| [√] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|-----------------------------------------------------------------------------------------|

|   | For the quarterly period ended September 30, 2010 |
|--------|---------------------------------------------------|

|   | OR |
|--------|----|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|------------------------------------------------------------------------------------------|

|   | For the transition period from ________ to_________ |
|--------|-----------------------------------------------------|

|   | Commission file number: |
|--------|-------------------------|

|   | 1-33891 |
|--------|---------|

|   | ORION MARINE GROUP, INC. |
|--------|--------------------------|

|   | (Exact name of registrant as specified in its charter) |
|--------|--------------------------------------------------------|

| DELAWARE                                                                 | 26-0097459                             |
|--------------------------------------------------------------------------|----------------------------------------|
| (State or other jurisdiction ofIncorporation or organization)            | (I.R.S. EmployerIdentification Number) |
|  12000 Aerospace Dr. Suite 300Houston, Texas                        |   77034                      |
| (Address of principal executive offices)                            | (Zip Code)                             |
| (713) 852-6500(Registrant’s telephone number, including area code) |

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| PART I  | FINANCIAL INFORMATION |                                                                                                        |
|---------|-----------------------|-------------------------------------------------------------------------------------------------------------|
|    | Item 1                | Financial Statements (Unaudited)                                                                            | Page |
|    |                  | Condensed Consolidated Balance Sheets at September 30, 2010 and December 31, 2009                           | 3 |
|    |                  | Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2010 and 2009 |  4 |
|    |                  | Condensed Consolidated Statement of Stockholders’ Equity for the Nine Months Ended September 30, 2010 |  5 |
|    |                  | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2010 and 2009       |  6 |
|    |                  | Notes to Condensed Consolidated Financial Statements                                                        | 7 |
|    | Item 2                | Management’s Discussion and Analysis of Financial Condition and Results of Operations                 | 17 |
|    | Item 3                | Quantitative and Qualitative Disclosures About Market Risk                                                  | 21 |
|    | Item 4                | Controls and Procedures                                                                                     | 22 |
| PART II | OTHER INFORMATION     |                                                                                                        |
|    | Item1                 | Legal Proceedings                                                                                           | 23 |
|    | Item 1A               | Risk Factors                                                                                                | 23 |
|    | Item 6                | Exhibits                                                                                                    | 23 |
|    |                  |                                                                                                        |   |
|    |                  |                                                                                                        |   |
|    |                  |                                                                                                        |   |
|    |                  |                                                                                                        |   |
|    | SIGNATURES            | 24                                                                                                          |
|    |                  |                                                                                                        |   |
|    |                  |                                                                                                        |   |

