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Orion Group Holdings (ORN)
NYSE:ORN

Orion Group Holdings (ORN) AI Stock Analysis

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Orion Group Holdings

(NYSE:ORN)

Rating:70Outperform
Price Target:
$9.50
▲(4.74%Upside)
Orion Group Holdings presents a strong financial performance and technical trend, supported by positive earnings call insights. However, high valuation metrics pose a risk, suggesting caution despite the positive operational outlook.

Orion Group Holdings (ORN) vs. SPDR S&P 500 ETF (SPY)

Orion Group Holdings Business Overview & Revenue Model

Company DescriptionOrion 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.
How the Company Makes MoneyOrion Group Holdings generates revenue through its construction and engineering services across various sectors. The company's primary revenue streams come from contracts to build and maintain marine infrastructure, such as dredging services, land reclamation, and the construction and repair of bridges, ports, and pipelines. Additionally, Orion Group Holdings earns income from its industrial segment, which involves concrete construction and repair services, primarily for commercial and industrial facilities. The company benefits from long-term contracts with government agencies and private clients, which provide a steady stream of income. Furthermore, Orion may engage in strategic partnerships and joint ventures to secure large-scale projects and expand its market reach, contributing to its earnings.

Orion Group Holdings Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 43.29%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to 2025 with significant revenue and EBITDA growth, impressive new contracts, and a robust backlog. However, challenges in the concrete segment, increased SG&A expenses, and negative cash flow were noted.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Orion Group Holdings reported revenue of $189 million and adjusted EBITDA of $8 million, reflecting a strong operating model and successful execution of strategic priorities.
Impressive New Wins and Backlog
Secured almost $350 million in new wins, with $161 million in marine and $188 million in concrete. Backlog plus awarded work reached $890 million.
Record Concrete and Data Center Achievements
Won five data center projects totaling $47 million, bringing the total to 35 data centers and more than $235 million delivered.
Revenue and EBITDA Growth
Consolidated revenue increased over 17% to $189 million, and adjusted EBITDA doubled to $8.2 million. Marine revenue was up over 19% and concrete revenue increased 13%.
High Marine Segment Performance
Adjusted EBITDA margin in the Marine segment was 8.6%, compared to 0.9% last year.
Negative Updates
Concrete Segment Challenges
Concrete segment reported a negative EBITDA margin of 4.4%, compared with a positive 5.7% in the prior year period.
Increased SG&A Expenses
SG&A expenses increased to $22.5 million, up from $19 million in the comparable period, largely due to incentive compensation, legal, IT, and operating lease expenses.
Negative Cash Flow
Reported negative $3.4 million of cash from operations in the March quarter.
Company Guidance
During Orion Group Holdings' first quarter 2025 conference call, the company provided guidance for the fiscal year, projecting revenue between $800 million and $850 million, with adjusted EBITDA in the range of $42 million to $46 million. Adjusted earnings per share (EPS) are expected to be between $0.11 to $0.17. The company maintained its capital expenditure (CapEx) guidance at $25 million to $35 million. Orion Group Holdings reported strong performance, with first-quarter revenue increasing by 17% to $189 million and adjusted EBITDA doubling to $8.2 million. The marine segment's adjusted EBITDA margin improved significantly to 8.6%, compared to 0.9% last year, while the concrete segment saw negative margins of 4.4%, reflecting seasonal productivity dynamics. The company also highlighted a robust backlog of $890 million and a solid pipeline of opportunities, expecting significant tailwinds from government policies promoting domestic industrial and maritime growth.

Orion Group Holdings Financial Statement Overview

Summary
Orion Group Holdings shows a positive trajectory with improvements in profitability and cash management. Revenue growth and profitability margins are improving, with a significant improvement in free cash flow. However, further enhancements in return on equity and EBIT margins are needed for better performance.
Income Statement
72
Positive
Orion Group Holdings has shown a commendable improvement in its income statement metrics. The TTM gross profit margin stands at 11.96%, indicating efficient cost management. Notably, there is a net profit margin of 0.36% for the TTM, reflecting a turnaround from previous losses. Revenue has grown by 3.51% from the previous year, showcasing positive growth momentum. The EBIT margin improved to 1.87% in the TTM, although still modest, it marks a recovery from negative EBIT in prior years.
Balance Sheet
68
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32 in the TTM, indicating moderate leverage. The return on equity is a modest 1.99%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 36.22%, highlighting a strong equity position relative to total assets, which provides a buffer against potential financial risks.
Cash Flow
75
Positive
Orion Group Holdings demonstrates strong cash flow metrics with a significant improvement in free cash flow, up from negative levels in prior periods to $10.79 million in the TTM. The operating cash flow to net income ratio is favorable at 10.69, indicating robust cash generation relative to earnings. This reflects effective cash management practices and enhances financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue824.38M796.39M711.78M748.32M601.36M709.94M
Gross Profit98.64M91.16M61.66M50.74M40.97M84.70M
EBITDA40.50M44.81M24.75M21.14M21.55M60.21M
Net Income3.00M-1.64M-17.88M-12.61M-14.56M20.22M
Balance Sheet
Total Assets344.19M417.32M416.89M367.15M351.75M414.19M
Cash, Cash Equivalents and Short-Term Investments2.85M28.32M30.94M3.78M12.29M1.59M
Total Debt85.71M95.34M85.49M66.56M69.21M65.67M
Total Liabilities218.63M266.64M295.42M229.35M203.65M254.69M
Stockholders Equity125.56M150.68M121.47M137.80M148.10M159.49M
Cash Flow
Free Cash Flow10.79M-1.42M8.27M-5.02M-16.91M31.34M
Operating Cash Flow32.06M12.68M17.18M9.56M69.00K46.03M
Investing Cash Flow-18.60M-11.48M2.17M-9.70M10.63M-3.13M
Financing Cash Flow-5.14M-3.82M7.81M-8.37M6.00K-42.40M

