Orion Group Holdings Reports Strong Third Quarter Results

by · The Markets Daily

Orion Group Holdings, Inc. (NYSE: ORN), a prominent specialty construction company, unveiled its financial performance for the third quarter ending September 30, 2024. The company reported contract revenues of $226.7 million, showcasing a substantial 34.5% increase from the prior year. GAAP net income stood at $4.3 million or $0.12 per diluted share, while adjusted net income reached $5.6 million or $0.16 per diluted share. Adjusted EBITDA for the quarter amounted to $15.2 million, reflecting encouraging growth.

The financial results were predominantly driven by the Marine segment’s revenue surge, attributed to projects like the Pearl Harbor drydock project. Despite lower Concrete segment revenues due to rigorous adherence to disciplined bidding standards, gross profit increased to $27.1 million, showing improved project pricing and execution quality.

Orion Group’s President and CEO, Travis Boone, expressed satisfaction with the strong performance in the third quarter, noting a 35% growth in contract revenues, a 62% increase in Adjusted EBITDA, and robust cash flow from operations. Boone highlighted ongoing projects driving profitability, such as the Pearl Harbor and Grand Bahama Shipyard Dry Dock projects.

Looking ahead, Orion Group Holdings sees favorable market prospects in specialty marine and concrete services, bolstered by increasing demands funded by both government and private sector investments. The company remains optimistic about the growth potential in marine and concrete projects.

The company was recently awarded new contracts worth $116 million post the third quarter. Orion Marine secured a $30.6 million marine subcontract for the SR 520 project, and the Concrete segment acquired an $18.2 million contract for Ritz Carlton Residences in The Woodlands.

On the financial front, Orion Group Holdings raised $26.5 million in net proceeds from a recent share offering, enhancing its working capital and balance sheet strength. As of September 30, 2024, the company’s total debt stood at $28.0 million, with no outstanding borrowings under its revolving credit facility.

Orion Group Holdings plans to discuss its third quarter performance in further detail during a conference call scheduled for October 31, 2024, emphasizing its progress and future strategies.

The company also provided guidance, expecting Adjusted EBITDA to fall within the range of $40 million to $45 million for the full year 2024, showcasing robust operational growth and financial stability.

For more detailed financial information and reconciliation of non-GAAP financial measures, interested stakeholders can refer to the company’s SEC filings and official communications.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Orion Group’s 8K filing here.

Orion Group Company Profile

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Orion Group Holdings, Inc operates as a specialty construction company in the building, industrial, and infrastructure sectors in the United States, Alaska, Hawaii, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company provides marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures.

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