Orion Group Holdings, Inc. Announces Contract Awards of Approximately $22 Million; Value Could Increase

Rhea-AI Summary

Orion Group Holdings (NYSE: ORN) has secured three contracts totaling approximately $22 million for dredging services from the US Army Corps of Engineers (USACE). These contracts involve maintenance work on Gulf coast waterways, with potential increases valued at up to $19 million. Two contracts from the Galveston District total $18.3 million for the Gulf Intracoastal Waterway and Sabine Neches Waterway. A third contract worth $3.5 million is from the Jacksonville District for Tampa Harbor. Work is expected to begin in Q4 2021.

Positive

• Secured contracts valued at approximately $22 million.
• Potential for contract value to increase by up to $19 million.
• Strengthens backlog in marine business with multiple ongoing projects.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Orion Group Holdings, Inc. (NYSE: ORN) (the "Company") a leading specialty construction company, today announced three contract awards totaling approximately $22 million.

The Company’s Marine segment has been awarded three contracts valued at a combined $22 million to perform dredging services for the US Army Corps of Engineers (USACE) in waterways along the gulf coast, with the potential for the contract value on one award to increase by up to $19 million.

Two of these contracts were recently awarded by the USACE’s Galveston District for dredging work on the Texas coast. The first award valued at $8.8 million calls for the removal of up to two million cubic yards of maintenance material along the Gulf Intracoastal Waterway between Corpus Christi and Port Isabel. The second award, located in the Sabine Neches Waterway in Jefferson County, Texas, is valued at a base amount of $9.5 million for the dredging of 2.1 million cubic yards of material. If the USACE exercises all options for additional scope of work, the total value for this contract could grow to over $28 million.

The third award is a $3.5 million contract from the USACE’s Jacksonville District to dredge maintenance material from the upper channels in Tampa Harbor, in Tampa, Florida. Work on all three projects is expected to commence during the fourth quarter of 2021, with completion expected late next year.

“Maintaining our nation’s waterways is critical to the economy of our country and being able to continue to support the US Army Corps of Engineers in executing their mission is equally critical to Orion,” said Mark Stauffer, Orion’s President and Chief Executive Officer. “We have several ongoing projects for the US Army Corps of Engineers and the addition of these projects adds to the growing backlog in our marine business.”

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, 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 pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas.

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 Private Securities Litigation Reform Act of 1995, the provisions of which 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, profit, EBITDA, 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 estimated project start date, 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 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.

Please refer to the Company’s Annual Report on Form 10-K, filed on March 2, 2021, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210928005318/en/

Orion Group Holdings Inc.

Francis Okoniewski, Vice President Investor Relations

(346) 616-4138

fokoniewski@orn.net

www.oriongroupholdingsinc.com

Robert Tabb, Executive Vice President & CFO

(713) 852-6500

www.oriongroupholdingsinc.com

Source: Orion Group Holdings, Inc.

FAQ

What are the recent contract awards by Orion Group Holdings (ORN)?

Orion Group Holdings announced three contract awards totaling approximately $22 million for dredging services from the US Army Corps of Engineers.

How much could Orion Group Holdings' contract values potentially increase?

The contract values could potentially increase by up to $19 million.

When is the expected start date for the projects awarded to Orion Group (ORN)?

The work on the awarded projects is expected to commence during the fourth quarter of 2021.

What is the total value of the contracts awarded to Orion Group Holdings?

The total value of the contracts awarded to Orion Group Holdings is approximately $22 million.

Which segment of Orion Group Holdings received the new contracts?

The Marine segment of Orion Group Holdings received the new contracts for dredging services.