciation ​ ( 211,560 ) ​ ( 209,234 ) Net book value of depreciable assets ​ 52,343 ​ 53,344 Construction in progress ​ 14,665 ​ 7,806 Land ​ 24,948 ​ 24,948 ​ ​ $ 91,956 ​ $ 86,098 ​ For the three months ended March 31, 2025 and 2024, depreciation expense was $ 3.2 million and $ 4.2 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company’s Condensed Consolidated Statements of Operations. Substantially all of the assets of the Company are pledged as collateral under the Company’s Credit Agreement (as defined in Note 9 ). Substantially all of the Company’s long-lived assets are located in the United States. See Note 2 to the Company’s condensed consolidated financial statements for further discussion of property and equipment. 7. Fair Value Recurring Fair Value Measurements The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. Due to their short-term nature, the Company believes that the carrying value of its accounts receivable, other current assets, accounts payable and other current liabilities approximate their fair values. 12 ​ Table of Contents The Company classifies financial assets and liabilities into the following three levels based on the inputs used to measure fair value in the order of priority indicated: ● Level 1- fair values are based on observable inputs such as quoted prices in active markets for identical assets or liabilities; ● Level 2 - fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and ● Level 3 - fair values are based on unobservable inputs in which little or no market data exists. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value requires judgment and may affect the placement of assets and liabilities within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy the Company’s recurring financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ Carrying Value Level 1 Level 2 Level 3 March 31, 2025 ​ ​ ​ ​ ​ Assets: ​ Cash surrender value of life insurance policy ​ $ 1,203 — 1,203 — December 31, 2024 ​ ​ ​ ​ ​ Assets: ​ Cash surrender value of life insurance policy ​ $ 1,222 — 1,222 — ​ Our concrete segment has life insurance policies with a combined face value of $ 11.1 million as of March 31, 2025. The policies are invested in mutual funds and the fair value measurement of the cash surrender balance associated with these policies is determined using Level 2 inputs within the fair value hierarchy and will vary with investment performance. These assets are included in the "Other non-current" asset section in the Company’s Condensed Consolidated Balance Sheets. Other Fair Value Measurements The fair value of the Company’s debt at March 31, 2025 and December 31, 2024 approximated its carrying value of $ 26.7 million and $ 26.8 million, respectively, as interest is based on current market interest rates for debt with similar risk and maturity. If the Company’s debt was measured at fair value, it would have been classified as Level 2 in the fair value hierarchy. ​ 13 ​ Table of Contents 8. Accrued Liabilities Accrued liabilities at March 31, 2025 and December 31, 2024 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 December 31, 2024 Accrued salaries, wages and benefits ​ $ 7,254 ​ $ 13,931 Accrued liabilities expected to be covered by insurance ​ 4,929 ​ 4,250 Sales taxes ​ 2,435 ​ 1,605 Property taxes ​ 749 ​ 1,814 Sale-leaseback arrangement ​ ​ 2,972 ​ ​ 2,852 Accounting and audit fees ​ ​ 923 ​ ​ 531 Interest ​ 254 ​ 411 Other accrued expenses ​ 786 ​ 900 Total accrued liabilities ​ $ 20,302 ​ $ 26,294 ​ ​ 9. Debt On May 15, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with White Oak ABL, LLC and White Oak Commercial Finance, LLC, providing for a $ 65.0 million asset-based revolving credit facility (the “Revolver”) and a $ 38.0 million fixed asset term loan (the “Term Loan”). The Credit Agreement, as subsequently amended, matures on May 15, 2028 and is secured by substantially all of the assets of the Company and its subsidiaries, including fixed assets and accounts receivable. The Credit Agreement is used to finance working capital and general corporate purposes, capital expenditures, permitted acquisitions and associated transaction fees, and to refinance existing indebtedness. Borrowings under the Revolver may be repaid and reborrowed, subject to the borrowing base and other conditions. As amended, the Revolver and Term Loan bear interest at