Movers and SHAKERS
Orion Group Holdings (ORN)
2Q2021 Results Lower than Expected Due to Wet Weather
Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Weather challenges prevailed. 2Q2021 Adjusted EBITDA of $7.4 million was ~$2.1 million below our estimate of $9.5 million and EBITDA margin of 5.1% was also 70 bps light. While we had recently lowered our estimate based on wet weather in Texas, the main market for the Concrete business, we underestimated the impact on the Marine business. Total revenue of $145.9 million and gross margin of $12.3 million (8.4%) were down sequentially and well below 2Q2020 levels. Excluding the $6.8 million gain on the Tampa yard sale, Marine EBITDA was $7.8 million, but Concrete EBITDA turned negative again at -$0.4 million due to lower fixed cost absorption.
Call today at 10am EST — Number is 201-493-6739 and code is Orion Group Holdings. On the call, we will look for details on: 1) Impact of weather in 2Q2021 and any lingering impact due to a wet July; 2) 2H2021 bidding activity for both Marine and Concrete; 3) Prospects for a rebound in Concrete profitability; 4) Timing of closing of the Port Lavaca sale; 5) Interest in the East West Jones property ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.