Thursday, October 29, 2020
Orion Group Holdings (ORN)
Another Strong Quarter – Concrete Pours It In
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.
Another strong quarter driven by solid execution, especially in Concrete. 3Q2020 gross profit of $22.5 million and adjusted EBITDA of $17.0 million easily beat our estimates of $17.7 million and $10.2 million, respectively. Revenue was 10% higher than expected, and gross margin of 11.9% and EBITDA margin of 9.0% were ~220-310 basis points better than our estimates. Concrete profitability was strong for the second consecutive quarter and Marine profitability remained elevated due to strong execution and solid equipment utilization.
Today’s 3Q2020 call at 10am EST should be well received. Call number is 201-493-6739 and code is Orion Group Holdings. We will be looking for color on the call in several key areas: Corpus Christi accident update, including liability insurance coverage; extent of emergency work on Pier 58 in Seattle; tone of 4Q2020 bidding activity in both sectors; low bids pending award and backlog outlook given …
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.