Orion Group Holdings, Inc. · NYSE:ORN
Orion — Q3 2024 Earnings Presentation
26 slides from Orion's earnings presentation, November 2024
Slide 1: Orion Group Holdings, Inc. Delivering Predictable Excellence
Orion Group Holdings, Inc. Delivering Predictable Excellence November 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are su
Slide 3: At a Glance
AT A GLANCE Orion is a leading marine and specialty construction company in the U.S., Canada and Caribbean Basin SERVICES KEY STATISTICS C O M PAN Y O VERVIEW Marine Concrete Transportation facility & infrastructure construction; Commercial, structural, and industrial $711.8M $23.8M 2023 Revenue 202
Slide 4: Phase 1 of Strategic Plan Completed
PHASE 1 O F STRATEGIC PLAN CO MPLETED 0 1. 0 2. 0 3. Improved profitability Strengthened business Fortified financial flexibility to in the concrete business development to drive growth optimize growth potential opportunities Implemented minimum bid margins – Pursuing Recruited high-caliber talent –
Slide 5: Phase 2 of Strategic Plan
PHASE 2 O F STRATEGIC PLAN Driving our growth potential Foundation in place, turning Demand for specialized full attention to growth Marine construction exceeds supply In a little over a year, we almost quadrupled our pipeline of opportunity from $3B to over $14B Massive opportunities in marine cons
Slide 6: Strong Industry Tailwinds
STRO NG INDUSTRY TAILWINDS 0 1. 0 2. 0 3. 0 4. $1.2 trillion Infrastructure Port expansion and U.S. Navy expansions in Coastal rehabilitation Act maintenance the Pacific Increased disaster recovery from regional weather events, environmental Multi-year catalyst for public sector Larger ships via exp
Slide 7: Aging U.S. Navy Infrastructure
Ag ing U.S. Na vy Infra structure Expanding PRC Presence in the Western Hemisphere We anticipate US Navy funding for port renovations to accelerate • Aging US Navy port infrastructure – average dry dock is now 107 years old1 • USN has 9 dry docks in HI & WA; replacement of dry dock 3 in Pearl Harbor
Slide 8: Locations
LO CATIO NS Anchorage Seattle/Tacoma Dallas Honolulu Houston New Orleans Port Lavaca Tampa Orion Local Offices/Operations Orion Headquarters
Slide 9: Representative Customers
Re p re se nta tive Custome rs Other end markets Energy Data Centers Government (Tourism, Private Residential & Commercial Developers, Commodities, & Agriculture)
Slide 10: Marine Segment Overview
CONSTRUCTION Marine Revenue & Adj EBITDA Margin MARINE $369.1 $388.2 $395.9 SEGMENT $339.2 $263.9 ($ in millions) 12.3% 10.4% O VERVIEW 9.3% 8.1% 5.2% 2019 2020 2021 2022 2023 Orion Marine benefits from high-margin projects with high DREDGING Marine Revenue Adj EBITDA Margin barriers to entry and co
Slide 11: Concrete Segment Overview
Concrete Revenue & Adj EBITDA Margin CO NCRETE LIGHT COMMERCIAL $409.1 SEGMENT $339.3 $337.4 $321.8 $315.9 ($ in millions) O VERVIEW 0.3% 2.1% -1.2% -2.1% 1.0% 2019 2020 2021 2022 2023 Improved project margin focus Concrete Revenue Adj EBITDA Margin has laid the groundwork for STRUCTURAL future succ
Slide 12: Backlog Wins
BACKLO G WINS $435M $120M $762.2 $590.0 contract (largest in contract to build dry dock in ($ in millions) $572.3 company history) to build Grand Bahamas shipyard dry dock in Pearl Harbor, HI $439.5 $448.8 Quadrupled pipeline Q3’24 Backlog Record Backlog opportunity from Entering 2024 $3B to $14B $6
Slide 13: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Travis Boone, PE Scott Thanisch Chip Earle Chief Executive Officer Chief Financial Officer General Counsel impressive legal, compliance and Leadership and management Multi-disciplinary finance risk management background. experience in civil, utility/pipeline, experience,
Slide 14: Financial Overview
FINANCIAL OVERVIEW
Slide 15: Financial Overview
FINANCIAL O VERVIEW Annual Revenue $781.1 $748.3 $709.8 $711.8 $601.4 ($ in millions) LTM Revenue by LTM Adj. EBITDA1 by Q3’24 Backlog by Segment Segment Segment 2020 2021 2022 2023 LTM 22% 34% 36% Adj. EBITDA1 66% 64% $54.4 78% $39.6 ($ in millions) $22.9 $23.8 $17.3 Marine Concrete Marine Concrete
Slide 16: Third Quarter 2024
THIRD Q UARTER 2 0 2 4 Q3 2024 Q3 2023 Growth (YoY) Revenue $226.7M $168.5M +35% GAAP EPS $0.12 $(0.02) N/A Adjusted EBITDA $15.2M $9.4M +62% Adjusted EBITDA Margin 6.7% 5.6% +114 bps
Slide 17: Balance Sheet and Liquidity
BALANCE SHEET AND LIQ UIDITY September 30, 2024 Cash & Cash Equivalents Net Debt Outstanding Availability on Revolver $28.3M $28.0M $46.1M On September 12, 2024, raised $26.5 million in net proceeds from a 5.6 million share offering, which included the full shoe, at $5.15 per share.
Slide 18: 2024 Guidance
2 0 2 4 GUIDANCE FY 2024 Revenue $850M - $900M GAAP EPS $(0.10) - $0.04 Adjusted EPS $0.11 - $0.22 Adjusted EBITDA $40M - $45M
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS 0 1. 0 2. 0 3. Mission Critical Specialty Experienced Management Large Market Opportunity Construction Provider with Team Focused on Growth with Strong Tailwinds and Sustainable Competitive and Financial Performance Demand Drivers Advantages 0 4. 0 5. 0 6. Diversified Revenue w
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Net Income to Adjusted EBITDA Reconciliation Year Ended December 31, LTM September 30, 2020 2021 2022 2023 2024 Net income (loss) $ 20,220 $ (14,560) $ (12,612) $ (17,875) $ (12,763) Income tax expense 1,976 502 429 330 202 Interest expense, net 4,737 4,940 4,352
Slide 22: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Three months ended Nine months ended Net Income to Adjusted Operating EBITDA Reconciliation September 30, September 30, 2024 2023 2024 2023 Net income (loss) $ 4,262 $ (660) $ (8,398) $ (13,510) Income tax expense (benefit) 82 (123) 347 475 Interest expense, net
Slide 23: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Net Income to Adjusted Operating EBITDA Reconciliation by Segment Year Ended December 31, LTM September 30, 2019 2020 2021 2022 2023 2024 Marine Concrete Marine Concrete Marine Concrete Marine Concrete Marine Concrete Marine Concrete Operating income (loss) $ 12,
Slide 24: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Guidance Range - Adjusted EBITDA Reconciliation Twelve Months Ended December 31, 2024 Net (loss) income $ (3,543) $ 1,457 Income tax expense 728 728 Interest expense, net 12,675 12,675 Depreciation and amortization 23,168 23,168 EBITDA (1) 33,028 38,028 Share-bas
Slide 25: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Guidance Range – Reconciliation of Adjusted Net Income (Loss) Twelve Months Ended December 31, 2024 Net (loss) income $ (3,543) $ 1,457 Adjusting items and the tax effects: Share-based compensation 4,023 4,023 ERP implementation 2,092 2,092 Process improvement in
Slide 26: Thank You!
THANK YOU!