Movers and SHAKERS
Friday, May 1, 2020
Orion Group Holdings (ORN)
A Strong Start to Year. Only Minor Disruptions So Far Despite COVID-19.
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 Marine business. 1Q2020 gross profit of $19.8 million and EBITDA of $12.2 million easily beat our estimates of $12.0 million and $6.2 million, respectively. Gross margin and EBITDA margin were ~400 basis points higher than expected mainly due to strong Marine execution and higher equipment utilization. Concrete also improved modestly. 1Q2020 backlog rebounded to $610 million from $572 million, with Marine up $22 million to $362 million and Concrete up $16 million to $247 million, a record. Bidding remains active in both segments.
Increasing 2020 EBITDA estimate despite suspended guidance. Minor disruptions seen to date and bidding activity continues in both segments, but suspending guidance is the safe route, one similar to many other companies. There are increasing risks to existing projects, but work goes on and we expect EBITDA will move up more than...
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.