Friday, July 30, 2021

Orion Group Holdings (ORN)
Surprise Quarter, But Recovery Expected

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.

Adjusted 2Q2021 EBITDA of $7.4 million was below expectations due to wet weather. The hit from weather was mainly in Concrete and could have been as high as $10 million. Versus 2Q2020, revenue of $145.9 million was $38 million lower; gross profit of $12.3 million was $8.4 million lower and adjusted EBITDA of $7.4 million was $5.2 million lower.


No change in 2021 EBITDA estimate following the quarterly call.  There is no change to our revised 2021 EBITDA estimate of $43.2 million, which includes asset sales of $1.6 million. The company is still facing tough comps versus last year, but Marine results should pick up over the rest of the year and Concrete continues to represent upside potential …

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.