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Balance Sheets

|                                                                                                                                                                                      |   | September 30, |              |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------------|--------|--------------|--------|
|                                                                                                                                                                                      |   | 2010          |              |   | 2009         |   |
| ASSETS                                                                                                                                                                                    |   |          |              |   |         |   |
| Current assets:                                                                                                                                                                           |   |          |              |   |         |   |
| Cash and cash equivalents                                                                                                                                                                 |   | $             | 28,600            |   |         | $      | 104,736 |   |
| Accounts receivable:                                                                                                                                                                      |   |          |              |   |         |   |   |   |
| Trade, net of allowance of $0 and $1,203, respectively                                                                                                                                    |   |          | 37,298            |   |         |   | 32,819 |   |
| Retainage                                                                                                                                                                                 |   |          | 9,458             |   |         |   | 12,028 |   |
| Other                                                                                                                                                                                     |   |          | 1,589             |   |         |   | 922 |   |
| Income taxes receivable                                                                                                                                                                   |   |          | 3,025             |   |         |   | 3,040 |   |
| Note receivable                                                                                                                                                                           |   |          | 121               |   |         |   | 961 |   |
| Inventory                                                                                                                                                                                 |   |          | 2,355             |   |         |   | 1,472 |   |
| Deferred tax asset                                                                                                                                                                        |   |          | 1,798             |   |         |   | 1,499 |   |
| Costs and estimated earnings in excess of billings onuncompleted contracts                                                                                                                |   |          | 29,201            |   |         |   | 10,868 |   |
| Prepaid expenses and other                                                                                                                                                                |   |          | 604               |   |         |   | 1,624 |   |
| Total current assets                                                                                                                                                                      |   |          | 114,049           |   |         |   | 169,969 |   |
| Property and equipment, net                                                                                                                                                               |   |          | 160,248           |   |         |   | 90,790 |   |
| Goodwill                                                                                                                                                                                  |   |          | 31,161            |   |         |   | 12,096 |   |
| Intangible assets, net of accumulated amortization                                                                                                                                        |   |          | 396               |   |         |   | 248 |   |
| Other assets                                                                                                                                                                              |   |          | 37                |   |         |   | 54 |   |
| Total assets                                                                                                                                                                              |   | $             | 305,891           |   |         | $      | 273,157 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                |   |          |              |   |         |   |   |   |
| Current liabilities:                                                                                                                                                                      |   |          |              |   |         |   |   |   |
| Accounts payable:                                                                                                                                                                         |   |          |              |   |         |   |   |   |
| Trade                                                                                                                                                                                     |   | $             | 27,303            |   |         | $      | 23,680 |   |
| Retainage                                                                                                                                                                                 |   |          | 1,310             |   |         |   | 1,227 |   |
| Accrued liabilities                                                                                                                                                                       |   |          | 14,759            |   |         |   | 8,354 |   |
| Taxes payable                                                                                                                                                                             |   |          | 301               |   |         |   | 312 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts                                                                                                               |   |          |  6,114       |   |         |   |  5,636 |   |
| Total current liabilities                                                                                                                                                                 |   |          | 49,787            |   |         |   | 39,209 |   |
| Other long-term liabilities                                                                                                                                                               |   |          | 729               |   |         |   | 514 |   |
| Deferred income taxes                                                                                                                                                                     |   |          | 12,084            |   |         |   | 11,453 |   |
| Deferred revenue                                                                                                                                                                          |   |          | 274               |   |         |   | 315 |   |
| Total liabilities                                                                                                                                                                         |   |          | 62,874            |   |         |   | 51,491 |   |
| Commitments and contingencies                                                                                                                                                             |   |          |              |   |         |   |   |   |
| Stockholders’ equity:                                                                                                                                                               |   |          |              |   |         |   |   |   |
| Common stock -- $0.01 par value, 50,000,000 authorized, 26,911,910 and 26,852,407 issued; 26,899,679 and 26,840,761 outstanding at September 30, 2010 and December 31, 2009, respectively |   |          |     269 |   |         |   |     268 |   |
| Treasury stock, 12,231 and 11,646 shares, at cost                                                                                                                                         |   |          | --                |   |         |   | -- |   |
| Additional paid-in capital                                                                                                                                                                |   |          | 153,823           |   |         |   | 151,361 |   |
| Retained earnings                                                                                                                                                                         |   |          | 88,925            |   |         |   | 70,037 |   |
| Total stockholders’ equity                                                                                                                                                          |   |          | 243,017           |   |         |   | 221,666 |   |
| Total liabilities and stockholders’ equity                                                                                                                                          |   | $             | 305,891           |   |         | $      | 273,157 |   |

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 Income

|                                                 |   | Three months ended September 30, |       |   | Nine months endedSeptember 30, |   |
|------------------------------------------------------|--------|----------------------------------|------------|--------|--------------------------------|--------|
|                                            |   | 2010                             |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                 |   |                             |       |   |                           |   |   |   |   |   |   |   |
| Contract revenues                                    |   | $                                | 100,024    |   |                           | $      | 81,466 |   |   | $ | 262,706 |   |   | $ | 222,259 |   |
| Costs of contract revenues                           |   |                             | 81,594     |   |                           |   | 65,468 |   |   |   | 209,100 |   |   |   | 173,112 |   |
| Gross profit                                         |   |                             | 18,430     |   |                           |   | 15,998 |   |   |   | 53,606 |   |   |   | 49,147 |   |
| Selling, general and administrative expenses         |   |                             | 6,970      |   |                           |   | 7,699 |   |   |   | 25,720 |   |   |   | 23,638 |   |
|      Income from operations |   |                             | 11,460     |   |                           |   | 8,299 |   |   |   | 27,886 |   |   |   | 25,509 |   |
| Other (income) expense                               |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|      Other income           |   |                             | --         |   |                           |   | -- |   |   |   | (2,176 | ) |   |   | -- |   |
|      Interest income        |   |                             | (11        | )      |                           |   | (78 | ) |   |   | (43 | ) |   |   | (275 | ) |
|      Interest expense       |   |                             | 68         |   |                           |   | 88 |   |   |   | 92 |   |   |   | 524 |   |
| Other (income) expense, net                          |   |                             | 57         |   |                           |   | 10 |   |   |   | (2,127 | ) |   |   | 249 |   |
| Income before income taxes                           |   |                             | 11,403     |   |                           |   | 8,289 |   |   |   | 30,013 |   |   |   | 25,260 |   |
| Income tax expense                                   |   |                             | 4,305      |   |                           |   | 2,892 |   |   |   | 11,125 |   |   |   | 9,236 |   |
| Net income                                           |   | $                                | 7,098      |   |                           | $      | 5,397 |   |   | $ | 18,888 |   |   | $ | 16,024 |   |
|                                                 |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                             |   | $                                | 0.26       |   |                           | $      | 0.22 |   |   | $ | 0.70 |   |   | $ | 0.71 |   |
| Diluted earnings per share                           |   | $                                | 0.26       |   |                           | $      | 0.22 |   |   | $ | 0.70 |   |   | $ | 0.70 |   |
| Shares used to compute earnings per share:           |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                  |   |                             | 26,899,591 |   |                           |   | 24,241,749 |   |   |   | 26,883,815 |   |   |   | 22,485,770 |   |
|      Diluted                |   |                             | 27,094,326 |   |                           |   | 24,678,251 |   |   |   | 27,165,987 |   |   |   | 22,896,150 |   |

