Yahoo Finance Orion Group Holdings Inc (ORN) (Q1 2024) Earnings Call Transcript Highlights: Navigating ...
Revenue: Q1 2024 revenue of $160.7 million; full year 2024 expected between $860 million to $950 million.
Adjusted EBITDA: Q1 2024 at $4.1 million; full year 2024 forecasted to be between $45 million to $50 million.
Net Loss: Q1 2024 GAAP net loss of $6.1 million, adjusted net loss of $4 million.
Earnings Per Share: Q1 2024 adjusted loss per diluted share of $0.12, GAAP loss per diluted share of $0.19.
Gross Margin: Q1 2024 gross profit margin increased to 9.7% of revenue.
Backlog: As of March 31, 2024, total backlog was $756.6 million.
Segment Performance: Marine revenue up 34%, concrete revenue down 32% in Q1 2024.
Adjusted EBITDA Margin: Marine segment at 0.9%, concrete segment at 5.7% for Q1 2024.
CapEx: Increased spending over 2023 to upgrade fleet for anticipated growth.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the magnitude of the US naval defense spending opportunity, especially in relation to the Pearl Harbor project? A: Travis Boone, President and CEO of Orion Group Holdings, noted that the opportunity in the Pacific runs into the multi-billions, although an exact figure hasn't been published. The company has compiled various project parts to estimate this substantial number.
Q: How does the concrete business's focus shift to data centers affect revenue, and what are the typical project sizes for these data centers? A: Travis Boone explained that the largest data center contract to date was approximately $55 million, with project sizes generally ranging from $20 million to $50 million. The shift to AI-driven infrastructure is increasing the number of opportunities in this area.
Q: Are there any specific complexities or specializations in data center projects that might lead to higher bid margins? A: Travis Boone clarified that data center projects are not significantly different from other complex concrete works the company undertakes. The work is similar, and Orion has historically performed well on these projects.
Q: Regarding the commercial concrete segment, how confident are you that the positive margins seen will continue? A: Travis Boone expressed confidence in maintaining strong performance in the concrete segment due to disciplined bidding and project delivery. Scott Thanisch, CFO, added that while Q1 margins were higher than average, they expect continued year-over-year progress.
Q: Can you provide details on the CapEx budget for 2024 and the major components within it? A: Scott Thanisch outlined that the CapEx needs include about $15 million annually for fleet maintenance and approximately $30 million for a dredge build program over the next few years.
Q: What is the timeline for peak construction activity on the Pearl Harbor project? A: Travis Boone indicated that peak construction activity for the Pearl Harbor project would occur from mid-this year until mid-next year, with activities ramping down towards the end of next year.
These Q&A highlights from Orion Group Holdings' earnings call provide insights into the company's strategic focus areas, including significant opportunities in naval defense spending and data center construction, while also detailing financial strategies and project timelines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
