HOUSTON - Orion Group Holdings, Inc. (NYSE: NYSE:ORN), a specialty construction firm, announced the pricing of its public offering of 4,860,000 shares of common stock at $5.15 each, aiming to raise about $25 million before expenses. The proceeds are earmarked for working capital and other corporate needs, potentially including debt repayment. Orion also granted underwriters a 30-day option to buy up to 729,000 additional shares. The offering is expected to close around Thursday, subject to standard conditions.
The company, which operates in the infrastructure, industrial, and building sectors, both on land and water, across North America and the Caribbean, stated its intention to utilize the net proceeds to bolster its working capital and for general corporate purposes. This may cover repaying debts under its credit agreement.
Craig-Hallum Capital Group is the sole book-running manager, with Roth Capital Partners as the co-manager. The shares are being 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 obtainable from Craig-Hallum Capital Group.
Orion's marine segment offers various construction and dredging services, while its concrete segment provides comprehensive concrete construction services. The company, headquartered in Houston, Texas, has regional offices across its operating territories.
This announcement comes as the company is leveraging the "safe harbor" provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, with forward-looking statements about 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 statement from Orion Group Holdings, Inc.
In other recent news, Orion Group Holdings has announced its intention to conduct a public stock offering, with the final terms yet to be confirmed and dependent on market conditions. The funds raised from this offering are intended for working capital and general corporate purposes, including potentially repaying existing debt. The sole managing underwriter for the offering is Craig-Hallum Capital Group.
In terms of financial performance, Orion Group Holdings recently reported its second quarter financial results for 2024, which included a revenue of $192 million and an adjusted EBITDA of $5.5 million. However, due to unforeseen project delays, the company has 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 awarded work totaling $876 million. It has also secured significant project contracts with Port Everglades, Port Tampa Bay, and Costco Wholesale (NASDAQ:COST). Looking forward, Orion Group Holdings is actively pursuing additional phases of Costco projects in Florida and Texas. These are some of the recent developments for Orion Group Holdings.
InvestingPro Insights
As Orion Group Holdings, Inc. (NYSE: ORN) navigates through its latest public offering, the company's financial health and market performance are under scrutiny by investors. With a market capitalization of approximately $211.91 million, Orion's financial landscape presents a mixed picture. One of the "InvestingPro Tips" highlights that Orion operates with a significant debt burden, which aligns with the company's announcement that part of the proceeds from the stock offering may be used for debt repayment. This strategy could potentially ease the company's financial load, especially considering another tip that indicates Orion may have trouble making interest payments on its debt.
On the upside, one of the tips suggests that Orion's net income is expected to grow this year, which could be a positive indicator for investors looking at the company's future profitability. However, it's important to note that the company has not been profitable over the last twelve months, and analysts have revised their earnings downwards for the upcoming period, reflecting a degree of caution about Orion's near-term financial outlook.
From the "InvestingPro Data," we see that Orion has experienced a price decline over various time frames, with a 1-week price total return of -8.63% and a more significant 3-month price total 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 the stock generally trades with high price volatility. Investors may also consider the company's price-to-book ratio of 1.91 as they assess the stock's value relative to its net assets.
For those interested in a more detailed analysis, there are additional "InvestingPro Tips" available, providing a comprehensive view of Orion's financial health and market performance. To explore these further insights, investors can visit InvestingPro's dedicated page for Orion Group Holdings at https://www.investing.com/pro/ORN.
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