Orion Group Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.07
Price Trends
50DMA
8.11
Positive
100DMA
7.18
Positive
200DMA
7.19
Positive
Market Momentum
MACD
0.27
Positive
RSI
62.76
Neutral
STOCH
59.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORN, the sentiment is Positive. The current price of 9.07 is above the 20-day moving average (MA) of 8.84, above the 50-day MA of 8.11, and above the 200-day MA of 7.19, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORN.

Orion Group Holdings Risk Analysis

Orion Group Holdings disclosed 32 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$812.40M11.7015.67%28.03%80.90%
78
Outperform
$170.86M9.2841.26%1.17%4.62%81.73%
ORORN
70
Outperform
$358.75M147.962.25%15.58%
65
Neutral
$10.69B15.755.51%1.90%2.72%-26.43%
64
Neutral
$329.34M27.364.58%-9.91%-25.58%
63
Neutral
$385.17M-14.26%-0.29%-6.77%
57
Neutral
$236.50M-53.62%-20.63%-611.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORN
Orion Group Holdings
9.07
0.42
4.86%
ESOA
Energy Services of America
10.22
3.18
45.17%
GLDD
Great Lakes Dredge & Dock
11.96
3.64
43.75%
MTRX
Matrix Service Company
13.95
5.19
59.25%
BBCP
Concrete Pumping Holdings
6.33
1.34
26.85%
SLND
Southland Holdings
4.39
0.29
7.07%

Orion Group Holdings Corporate Events

Executive/Board Changes
Orion Group Holdings CFO Transition Announced
Neutral
Jul 1, 2025

Orion Group Holdings announced that Scott Thanisch ceased his roles as Executive Vice President, Chief Financial Officer, and Treasurer on June 23, 2025. He will assist in the transition to his successor, Alison Vasquez, until July 1, 2025. As per his Employment and Separation Agreements, Thanisch will receive severance benefits, including unvested restricted shares, subject to compliance with certain covenants.

The most recent analyst rating on (ORN) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Orion Group Holdings stock, see the ORN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Orion Group Holdings to Post Q1 2025 Presentation
Positive
Jun 23, 2025

On June 23, 2025, Orion Group Holdings announced its intention to post the first quarter 2025 investor presentation on its website. The company highlighted its robust financial performance, with a significant increase in adjusted EBITDA and revenue compared to the previous year. Orion is well-positioned to benefit from the $1.2 trillion Infrastructure Act, which is expected to drive demand for its services in transportation, ports, waterways, and bridges. The company’s strong backlog and strategic focus on high-margin projects are expected to support its long-term growth and enhance its competitive position in the market.

The most recent analyst rating on (ORN) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Orion Group Holdings stock, see the ORN Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Orion Group Holdings Appoints New CFO Alison Vasquez
Positive
Jun 10, 2025

Orion Group Holdings announced the departure of Scott Thanisch as Executive Vice President, Chief Financial Officer, and Treasurer, effective June 23, 2025, with Alison Vasquez succeeding him. Vasquez, who brings over 25 years of financial experience from her previous roles at KBR, Inc., will join Orion to support its next phase of growth and profitability. The company reiterated its 2025 revenue guidance of $800 million to $850 million and Adjusted EBITDA of $42 million to $46 million, highlighting Vasquez’s role in executing strategic goals to enhance shareholder value.

The most recent analyst rating on (ORN) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Orion Group Holdings stock, see the ORN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Orion Group Holds Annual Stockholders Meeting
Neutral
May 19, 2025

On May 15, 2025, Orion Group Holdings, Inc. held its Annual Meeting of Stockholders where two Class III Directors were elected for a three-year term. The stockholders also approved the compensation of named executive officers and ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (ORN) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Orion Group Holdings stock, see the ORN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 24, 2025