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Stockholders

|                                               |   | Common |       |   | Treasury |   |    | Additional |   |   |     |   |   |    |   |
|----------------------------------------------------|--------|--------|------------|--------|----------|--------|---------|------------|--------|--------|----------|--------|--------|---------|--------|
|                                               |   | Stock  |       |   | Stock    |   |    | Paid-In    |   |   | Retained |   |   |    |   |
|                                               |   | Shares |       |   | Amount   |   |    | Shares     |   |   | Amount   |   |   | Capital |   |   | Earnings |   |   | Total |   |
| Balance, January 1, 2010                           |   |   | 26,852,407 |   |     | $      | 268     |       |   |   | (11,646  | )      |   | $       | --     |   |   | $ | 151,361 |   |   | $ | 70,037 |   |   | $ | 221,666 |   |
|  Stock-based compensation                     |   |   |       |   |     |   |    |       |   |   |     |   |   |    |   |   |   |   | 1,876 |   |   |   |   |   |   |   | 1,876 |   |
| Exercise of stock options                          |   |   | 55,964     |   |     |   | 1       |       |   |   |     |   |   |    |   |   |   |   | 527 |   |   |   |   |   |   |   | 528 |   |
| Excess tax benefits from exercise of stock options |   |   |       |   |     |   |    |       |   |   |     |   |   |    |   |   |   |   | 59 |   |   |   |   |   |   |   | 59 |   |
| Issuance of restricted stock                       |   |   | 3,539      |   |     |   | --      |       |   |   |     |   |   |    |   |   |   |   | -- |   |   |   |   |   |   |   | -- |   |
| Forfeiture of restricted stock                     |   |   |       |   |     |   |    |       |   |   | (585     | )      |   |    | --     |   |   |   |   |   |   |   |   |   |   |   | -- |   |
|                                               |   |   |       |   |     |   |    |       |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |   | —    |   |     |   | — |       |   |   |     |   |   |    |   |   |   |   |  — |   |   |   | 18,888 |   |   |   | 18,888 |   |
| Balance, September 30, 2010                        |   |   | 26,911,910 |   |     | $      | 269     |       |   |   | (12,231  | )      |   | $       | --     |   |   | $ | 153,823 |   |   | $ | 88,925 |   |   | $ | 243,017 |   |

