Friday, December 18, 2020

Orion Group Holdings (ORN)
Two Marine Awards for $20 million. Program Sales Initiated

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.

Two Marine projects in Florida awarded for total of $21 million. ORN will demo and remove the existing 40th Avenue NE Bridge in St. Petersburg and replace it with a new dual concrete carriageway. The $10.7 million of work starts in 1Q2021 and runs~10 months. The second project is supporting Brantley Construction Services, LLC, on the replacement of a 550-foot wharf quay wall with a new steel sheet pile bulkhead for NAVFAC Southeast at Naval Station Mayport. The ~$10 million of work starts now and should be done by yearend 2021.

Asset sales on the horizon with potential net proceeds in the $65-$70 million range.  The sale of a ringer barge generated $4.0 million in 3Q2020 and the sale of real estate could raise ~$5.0 million in 4Q2020. Two larger properties are on the block; the Tampa yard could be sold for ~$20.0 million in 1Q2021, and the Houston Ship Channel one might at least a year out ...

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.