Orion Group Holdings, Inc. (ORN) Bundle
A Brief History of Orion Group Holdings, Inc.
Orion Group Holdings, Inc. (ORN) has established itself as a prominent player in the construction and engineering sectors, particularly focusing on marine and concrete projects. The company has been involved in significant projects, including a $2.8 billion contract awarded by the United States Navy to construct a dry dock at Pearl Harbor, where Orion's subcontractor portion is valued at approximately $447.6 million.
Financial Performance Overview
As of September 30, 2024, Orion reported contract revenues of $226.7 million for the third quarter, reflecting a 34.5% increase from $168.5 million in the same period of the previous year. For the nine months ended September 30, 2024, total contract revenues reached $579.5 million, up 13.6% from $510.2 million in 2023.
| Period | Contract Revenues ($ million) | Gross Profit ($ million) | Net Income (Loss) ($ million) |
|---|---|---|---|
| Q3 2024 | 226.7 | 27.1 | 4.3 |
| Q3 2023 | 168.5 | 19.1 | (0.7) |
| 9M 2024 | 579.5 | 60.9 | (8.4) |
| 9M 2023 | 510.2 | 38.7 | (13.5) |
Segment Performance
The company operates through two primary segments: Marine and Concrete. For the nine months ended September 30, 2024, the Marine segment generated revenues of $377.3 million, a substantial increase from $260.8 million in the prior year. The Concrete segment revenues, however, decreased to $202.2 million from $249.4 million, largely due to disciplined bidding practices.
| Segment | 9M 2024 Revenues ($ million) | 9M 2023 Revenues ($ million) | Operating Income (Loss) ($ million) |
|---|---|---|---|
| Marine | 377.3 | 260.8 | (4.8) |
| Concrete | 202.2 | 249.4 | 6.7 |
Operational Metrics
As of September 30, 2024, Orion's total assets were valued at $430.3 million, with total liabilities of $287.9 million. The company reported working capital of $72.2 million, an increase from $55.9 million at the end of 2023.
| Metric | Value ($ million) |
|---|---|
| Total Assets | 430.3 |
| Total Liabilities | 287.9 |
| Working Capital | 72.2 |
Recent Developments
On September 12, 2024, Orion completed a public offering of 5,589,000 shares, netting approximately $26.5 million for working capital and general corporate purposes. The ongoing commitment to disciplined bidding and project selection has been a cornerstone of Orion's strategy, aiming for quality over quantity to enhance profitability and operational efficiency.
A Who Owns Orion Group Holdings, Inc. (ORN)
Major Shareholders
As of 2024, Orion Group Holdings, Inc. has several significant shareholders. The largest shareholding entities include:
| Shareholder | Number of Shares | % Ownership |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 11.8% |
| Vanguard Group, Inc. | 3,800,000 | 10.6% |
| Dimensional Fund Advisors LP | 2,500,000 | 7.0% |
| State Street Corporation | 2,300,000 | 6.4% |
| Other Institutional Investors | 8,700,000 | 24.3% |
| Insider Holdings | 1,500,000 | 4.2% |
Recent Developments
On September 12, 2024, Orion Group Holdings, Inc. completed a public offering of 5,589,000 shares of common stock, raising approximately $26.5 million in net proceeds after underwriting discounts and expenses. This action was aimed at increasing working capital and general corporate purposes.
Market Performance
As of September 30, 2024, the total number of shares outstanding was 39,610,116, with a market capitalization reflecting the company's stock price fluctuations. The company's stock has seen varying performance, with significant movements attributed to project announcements and earnings reports.
Financial Overview
For the nine months ending September 30, 2024, Orion reported contract revenues of $579.5 million, a 13.6% increase from $510.2 million in the previous year. This revenue growth is primarily driven by the marine segment, particularly the Pearl Harbor drydock project.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Contract Revenues | $579.5 million | $510.2 million |
| Gross Profit | $60.9 million | $38.7 million |
| Net Loss | ($8.4 million) | ($13.5 million) |
| Operating Income | $1.9 million | ($6.0 million) |
Debt and Liquidity
As of September 30, 2024, Orion had total liabilities of $287.9 million and stockholders' equity of $142.4 million. The company has a credit agreement with White Oak ABL, LLC, which includes a $65 million revolving credit facility and a $38 million term loan. The company's liquidity position indicates a borrowing availability of approximately $46.1 million.
Customer Base
Orion's revenue sources are diversified among federal, state, and private sectors, with significant contracts from entities such as the United States Navy. For the nine months ended September 30, 2024, the Navy accounted for 26% of total contract revenues.
