HOUSTON - Orion Group Holdings, Inc. (NYSE: NYSE:ORN), a leading specialty construction company, has announced its intention to sell shares of its common stock through an underwritten public offering. The company also plans to give the underwriter a 30-day option to purchase additional shares. The timing and completion of the offering are dependent on market conditions, and the final terms are yet to be determined.
The proceeds from the sale are intended for working capital and general corporate purposes, which may include repaying debt under its existing credit agreement. Craig-Hallum Capital Group is the sole managing underwriter for the offering.
A shelf registration statement for the common stock has been filed with the Securities and Exchange Commission (SEC) and is currently effective. However, the securities will only be sold via a prospectus, including a prospectus supplement, which is part of the registration statement. The preliminary prospectus supplement and accompanying prospectus will be available from Craig-Hallum Capital Group.
Orion Group Holdings operates in the infrastructure, industrial, and building sectors, providing services such as marine transportation facility construction, dredging, and concrete construction. The company has regional offices across the United States, Canada, and the Caribbean Basin.
This announcement contains forward-looking statements, which are subject to risks and uncertainties. The company cautions that there can be no assurance regarding the completion, size, or terms of the offering. The final terms will be disclosed in a final prospectus supplement filed with the SEC.
The information in this article is based on a press release statement from Orion Group Holdings, Inc.
In other recent news, Orion Group Holdings released its second quarter financial results for 2024, reporting a revenue of $192 million and an adjusted EBITDA of $5.5 million. Due to unforeseen project delays, the company has revised its annual guidance to a revenue range of $850 million to $900 million and an adjusted EBITDA range of $40 million to $45 million. Despite these setbacks, Orion Group Holdings maintains a strong backlog and awarded work totaling $876 million. The company has also secured important project contracts with Port Everglades, Port Tampa Bay, and Costco Wholesale (NASDAQ:COST). These are some of the recent developments for Orion Group Holdings. The company aims to improve its margins and anticipates substantial backlog and revenue growth in 2023. Orion Group Holdings is also pursuing additional phases of Costco projects in Florida and Texas.
InvestingPro Insights
As Orion Group Holdings, Inc. (NYSE: ORN) prepares for its public offering, potential investors may consider the company's financial health and market performance. According to InvestingPro data, Orion Group Holdings has a market capitalization of approximately $211.91 million. While the company's revenue shows modest growth with a 0.33% increase over the last twelve months as of Q2 2024, the growth in quarterly revenue is more significant at 5.28% in Q2 2024.
InvestingPro Tips suggest that Orion Group Holdings operates with a significant debt burden and may have trouble making interest payments on its debt, which is an important consideration given the company's intention to use part of the offering's proceeds for repaying debt. Additionally, the company does not pay dividends to shareholders, which might influence investors looking for income-generating stocks. On a positive note, analysts predict that the company will be profitable this year, and the stock's Relative Strength Index (RSI) suggests it is currently in oversold territory, possibly indicating a buying opportunity for value investors.
With a P/E ratio of -11.7 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -16.43, the company's valuation metrics present a complex picture. While the negative P/E ratio indicates that the company is currently unprofitable, the expectation of profitability this year could change that scenario. Investors interested in Orion Group Holdings can find additional InvestingPro Tips to further inform their investment decisions. There are currently 11 additional tips listed on InvestingPro for Orion Group Holdings, which can be accessed for more detailed analysis and insights.
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