Orion Returns To Profitability In Q3
Orion Group Holdings, the Houston-based parent of marine construction and dredging firm Orion Marine Group, reported third-quarter earnings of $0.2 million, or $0.01 per share, up from a net loss of $10.2 million, or $0.33 per share for the same quarter of 2021. Excluding non-recurring items, third-quarter 2022 adjusted net income was $0.8 million.
“We are excited to see bid margins of recent wins increasing in the third quarter due to more disciplined bidding practices established over the past few months,” said Travis Boone, Orion’s CEO, in the October 26 announcement. “These higher-margin projects will establish a solid base of work for 2023. We will continue to focus on disciplined bidding, along with strong project delivery, as we pursue profitable growth.”
Boone joined Orion Group Holdings in September. He was formerly a regional chief executive of AECOM and legacy companies. In addition, Scott Thanisch was named Orion executive vice president and chief financial officer in September; Thanisch was previously the chief financial officer of a Texas commercial construction services company and a transport services, maintenance and repair company.
Orion reported contract revenues of $182.6 million, an increase of $42.7 million or 30.5 percent from a year ago.
Orion said its backlog of work under contract as of September 30 was $548.6 million, split almost evenly between the company’s marine and concrete segments. At that point, Orion had approximately $1.8 billion in bids outstanding, including approximately $39 million in projects that were awarded to the company after the end of the quarter. Of that $39 million, $36 million was in the marine segment.
“During the third quarter, we converted to backlog $128 million of the $1.2 billion of work on which we bid,” Thanisch said. “This resulted in a 0.70 times book-to-bill ratio and a win rate of 10.5 percent. In the marine segment, we bid on $377 million during the third quarter of 2022 and were successful on $75 million, representing a win rate of 20 percent and a book-to-bill ratio of 0.99 times. In the concrete segment we bid on $849 million of work and were awarded $53 million, representing a win rate of 6.2 percent and a book-to-bill ratio of 0.50 times.”
Port Lavaca Property
Orion also reported that it has signed an agreement for the $10.5 million sale-leaseback of its Port Lavaca, Texas, property. The transaction is expected to close in December. Orion said it continues to explore options to monetize additional real estate assets.