Orion Group Holdings, Inc. (ORN) Mission Statement
Company Overview
Orion Group Holdings, Inc. (ORN) operates primarily in the marine and concrete construction sectors. The company focuses on delivering high-quality construction services while maintaining a commitment to safety, sustainability, and operational excellence.
Mission Statement Details
The mission of Orion Group Holdings emphasizes the following key components:
- Commitment to Safety: Prioritizing the health and safety of employees and stakeholders.
- Quality and Excellence: Delivering superior construction services that exceed client expectations.
- Sustainability: Implementing environmentally responsible practices in all operations.
- Community Engagement: Actively participating in and contributing to the communities in which the company operates.
Financial Performance Overview
As of September 30, 2024, Orion Group Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Contract Revenues | $226.7 million | $168.5 million | 34.5% |
| Gross Profit | $27.1 million | $19.1 million | 41.9% |
| Selling, General & Administrative Expenses | $20.8 million | $17.1 million | 21.7% |
| Net Income (Loss) | $4.3 million | ($0.7 million) | — |
Segment Performance
The following table summarizes the performance of Orion Group Holdings' segments for the nine months ended September 30, 2024:
| Segment | Contract Revenues | Operating Income (Loss) |
|---|---|---|
| Marine | $377.3 million | ($4.8 million) |
| Concrete | $202.2 million | $6.7 million |
| Total | $579.5 million | $1.9 million |
Liquidity and Capital Resources
As of September 30, 2024, Orion Group Holdings reported the following liquidity metrics:
- Working Capital: $72.2 million
- Unrestricted Cash: $28.3 million
- Borrowing Availability: $46.1 million
Recent Developments
On September 12, 2024, Orion Group Holdings completed a public offering of 5,589,000 shares, generating net proceeds of approximately $26.5 million for working capital and corporate purposes.
Contract Backlog
The following table illustrates the contract backlog as of September 30, 2024:
| Segment | Backlog Amount (in millions) |
|---|---|
| Marine | $537.0 million |
| Concrete | $153.5 million |
| Total Backlog | $690.5 million |
Conclusion of Financial Metrics
Orion Group Holdings continues to position itself as a key player in the construction industry with a focus on quality, safety, and sustainability. The company's financial performance and contract backlog indicate a positive outlook for future growth.
How Orion Group Holdings, Inc. (ORN) Works
Company Overview
Orion Group Holdings, Inc. (ORN) operates primarily in the construction sector, focusing on marine and concrete services. The company’s business model is centered around securing contracts for public and private sector projects, with a significant emphasis on high-quality execution and disciplined bidding practices.
Financial Performance
As of September 30, 2024, Orion reported contract revenues of $579.5 million for the nine months ended, representing a 13.6% increase from $510.2 million in the same period in 2023. This revenue growth was largely driven by the marine segment, particularly related to the Pearl Harbor drydock project.
Revenue Breakdown by Segment
| Segment | Contract Revenues (2024) | Contract Revenues (2023) | Percentage Change |
|---|---|---|---|
| Marine | $377.3 million | $260.8 million | 44.7% |
| Concrete | $202.2 million | $249.4 million | -18.9% |
| Total | $579.5 million | $510.2 million | 13.6% |
Gross Profit and Operating Income
For the nine months ended September 30, 2024, Orion reported a gross profit of $60.9 million, an increase of 57.3% compared to $38.7 million in 2023. The gross profit margin improved from 7.6% to 10.5%.
Operating income for the same period was $1.9 million, a recovery from an operating loss of $6.0 million in the previous year.
Cash Flow and Capital Expenditures
Orion generated approximately $35.2 million in cash from operating activities during the three months ended September 30, 2024. The cash flows were significantly influenced by changes in working capital and net income adjustments. The company’s capital expenditures for the nine months ended September 30, 2024, amounted to $10.6 million.
Debt and Liquidity Position
As of September 30, 2024, Orion had total liabilities of $287.9 million and total assets amounting to $430.3 million. The company's working capital stood at $72.2 million, with unrestricted cash on hand of $28.3 million. The borrowing availability under the revolving portion of their Credit Agreement was approximately $46.1 million.
Recent Developments
On September 12, 2024, Orion completed a public offering of 5,589,000 shares of common stock, generating net proceeds of approximately $26.5 million, which were utilized for working capital and repayment of borrowings under the Credit Agreement.
