Orion Group Holdings Cuts Loss, Sees Rising Construction Activity Ahead
Orion Group Holdings reported a net loss of $6.1 million or $0.19 per share for the first quarter of 2024. Those numbers include $2.1 million of non-recurring items, bringing the adjusted net loss to $4 million, or $0.12 per share, the company said in its April 24 financial report. A year ago, the company reported a net loss of $12.6 million or $0.39 million per share for the first quarter of 2023.
Contract revenues of $160.7 million increased 0.9 percent from $159.2 million in the first quarter last year, primarily due to an increase in marine segment revenue related to a drydock project in Pearl Harbor, Hawaii, partially offset by lower concrete segment revenue, the company said.
Orion reported that its backlog as of March 31 was $756.6 million, compared to $762.2 million at the end of 2023 and $467.4 million as of March 31, 2023.
“We generated first quarter revenue of $161 million and adjusted EBITDA of $4.1 million,” CEO Travis Boone said. “We expect revenue to continue to build throughout the year with our current backlog and strong pipeline of opportunities. We remain focused on increasing our margins as a top priority.
“In addition to first quarter being our seasonally slowest period, revenue was affected by reduced activity on two major projects related to scheduling delays outside of our control. At this point, we have no concerns that these scheduling delays will have any material impact on total anticipated revenues and margins generated from these contracts. We expect to recover this work in upcoming quarters, with strong momentum in the back half of the year,” Boone said.
“Based on the activity level we are seeing for our services, especially in marine construction, we are reconfirming our full year 2024 guidance for revenue in the range of $860 million to $950 million and anticipated adjusted EBITDA in the range of $45 million to $50 million.”
Boone said that Orion’s “opportunity pipeline” has nearly quadrupled in just over a year’s time, from $3 billion to more than $11 billion.
“The critical need to rebuild large parts of the U.S. infrastructure is driving a boom in demand for heavy civil and marine construction,” he said. “This is especially true for the specialized services that Orion offers.”
“We are actively bidding on a wide array of marine construction projects that have multiple sources of funding at federal, state and municipal levels as well as privately funded projects. These projects range from U.S. Navy investment in the Pacific, coastal restoration, LNG terminals and port infrastructure,” Boone said.
