HOUSTON – Orion Group Holdings, Inc. (NYSE: NYSE:), a specialty construction company, announced the price of its public offering of 4,860,000 shares of common stock at $5.15 each, with the goal of raising approximately $25 million before expenses. The proceeds are earmarked for working capital and other business needs, which may include debt repayments. Orion also granted the underwriters a 30-day option to purchase an additional 729,000 shares. The offering is expected to close around Thursday, subject to customary conditions.
The company, which operates in the infrastructure, industrial, and construction sectors, on land and in water, throughout North America and the Caribbean, expressed its intention to use the proceeds to strengthen its working capital and general business objectives. This may include paying debts under its credit agreement.
Craig-Hallum Capital Group is the sole book-running manager, Roth Capital Partners is the co-manager. The shares are offered under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). The final prospectus supplement and accompanying prospectus will be filed with the SEC and made available to Craig-Hallum Capital Group.
Orion's marine division offers a variety of construction and towing services, while its concrete division offers comprehensive concrete construction services. The company, headquartered in Houston, Texas, has regional offices in all of its operating locations.
The announcement comes as the company exercises the “safe harbor” provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, with forward-looking statements regarding the offering's timing, size, terms, and use of proceeds. However, these statements are subject to risks and uncertainties, and actual results may differ materially.
The information in this article is based on a press release from Orion Group Holdings, Inc.
In other recent news, Orion Group Holdings has announced its intention to make a public stock offering, the final terms of which are yet to be confirmed and depend on market conditions. The funds raised in this offering are intended for working capital and general corporate purposes, including potentially repaying existing debt. The sole controlling underwriter of the offering is Craig-Hallum Capital Group.
In terms of financial performance, Orion Group Holdings recently reported its financial results for the second quarter of 2024, which included revenue of $192 million and adjusted EBITDA of $5.5 million. However, due to unexpected project delays, the company revised its annual guidance 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 has been awarded $876 million in work. It also received significant project contracts with Port Everglades, Port Tampa Bay, and Costco Wholesale (NASDAQ: ). Looking ahead, Orion Group Holdings is actively pursuing additional phases of Costco projects in Florida and Texas. These are some of the recent developments of Orion Group Holdings.
InvestingPro Insights
As Orion Group Holdings, Inc. (NYSE: ORN) navigates its latest public offering, the company's financial health and market performance are being looked at by investors. With a market capitalization of approximately $211.91 million, Orion's financial situation presents a mixed picture. One of the “InvestingPro Tips” highlights that Orion is operating with a heavy debt load, which coincides with the company's announcement that part of the proceeds from the stock offering may be used to pay down debt. This strategy may be easier for the company to carry cash, especially considering another tip indicating that Orion may have trouble paying interest on its debt.
On the other hand, one of the tips suggests that Orion's revenue is expected to grow this year, which could be a good indicator for investors looking at the company's future profitability. However, it is important to note that the company has not made a profit in the last twelve months, and analysts have revised their earnings down in the future, indicating a certain level of caution about Orion's near financial outlook.
From “InvestingPro Data,” we can see that Orion has experienced price volatility in various time frames, with a 1-week price return of -8.63% and a significant 3-month price return of -38.23%. The stock's high price volatility is also reflected in these figures, which is consistent with one of the “InvestingPro tips” noting that stocks often trade in volatile prices. Investors may also consider the company's price-to-book ratio of 1.91 as they evaluate the stock's value relative to its total assets.
For those interested in more detailed analysis, there are additional “InvestingPro Tips” available, which provide a comprehensive overview of Orion's financial health and market performance. To explore this additional information, investors can visit the dedicated InvestingPro page for Orion Group Holdings at
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