We feel now is a pretty good time to analyse Orion Group Holdings, Inc.'s (NYSE:ORN) business as it appears the company may be on the cusp of a considerable accomplishment. 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$288m 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$11m, as it approaches breakeven. As path to profitability is the topic on Orion Group Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 5 of the American Construction analysts is that Orion Group Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$4.4m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 148% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Orion Group Holdings' growth isn't the focus of this broad overview, though, keep 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 55%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Orion Group Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Orion Group Holdings, take a look at Orion Group Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further research:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com