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Cash Flows

|                                                                                  |   | September 30, |    |
|---------------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                                  |   | 2010          |    |   | 2009 |   |
| Cash flows from operating activities                                                  |   |          |    |   |   |   |
| Net income                                                                            |   | $             | 18,888  |   |   | $ | 16,024 |   |
| Adjustments to reconcile net income to net cash provided by                           |   |          |    |   |   |   |   |   |
| operating activities:                                                                 |   |          |    |   |   |   |   |   |
| Depreciation and amortization                                                         |   |          | 14,061  |   |   |   | 14,712 |   |
| Deferred financing cost amortization                                                  |   |          | 231     |   |   |   | 189 |   |
| Bad debt expense                                                                      |   |          | (328    | ) |   |   | 442 |   |
| Deferred income taxes                                                                 |   |          | 332     |   |   |   | (1,226 | ) |
| Stock-based compensation                                                              |   |          | 1,876   |   |   |   | 1,059 |   |
| Gain on sale of property and equipment                                                |   |          | (357    | ) |   |   | (245 | ) |
| Gain on bargain purchase from acquisition of business                                 |   |          | (2,176  | ) |   |   | -- |   |
| Excess tax benefit from stock option exercise                                         |   |          | (59     | ) |   |   | (1,456 | ) |
| Change in operating assets and liabilities, excluding effects of businesses acquired: |   |          |    |   |   |   |   |   |
| Accounts receivable                                                                   |   |          | 3,100   |   |   |   | (4,956 | ) |
| Income tax receivable                                                                 |   |          | 75      |   |   |   | 3,276 |   |
| Inventory                                                                             |   |          | (883    | ) |   |   | (1,006 | ) |
| Note receivable                                                                       |   |          | 1,214   |   |   |   | (765 | ) |
| Prepaid expenses and other                                                            |   |          | 637     |   |   |   | 1,386 |   |
| Costs and estimated earnings in excess of billings                                    |   |          |    |   |   |   |   |   |
|    on uncompleted contracts                                            |   |          | (16,831 | ) |   |   | (1,866 | ) |
| Accounts payable                                                                      |   |          | (2,967  | ) |   |   | 7,594 |   |
| Accrued liabilities                                                                   |   |          | 3,633   |   |   |   | 3,551 |   |
| Income tax payable                                                                    |   |          | (10     | ) |   |   | 353 |   |
| Billings in excess of costs and estimated earnings                                    |   |          |    |   |   |   |   |   |
|   on uncompleted contracts                                                  |   |          | (1,516  | ) |   |   | (6,264 | ) |
| Deferred revenue                                                                      |   |          | (41     | ) |   |   | (42 | ) |
|    Net cash provided by operating activities                           |   |          | 18,879  |   |   |   | 30,760 |   |
| Cash flows from investing activities:                                                 |   |          |    |   |   |   |   |   |
| Proceeds from sale of property and equipment                                          |   |          | 526     |   |   |   | 673 |   |
| Purchase of property and equipment                                                    |   |          | (25,071 | ) |   |   | (8,389 | ) |
| Acquisition of assets in Pacific Northwest                                            |   |          | (6,653  | ) |   |   | -- |   |
| Acquisition of business (net of cash acquired)                                        |   |          | (64,000 | ) |   |   | -- |   |
|    Net cash used in investing activities                               |   |          | (95,198 | ) |   |   | (7,716 | ) |
| Cash flows from financing activities:                                                 |   |          |    |   |   |   |   |   |
| Exercise of stock options                                                             |   |          | 528     |   |   |   | 1,876 |   |
| Excess tax benefit from stock option exercise                                         |   |          | 59      |   |   |   | 1,456 |   |
| Proceeds from the sale of common stock                                                |   |          | --      |   |   |   | 91,345 |   |
| Expenses from the sale of common stock                                                |   |          | --      |   |   |   | (324 | ) |
| Increase in loan costs                                                                |   |          | (404    | ) |   |   | -- |   |
| Payments on long-term debt                                                            |   |          | --      |   |   |   | (34,125 | ) |
| Net cash provided by financing activities                                             |   |          | 183     |   |   |   | 60,228 |   |
| Net change in cash and cash equivalents                                               |   |          | (76,136 | ) |   |   | 83,272 |   |
| Cash and cash equivalents at beginning of period                                      |   |          | 104,736 |   |   |   | 25,712 |   |
| Cash and cash equivalents at end of period                                            |   | $             | 28,600  |   |   | $ | 108,984 |   |
| Supplemental disclosures of cash flow information:                                    |   |          |    |   |   |   |   |   |
| Cash paid during the period for:                                                      |   |          |    |   |   |   |   |   |
| Interest                                                                              |   | $             | 84      |   |   | $ | 539 |   |
| Taxes                                                                                 |   | $             | 10,696  |   |   | $ | 6,831 |   |

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Notes

| ·   | Revenue recognition from construction contracts; |
|--------------------|--------------------------------------------------|

| ·   | Allowance for doubtful accounts; |
|--------------------|----------------------------------|

| ·   | Testing of goodwill and other long-lived assets for possible impairment; |
|--------------------|--------------------------------------------------------------------------|

| ·   | Income taxes; |
|--------------------|---------------|

| ·   | Self-insurance; and |
|--------------------|---------------------|

| ·   | Stock based compensation |
|--------------------|--------------------------|

