Orion Group Holdings Announces Contract Awards Valued at Approximately $111 Million

Rhea-AI Summary

Orion Group Holdings (NYSE: ORN) has secured three contracts totaling approximately $111 million. The largest is an $88 million contract from South Carolina State Ports Authority for the Hugh K. Leatherman Terminal Wharf Extension at the Port of Charleston. The second is a $12.9 million subcontract for Tampa's West Bank Riverwalk pedestrian bridge project. The third is a $10.3 million contract for a data center construction in Garland, Texas. All projects will commence in 2025 with completion expected within 20 months.

Positive

• Secured significant new contracts totaling $111 million
• Won major $88 million port infrastructure project through competitive bidding
• Diversified project portfolio across marine and concrete segments
• All projects scheduled to start in 2025 with clear timeline commitments

Negative

• None.

Insights

Financial Analyst

These contract wins totaling $111 million represent a significant boost to Orion's backlog and revenue visibility for 2025. The largest award, an $88 million port infrastructure project, aligns with growing demand for port expansion capabilities to accommodate larger vessels. The company's diversification across marine and concrete segments demonstrates strong market positioning.

The contracts span different sectors - port infrastructure, urban development and data centers - providing revenue stability through market cycles. With project durations ranging from 9 to 20 months, these awards should contribute meaningfully to 2025-2026 financials. Based on Orion's $345 million market cap, these new contracts represent approximately 32% of the company's current market value, indicating material impact on future earnings potential.

Infrastructure Expert

The Hugh K. Leatherman Terminal project highlights the ongoing modernization of U.S. port infrastructure to handle post-Panamax vessels. The technical scope involving precast concrete elements and marine construction demonstrates Orion's specialized capabilities in complex maritime projects. The Tampa Riverwalk bridge and data center contracts further showcase the company's diverse engineering expertise.

The competitive bid win for the port project against industry peers validates Orion's competitive positioning in high-value marine infrastructure. Their ability to self-perform critical components of these projects typically leads to better margin control and project execution, which is particularly important given the scale and complexity of marine construction work.

HOUSTON, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (“Orion” and “Company”), a leading specialty construction and engineering company today announced three contract awards, two in its Marine segment and one in its Concrete segment. Each of these projects is expected to start in 2025 and will be completed within 20 months.

Orion Marine was awarded a significant $88 million contract by South Carolina State Ports Authority in a competitive bid process. The project is for the Hugh K. Leatherman Terminal Wharf Extension at the Port of Charleston and Orion will self-perform the construction of 1,600 linear feet of concrete pile-supported wharf as a northward extension of the existing terminal. The scope includes the installation of precast, prestressed concrete piles, along with precast caps, deck slabs, and stay-in-place concrete tubes, as well as removing dredged material to accommodate larger vessels and placing bedding and armor stone for shoreline stabilization. The project will commence in the first quarter of 2025 with an anticipated duration of 20 months.

In addition, Orion Marine was awarded a $12.9 million subcontract to Haskell, a global architecture, engineering and construction firm, for the City of Tampa’s design-build West Bank Riverwalk pedestrian bridge project along the Hillsborough River in downtown Tampa, Florida. Design is currently underway, and construction is scheduled to begin in the third quarter of 2025, with an anticipated duration of approximately 18 months.  Orion Concrete was awarded a $10.3 million contract by HITT Contracting, LLC for the construction of a new data center building for a confidential hyperscaler client in Garland, Texas. The project is expected to start in January 2025 with a duration of nine months.

“We are proud to be selected to as a trusted partner on these key projects,” said Travis Boone, President and Chief Executive Officer of Orion Group Holdings. “The South Carolina State Ports Authority project is a prime example of the growing demand for port expansion driven by larger vessels and increased global trade. Orion Marine is highly qualified for this work based on our growing reputation for on-time, on-budget delivery that meets the highest safety and quality standards. In our Concrete business, the new data center award reflects the strong relationships we have established with key contractors who rely on Orion’s skillful execution and its industry leading safety record.”

Orion Group Holdings, Inc. is a renowned name in specialty construction, known for its dedication to quality, innovation, and timely project execution. With these new contract awards, Orion continues to strengthen its position as an industry leader capable of tackling complex projects with unmatched expertise.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company's marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. https://www.oriongroupholdingsinc.com.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, , are forward-looking statements. Forward-looking statements also include project award announcements, estimated project start dates, anticipated revenues, and contract options which may or may not be awarded in the future. Forward-looking statements involve risks, including those associated with the Company's fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to the Company's 2022 Annual Report on Form 10-K, filed on March 16, 2023, which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contact:

Financial Profiles, Inc.
Margaret Boyce 310-622-8247
mboyce@finprofiles.com

Source: Orion Group Holdings, Inc.

FAQ

What is the value of Orion Group Holdings' new port contract in Charleston?

Orion Group Holdings (ORN) was awarded an $88 million contract by South Carolina State Ports Authority for the Hugh K. Leatherman Terminal Wharf Extension at the Port of Charleston.

How many new contracts did Orion Group Holdings (ORN) announce in November 2024?

Orion Group Holdings announced three new contracts: two in its Marine segment and one in its Concrete segment, totaling approximately $111 million.

When will Orion Group Holdings begin the Tampa Riverwalk bridge project?

Construction of the $12.9 million West Bank Riverwalk pedestrian bridge project in Tampa is scheduled to begin in the third quarter of 2025.

What is the timeline for Orion's data center project in Garland, Texas?

The $10.3 million data center project in Garland, Texas is expected to start in January 2025 with a duration of nine months.