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Orion (ORN) Secures Two Contracts Valued at $38 Million

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Orion Group Holdings, Inc. (ORN - Free Report) has secured two contracts — one for the Puget Sound project and another for the private sector project in Florida. The contracts are worth $37.5 million in total.

Contract Details

One contract, valued at $28.5 million, entitled Orion to perform demolition and construction of a new aquatic habitat to benefit juvenile salmon in the Puget Sound area of Washington. The company’s Marine segment is responsible for the contract work. Construction on the project will start from the second quarter of this year and is expected to be completed by the end of second-quarter 2023.

Per the second contract worth $9 million, Orion will design and construct a private marine facility in the Tampa, FL area. This work will start from the second quarter of this year and be completed by mid-2022. Notably, the company sees more opportunities like this Florida project as the economy emerges from the pandemic.

Solid Prospects Ahead

Shares of Orion have gained 165.9% over the past year, outperforming the Zacks Building Products - Heavy Construction industry’s 133.6% rally.

This leading specialty construction company has been benefiting from solid bidding activities, as highlighted during the first-quarter 2021 earnings call. It expects strong intermediate-to-long term prospects that include a possible new Federal infrastructure bill. This is expected be a major catalyst for significant expansion of its addressable bidding landscape.

Backlog as of Mar 31, 2021 was $364.8 million, comprising $154.8 million for the Marine segment and $210.0 million for the Concrete segment. The quarterly overall backlog level was down from $591.9 million as of Mar 31, 2020. The downside was mainly due to headwinds created by the COVID-19 pandemic in certain end markets served. The company, however, remains optimistic about the opportunities that are emerging across various marketplaces, as evidenced by $1.9 billion of quoted bids outstanding at quarter-end.

Zacks Rank & Other Key Picks

Orion, which shares space with North American Construction Group Ltd. (NOA - Free Report) in the same industry, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other top-ranked stocks in the same space include EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) , each carrying the same rank as Orion.

EMCOR’s second-quarter 2021 earnings are expected to grow 10.4%.

MasTec surpassed earnings estimates in all the trailing four quarters, with the average being 18.8%.

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