Orion Group Enters $120M Credit Facility with UMB Bank
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Should l Buy ORN?
Orion Group entered into a new, five-year $120M Senior Credit Facility with UMB Bank. The $120M UMB Credit Facility matures in December 2030 and is comprised of a $60M revolving line of credit, a $20M equipment term loan facility, and a $40M acquisition term loan facility. The Credit Facility also includes an additional $25M uncommitted accordion to fund future growth. This facility refinances and replaces the Company's previous $88M credit agreement, which was scheduled to mature in May 2028. Borrowings under the new facility bear interest at the Company's option at the Secured Overnight Financing Rate plus 2.5% to 3.0%, as determined based on the Company's consolidated leverage, representing a reduction of approximately 225 basis points compared to the prior credit agreement. Proceeds will be used to repay outstanding borrowings of $23M under the Company's prior facility and for general corporate purposes.
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Analyst Views on ORN
Wall Street analysts forecast ORN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORN is 13.00 USD with a low forecast of 13.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 13.700
Low
13.00
Averages
13.00
High
13.00
Current: 13.700
Low
13.00
Averages
13.00
High
13.00
About ORN
Orion Group Holdings, Inc. is a specialty construction company that serves the infrastructure, industrial, and building sectors. The Company provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin. Its segments include marine and concrete. Its marine segment provides construction and dredging services, including marine transportation facility construction, marine pipeline construction, marine environmental structures construction, dredging of waterways, channels and ports, environmental dredging, design, and specialty services related to marine construction, fabrication, and dredging. Its concrete segment provides turnkey concrete construction services, including concrete surface place and finish, site preparation, layout, forming, and rebar placement for large commercial, structural and other associated business areas. Its specialty services include design, salvage, demolition, surveying, towing, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Positive Market Outlook: J.P. Morgan initiated coverage on Great Lakes Dredge & Dock (GLDD) with an Overweight rating and a $20 year-end price target, indicating the company is entering a multi-year upcycle driven by record government infrastructure spending, which is expected to significantly boost stock prices.
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- Offshore Energy Expansion: Great Lakes' entry into offshore energy creates a new growth vertical, positioning the company to benefit from the global energy transition, with analysts expecting double-digit EPS growth ahead, reflecting an attractive risk/reward profile.
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- Optimized Credit Structure: The new credit facility comprises a $60 million revolving line of credit, a $20 million equipment term loan, and a $40 million acquisition term loan, along with an additional $25 million uncommitted accordion to fund future growth needs.
- Significant Rate Advantage: The new facility's interest rate is set at SOFR plus 2.5% to 3.0%, representing a reduction of approximately 225 basis points compared to the previous credit agreement, which will lower the company's financing costs and enhance profitability.
- Improved Debt Servicing Capability: Proceeds from this financing will be used to repay $23 million of outstanding borrowings under the prior facility and for general corporate purposes, ensuring the company has stronger liquidity and debt servicing capabilities moving forward.
See More
Orion Group Secures $120 Million Senior Credit Facility for Growth
- Enhanced Financial Flexibility: Orion Group has entered into a new five-year $120 million Senior Credit Facility with UMB Bank, significantly increasing the company's financial flexibility and liquidity to support its strategic growth priorities.
- Cost Reduction: The new credit agreement features an interest rate reduction of approximately 225 basis points compared to the previous facility, lowering the overall cost of capital and enhancing the feasibility of future investments and profitability.
- Clear Use of Proceeds: The proceeds from this financing will be used to repay $23 million of outstanding borrowings under the prior facility and for general corporate purposes, ensuring the company maintains sufficient liquidity for future operations.
- Strategic Partnership: The collaboration with UMB Bank not only provides essential funding support for Orion but also reflects the bank's confidence in Orion's future growth potential, further solidifying the strategic partnership between the two entities.
See More
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- Enhanced Financial Flexibility: Orion Group has entered into a new five-year $120 million credit facility with UMB Bank, significantly increasing the company's financial flexibility and liquidity while lowering overall capital costs to support future strategic growth.
- Optimized Credit Structure: The new credit facility comprises a $60 million revolving line of credit, a $20 million equipment loan, and a $40 million acquisition loan, along with an additional $25 million uncommitted accordion to fund future growth initiatives.
- Reduced Cost of Capital: The new facility's interest rate is set at SOFR plus 2.5% to 3.0%, representing a reduction of approximately 225 basis points compared to the previous agreement, which will directly decrease the company's financing costs and enhance profitability.
- Strategic Restructuring Opportunity: This refinancing replaces the prior $88 million credit agreement, demonstrating Orion's commitment to optimizing its capital structure and enhancing financial stability, thereby laying the groundwork for expansion in the infrastructure and construction sectors.
See More
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Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of buying low and selling high, but it carries risks if stocks lose momentum after high valuations.
Orion Marine Group (ORN) Highlights: ORN has shown significant price momentum with an 18.1% increase over four weeks and a 22.2% gain over 12 weeks, making it a strong candidate for momentum investing.
Valuation and Earnings Potential: ORN is trading at a low Price-to-Sales ratio of 0.51, indicating it is attractively priced despite its momentum, and it has a favorable Zacks Rank #2 (Buy) due to positive earnings estimate revisions.
Investment Strategy Tools: Investors can utilize Zacks Premium Screens and the Research Wizard to identify potential winning stocks, with past recommendations showing substantial returns, highlighting the importance of a proven stock-picking strategy.
