Orascom Construction, a global builder with roots in the Middle East and a growing US presence, reported a second-quarter 2026 project backlog of $10.9 billion, propelled by a sharp rise in American data center work. The company also posted $1.51 billion in quarterly revenue, but the numbers came with caveats: higher debt and an $80.7 million operating cash outflow weighed on the period.
Backlog: A window into future revenue
For a construction firm, the backlog is the total value of projects under contract but not yet completed. It's the clearest indicator of future revenue, and Orascom's backlog is expanding rapidly, especially in the United States. The company said its US backlog jumped 50.3% year-over-year and 36.2% quarter-over-quarter to $3.96 billion as of June 30, 2026. That surge helped lift the group total to $10.9 billion, or $14.5 billion on a pro forma basis that includes its 50% stake in BESIX, a Belgian construction group.
The growth is being driven by a booming pipeline of data center projects, as tech companies and cloud providers race to build the physical infrastructure behind artificial intelligence and cloud computing. This trend is not unique to Orascom: across the industry, builders are seeing a surge in demand for facilities that house servers and networking equipment.
Revenue and profitability: A mixed picture
Second-quarter revenue came in at $1.51 billion, reflecting the momentum from the backlog. However, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA)—a common measure of operating profitability—was not disclosed in the brief, but the quarter was clearly not without challenges.
Higher debt levels and an operating cash outflow of $80.7 million indicate that while the company is booking plenty of work, it's also spending heavily to execute those projects. Construction firms often face a lag between when they incur costs and when they receive payments, which can strain cash flow even when the business is growing.
What it means for investors
For everyday investors, Orascom's update offers a few takeaways. First, the backlog growth is a positive sign: it suggests that revenue is likely to keep rising in the coming quarters as projects move from the pipeline to the construction site. The US data center boom is a powerful tailwind, and Orascom is positioning itself to benefit from it.
Second, the cash outflow and rising debt are worth watching. A company can be profitable on paper but still face liquidity issues if it can't manage its working capital. Investors should monitor whether Orascom can convert its backlog into cash, rather than just revenue.
Third, the broader trend of data center construction is a theme that extends beyond Orascom. As bitcoin miners pivot to data centers and companies secure land and power for AI facilities, the demand for construction services is likely to remain strong. This could benefit a range of builders and infrastructure firms.
Context: The data center boom
The surge in data center construction is one of the most significant infrastructure trends of the decade. Hyperscale cloud providers, social media platforms, and AI startups are all investing heavily in new facilities. This has created a windfall for construction companies, electrical equipment makers, and even solar and storage providers that support these energy-hungry buildings.
Orascom's US expansion is a direct play on this trend. The company, which is listed on the Egyptian Exchange and has a secondary listing in Dubai, has been growing its American operations through its subsidiary, Orascom Construction USA. The 50% year-over-year increase in US backlog shows that its efforts are paying off.
Risks to consider
While the backlog is encouraging, investors should be aware of the risks. Construction projects carry execution risks, including cost overruns, delays, and supply chain disruptions. The cash outflow suggests that Orascom is tying up capital in ongoing projects, and if payments are delayed, it could strain the balance sheet.
Higher debt also increases financial risk, especially if interest rates remain elevated. The company's ability to service its debt will depend on its cash generation in the coming quarters.
That said, the backlog provides a degree of visibility that many companies lack. As long as Orascom can execute on its projects and manage its cash flow, the current momentum could translate into sustained growth.
What to watch next
Investors will likely focus on Orascom's full-year guidance and its ability to convert backlog into cash. The company's next earnings report will show whether the operating cash outflow was a one-time blip or a trend. Also worth watching is the pace of new data center contracts, as that will determine whether the backlog continues to grow.
For those interested in the broader theme, AI cloud deals and other builders' record backlogs offer additional context. The construction industry is in the midst of a data center-driven upcycle, and Orascom is one of the players riding that wave.