rates based on 30-day SOFR plus applicable margins, subject to a SOFR floor. As of the date of this filing, the applicable margin is 4.25 % for the Revolver and 6.50 % for the Term Loan, with a 4.00 % SOFR floor . The Credit Agreement contains customary affirmative and negative covenants, including limitations on indebtedness, liens, investments, asset sales, and dividends, as well as financial maintenance covenants. The financial covenants, as amended, include a minimum Consolidated Fixed Charge Coverage Ratio and/or Consolidated EBITDA thresholds and a minimum liquidity requirement, each tested periodically. The quarterly weighted average interest rate for the Credit Agreement, as of March 31, 2025 and March 31, 2024 was 11.25 % and 13.09 %, respectively. ​ 14 ​ Table of Contents The Company’s obligations under debt arrangements consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ December 31, 2024 ​ ​ Debt Issuance ​ ​ Debt Issuance ​ ​ ​ Principal ​ Costs (1) ​ Total ​ Principal ​ Costs (1) ​ Total Other debt ​ $ 1,274 ​ ​ — ​ $ 1,274 ​ $ 426 ​ ​ — ​ $ 426 Total current debt ​ 1,274 ​ — ​ 1,274 ​ 426 ​ — ​ 426 Term loan - long-term ​ 23,000 ​ ( 3,426 ) ​ 19,574 ​ 23,000 ​ ( 3,666 ) ​ 19,334 Other debt ​ ​ 2,468 ​ ​ — ​ ​ 2,468 ​ ​ 3,417 ​ ​ — ​ ​ 3,417 Total long-term debt ​ ​ 25,468 ​ ​ ( 3,426 ) ​ ​ 22,042 ​ ​ 26,417 ​ ​ ( 3,666 ) ​ ​ 22,751 Total debt ​ $ 26,742 ​ $ ( 3,426 ) ​ $ 23,316 ​ $ 26,843 ​ $ ( 3,666 ) ​ $ 23,177 ​ (1) Total debt issuance costs include underwriter fees, legal fees, syndication fees and fees related to the execution of the Credit Agreement and the termination and repayment of the Company’s prior credit facility. Provisions of the revolving line of credit The Company has a maximum borrowing capacity under the Revolver of $ 65.0 million. There is a letter of credit sublimit that is equal to the lesser of $ 5.0 million and the aggregate unused amount of the revolving commitments then in effect. The Company is subject to a commitment fee for the unused portion of the maximum borrowing availability under the Revolver. The Revolver termination date is the earlier of the Credit Agreement termination date, May 15, 2028, or the date the outstanding balance is permanently reduced to zero, in accordance with the terms of the Credit Agreement. As of March 31, 2025, the Company had no borrowings under the Revolver. The Company’s borrowing availability under the Revolver at March 31, 2025 was approximately $ 40.7 million. During the three months ended March 31, 2025, the Company had borrowings and repayments of $ 3.0 million on the Revolver. Financial covenants Restrictive financial covenants under the amended Credit Agreement include: ​ ● A Consolidated Fixed Charge Coverage Ratio to not be less than the following during each noted period: - Trailing Four Quarter Test Period Ending September 30, 2025 and each Fiscal Quarter thereafter, to not be less than 1.00 to 1.00. ​ ● A Revolver Loan Turnover Ratio to not be less than the following during each noted period: - Fiscal Quarter Ending June 30, 2023 and each Fiscal Quarter thereafter, to not be less than 2.50 to 1.00. ​ ● A Term Loan Loan-to-Value Ratio to not be greater than the following during each noted period: - Fiscal Quarter Ending June 30, 2023 and each Fiscal Quarter thereafter, to not be more than 60 % . ​ 15 ​ Table of Contents ● A Minimum EBITDA to not be less than the following during each noted period: ​ - Trailing Four Quarter Test Period ended March 31, 2025 - $ 35,032,000 . ​ - Trailing Four Quarter Test Period ending June 30, 2025 - $ 31,691,000 . ​ Under the Credit Agreement, the Company may not permit Liquidity (as defined in the Credit Agreement) to fall below $ 15.0 million (i) for more than three (3) consecutive Business Days (as defined in the Credit Agreement) nor (ii) as of the close of business on Friday of each week. In addition, the Credit Agreement contains events of default that are usual and customary for similar arrangements, including non-payment of principal, interest or fees; breaches of representations and warranties that are not timely cured; violation of covenants; bankruptcy and insolvency events; and, events constituting a change of control. The Company was in compliance with all financial covenants under the amended agreement as of March 31, 2025. ​ Other debt The Company has entered