Orion Group Holdings (NYSE: ORN): Constructing The Future

This week’s report comes to you by request of a premium subscriber. The firm actually aligns quite well with a previously covered name, CRH (NYSE: CRH), that primarily focuses operations on supplying materials for infrastructure & construction projects.

As discussed in my report covering CRH, there are three major pieces of legislature that can beneficially impact the industry: IRA, IIJA, and the CHIPS Act. In addition to these factors, the global data center footprint is expected to grow at a 23% CAGR through 2030, providing a significant tailwind for related construction projects. With the Fed reducing the key rate this week, I have reason to believe that we may be in an easing cycle, which should beneficially impact the industry relating to project financing.

Orion Group (NYSE: ORN)

Orion was founded in 1994 with a primary focus on marine construction project management. From there, Orion has grown through M&A and organic growth that has expanded its geographical footprint as well as asset base.

Similar to CRH, Orion is well-positioned to see real value from the IIJA, IRA, and the CHIPS Act, assuming the legislature stays intact with the new administration change.

Unlike CRH, the firm is more entrenched on the construction side of the business as well as operates marine-related construction operations, including pipeline construction, environmental structures, and dredging of waterways. Port services include cruise ship port facilities, private terminals, Navy terminals, and recreational use marinas and docks.