Construction services firm Orion beats Q3 adjusted EPS estimates, lifts FY25 outlook

Overview

• Orion Q3 adjusted EPS beats analyst expectations, reflecting strong operational performance

• Adjusted EBITDA for Q3 exceeded analyst estimates, driven by strong execution

• Company raises full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted EPS

Outlook

• Orion raises 2025 revenue guidance to $825 mln-$860 mln from $800 mln-$850 mln

• Company increases 2025 adjusted EBITDA guidance to $44 mln-$46 mln

• Orion raises 2025 adjusted EPS guidance to $0.18-$0.22 from $0.11-$0.17

Result Drivers

• MARINE SEGMENT - Increased volume in Marine segment contributed to sequential revenue growth

• BONDING CAPACITY - Expanded bonding capacity by $400 mln to capture larger projects

• PROPERTY SALE - Sale of East and West Jones property expected to reduce costs and debt

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Orion Group Holdings Inc is $11.25, about 22.6% above its October 27 closing price of $8.71

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nGNX3bJg3r

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)