HOUSTON - Orion Group Holdings, Inc. (NYSE:ORN), a prominent specialty construction and engineering firm, has announced the acquisition of three new contracts totaling over $110 million. The contracts include two marine construction projects and one concrete segment project, all set to commence in 2025.
The largest of the three, an $88 million contract awarded by the South Carolina State Ports Authority, involves the extension of the Hugh K. Leatherman Terminal Wharf at the Port of Charleston. Orion will undertake the construction of an additional 1,600 linear feet of concrete pile-supported wharf, extending northward from the existing terminal. The project scope encompasses installing precast, prestressed concrete piles, caps, deck slabs, and stay-in-place concrete tubes. Additionally, it includes dredging to accommodate larger vessels and placing bedding and armor stone for shoreline stabilization. Work on this project is slated to begin in the first quarter of 2025 and is expected to last 20 months.
In Tampa, Florida, Orion Marine has secured a $12.9 million subcontract with Haskell for the City of Tampa’s West Bank Riverwalk pedestrian bridge project. The design phase is currently in progress, with construction anticipated to start in the third quarter of 2025 and an estimated duration of 18 months.
Orion's concrete division has been awarded a $10.3 million contract by HITT Contracting, LLC for the construction of a new data center building in Garland, Texas. The client is a confidential hyperscaler, and the project is expected to kick off in January 2025, with a completion timeline of nine months.
Travis Boone, President and CEO of Orion Group Holdings, expressed pride in the company's selection as a trusted partner for these significant projects. He highlighted the South Carolina port project as indicative of the growing demand for port expansion due to increased global trade and larger vessels. Boone also noted the new data center construction reflects Orion's strong relationships with key contractors and its reputation for skillful execution and industry-leading safety.
Orion Group Holdings is recognized for its expertise in both on and off-water construction services in the United States and surrounding regions. The company's recent contract wins reinforce its standing as a leader in the specialty construction industry, capable of executing complex projects.
This report is based on a press release statement from Orion Group Holdings, Inc.
In other recent news, Orion Group Holdings reported a substantial Q3 growth, with revenue reaching $226.7 million, a 35% increase from the previous year. The company's adjusted EBITDA also saw a significant improvement, rising to $15.2 million, a 62% year-over-year increase. These gains, as highlighted by CEO Travis Boone, are due to the successful execution of key projects and a robust pipeline of new contracts.
Orion Group Holdings has also secured $116 million in new contracts, including significant projects at Portage Bay Bridge and the Port of Houston. The company is anticipating a strong project flow and significant investments in personnel and equipment for 2025.
However, despite the overall growth, the company's backlog has seen a reduction from the previous quarter. Orion Group Holdings' full-year 2024 revenues are expected to range from $850 million to $900 million, with GAAP EPS projected to range from negative $0.10 to positive $0.04 and adjusted EPS at $0.11 to $0.22.
In terms of future expectations, the company plans to capitalize on growth opportunities in 2025 with investments in personnel and equipment. A detailed outlook for 2025 will be provided in the year-end results report. Orion Group Holdings is focused on operational improvements and profitability, with a strong balance sheet supporting future growth.
InvestingPro Insights
Orion Group Holdings' recent contract wins totaling over $110 million align with the company's positive momentum in the market. According to InvestingPro data, Orion has demonstrated strong performance with a 76.72% year-to-date price total return and an impressive 81.12% return over the past year. This growth trajectory is further supported by an InvestingPro Tip indicating that net income is expected to grow this year.
The company's revenue growth is also noteworthy, with a 10.58% increase in the last twelve months and a substantial 34.54% growth in the most recent quarter. These figures suggest that Orion's strategy of securing large-scale projects, such as the $88 million port extension in Charleston, is contributing to its top-line expansion.
However, investors should note that Orion operates with a moderate level of debt and has not been profitable over the last twelve months, as highlighted by InvestingPro Tips. The company's price-to-book ratio of 2.38 and its negative P/E ratio indicate that the market is pricing in future growth expectations, which aligns with the recently announced contracts set to commence in 2025.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Orion Group Holdings, providing a more comprehensive view of the company's financial health and market position.
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