Chek the Channels
Wednesday, April 8, 2020
Orion Group Holdings (ORN)
Managing Through Uncertainty
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.
Increasing risks to existing projects, but work goes on. We are watching moves to curb the spread of the Coronavirus in Seattle, and signs show that work on the Terminal 5 upgrade and the Fairview Avenue North bridge replacement continues. Preventative measures have been implemented, like worker health screening, extra cleaning onsite and encouraging social distancing practices, like limiting use of break rooms and car pools. The steep downdraft in crude oil prices also creates some risk on the pacing of construction in major Texas markets, but limited changes seen so far. The cruise industry turmoil reinforces our view that the cruise port project in George Town has slipped into next year and possibly will not ever move forward due to local opposition.
Announced YTD 2020 awards total $111 million. Concrete awards total $40 million and Marine awards total $71 million, including two awards for $24 million in mid-March. The awards are similar in size and are a positive sign given the sharp drop in crude oil prices. Added awards are likely since other low bids pending awards from...
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.