Another strong quarter driven by solid execution. 2Q2020 gross profit of $20.7 million and EBITDA of $12.6 million beat our estimates of $18.7 million and $10.5 million, respectively. Revenue was 8% higher than expected with gross margin of 11.3% and EBITDA margin of 6.9%, or ~30-70 basis points better than our estimates. One main driver was much higher than expected Concrete EBITDA margin of 3.0%, up from 1.3% in 1Q2020. Marine profitability declined sequentially remain solid due to strong execution and equipment utilization. Please see details for today's call with management on page two.2020 EBITDA guidance remains suspended due to uncertainty caused by COVID-19. Minor disruptions seen to date and bidding activity continues in both segments, but management remains cautious amidst uncertainty, similar to many other companies. Our revised estimate is likely to be in the $45 million range due to the positive variance in 2Q2020 operating results.2Q2020 backlog dropped to $528 million versus $610 million in 1Q2020 and $572 million at year-end 2019. Marine was down $50 million to $312 million and Concrete fell $31 million off a record level to $216 million. Industry fundamentals remain positive despite state level concerns about COVID-19. YTD successful bids total $324 million ($167 million in marine and $157 million in concrete), and ~$73 million of low bids/not yet awarded are pending.Free operating cash flow remained solid at $9.0 million ($0.30/share) in 2Q2020 due to strong operating results, positive working capital management and below-average capex. Net debt dropped an additional ~$15 million in 2Q2020 to $43.2 million, and we expect net debt to end the year in the sub-$40 million range.Maintain Outperform and price target of $7.40/share. After a positive move of 19% in June, Orion is down ~5% in July, or ~42% this year, due to COVID-19 uncertainty and broader economic concerns. We remain convinced that the outlook is positive and the current stock price doesn't fairly reflect structural improvements from the ISG restructuring program and the positive 2H2020 outlook. A combination of the above-average backlog, improved profitability, lower financial leverage and attractive valuation of 3.2x 2020E EBITDA supports our constructive view, and the current risk/reward profile remains compelling.Read More >>