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| ·   | Cash consideration of $55.5 million, paid to the Seller for the membership interests of T.W. LaQuay Dredging; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Cash consideration of $4.5 million, paid to the Principal Shareholders for the Channel and Dock Companies and the above mentioned parcels of land; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Up to an additional $4.0 million (to be held in escrow) payable to Seller as a result of an increase in the purchase price of the membership interests by the amount of any additional taxes incurred by the Seller arising from the allocation of the membership interests purchase price, as further described in Section 1060 of the U.S. Internal Revenue Code, as amended. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fair value of working capital items |   | $ | (4,067 | )      |
|-------------------------------------|--------|---|--------|--------|
| Property and equipment              |   | $ | 49,002 |   |
| Goodwill                            |   | $ | 19,065 |   |
| Total                               |   | $ | 64,000 |   |

|                                  |   | Three months ended September 30, |    |   | Nine months ended September 30, |   |
|---------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                  |   | 2010                             |    |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
| Revenue                               |   | $                                | 100,024 |   |                            | $      | 90,683 |   |   | $ | 266,507 |   |   | $ | 251,751 |   |
| Income before taxes                   |   |                             | 11,403  |   |                            |   | 9,577 |   |   |   | 30,465 |   |   |   | 34,253 |   |
| Net income                            |   | $                                | 7,098   |   |                            | $      | 6,277 |   |   | $ | 19,172 |   |   | $ | 21,729 |   |
| Earnings per share:                   |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|      Basic   |   | $                                | 0.26    |   |                            | $      | 0.26 |   |   | $ | 0.71 |   |   | $ | 0.97 |   |
|      Diluted |   | $                                | 0.26    |   |                            | $      | 0.25 |   |   | $ | 0.71 |   |   | $ | 0.95 |   |

|                                                                                   |   | September 30,2010 |     |   | December 31,2009 |   |
|----------------------------------------------------------------------------------------|--------|-------------------|----------|--------|------------------|--------|
| Costs incurred on uncompleted contracts                                                |   | $                 | 314,227  |   |             | $      | 235,175 |   |
| Estimated earnings                                                                     |   |              | 93,152   |   |             |   | 61,486 |   |
|                                                                                   |   |              | 407,379  |   |             |   | 296,661 |   |
| Less: Billings to date                                                                 |   |              | (384,292 | )      |             |   | (291,429 | ) |
|                                                                                   |   | $                 | 23,087   |   |             | $      | 5,232 |   |
| Included in the accompanying consolidated balance sheets under the following captions: |   |              |     |   |             |   |   |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts            |   | $                 | 29,201   |   |             | $      | 10,868 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts            |   |              | (6,114   | )      |             |   | (5,636 | ) |
|                                                                                   |   | $                 | 23,087   |   |             | $      | 5,232 |   |

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|                            |   | September 30,2010 |    |   | December 31,2009 |   |
|--------------------------------------|--------|-------------------|---------|--------|------------------|--------|
| Automobiles and trucks               |   | $                 | 1,950   |   |             | $      | 1,409 |   |
| Building and improvements            |   |              | 13,026  |   |             |   | 12,832 |   |
| Construction equipment               |   |              | 135,434 |   |             |   | 92,230 |   |
| Dredges and dredging equipment       |   |              | 66,599  |   |             |   | 44,912 |   |
| Office equipment                     |   |              | 3,144   |   |             |   | 2,460 |   |
|                                 |   |              | 220,153 |   |             |   | 153,843 |   |
| Less: accumulated depreciation       |   |              | (95,515 | )      |             |   | (82,671 | ) |
| Net book value of depreciable assets |   |              | 124,638 |   |             |   | 71,172 |   |
| Construction in progress             |   |              | 26,256  |   |             |   | 14,389 |   |
| Land                                 |   |              | 9,354   |   |             |   | 5,229 |   |
|                                 |   | $                 | 160,248 |   |             | $      | 90,790 |   |

|                                                                                                   |   | September 30, 2010 |   |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| Beginning balance, January 1..................                                     |   | $                  | 12,096 |   |              | $      | 12,096 |   |
| Additions......................................... |   |               | 19,065 |   |              |   | -- |   |
| Ending balance...................................              |   | $                  | 31,161 |   |              | $      | 12,096 |   |

| ·   | A Fixed Charge Coverage Ratio of not less than 1.50 to 1.00 at all times; |
|--------------------|---------------------------------------------------------------------------|

| ·   | A Leverage Ratio of not greater than 2.50 to 1.00 at all times; |
|--------------------|-----------------------------------------------------------------|