Segment Performance Overview
| Segment | Contract Revenues Q3 2024 | Operating Income Q3 2024 | Contract Revenues Q3 2023 | Operating Income Q3 2023 |
|---|---|---|---|---|
| Marine | $140.0 million | $5.5 million | $80.9 million | $2.0 million |
| Concrete | $86.7 million | $2.3 million | $87.6 million | $0.6 million |
| Total | $226.7 million | $7.8 million | $168.5 million | $2.6 million |
Market and Customer Base
Orion's customer base includes Federal, State, and Local Governments, as well as Private Companies. For the three months ended September 30, 2024, the breakdown of contract revenue by customer type was:
| Customer Type | Contract Revenues (2024) | Percentage of Total Revenue |
|---|---|---|
| Federal Government | $58.1 million | 26% |
| State Governments | $18.7 million | 8% |
| Local Governments | $28.6 million | 13% |
| Private Companies | $121.2 million | 53% |
Outlook
Orion Group Holdings remains focused on leveraging its operational strengths in marine and concrete segments, with an emphasis on securing higher-margin projects while maintaining a disciplined approach to bidding. The company's liquidity position and recent capital raised position it well for future growth opportunities.
How Orion Group Holdings, Inc. (ORN) Makes Money
Revenue Streams
Orion Group Holdings, Inc. generates revenue primarily through two segments: Marine and Concrete. In the nine months ended September 30, 2024, the company reported total contract revenues of $579.5 million, an increase of 13.6% from $510.2 million in the previous year period.
| Segment | Contract Revenues (2024) | Contract Revenues (2023) | Percentage Change |
|---|---|---|---|
| Marine | $377.3 million | $260.8 million | 44.7% |
| Concrete | $202.2 million | $249.4 million | -18.9% |
| Total | $579.5 million | $510.2 million | 13.6% |
Marine Segment Performance
The Marine segment has shown significant growth, largely attributed to the Pearl Harbor drydock project. For the three months ended September 30, 2024, revenues from the Marine segment reached $140.0 million, compared to $80.9 million in the same period of 2023, marking a 73.0% increase.
Operating income for the Marine segment was $5.5 million for the three months ended September 30, 2024, up from $2.0 million year-over-year.
Concrete Segment Performance
The Concrete segment experienced a decline in revenues, totaling $86.7 million for the three months ended September 30, 2024, down from $87.6 million in the previous year. The operating income for this segment was $2.3 million, an increase from $0.6 million in the prior year.
Cost Structure
The cost of contract revenues for the nine months ended September 30, 2024, was $518.6 million, leading to a gross profit of $60.9 million, or 10.5% of total contract revenues, compared to 7.6% in the prior year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Contract Revenues | $579.5 million | $510.2 million |
| Cost of Contract Revenues | $518.6 million | $471.5 million |
| Gross Profit | $60.9 million | $38.7 million |
| Gross Margin | 10.5% | 7.6% |
Operating Expenses
Selling, general, and administrative expenses (SG&A) increased to $61.0 million for the nine months ended September 30, 2024, up from $52.3 million in the previous year. As a percentage of total contract revenues, SG&A remained stable at 10.5%.
Net Income
For the nine months ended September 30, 2024, Orion Group Holdings reported a net loss of $8.4 million, compared to a net loss of $13.5 million in the same period of 2023. The loss before income taxes for the same period was $8.1 million.
Cash Flow and Liquidity
Cash flows provided by operating activities for the three months ended September 30, 2024, were $35.2 million. However, for the nine months ended September 30, 2024, cash flows used in operating activities totaled $0.7 million.
| Cash Flow Metric | 2024 (3 months) | 2024 (9 months) |
|---|---|---|
| Cash Flows from Operating Activities | $35.2 million | $(0.7 million) |
| Cash Flows from Investing Activities | $(2.6 million) | $(8.7 million) |
| Cash Flows from Financing Activities | $(9.2 million) | $6.7 million |
Debt and Financing
As of September 30, 2024, the company had total liabilities of $287.9 million and stockholders’ equity of $142.4 million. The company’s borrowings under its Credit Agreement amounted to $28.0 million with a weighted average interest rate of 12.31%.
Backlog and Future Prospects
The total backlog as of September 30, 2024, was approximately $690.5 million, with significant portions attributed to ongoing projects in the Marine segment. The company had quoted bids outstanding totaling $753 million, indicating potential future revenue growth.
Orion Group Holdings, Inc. (ORN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Orion Group Holdings, Inc. (ORN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Orion Group Holdings, Inc. (ORN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Orion Group Holdings, Inc. (ORN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.