Monday, November 01, 2021

Orion Group Holdings (ORN)
Higher Backlog But Execution will be the Key

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.

Limited changes in 2021-2 EBITDA estimates following the quarterly call. Our 2021 EBITDA estimate remains $21.5 million. Looking into next year, we expect a rebound in both businesses, and our EBITDA estimate is $43.0 million, based on EBITDA margin of 6.5%.


Backlog rebound is positive and focus shifts to backlog margin profile.  After dropping for several quarters, backlog rebounded strongly by $178 million to $573 million driven by successful Marine bidding. The backlog margin profile was discussed on the quarterly call, but limited specifics were offered. Higher backlog adds some visibility to the 2022 outlook, with about 75% to be realized over the …

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.