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Construction services firm Orion reported stronger-than-expected third-quarter results, supported by solid execution and improved performance in its marine segment. The company posted adjusted earnings per share of USD 0.09, surpassing analysts' estimate of USD 0.05, while adjusted EBITDA stood at USD 13.10 million compared to expectations of USD 12.98 million. Contract revenues reached USD 225.09 million. Following this performance, Orion raised its full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted EPS. The firm also expanded its bonding capacity by USD 400 million and plans to sell its East and West Jones property to lower costs and debt.
Construction and engineering company Orion Group Holdings reported stronger-than-expected financial results for the third quarter, reflecting consistent project execution and improved performance across its business segments. The company recorded adjusted earnings per share of USD 0.09, exceeding the consensus estimate of USD 0.05. Reported EPS came in at USD 0.08, while net income for the quarter was USD 3.30 million. Advertisement
Total contract revenues stood at USD 225.09 million, supported mainly by higher activity in the marine segment, which saw an increase in project volumes and contract wins. The company's adjusted EBITDA for the quarter was USD 13.10 million, slightly above the analyst expectation of USD 12.98 million. Gross profit improved to USD 29.75 million, indicating continued operational efficiency.
Management noted that the marine segment's performance was a key contributor to the sequential revenue growth. Orion also expanded its bonding capacity by USD 400 million, allowing the firm to compete for larger and more complex infrastructure projects in upcoming quarters. The company expects this move to strengthen its order pipeline and improve project diversification.
In addition, Orion plans to sell its East and West Jones property, which is expected to help reduce costs and lower debt levels. The company views the sale as part of its broader effort to streamline operations and enhance financial flexibility.
Following the strong quarterly results, Orion raised its full-year 2025 outlook. Revenue is now projected to range between USD 825 million and USD 860 million, compared to the previous guidance of USD 800 million-USD 850 million. The company also increased its adjusted EBITDA target to USD 44 million-USD 46 million and lifted its adjusted EPS forecast to USD 0.18-USD 0.22, up from USD 0.11-USD 0.17.
Market sentiment around Orion remains positive. The average analyst recommendation continues to be a "buy," with four analysts assigning "strong buy" or "buy" ratings. There are no "hold" or "sell" recommendations at present. The median 12-month price target for Orion Group Holdings stands at USD 11.25, representing about a 22.6 % premium over its recent closing price of USD 8.71.
Currently, the stock trades at roughly 27 times its expected next-12-month earnings, compared to a price-to-earnings ratio of 30 three months ago. This decline suggests that earnings growth has begun to outpace the stock's valuation, reflecting improved investor confidence in Orion's future performance and project pipeline.
Source Reuters
5th Jun, 2025
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