Movers and SHAKERS
Thursday, July 30, 2020
Orion Group Holdings (ORN)
Another Strong Quarter Despite COVID-19 Fears
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. 2Q2020 gross profit of $20.7 million and EBITDA of $12.6 million beat our estimates of $18.7 million and $10.5 million, respectively. Revenue was 8% higher than expected with gross margin of 11.3% and EBITDA margin of 6.9%, or ~30-70 basis points better than our estimates. One main driver was much higher than expected Concrete EBITDA margin of 3.0%, up from 1.3% in 1Q2020. Marine profitability declined sequentially remain solid due to strong execution and equipment utilization. Please see details for today's call with management on page two.
2020 EBITDA guidance remains suspended due to uncertainty caused by COVID-19. Minor disruptions seen to date and bidding activity continues in both segments, but management remains cautious amidst uncertainty, similar to many other companies. Our revised estimate is likely to be in ...
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.