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1. Company Snapshot

1.a. Company Description

Orion Group Holdings, Inc.operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin.It operates in two segments, Marine and Concrete.


The company provides various marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures.Its marine transportation facility projects comprise public port facilities, cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities.The company also offers on-going maintenance and repair, inspection, emergency repair, and demolition and salvage services to marine transportation facilities.


Its marine pipeline service projects include the installation and removal of underwater buried pipeline transmission lines; the installation of pipeline intakes and outfalls for industrial facilities; the construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; the creation of hot taps and tie-ins; and inspection, maintenance, and repair services.The company's bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structures used for erosion control, wetlands creation, and environmental remediation.The company also provides specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services.


In addition, it offers light commercial, structural, and other concrete construction services.Orion Group Holdings, Inc.was founded in 1994 and is headquartered in Houston, Texas.

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1.b. Last Insights on ORN

The recent performance of Orion Group Holdings, Inc. has been driven by several positive factors. The company's Q1 2025 earnings and revenue beat expectations, with a quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.11 per share. This compares to a loss of $0.12 per share in the same quarter last year. Additionally, the company's gross margin increased to 25.4% (+230 bps) on revenue of $79.7M, and it expects 5% revenue growth and improved bottom-line performance in FY'26. Furthermore, Orion has been awarded $100 million in new contracts, and its CEO and General Counsel were honored with executive leadership awards. The company's turnaround under CEO Travis Boone has driven a 300% rally, mainly by fixing the loss-making Concrete business and improving execution.

1.c. Company Highlights

2. Orion Group Holdings Beats Expectations with Strong Q3 2025 Performance

Orion Group Holdings reported a robust third-quarter performance, with revenue reaching $225 million, operating income of $5 million, adjusted EBITDA of $13 million, and adjusted EPS of $0.09 per share, surpassing analyst estimates of $0.06. The company's financial performance was driven by strong bookings, market-leading safety metrics, and robust cash generation. The adjusted EPS figure was a notable beat, indicating a positive momentum in the business. As Alison Vasquez mentioned, the company generated $23 million in operating cash flow, wrapping up the quarter with $21 million of net debt.

Publication Date: Nov -23

📋 Highlights
  • Strong Q3 Performance: Revenue of $225M, adjusted EBITDA of $13M, and adjusted EPS of $0.09, with operating cash flow of $23M.
  • Expanded Pipeline: Total pipeline reached $18B, including $1B in pending awards, driven by Marine and Concrete segments with strategic contracts in Pacific and data centers.
  • Strategic Property Sale: Sold East West Jones for $23.5M to reduce debt and fund growth, enabling expanded bonding capacity for larger projects.
  • Updated Guidance: Raised full-year revenue to $825M–$860M, adjusted EBITDA to $44M–$46M, and adjusted EPS to $0.18–$0.22.
  • Operational Strength: Marine segment with robust backlog and Marine Concrete’s 39 completed data center projects, enhancing reliability reputation.

Segment Performance and Pipeline

Orion's Marine segment has a strong backlog with opportunities across all regions, and the company has been shortlisted for several strategic contracts. The Concrete segment has a healthy opportunity pipeline, driven by demand for data centers, with the company having delivered 39 data center projects. The company's pipeline has grown to $18 billion, with over $1 billion of opportunities awaiting award decisions. Travis Boone highlighted that the company's expanded bonding capacity will enable it to bid larger projects and facilitate growth in the next few years.

Valuation and Growth Prospects

With the current P/E Ratio of 37.23 and EV/EBITDA of 8.65, the market seems to be pricing in a certain level of growth for Orion Group Holdings. Analysts estimate next year's revenue growth at 3.3%. The ROE of 6.19% and ROIC of 7.8% indicate a decent return on equity and invested capital. The Net Debt / EBITDA ratio of 0.83 suggests a manageable debt burden. The company's strategic priorities, including expanding bonding capacity and advancing long-term growth, are expected to drive future performance.

Outlook and Guidance

Orion Group Holdings has updated its full-year guidance, increasing revenue to $825 million to $860 million, adjusted EBITDA to $44 million to $46 million, and adjusted EPS to $0.18 to $0.22. The company's management is confident in its ability to execute on its long-term vision, with opportunities outside of the Pacific, such as a large bridge project in Texas and a port project in South Carolina. Travis Boone stated that the company is executing well and delivering on its plan, despite some delays in bigger contract opportunities in the Pacific.

3. NewsRoom

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Orion Properties: About That Going Concern Statement

Dec -01

Source: seekingalpha.com

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Orion Properties Announces that Director Nomination Notice from Kawa is Invalid

Nov -26

Source: businesswire.com

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Earnings Estimates Rising for Orion Marine (ORN): Will It Gain?

Nov -25

Source: zacks.com

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Wall Street Analysts Predict a 30.24% Upside in Orion Marine (ORN): Here's What You Should Know

Nov -24

Source: zacks.com

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Despite Fast-paced Momentum, Orion Marine (ORN) Is Still a Bargain Stock

Nov -24

Source: zacks.com

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Orion Expands Rare Earth and Critical-Mineral Holdings With New Nevada Lease; Provides Update on Multi-State Energy Operations

Nov -21

Source: accessnewswire.com

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Orion Group Holdings Stays (Barely) On The Watchlist

Nov -20

Source: seekingalpha.com

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Orion S.A. Gains Commercial Traction With Conductive Additives Vital for Grid Modernization

Nov -19

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.66%)

6. Segments

Marine

Expected Growth: 12%

Orion Group Holdings' Marine segment growth is driven by increasing demand for dredging and coastal protection services, expansion of offshore wind farms, and rising investments in port and harbor infrastructure development. Additionally, the company's strategic acquisitions and focus on operational efficiency have contributed to its 12% growth.

Concrete

Expected Growth: 18%

Orion Group Holdings' concrete segment growth is driven by increasing infrastructure spending, rising demand for residential and commercial construction, and strategic acquisitions. Additionally, the company's focus on sustainability and innovative products, such as high-strength concrete, contributes to its 18% growth.

7. Detailed Products

Marine Construction

Orion Group Holdings, Inc. provides a range of marine construction services, including the construction of piers, docks, and other marine infrastructure.

Dredging

The company offers dredging services to deepen or widen waterways, and to remove sediment and debris from the seafloor.

Environmental Remediation

Orion Group Holdings, Inc. provides environmental remediation services to clean up contaminated soil, water, and air.

Geotechnical Services

The company offers geotechnical services, including site investigation, soil testing, and foundation design.

Survey and Mapping

Orion Group Holdings, Inc. provides survey and mapping services, including hydrographic surveys and geophysical surveys.

Specialty Services

The company offers specialty services, including demolition, salvage, and heavy lifting.

8. Orion Group Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Orion Group Holdings, Inc. is medium due to the availability of alternative investment options for customers.

Bargaining Power Of Customers

The bargaining power of customers for Orion Group Holdings, Inc. is low due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Orion Group Holdings, Inc. is medium due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Orion Group Holdings, Inc. is high due to the relatively low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for Orion Group Holdings, Inc. is high due to the highly competitive nature of the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.21%
Debt Cost 7.77%
Equity Weight 68.79%
Equity Cost 7.77%
WACC 7.77%
Leverage 45.37%

11. Quality Control: Orion Group Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.38$

Current Price

10.38$

Potential

-0.00%

Expected Cash-Flows