into debt agreements with Mobilease for the purpose of financing equipment purchased. As of March 31, 2025 and December 31, 2024, the carrying value of this debt was $ 1.3 million and $ 1.4 million, respectively. The agreements are secured by the financed equipment assets and the debt is included as a component of current debt and long-term debt on the Condensed Consolidated Balance Sheets. On June 23, 2023, the Company closed on a land-sale leaseback contract for the Company’s Port Lavaca South Yard property located in Port Lavaca, Texas for a purchase price of $ 12.0 million. A portion of the operating lease above the fair value of the land was financed by the Company. As of both March 31, 2025 and December 31, 2024, the carrying value of this debt was $ 2.4 million. 10. Other Long-Term Liabilities ​ Other long-term liabilities at March 31, 2025 and December 31, 2024 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 December 31, 2024 Sale-leaseback arrangement ​ $ 18,211 ​ $ 19,001 Deferred compensation ​ 1,112 ​ 1,194 Accrued liabilities expected to be covered by insurance ​ ​ 351 ​ 308 Total other long-term liabilities ​ $ 19,674 ​ $ 20,503 ​ Sale-Leaseback Arrangements On May 15, 2023, the Company entered into a $ 13.0 million sale-leaseback of certain equipment in which the Company leased-back the equipment for terms ranging from one to three years . The transaction above was recorded as a failed sale-leaseback. Concurrent with the sale of Company’s Port Lavaca South Yard property, the Company entered into a twenty-year lease agreement whereby the Company will lease back the property at an annual rental rate of approximately $ 1.1 million, subject to annual rent increases of 2.5 %. Under the lease agreement, the Company 16 ​ Table of Contents has four consecutive options to extend the term of the lease by five years for each such option. The portion of the above transaction related to the building was recorded as a failed sale-leaseback. On September 27, 2019, the Company entered into a purchase and sale agreement (the “Purchase and Sale Agreement”). Pursuant to the terms of the Purchase and Sale Agreement, the Company sold its 17300 and 17140 Market Street location in Channelview, Texas for a purchase price of $ 19.1 million. Concurrent with the sale of the property, the Company entered into a fifteen-year lease agreement whereby the Company will lease back the property at an annual rental rate of approximately $ 1.5 million, subject to annual rent increases of 2.0 %. Under the lease agreement, the Company has two consecutive options to extend the term of the lease by ten years for each such option. The transaction above was recorded as a failed sale-leaseback. Related to the failed sale-leasebacks, the Company recorded liabilities for the amounts received, will continue to depreciate the non-land portion of the assets, and has imputed an interest rate so that the net carrying amount of the financial liability and remaining assets will be zero at the end of the initial lease terms. 11. Income Taxes Income tax expense (benefit) included in the Company’s accompanying Condensed Consolidated Statements of Operations was as follows (in thousands, except percentages): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ ​ 2025 ​ 2024 Income tax expense (benefit) ​ $ 140 ​ $ ( 352 ) ​ Effective tax rate ​ ( 11.0 ) % 5.5 % ​ The effective rate for the three months ended March 31, 2025 differed from the Company’s statutory federal rate of 21 % primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items. The Company's effective tax rate is typically based on expected income for the calendar year, statutory rates and tax planning opportunities available. This estimated annual effective tax rate is then applied to year-to-date operations. A small change in the year-to-date operations could result in a large change to the estimated annual effective tax rate. Therefore, the Company’s effective tax rate for the period ending March 31, 2025, is based off actual year-to-date operations. The Company assessed the realizability of its deferred tax assets and determined that it was more likely than not that some portion or all the deferred tax assets would not be realized and therefore recorded a valuation allowance on the net deferred tax assets. