Orion Group reports minimal impact from Hurricane Milton

Houston-based Orion Group Holdings Inc. (NYSE:ORN) announced today that its operations have not been significantly affected by Hurricane Milton, which made landfall near Sarasota, Florida, on October 9, 2024. According to a recent filing with the Securities and Exchange Commission, the company's Tampa, Florida offices and assets in the vicinity suffered only minor damage due to the storm.

The company, which operates within the heavy construction industry, specifically under the Heavy Construction Other Than Building Construction - Contractors classification, has its principal executive offices located at 12000 Aerospace Suite 300, Houston, Texas. Orion Group Holdings, previously known as Orion Marine Group Inc ., has a fiscal year-end on December 31 and is registered in Delaware.

The information provided in the Form 8-K filing, which includes details about the limited impact of Hurricane Milton on the company's operations, is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it subject to the liabilities of that section. Moreover, the information should not be considered incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act unless specifically referenced in such filings.

The filing also included an exhibit: the Cover Page Interactive Data File, which is embedded within the Inline XBRL document. This document is part of the company's regular financial reporting.

Orion Group Holdings' announcement is a positive note for investors and stakeholders concerned about the potential impact of natural disasters on company operations. The filing was signed by President and Chief Executive Officer Travis J. Boone and dated today.

This news is based on a press release statement and provides a factual update on the status of Orion Group Holdings in the aftermath of Hurricane Milton.

In other recent news, Orion Group Holdings has been involved in several significant developments. The company, in collaboration with Bayer (OTC:BAYRY), has achieved over €1 billion in sales from its prostate cancer medication, Nubeqa, particularly in the U.S. market.

This success has spurred Orion to seek FDA approval to expand Nubeqa's application to a new category of patients. In addition, Orion has been working on non-opiate pain treatments and other pharmaceutical innovations through a research center it opened in the U.S. last year.

Orion Group Holdings also announced the termination of a $30.5 million land deal in Texas. Furthermore, the company has completed a public offering of 4,860,000 shares at $5.15 each, raising approximately $25 million before expenses. These funds are intended for general corporate purposes, including potential debt repayment, and were managed by Craig-Hallum Capital Group and Roth Capital Partners.

Recently, Orion Group Holdings reported Q2 2024 revenues of $192 million and an adjusted EBITDA of $5.5 million. Due to project delays, the annual guidance has been revised to a revenue range of $850 million to $900 million and an adjusted EBITDA range of $40 million to $45 million. Despite these challenges, the company maintains a strong backlog and awarded work totaling $876 million.

Analyst firm B.Riley adjusted its outlook on Orion Marine Group, reducing the price target from $11 to $9 but maintaining a buy rating. This adjustment came in response to the company's recent secondary offering of 4.89 million shares at $5.15 each. These are some of the recent developments for Orion Group Holdings.

InvestingPro Insights

While Orion Group Holdings Inc. (NYSE:ORN) has weathered Hurricane Milton with minimal impact, InvestingPro data reveals some financial challenges for the company. As of the last twelve months ending Q2 2024, ORN reported a revenue of $722.91 million USD, with a modest growth of 0.33%. However, the company's profitability remains a concern, as indicated by its negative P/E ratio of -16.98.

InvestingPro Tips highlight that ORN operates with a significant debt burden and may have trouble making interest payments. This financial strain could potentially affect the company's ability to respond to future natural disasters or market challenges. On a more positive note, net income is expected to grow this year, and analysts predict the company will be profitable in the current fiscal year.

For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for ORN, providing a deeper understanding of the company's financial health and market position.

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