Tuesday, July 14, 2020
Orion Group Holdings (ORN)
Additional Work Awarded. Outlook Remains Favorable.
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.
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Dredging award confirmed. Yesterday, ORN confirmed the award of a $14.65 million contract that we discussed in a June 30th research report. There were two other bids, and the work requires dredging ~1.8 million cubic yards of material to maintain channels between the Padre Island jetties and the entrance to Port Mansfield. The work begins in September and will be completed in 1Q2021 so it adds some visibility to late 2020 and early 2021. The work is a small part of the $5 billion of federal funding to USACE for recovery efforts post Hurricane Harvey.
Risk to existing projects is moderating. Despite moves to curb the spread of COVID-19, work continues on the Terminal 5 upgrade and the Fairview Avenue North bridge replacement in Seattle. Also, the crude oil price recovery dampens some risk on the pacing of …
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