Analysts Expect Breakeven For Orion Group Holdings, Inc. (NYSE:ORN) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Orion Group Holdings, Inc.'s (NYSE:ORN) future prospects. Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the United States, Alaska, Hawaii, Canada, and the Caribbean Basin. The US$243m market-cap company’s loss lessened since it announced a US$18m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$18m, as it approaches breakeven. As path to profitability is the topic on Orion Group Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Orion Group Holdings

According to the 4 industry analysts covering Orion Group Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$13m in 2025. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 173% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Orion Group Holdings given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Orion Group Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Orion Group Holdings' case is 77%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Orion Group Holdings, so if you are interested in understanding the company at a deeper level, take a look at Orion Group Holdings' company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is Orion Group Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Orion Group Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Orion Group Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.