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Orion Group Holdings (ORN)
NYSE:ORN
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Orion Group Holdings
(NYSE:ORN)
56Neutral
Orion Group Holdings (ORN) vs. S&P 500 (SPY)
Market Cap
$224.58M
Dividend YieldN/A
Average Volume (3M)468.59K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth11.89%
EPS Growth84.04%
CountryUS
Employees1,796
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-0.09
Shares Outstanding38,989,544
10 Day Avg. Volume426,216
30 Day Avg. Volume468,593
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)4.20
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.50Price Target Upside64.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Orion Group Holdings Business Overview & Revenue Model
Company DescriptionOrion Group Holdings, Inc. (ORN) is a leading specialty construction company that operates in the United States, focusing on marine and industrial construction services. The company is known for providing a comprehensive range of services that include dredging, marine construction, and the fabrication and installation of marine structures. Orion Group Holdings serves a diverse range of clients, including governmental agencies, port authorities, and private sector companies, offering solutions that are crucial for infrastructure development and maintenance.
How the Company Makes MoneyOrion Group Holdings makes money primarily through contracts for specialized construction services in the marine and industrial sectors. Its revenue streams are derived from project-based work, which involves bidding for and executing contracts related to dredging, marine construction, and structural fabrication. The company leverages its expertise and resources to deliver projects on time and within budget, which helps in securing recurring contracts and establishing long-term relationships with clients. Significant factors contributing to its earnings include its ability to win competitive bids, maintain operational efficiency, and adapt to regulatory and environmental standards that govern the construction industry.
Orion Group Holdings Financial Statement Overview
Summary
Orion Group Holdings is showing signs of recovery with improving revenue and better cost management, but profitability remains a concern with continuous net losses. The balance sheet shows improved leverage and equity position, indicating better financial health. However, cash flow challenges persist, with negative free cash flow pointing to potential liquidity issues. Overall, the company is on a path to recovery but needs to address profitability and cash flow stability to ensure sustainable growth.Income Statement
Orion Group Holdings shows a positive trend in revenue with a growth rate of 11.9% from 2023 to 2024. The gross profit margin improved to 11.4% in 2024, suggesting better cost management. However, the net profit margin remains negative due to continuous net losses, impacting overall profitability. The EBIT margin has improved, indicating operational efficiencies but is still low at 1.4%. The EBITDA margin has decreased, reflecting challenges in managing operating expenses.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved from 0.70 in 2023 to 0.34 in 2024, indicating better leverage management. The equity ratio increased to 36.1%, suggesting a stronger equity base relative to assets, which is a positive sign of financial stability. Return on equity (ROE) remains negative due to net losses, highlighting ongoing profitability challenges.70
Positive
Cash Flow
The free cash flow turned negative in 2024, indicating cash flow challenges despite positive operating cash flow. The operating cash flow to net income ratio is positive, suggesting good cash conversion efficiency, but the free cash flow to net income ratio is negative, reflecting issues in capital expenditure control. A declining free cash flow growth rate from 2023 to 2024 signals potential liquidity concerns.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 796.39M | 711.78M | 748.32M | 601.36M | 709.94M | Gross Profit |
| 91.16M | 61.66M | 50.74M | 40.97M | 84.70M | EBIT |
| 11.52M | -6.63M | -12.70M | -20.40M | 18.07M | EBITDA |
| 11.52M | 24.75M | 21.14M | 21.55M | 60.21M | Net Income Common Stockholders |
| -1.64M | -17.88M | -12.61M | -14.56M | 20.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.32M | 30.94M | 3.78M | 12.29M | 1.59M | Total Assets |
| 417.32M | 416.89M | 367.15M | 351.75M | 414.19M | Total Debt |
| 50.73M | 85.49M | 66.56M | 69.21M | 65.67M | Net Debt |
| 22.42M | 54.55M | 62.78M | 56.91M | 64.08M | Total Liabilities |
| 266.64M | 295.42M | 229.35M | 203.65M | 254.69M | Stockholders Equity |
| 150.68M | 121.47M | 137.80M | 148.10M | 159.49M |
| Cash Flow | Free Cash Flow | |||
| -1.42M | 8.27M | -5.02M | -16.91M | 31.34M | Operating Cash Flow |
| 12.68M | 17.18M | 9.56M | 69.00K | 46.03M | Investing Cash Flow |
| -11.48M | 2.17M | -9.70M | 10.63M | -3.13M | Financing Cash Flow |
| -3.82M | 7.81M | -8.37M | 6.00K | -42.40M |
Orion Group Holdings Technical Analysis
Negative
5.76
Price Trends
7.13
Negative
7.45
Negative
7.60
Negative
Market Momentum
-0.45
Negative
40.13
Neutral
74.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORN, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 6.09, below the 50-day MA of 7.13, and below the 200-day MA of 7.60, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 40.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORN.