See More
Great Lakes Dredge & Dock (GLDD) Initiated at Overweight by J.P. Morgan with $20 Price Target
- Positive Market Outlook: J.P. Morgan initiated coverage on Great Lakes Dredge & Dock (GLDD) with an Overweight rating and a $20 year-end price target, indicating the company is entering a multi-year upcycle driven by record government infrastructure spending, which is expected to significantly boost stock prices.
- Strong Backlog: The company boasts a backlog exceeding $1 billion, providing strong revenue visibility into 2026, while transitioning towards higher-margin capital projects and disciplined cost management is set to enhance profitability further.
- Offshore Energy Expansion: Great Lakes' entry into offshore energy creates a new growth vertical, positioning the company to benefit from the global energy transition, with analysts expecting double-digit EPS growth ahead, reflecting an attractive risk/reward profile.
- Industry Leadership: J.P. Morgan analysts noted that as the company expands into marine services, robust market demand and operational momentum will support sustained revenue growth and margin expansion, further solidifying its leadership position in the industry.
See More
JPMorgan Sees Upside for Orion Group with 40% Price Target Increase
- Positive Market Outlook: JPMorgan analysts predict that Orion Group and Great Lakes Dredge & Dock will benefit from increased U.S. infrastructure spending, achieving double-digit earnings growth in the coming years, with a year-end price target of $16 for Orion implying over 40% upside from Wednesday's close.
- Operational Strengths: Following a site visit to Orion's Tampa office and Clearwater Marina project, the analyst highlighted the company's operational strengths and culture, which are expected to support sustained revenue growth and margin expansion, with projected revenue growth of 6% year-over-year to $896 million by 2026.
- Market Share and Competitiveness: As the largest dredging contractor in the U.S. with a 35% market share, Great Lakes Dredge & Dock's $1 billion backlog and approximately $194 million in pending awards provide strong revenue visibility for future growth, with the analyst noting the company will benefit from port deepening, coastal protection, and climate resilience projects.
- Diversification Strategy: Orion's concrete segment serves as a strategic growth engine beyond marine infrastructure, allowing the company to capitalize on megatrends such as AI-driven digital infrastructure, thereby enhancing long-term earnings resilience and growth potential.
See More
Orion Group Secures $120 Million Credit Facility to Support Growth
- Enhanced Financial Flexibility: Orion Group has entered into a new five-year $120 million credit facility with UMB Bank, significantly increasing the company's financial flexibility and lowering overall capital costs, thereby supporting future strategic growth initiatives.
- Optimized Credit Structure: The new credit facility comprises a $60 million revolving line of credit, a $20 million equipment term loan, and a $40 million acquisition term loan, along with an additional $25 million uncommitted accordion to fund future growth needs.
- Significant Rate Advantage: The new facility's interest rate is set at SOFR plus 2.5% to 3.0%, representing a reduction of approximately 225 basis points compared to the previous credit agreement, which will lower the company's financing costs and enhance profitability.
- Improved Debt Servicing Capability: Proceeds from this financing will be used to repay $23 million of outstanding borrowings under the prior facility and for general corporate purposes, ensuring the company has stronger liquidity and debt servicing capabilities moving forward.
See More
Orion Group Secures $120 Million Senior Credit Facility for Growth
- Enhanced Financial Flexibility: Orion Group has entered into a new five-year $120 million Senior Credit Facility with UMB Bank, significantly increasing the company's financial flexibility and liquidity to support its strategic growth priorities.
- Cost Reduction: The new credit agreement features an interest rate reduction of approximately 225 basis points compared to the previous facility, lowering the overall cost of capital and enhancing the feasibility of future investments and profitability.
- Clear Use of Proceeds: The proceeds from this financing will be used to repay $23 million of outstanding borrowings under the prior facility and for general corporate purposes, ensuring the company maintains sufficient liquidity for future operations.
- Strategic Partnership: The collaboration with UMB Bank not only provides essential funding support for Orion but also reflects the bank's confidence in Orion's future growth potential, further solidifying the strategic partnership between the two entities.
See More
Orion Group Secures $120 Million Credit Facility to Support Growth Strategy
- Enhanced Financial Flexibility: Orion Group has entered into a new five-year $120 million credit facility with UMB Bank, significantly increasing the company's financial flexibility and liquidity while lowering overall capital costs to support future strategic growth.
- Optimized Credit Structure: The new credit facility comprises a $60 million revolving line of credit, a $20 million equipment loan, and a $40 million acquisition loan, along with an additional $25 million uncommitted accordion to fund future growth initiatives.
- Reduced Cost of Capital: The new facility's interest rate is set at SOFR plus 2.5% to 3.0%, representing a reduction of approximately 225 basis points compared to the previous agreement, which will directly decrease the company's financing costs and enhance profitability.
- Strategic Restructuring Opportunity: This refinancing replaces the prior $88 million credit agreement, demonstrating Orion's commitment to optimizing its capital structure and enhancing financial stability, thereby laying the groundwork for expansion in the infrastructure and construction sectors.
See More
Reasons Why Orion Marine (ORN) is an Excellent Option for Value Investors
Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of buying low and selling high, but it carries risks if stocks lose momentum after high valuations.
Orion Marine Group (ORN) Highlights: ORN has shown significant price momentum with an 18.1% increase over four weeks and a 22.2% gain over 12 weeks, making it a strong candidate for momentum investing.
Valuation and Earnings Potential: ORN is trading at a low Price-to-Sales ratio of 0.51, indicating it is attractively priced despite its momentum, and it has a favorable Zacks Rank #2 (Buy) due to positive earnings estimate revisions.
Investment Strategy Tools: Investors can utilize Zacks Premium Screens and the Research Wizard to identify potential winning stocks, with past recommendations showing substantial returns, highlighting the importance of a proven stock-picking strategy.
See More