| ·   | A minimum Net Worth of not less than $180 million on the effective date, and at the end of each fiscal quarter thereafter, minimum net worth required as of the end of the immediately preceding fiscal quarter plus 50% of the Borrower’s and its subsidiaries consolidated net income for that quarter, plus 75% of all issuances of equity interests by Borrower during that quarter. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                   |   | Current |   |   | Deferred |   |   | Total   |   |
|----------------------------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
| Three months ended September 30, 2010: |   |    |   |   |     |   |   |    |   |
| U.S. Federal                      |   | $       | 3,752  |   |     | $      | 328    |    |   | $ | 4,080 |   |
| State and local                        |   |    | 158    |   |     |   | 67     |    |   |   | 225 |   |
|                                   |   | $       | 3,910  |   |     | $      | 395    |    |   | $ | 4,305 |   |
| Three months ended September 30, 2009: |   |    |   |   |     |   |   |    |   |   |   |   |
| U.S. Federal                      |   | $       | 3,009  |   |     | $      | (58    | )       |   | $ | 2,951 |   |
| State and local                        |   |    | 248    |   |     |   | (307   | )  |   |   | (59 | ) |
|                                   |   | $       | 3,257  |   |     | $      | (365   | )       |   | $ | 2,892 |   |

|                                  |   | Current |   |   | Deferred |   |   | Total   |   |
|---------------------------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
| Nine months ended September 30, 2010: |   |    |   |   |     |   |   |    |   |
| U.S. Federal                     |   | $       | 10,570 |   |     | $      | 253    |    |   | $ | 10,823 |   |
| State and local                       |   |    | 223    |   |     |   | 79     |    |   |   | 302 |   |
|                                  |   | $       | 10,793 |   |     | $      | 332    |    |   | $ | 11,125 |   |
| Nine months ended September 30, 2009: |   |    |   |   |     |   |   |    |   |   |   |   |
| U.S. Federal                     |   | $       | 9,786  |   |     | $      | (986   | )       |   | $ | 8,800 |   |
| State and local                       |   |    | 676    |   |     |   | (240   | )  |   |   | 436 |   |
|                                  |   | $       | 10,462 |   |     | $      | (1,226 | )       |   | $ | 9,236 |   |

|                                                                             |   | Three months endedSeptember 30, |       |   | Nine months endedSeptember 30, |   |
|----------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                             |   | 2010                            |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Basic:                                                                           |   |                            |       |   |                           |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                              |   |                            | 26,899,591 |   |                           |   | 24,241,749 |   |   |   | 26,883,815 |   |   |   | 22,485,770 |   |
|                                                                             |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                         |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|      Total basic weighted average shares outstanding    |   |                            | 26,899,591 |   |                           |   | 24,241,749 |   |   |   | 26,883,815 |   |   |   | 22,485,770 |   |
|      Effect of dilutive securities:                     |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|           Common stock options |   |                            | 194,735    |   |                           |   | 436,502 |   |   |   | 282,172 |   |   |   | 410,380 |   |
| Total weighted average shares outstanding assuming dilution                      |   |                            | 27,094,326 |   |                           |   | 24,678,251 |   |   |   | 27,165,987 |   |   |   | 22,896,150 |   |
|                                                                             |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Anti-dilutive stock options                                                      |   |                            | 539,351    |   |                           |   | 26,677 |   |   |   | 283,340 |   |   |   | 209,848 |   |
| Shares of common stock issued from the exercise of stock options                 |   |                            | 224        |   |                           |   | 17,981 |   |   |   | 55,964 |   |   |   | 375,198 |   |

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| Expected life of options | 4 years |
|--------------------------|---------|
| Expected volatility      | 57.5%   |
| Risk-free interest rate  | 1.50%   |
| Dividend yield           | 0.0%    |
| Grant date fair value    | $7.41   |

