Movers and SHAKERS
Orion Group Holdings (ORN)
Better-than-Expected Quarter, But Flat Year Ahead?
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.
4Q2020 EBITDA of $12.6 million beat guidance of $10-$12 million and 2020 EBITDA of $54.4 million sets the bar high for 2021. Excluding asset sales, 2020 EBITDA was $48.2 million. Despite the uncertain operating environment, 4Q2020 operating results exceeded expectations. Versus last year, gross profit increased to $21.7 million from $19.1 million, and EBITDA also improved to $12.6 million from $11.0 million. Revenue dropped off almost $30 million to $170.2 million, but profitability was solid, with higher gross margin of 12.8% (+320 basis points) and EBITDA margin of 7.7% (+220 basis points).
Fine tuning 2021 EBITDA estimate to $47.0 million from $48.7 million to reflect more conservation tack. Tough comps versus 2020 EBITDA of $48.2 million, but profitability remains solid with EBITDA margin in 6.9% range ...
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.