Thursday, October 28, 2021
Orion Group Holdings (ORN)
3Q2021 Operating Results Lighter Than Expected
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.
Weather challenges prevailed…again. 3Q2021 Adjusted EBITDA of negative $0.5 million was ~$5 million below our estimate of $4.5 million and EBITDA margin was also 370 bps light. While we had lowered our estimate based on wet weather in Texas, the main market for the Concrete business, we underestimated the impact on the Marine business. Total revenue of $139.9 million and gross margin of $6.6 million (4.7%) were down sequentially and expenses were higher. Fixed cost absorption was lower and Marine EBITDA dropped to $0.5 million from $7.8 million, while Concrete EBITDA remained negative at -$1.0 million.
Call today at 10am EST — Number is 201-493-6739 and code is Orion Group Holdings. On the call, we will look for details on: 1) Impact of weather in 3Q2021 and any lingering impact due to wet weather; 2) 4Q2021 bidding activity for both Marine and Concrete; 3) Prospects for a rebound in overall profitability; 4) Timing of asset sales, including the East West Jones property on the …
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.