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|                         |   | Three months ended September 30, |    |   | Nine months ended September 30, |   |
|------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                         |   | 2010                             |    |   | %                               |   |   | 2009 |   |   | % |   |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
| Federal........      |   | $                                | 45,135  |   |                            |   | 45 | % |   | $ | 8,316 |   |   |   | 10 | % |   | $ | 100,127 |   |   |   | 38 | % |   | $ | 36,373 |   |   |   | 17 | % |
| State........... |   |                             | 10,363  |   |                            |   | 10 | % |   |   | 2,946 |   |   |   | 4 | % |   |   | 26,364 |   |   |   | 10 | % |   |   | 20,158 |   |   |   | 9 | % |
| Local..........  |   |                             | 4,627   |   |                            |   | 5 | % |   |   | 28,628 |   |   |   | 35 | % |   |   | 32,409 |   |   |   | 12 | % |   |   | 65,009 |   |   |   | 29 | % |
| Private......... |   |                             | 39,899  |   |                            |   | 40 | % |   |   | 41,576 |   |   |   | 51 | % |   |   | 103,806 |   |   |   | 40 | % |   |   | 100,719 |   |   |   | 45 | % |
|                         |   | $                                | 100,024 |   |                            |   | 100 | % |   | $ | 81,466 |   |   |   | 100 | % |   | $ | 262,706 |   |   |   | 100 | % |   | $ | 222,259 |   |   |   | 100 | % |

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Management’s Discussion 

|   | • | completeness and accuracy of the original bid; |
|--------|---------|------------------------------------------------|

|   | • | increases in commodity prices such as concrete, steel and fuel; |
|--------|---------|-----------------------------------------------------------------|

|   | • | customer delays and work stoppages due to weather and environmental restrictions; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | availability and skill level of workers; and |
|--------|---------|----------------------------------------------|

|   | • | a change in availability and proximity of equipment and materials. |
|--------|---------|--------------------------------------------------------------------|

| ·   | Port infrastructure, including Gulf Coast and Southeast Atlantic ports, which are expected to continue with expansion plans and rehabilitation projects. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Bridge maintenance, alterations, and construction, which should be a priority for states, with funding from highway transportation programs. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Bid activity and funding from the US Army Corps of Engineers. |
|--------------------|---------------------------------------------------------------|

| ·   | Opportunities with regard to hurricane protection and coastal restoration. |
|--------------------|----------------------------------------------------------------------------|

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|                                            |   | Three months ended September 30, |    |
|-------------------------------------------------|--------|----------------------------------|---------|
|                                            |   | 2010                             |    |   | 2009 |   |
|                                            |   |                             |    |   |   |   |
|                                            |   | Amount                           |    |   | Percent |   |   | Amount |   |   | Percent |   |
| Contract revenues                               |   | $                                | 100,024 |   |   |   | 100.0 | % |   | $ | 81,466 |   |   |   | 100.0 | % |
| Cost of contract revenues                       |   |                             | 81,594  |   |   |   | 81.6 |   |   |   | 65,468 |   |   |   | 80.4 |   |
| Gross profit                                    |   |                             | 18,430  |   |   |   | 18.4 |   |   |   | 15,998 |   |   |   | 19.6 |   |
| Selling, general and administrative expenses    |   |                             | 6,970   |   |   |   | 7.0 |   |   |   | 7,699 |   |   |   | 9.4 |   |
| Operating income                                |   |                             | 11,460  |   |   |   | 11.5 |   |   |   | 8,299 |   |   |   | 10.2 |   |
| Interest (income) expense                       |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Interest (income) |   |                             | (11     | ) |   |   | (0.0 | ) |   |   | (78 | ) |   |   | (0.0 | ) |
|      Interest expense  |   |                             | 68      |   |   |   | 0.1 |   |   |   | 88 |   |   |   | 0.1 |   |
| Interest expense, net                           |   |                             | 57      |   |   |   | 0.1 |   |   |   | 10 |   |   |   | 0.1 |   |
| Income before income taxes                      |   |                             | 11,403  |   |   |   | 11.4 |   |   |   | 8,289 |   |   |   | 10.1 |   |
| Income tax expense                              |   |                             | 4,305   |   |   |   | 4.2 |   |   |   | 2,892 |   |   |   | 3.5 |   |
| Net income                                      |   | $                                | 7,098   |   |   |   | 7.2 | % |   | $ | 5,397 |   |   |   | 6.6 | % |