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The Company considers the scheduled reversal of deferred tax liabilities, available carryback periods, and tax-planning strategies in making this assessment. For the period ended March 31, 2025 the Company evaluated all positive and negative evidence in determining the amount of deferred tax assets more likely than not to be realized. Based on the review of available evidence, management believes that a valuation allowance on the net deferred tax assets at March 31, 2025 remains appropriate. ​ 17 ​ Table of Contents 12. Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding during each period. Diluted earnings per share is based on the weighted average number of common shares outstanding as well as the effect of all dilutive common stock equivalents during each period net income is generated. For the three months ended March 31, 2025 and 2024, the Company had 55,302 and 222,075 securities, respectively, that were potentially dilutive in earnings per share calculations. Such dilution is dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. The exercise price for certain stock options awarded by the Company exceeded the average market price of the Company’s common stock for the three months ended March 31, 2025 and 2024. Such stock options are antidilutive and are not included in the computation of earnings per share for those periods. The Company reported a net loss for the three months ended March 31, 2025 and March 31, 2024; therefore, all potentially dilutive securities are antidilutive and are excluded from the computation of diluted loss per share for such periods. The following table reconciles the denominators used in the computations of both basic and diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 Basic: Weighted average shares outstanding 39,056,396 32,553,750 Diluted: Total basic weighted average shares outstanding 39,056,396 32,553,750 Effect of potentially dilutive securities: ​ ​ Common stock options — — Employee stock purchase plan ​ — — Total weighted average shares outstanding assuming dilution 39,056,396 32,553,750 ​ ​ ​ ​ ​ ​ ​ ​ ​ 13. Share-Based Compensation The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans, which include the balance of shares remaining under the 2022 Long Term Incentive Plan (the “2022 LTIP”), which was approved by shareholders in May of 2022 and amended in May of 2024 and authorizes 3,735,000 shares, the maximum aggregate number to be issued, plus any shares available for grant under prior long term incentive plans as of the date the 2022 LTIP was approved, and any shares subject to awards granted under the prior plans that expire or are cancelled, forfeited, exchanged, settled in cash or otherwise terminated. In general, the Company’s 2022 LTIP provides for grants of restricted stock and performance-based awards to be issued with a per-share price not less than the fair market value of a share of common stock on the date of grant. The Company accounts for forfeitures of awards as they are incurred. In May 2024 shareholders approved the ESPP, which became effective on September 16, 2024. The Company has reserved a total of 1,000,000 shares under the ESPP, all of which are authorized and available for future issuance under the ESPP. The ESPP provides a means by which eligible employees of the Company are given an opportunity to purchase shares of common stock at a discount as permitted under the Internal Revenue Code of 1986, as amended. During the three months ended March 31, 2025, there were 71,133 shares issued under the ESPP generating proceeds to the Company of $ 0.3 million. The Company has an outstanding liability 18 ​ Table of Contents pertaining to the ESPP of less than $ 0.1 million as of March 31, 2025, included in accrued expenses, for employee contributions to the ESPP, pending issuance at the end of the offering period. The table below presents the share-based compensation expense included in the Company’s accompanying condensed consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 Restricted stock awards ​ $ 733 ​ $ 291 Performance stock units ​ 307 ​ 67 Employee share purchase plan ​ ​ 83 ​ — Total share-based compensation expense ​ $ 1,123 ​ $ 358 ​ Under its approved long-term incentive plan, the Company grants share-based awards to its employees. The following table presents a summary of the Company’s unvested restricted