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Orion (ORN) Wins Multiple Deals, Aids Marine and Concrete
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Orion Group Holdings, Inc. (ORN - Free Report) has won several contracts within the Marine and Concrete segments for a combined value of approximately $61 million.
Inside the Headlines
Within the Marine segment, the company was awarded four contracts to conduct marine and infrastructure construction work in the gulf coast and in Alaska for a total value of $35 million. Also, it received three contracts in the gulf coast to construct marine infrastructure for private sector clients in Texas and Louisiana. Of these, two are valued at $11.8 million and $6.7 million, and includes construction and dredging of new ship and barge berths for petrochemical loading and unloading in the greater Houston area.
The third one is valued at approximately $9 million and will replace the existing barge dock at a terminal located west of New Orleans. The three projects will likely commence in the fourth quarter and be completed by third-quarter 2022. Orion received the US Department of Transportation contract to demolish and replace an existing bridge in Alaska’s Denali National Park for $7.8 million. The work will begin late in the first quarter of 2022 and is anticipated to be completed in late 2023.
In the Concrete segment, the company received two contracts within the Houston, TX area, which includes the construction of a building for a new industrial park worth $8 million. The other contract pertains to the construction of four tilt-wall buildings in a new distribution center for $9 million. Both the projects are expected to begin in the fourth quarter and likely to be completed before 2022-end.
The company acquired a $3.2-million buildings construct contract for a new school in its Dallas market as well as two new townhome facilities building contracts in Austin, TX for more than $4 million. These projects are expected to commence in the fourth quarter and be completed by second-quarter 2022. Orion also inked a $2.1-million deal to construct a single-story tilt-wall building with associated site work in Daytona, FL. The first Concrete segment project outside Texas is likely to begin in the fourth quarter and be completed by first-quarter 2022-end.
Contract Wins to Boost Profitability
Orion — which share space with Dycom Industries, Inc. (DY - Free Report) , Sterling Construction Company, Inc. (STRL - Free Report) and Primoris Services Corporation (PRIM - Free Report) in the Zacks Building Products - Heavy Construction industry — derives its revenues from various marine construction, dredging, turnkey concrete services as well as other specialty services contracts. These projects are of typically short duration and usually span a period of less than a year.
Image Source: Zacks Investment Research
For the six months of 2021, contract revenues declined 14.6% year over year. The downside was primarily due to severe winter weather in February, reduction in project activity in the marine segment and lower production volumes in the concrete segment due to weather-related impacts in the second quarter. Backlogs also declined from prior year’s levels due to headwinds stemming from the COVID-19 pandemic in certain end-market sectors, which has slowed the timing of project awards.
Nonetheless, the same increased sequentially. The company is optimistic in its end markets and emerging opportunities across the market as evident from the $2 billion of quoted bids outstanding at quarter-end.
Shares of this Zacks Rank #4 (Sell) company have surged 88.4% compared with the industry’s 69.3% rally in the past year.
Image: Bigstock
Orion (ORN) Wins Multiple Deals, Aids Marine and Concrete
Orion Group Holdings, Inc. (ORN - Free Report) has won several contracts within the Marine and Concrete segments for a combined value of approximately $61 million.
Inside the Headlines
Within the Marine segment, the company was awarded four contracts to conduct marine and infrastructure construction work in the gulf coast and in Alaska for a total value of $35 million. Also, it received three contracts in the gulf coast to construct marine infrastructure for private sector clients in Texas and Louisiana. Of these, two are valued at $11.8 million and $6.7 million, and includes construction and dredging of new ship and barge berths for petrochemical loading and unloading in the greater Houston area.
The third one is valued at approximately $9 million and will replace the existing barge dock at a terminal located west of New Orleans. The three projects will likely commence in the fourth quarter and be completed by third-quarter 2022. Orion received the US Department of Transportation contract to demolish and replace an existing bridge in Alaska’s Denali National Park for $7.8 million. The work will begin late in the first quarter of 2022 and is anticipated to be completed in late 2023.
In the Concrete segment, the company received two contracts within the Houston, TX area, which includes the construction of a building for a new industrial park worth $8 million. The other contract pertains to the construction of four tilt-wall buildings in a new distribution center for $9 million. Both the projects are expected to begin in the fourth quarter and likely to be completed before 2022-end.
The company acquired a $3.2-million buildings construct contract for a new school in its Dallas market as well as two new townhome facilities building contracts in Austin, TX for more than $4 million. These projects are expected to commence in the fourth quarter and be completed by second-quarter 2022. Orion also inked a $2.1-million deal to construct a single-story tilt-wall building with associated site work in Daytona, FL. The first Concrete segment project outside Texas is likely to begin in the fourth quarter and be completed by first-quarter 2022-end.
Contract Wins to Boost Profitability
Orion — which share space with Dycom Industries, Inc. (DY - Free Report) , Sterling Construction Company, Inc. (STRL - Free Report) and Primoris Services Corporation (PRIM - Free Report) in the Zacks Building Products - Heavy Construction industry — derives its revenues from various marine construction, dredging, turnkey concrete services as well as other specialty services contracts. These projects are of typically short duration and usually span a period of less than a year.
Image Source: Zacks Investment Research
For the six months of 2021, contract revenues declined 14.6% year over year. The downside was primarily due to severe winter weather in February, reduction in project activity in the marine segment and lower production volumes in the concrete segment due to weather-related impacts in the second quarter. Backlogs also declined from prior year’s levels due to headwinds stemming from the COVID-19 pandemic in certain end-market sectors, which has slowed the timing of project awards.
Nonetheless, the same increased sequentially. The company is optimistic in its end markets and emerging opportunities across the market as evident from the $2 billion of quoted bids outstanding at quarter-end.
Shares of this Zacks Rank #4 (Sell) company have surged 88.4% compared with the industry’s 69.3% rally in the past year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.