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|                                            |   | Nine months ended September 30, |    |
|-------------------------------------------------|--------|---------------------------------|---------|
|                                            |   | 2010                            |    |   | 2009 |   |
|                                            |   |                            |    |   |   |   |
|                                            |   | Amount                          |    |   | Percent |   |   | Amount |   |   | Percent |   |
| Contract revenues                               |   | $                               | 262,706 |   |   |   | 100.0 | % |   | $ | 222,259 |   |   |   | 100.0 | % |
| Cost of contract revenues                       |   |                            | 209,100 |   |   |   | 79.6 |   |   |   | 173,112 |   |   |   | 77.9 |   |
| Gross profit                                    |   |                            | 53,606  |   |   |   | 20.4 |   |   |   | 49,147 |   |   |   | 22.1 |   |
| Selling, general and administrative expenses    |   |                            | 25,720  |   |   |   | 9.8 |   |   |   | 23,638 |   |   |   | 10.6 |   |
| Operating income                                |   |                            | 27,886  |   |   |   | 10.6 |   |   |   | 25,509 |   |   |   | 11.5 |   |
| Other (income) expense                          |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Other income      |   |                            | (2,176  | ) |   |   | (0.8 | ) |   |   | -- |   |   |   | 0.0 |   |
|      Interest (income) |   |                            | (43     | ) |   |   | (0.0 | ) |   |   | (274 | ) |   |   | (0.1 | ) |
|      Interest expense  |   |                            | 92      |   |   |   | 0.0 |   |   |   | 525 |   |   |   | 0.2 |   |
| Other (income) expense, net                     |   |                            | (2,127  | ) |   |   | (0.8 | )  |   |   | 249 |   |   |   | 0.1 |   |
| Income before income taxes                      |   |                            | 30,013  |   |   |   | 11.4 |   |   |   | 25,260 |   |   |   | 11.4 |   |
| Income tax expense                              |   |                            | 11,125  |   |   |   | 4.2 |   |   |   | 9,236 |   |   |   | 4.2 |   |
| Net income                                      |   | $                               | 18,888  |   |   |   | 7.2 | % |   | $ | 16,024 |   |   |   | 7.2 | % |

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|                                                                                                                                             |   | Nine months ended September 30, |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                                                                                             |   | 2010                            |    |   | 2009 |   |
| Cash flows provided by operating activities...........................                                       |   | $                               | 18,879  |   |   | $ | 30,760 |   |
| Cash flows used in investing activities............................................. |   | $                               | (95,198 | ) |   | $ | (7,716 | ) |
| Cash flows provided by financing activities............................                                      |   | $                               | 183     |   |   | $ | 60,228 |   |
|                                                                                                                                             |   |                            |    |   |   |   |   |   |

| ·   | A Fixed Charge Coverage Ratio of not less than 1.50 to 1.00 at all times; |
|--------------------|---------------------------------------------------------------------------|

| ·   | A Leverage Ratio of not greater than 2.50 to 1.00 at all times; |
|--------------------|-----------------------------------------------------------------|

| ·   | A minimum Net Worth of not less than $180 million on the effective date, and at the end of each fiscal quarter thereafter, minimum net worth required as of the end of the immediately preceding fiscal quarter plus 50% of the Borrower’s and its subsidiaries consolidated net income for that quarter, plus 75% of all issuances of equity interests by Borrower during that quarter. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Market Risk

Controls and Procedures

| (a)   | Evaluation of Disclosure Controls and Procedures.  As required, the Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report.  Based on that evaluation, such officers have concluded that the disclosure controls and procedures are effective. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Changes in Internal Controls.  There have been no changes in our internal controls over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Legal Proceedings

Risk Factors

Exhibits

| Exhibit  |   |        |
|---------------|--------|-------------|
| Number        |   | Description |
|          |   |
|          | 2      | .2          |   | Purchase Agreement dated January 28, 2010 by and among LaQuay Holdings., Inc and Seagull Services Inc. (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K on February 2, 2010) |
|          | 3      | .1          |   | Amended and Restated Certificate of Incorporation of Orion Marine Group, Inc. |
|          | 3      | .2          |   | Amended and Restated Bylaws of Orion Marine Group, Inc. |
|          | 4      | .1          |   | Registration Rights Agreement between Friedman, Billings, Ramsey & Co., Inc. and Orion Marine Group, Inc. dated May 17, 2007 |

| 31.1   | Certification of the Chief Executive Officer Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2   | Certification of the Chief Financial Officer Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32   | Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|             | ORION MARINE GROUP, INC.                             |
|------------------|------------------------------------------------------|
|             |                                                 |
|             |                                                 |
| By:              | /s/ J. Michael Pearson                               |
| November 5, 2010 | J. Michael Pearson                                   |
|             | President and Chief Executive Officer                |
|             |                                                 |
|             |                                                 |
|             |                                                 |
| By:              | /s/ Mark R. Stauffer                                 |
| November 5, 2010 | Mark R. Stauffer                                     |
|             | Executive Vice President and Chief Financial Officer |

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