stock awards and performance share units granted under the plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards ​ Performance stock units ​ ​ Weighted ​ Weighted ​ ​ Number ​ Average Number ​ Average ​ ​ of ​ Fair Value of ​ Fair Value ​ ​ Shares ​ Per Share Shares ​ Per Share Nonvested at December 31, 2024 1,008,232 ​ $ 6.56 ​ 534,231 ​ $ 3.65 Granted 205,963 ​ $ 5.94 ​ 293,073 ​ $ 7.17 Vested ( 106,475 ) ​ $ 5.46 ​ — ​ $ — Forfeited shares ( 10,960 ) ​ $ 8.56 ​ — ​ $ — Nonvested at March 31, 2025 1,096,760 ​ $ 6.53 ​ 827,304 (1) $ 4.89 ​ (1) A maximum of 1.6 million common shares could be awarded based upon the Company’s achievement of set performance-metrics. On March 20, 2025, the Company granted certain executives a total of 293,073 performance-based units. The performance-based units will potentially vest 100 % if the target is met, with 50 % of the units to be earned based on the achievement of an absolute adjusted EBITDA target, measured over a three-year performance period and 50 % of the units to be earned based on the achievement of an objective, tiered return on relative total shareholder return, measured over a three-year performance period. The Company evaluates the probability of achieving this each reporting period. The fair value of the grants awarded related to the adjusted EBITDA target was $ 5.89 per share and the fair value of the grants awarded related to the relative total shareholder return was $ 8.45 valued using a Monte Carlo simulation model. ​ The following table presents the assumptions related to the performance share units granted in 2025 related to the relative total shareholder return, as indicated in the previous summary table: ​ ​ ​ ​ ​ ​ ​ 2025 ​ Grant-date fair value $ 5.89 ​ Risk-free interest rate 3.86 % Volatility factor 65.52 % Contractual term (years) 2.78 ​ ​ 19 ​ Table of Contents In the three months ended March 31, 2025, there were 15,000 options exercised generating proceeds to the Company of $ 0.1 million. In the three months ended March 31, 2024, there were 46,322 options exercised generating proceeds to the Company of $ 0.3 million. ​ The following table presents a summary of the unrecognized compensation cost, and the related weighted average recognition period associated with unvested awards and units as of March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards ​ ​ Performance stock units Unrecognized compensation cost $ 5,486 ​ $ 3,772 Weighted average period for recognition (years) 2.15 ​ 2.24 ​ ​ ​ 14. Commitments and Contingencies The Company is involved in various legal and other proceedings that are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations or cash flows. Management believes that it has recorded adequate accrued liabilities and believes that it has adequate insurance coverage or has meritorious defenses for these claims and contingencies. ​ ​ 20 ​ Table of Contents 15. Segment Information The Company currently operates in two reportable segments: marine and concrete. The Company’s financial reporting systems present various data for management to run the business, including profit and loss statements prepared according to the segments presented. Management uses operating income to evaluate performance between the two segments. ​ Segment information for the periods presented is provided as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2025 2024 ​ Amount Percent Amount Percent Marine (dollar amounts in thousands) Contract revenues $ 127,163 100.0 % $ 106,325 100.0 % Cost of contract revenues 108,638 85.4 % 100,120 94.2 % Gross profit 18,525 14.6 % 6,205 5.8 % Selling, general and administrative expenses 13,918 10.9 % 11,155 10.5 % Gain on disposal of assets, net ​ ( 171 ) ​ ( 0.1 ) % ​ ( 84 ) ​ ( 0.1 ) % Operating income (loss) $ 4,778 3.8 % $ ( 4,866 ) ( 4.6 ) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ 322,937 ​ ​ ​ $ 275,969 ​ ​ ​ Property and equipment, net $ 87,665 ​ ​ ​ $ 80,261 ​ ​ ​ Depreciation and amortization $ 4,531 ​ ​ ​ $ 4,930 ​ ​ ​ Capital expenditures $ 8,971 ​ ​ ​ $ 1,507 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Concrete ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract revenues $ 61,490 100.0 % $ 54,347 100.0 % Cost of contract revenues 57,000 92.7 % 45,014 82.8 % Gross profit 4,490 7.3 % 9,333 17.2 % Selling, general and administrative expenses 8,627 14.0 % 7,844 14.5 % Gain on disposal of assets, net ​ ( 192 ) ​ ( 0.3 ) % ​ ( 253 ) ​ ( 0.5 ) % Operating (loss) income $ ( 3,945 ) ( 6.4 ) % $ 1,742 3.