Wednesday, February 24, 2021

Orion Group Holdings (ORN)
Results Should Reinforce Favorable Outlook

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 Results out after the market closes today and call tomorrow at 10am EST. Number is 201-493-6739 and code is Orion Group Holdings. Our 4Q2020 gross profit estimate is $20.3 million and gross margin of 11.3%. Our EBITDA estimate is $11.9 million with EBITDA margin of 6.6%. We will be looking for color in the following areas: Impact on Concrete from the recent deep freeze in Texas; Tone of Concrete bidding and expansion opportunities; Tone of Marine bidding and visibility of projects, including any signs of recovery in cruise industry; Timing and potential of industrial market expansion; ISG restructuring impact and margin direction; ERP implementation update and expected benefits; Asset sales update – Port Lavaca closed? Color on Tampa yard sale delay into 2Q2021; and Capital allocation priorities if/when asset sales close.


Industry fundamentals remain positive despite state level concerns about COVID-19.  Announced 4Q2020 awards total $99 million and appear incremental to 3Q2020 low bids pending award. While there is still some concern about COVID-19, crude oil prices have rebounded and Texas remains on a demographic growth path with several prominent HQ relocations announced …

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.