Movers and SHAKERS
Monday, August 3, 2020
Orion Group Holdings (ORN)
Solid Quarter Amidst COVID-19. Increasing EBITDA Estimate.
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 Concrete. 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. Gross margin of 11.3% and EBITDA margin of 6.9% were ~30-70 basis points better than our estimates. Main driver was stronger-than-expected Concrete EBITDA margin of 3.0%. Marine profitability remained high due to strong execution and solid equipment utilization.
2Q2020 backlog dropped to $528 million versus $610 million in 1Q2020 and $572 million at year-end 2019. Marine dropped $50 million to $312 million and Concrete fell $31 million off a record level to $216 million. Industry fundamentals remain positive despite state level concerns about COVID-19. YTD successful bids total ...
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.