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ 93,373 ​ ​ ​ $ 87,615 ​ ​ ​ Property and equipment, net $ 4,291 ​ ​ ​ $ 5,212 ​ ​ ​ Depreciation and amortization $ 872 ​ ​ ​ $ 1,089 ​ ​ ​ Capital expenditures $ 62 ​ ​ ​ $ 346 ​ ​ ​ ​ There were $ 1.0 million and $ 0.6 million in intersegment revenues between the Company’s two reportable segments for the three months ended March 31, 2025 and 2024, respectively. The marine segment had foreign revenues of $ 11.9 million and $ 9.6 million for the three months ended March 31, 2025 and 2024 respectively. These revenues are derived from projects in the Caribbean Basin and are paid primarily in U.S. dollars. There was no foreign revenue for the concrete segment. 21 ​ Table of Contents 16. Leases The Company has operating and finance leases for office space, equipment and vehicles. Leases recorded on the balance sheet consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, Leases ​ 2025 2024 Assets ​ ​ ​ ​ ​ Operating lease right-of-use assets, net (1) ​ $ 23,984 $ 27,101 Financing lease right-of-use assets, net (2) ​ 24,638 25,806 Total assets ​ $ 48,622 $ 52,907 Liabilities ​ Current ​ Operating ​ $ 5,700 $ 7,546 Financing ​ 11,135 10,580 Total current ​ 16,835 18,126 Noncurrent ​ Operating ​ 20,750 20,837 Financing ​ 9,324 11,346 Total noncurrent ​ 30,074 32,183 Total liabilities ​ $ 46,909 $ 50,309 (1) Operating lease right-of-use assets are recorded net of accumulated amortization of $ 28.0 million and $ 25.6 million as of March 31, 2025 and December 31, 2024, respectively. (2) Financing lease right-of-use assets are recorded net of accumulated amortization of $ 19.1 million and $ 17.0 million as of March 31, 2025 and December 31, 2024, respectively. Other information related to lease term and discount rate is as follows: ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ 2025 2024 Weighted Average Remaining Lease Term (in years) ​ ​ Operating leases 8.88 ​ 8.35 ​ Financing leases 2.22 ​ 2.40 ​ Weighted Average Discount Rate ​ ​ ​ ​ Operating leases 11.20 % 10.66 % Financing leases 8.89 % 8.74 % ​ ​ 22 ​ Table of Contents The components of lease expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 Operating lease costs: ​ ​ Operating lease cost ​ $ 3,135 ​ $ 2,991 Short-term lease cost (1) ​ 1,221 ​ 905 Financing lease costs: ​ ​ ​ Interest on lease liabilities ​ 421 ​ 407 Amortization of right-of-use assets ​ 2,228 ​ 1,811 Total lease cost ​ $ 7,005 ​ $ 6,114 (1) Includes expenses related to leases with a lease term of more than one month but less than one year. Supplemental cash flow information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 ​ 2024 Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows for operating leases $ 1,926 ​ $ 2,810 Operating cash flows for finance leases $ 421 ​ $ 407 Financing cash flows for finance leases $ 2,517 ​ $ 1,971 Non-cash activity: ​ ​ ​ ROU assets obtained in exchange for new operating lease liabilities $ 924 ​ $ 3,465 ROU assets obtained in exchange for new financing lease liabilities $ 509 ​ $ 3,789 ​ Maturities of lease liabilities are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases ​ Finance Leases Year ending December 31, ​ ​ ​ ​ ​ ​ 2025 (excluding the three months ended March 31, 2025) ​ $ 6,658 ​ $ 9,228 2026 ​ 393 ​ 7,787 2027 ​ 5,348 ​ 2,361 2028 ​ 4,248 ​ 1,310 2029 ​ 3,650 ​ 1,835 Thereafter ​ 28,591 ​ 64 Total future minimum lease payments ​ 48,888 ​ 22,585 Less - amount representing interest ​ 22,438 ​ 2,126 Present value of future minimum lease payments ​ 26,450 ​ 20,459 Less - current lease obligations ​ 5,700 ​ 11,135 Long-term lease obligations ​ $ 20,750 ​ $ 9,324 ​ ​ ​ ​ 17. Related Party Transaction ​ On March 10, 2023, the United States Navy awarded the Dragados/Hawaiian Dredging/Orion Joint Venture a $ 2.8 billion contract to complete the construction of a dry dock at Pearl Harbor Naval Shipyard. The Company’s portion of work as a dedicated subcontractor totals $ 454.5 million. For the three months ended 23 ​ Table of Contents March 31, 2025 and 2024, the Company’s revenue related to the joint venture subcontract was approximately $ 33.3 million and $ 38.0 million, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​