Orion Group Holdings Risk Analysis
Orion Group Holdings disclosed 30 risk factors in its most recent earnings report. Orion Group Holdings reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.88B | 15.31 | 36.08% | ― | 7.28% | 85.63% | |
75 Outperform | $3.42B | 19.20 | 13.67% | 0.41% | 11.40% | 42.51% | |
71 Outperform | $12.52B | 24.11 | 35.03% | 0.34% | 34.97% | 62.08% | |
70 Outperform | $3.31B | 31.67 | 12.68% | 0.68% | 14.20% | 191.86% | |
62 Neutral | $8.22B | 13.91 | 2.36% | 3.08% | 3.85% | -14.32% | |
61 Neutral | $4.53B | 19.74 | 20.35% | ― | 12.61% | 7.43% | |
56 Neutral | $224.58M | ― | -1.21% | ― | 11.89% | 84.04% |
* Industrials Sector Average
Performance Comparison
ORN
Orion Group Holdings
5.76
-3.63
-38.66%
FIX
Comfort Systems
352.15
34.45
10.84%
DY
Dycom
156.24
14.96
10.59%
GVA
Granite Construction
76.20
21.15
38.42%
PRIM
Primoris Services
63.62
22.91
56.28%
STRL
Sterling Construction
126.63
15.09
13.53%
Orion Group Holdings Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -10.70% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in revenue, profitability, and backlog, along with strategic advancements and financial management improvements. However, there were challenges related to revenue shortfall due to project timing, increased SG&A expenses, and reduced cash flow. Overall, the positive aspects of growth and operational improvements overshadowed the lowlights.Highlights
Revenue Growth
Full year revenue was up 12% to $796 million year over year.
Gross Profit and EBITDA Improvement
Gross profit improved 48% to $91 million and adjusted EBITDA increased 76% with a margin increase of 200 basis points to 5.3%.
Significant Backlog and Pipeline Growth
Year-end backlog stood at $729 million, and the pipeline increased from $3 billion to $16 billion over the past two years.
Strong Q4 Performance
Q4 revenue increased 7.6% to $217 million, with adjusted EBITDA growing 15.3% to $17.1 million.
Concrete Business Turnaround
Concrete revenue increased 9.8% in Q4, with notable project wins and a healthier business outlook.
Marine Segment Opportunities
Marine segment growth driven by infrastructure, port expansion, and Navy projects, with significant opportunities in the Pacific region.
Positive Financial Management
Ended Q4 with $28.3 million in cash and a net cash position for the second consecutive quarter.
Improved Lending Terms
Executed an amendment to the credit agreement reducing term loan and revolver pricing by 50 basis points.
ERP and Operational Improvements
Considerable progress on ERP initiatives, providing better oversight and project management efficiencies.
Lowlights
Revenue Shortfall in 2024
Full year revenue of $796 million was lower than expected due to project execution timing.
Increased SG&A Expenses
SG&A expenses were $21.6 million, up from $17.2 million, attributed to compensation, IT implementations, and legal expenses.
Cash Flow Decrease
Full year cash flow from operations in 2024 was $12.7 million, down from $17.2 million in the prior year.
Project Timing Delays
Some major projects, such as the Hawaii project, experienced timing delays affecting revenue recognition.
Company Guidance
During the Orion Group Holdings Fourth Quarter and Full Year 2024 Conference Call, several key metrics and guidance were highlighted. For the full year, Orion Group reported a 12% increase in revenue to $796 million and a 48% improvement in gross profit to $91 million. Adjusted EBITDA rose by 76%, with a 200 basis point increase in adjusted EBITDA margin to 5.3%. The company's backlog stood at $729 million, with a pipeline growth from $3 billion to $16 billion over the last two years. Looking ahead to 2025, Orion Group expects revenue between $800 million and $850 million and adjusted EBITDA ranging from $42 million to $46 million. Key metrics for 2025 also include an anticipated CapEx of $25 million to $35 million, with a focus on increasing the backlog as a primary indicator of future revenue. The company also reported adjusted earnings per share (EPS) of $0.15 for the full year 2024, with guidance for adjusted EPS in 2025 ranging from $0.11 to $0.17.Orion Group Holdings Corporate Events
M&A TransactionsBusiness Operations and Strategy
Orion Group Holdings Targets Expansion in Marine Construction
Positive
Nov 12, 2024
Orion Group Holdings, Inc. is gearing up for growth with its strategic plans focusing on marine and specialty construction, driven by strong industry tailwinds like the $1.2 trillion Infrastructure Act. The company has completed Phase 1 of its strategic plan, enhancing profitability and financial flexibility, and is now turning its attention to expansion opportunities in specialized marine construction, IT capabilities, and strategic M&A. Orion’s impressive backlog growth and plans to capitalize on new markets like AI-driven data centers indicate promising opportunities for investors interested in the infrastructure sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.