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Orion Group Holdings (ORN) – Heavy Spring Showers But Positive Outlook Intact

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Friday, July 23, 2021

Orion Group Holdings (ORN)
Heavy Spring Showers But Positive Outlook Intact

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.

    Adjusting EBITDA estimate ahead of earnings call due to heavy spring rainfall in Texas. Rainfall, especially in May, was heavy in Houston and Dallas, and our 2021 EBITDA estimate drops by $1.0 million to $9.5 million with gross margin of 11.0% and EBITDA margin of 6.7%. Outlook remains constructive, with new awards of $53 million announced in 2Q2021 ($38 million in Marine and $17 million in Concrete). Potential backlog likely to remain high since 1Q2021 bids outstanding were close to $1.9 billion (~75% in Concrete).

    Quarterly numbers and call late next week.  2Q2021 results will be out AMC on July 28th and management will host a 10:00 am EST call on July 29th. The call number is 201-493-6739 and the code is Orion Group. Our 2Q2021 EBITDA estimate is $46.0 million with gross margin of 11.0% and EBITDA margin of 5.8%. On the call, we will look for details on: 1) Impact of weather in 2Q2021 and any lingering …



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. 

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