Orion Group Holdings, Inc. ORN has secured three new contracts valued at approximately $111 million. The contracts consist of two projects in the Marine segment and one in the Concrete segment. These projects are expected to begin in 2025 and will be completed within 20 months.
The contract awards further reinforce Orion's position as a leader in the industry. The company is well-equipped to handle complex projects with its expertise and experience.
Details of ORN's New Contracts
Orion's Marine segment clinched an $88 million contract from the South Carolina State Ports Authority through a competitive bidding process. The project involves extending the Hugh K. Leatherman Terminal Wharf at the Port of Charleston. Orion will build 1,600 feet of concrete pile-supported wharf as an extension of the existing terminal. The scope includes installing precast concrete piles, caps, deck slabs and stay-in-place tubes, as well as dredging and shoreline stabilization. Construction is set to begin in the first quarter of 2025 and will take about 20 months.
The segment also secured a $12.9 million subcontract from Haskell for the West Bank Riverwalk pedestrian bridge project in Tampa, FL. The bridge will span the Hillsborough River in downtown Tampa. Its design is currently underway and construction is scheduled to begin in the third quarter of 2025. The project is expected to take approximately 18 months to complete.
The company's Concrete segment clinched a $10.3 million contract from HITT Contracting, LLC for the construction of a new data center in Garland, TX. The center is being built for a confidential hyperscaler client. Construction is expected to start in January 2025 and will span about nine months.
The new contract awards further expand Orion's project portfolio. The South Carolina State Ports Authority project highlights the growing demand for port expansion, driven by larger vessels and increased global trade. Meanwhile, the company's new data center contract highlights ORN’s solid relationships with key contractors who rely on its expertise and industry-leading safety standards.
ORN’s Share Price Performance
Shares of Orion have gained 48.2% in the past month, outperforming the Zacks Building Products - Heavy Construction industry’s 15.4% growth. The company is benefiting from the resolution of project delays and the progress of ongoing projects. Orion's pipeline of opportunities has expanded significantly, now totaling more than $13 billion as of Sept. 30, 2024.
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The company is also capitalizing on the booming data center market, fueled by artificial intelligence developments. Orion’s Concrete segment, renowned for handling complex data center projects, has been seeing increased activity in the Houston and Dallas markets.
With a total backlog of $690.5 million as of Sept. 30, 2024, Orion is poised for significant growth. The company is focused on several major projects and sees strong potential ahead. Its pipeline has grown four times from $3 billion last year. This expansion is expected to boost revenue growth across diverse markets. The company anticipates a ramp-up in project activity starting in 2025, with transformational growth expected in 2026.
The Zacks Consensus Estimate for Orion’s 2024 earnings per share (EPS) has been revised upward to 10 cents from 3 cents in the past 30 days. The estimated figure indicates 128.6% year-over-year growth.
ORN’s Zacks Rank & Key Picks
Orion currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have gained 203.9% in the past year. The Zacks Consensus Estimate for STRL’s 2024 sales and EPS implies an increase of 9% and 33.3%, respectively, from the prior-year levels.
Louisiana-Pacific Corporation LPX currently sports a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has gained 86.8% in the past year.
The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates an increase of 12.7% and 72.1%, respectively, from a year ago.
MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 147.7% in the past year.
The Zacks Consensus Estimate for MTZ’s 2024 sales and EPS indicates an increase of 1.9% and 84.3%, respectively, from a year ago.
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