Movers and SHAKERS
Thursday, April 30, 2020
Orion Group Holdings (ORN)
A Strong Start to Year, But Suspending Guidance Due to 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. 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 of 11.6% and EBITDA margin of 7.3% were ~400 basis points higher than expected. Main driver was higher Marine profitability due to strong execution and higher equipment utilization. Concrete also improved modestly.
Suspending 2020 EBITDA guidance due to uncertainty caused by COVID-19. Minor disruptions seen to date and bidding activity continues in both segments, but taking the safe route, similar to many other companies. Our revised estimate is...
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.