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Tuesday, June 9, 2020
Orion Group Holdings (ORN)
Elective Move to Bolster Liquidity. 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.
Elective move to boost current revolver of $50 million by $20 million is positive. The move was elective and it adds to previous liquidity of $25.6 million. Free cash flow was strong in 1Q2020, but cash management is important in the current environment, and capex and other spending, including the development of an ERP system, has been deferred. Monetizing idle/non-core assets, including real estate, is also probable over the next year.
New award in Houston is a positive sign. The $30 million of concrete work on a multi-use tower structure is under way and will continue into 2H2021. Combined with a large Marine award, we are encouraged that…
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