Company Performance - Great Lakes Dredge & Dock (GLDD) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.31 per share a year ago [1][2] - The earnings surprise for this quarter was 96%, following a previous surprise of 38.10% when earnings were $0.29 per share against an expectation of $0.21 [2] - The company achieved revenues of $242.87 million for the quarter, surpassing the Zacks Consensus Estimate by 15.71%, compared to $198.66 million in the same quarter last year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $168.6 million, and for the current fiscal year, it is $0.69 on revenues of $775.45 million [8] - The estimate revisions trend for Great Lakes Dredge & Dock is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - Great Lakes Dredge & Dock operates within the Zacks Building Products - Heavy Construction industry, which is currently ranked in the top 5% of over 250 Zacks industries [9] - The industry has shown strong performance, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by a factor of more than 2 to 1 [9]

Great Lakes Dredge & Dock (GLDD) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Q1 twenty twenty five Great Lakes Dredge and Dock Corp Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising that your hand is r ...

Financial Performance - First quarter revenue was $242.9 million, an increase of $44.2 million from the first quarter of 2024[3] - Net income for the first quarter was $33.4 million, a $12.4 million increase compared to $21.0 million in the prior year[15] - Adjusted EBITDA for the first quarter was $60.1 million, reflecting improved project performance[3] - Contract revenues for Q1 2025 were $242.865 million, a 22.2% increase from $198.660 million in Q1 2024[26] - Gross profit for Q1 2025 was $69.523 million, compared to $45.574 million in Q1 2024, reflecting a significant improvement[26] - Net income for Q1 2025 increased to $33.416 million, up from $21.024 million in Q1 2024, representing a 58.9% growth[26] - Adjusted EBITDA for Q1 2025 was $60.108 million, compared to $42.924 million in Q1 2024, indicating a 40.0% increase[28] Backlog and Capital Expenditures - Dredging backlog as of March 31, 2025, was $1.0 billion, with an additional $265.3 million in low bids and options pending award[15] - Total dredging backlog as of March 31, 2025, was $968.527 million, down from $1,194.199 million as of December 31, 2024[32] - Total backlog, including offshore energy, was $1,013.472 million as of March 31, 2025, compared to $1,239.144 million as of December 31, 2024[32] - Total capital expenditures for the first quarter were $11.4 million, including $3.9 million for the construction of the Acadia vessel[15] Liquidity and Equity - Cash and cash equivalents increased to $11.336 million as of March 31, 2025, from $10.216 million as of December 31, 2024[30] - Total current liabilities decreased to $193.074 million as of March 31, 2025, from $216.013 million as of December 31, 2024[30] - Total equity increased to $479.944 million as of March 31, 2025, compared to $448.910 million as of December 31, 2024[30] - The Revolving Credit Facility was amended to increase its size from $300 million to $330 million, enhancing liquidity[6] Share Repurchase and Future Projects - A $50 million share repurchase program was approved, with $10.4 million spent to repurchase 1.2 million shares as of April 30, 2025[5] - The company has received notice to proceed for dredging work on the Woodside Louisiana LNG project, expected to commence in early 2026[4] - The company is actively pursuing opportunities in offshore wind projects and subsea infrastructure protection, expanding its market reach[16] Risks and Challenges - The company continues to face risks related to government funding and contract competition, which could impact future performance[24]

Financial Performance - The company reported first quarter revenue of $242.9 million, an increase of $44.2 million compared to the same period in 2024 [9][16] - Net income for the first quarter was $33.4 million, up $12.4 million from $21.0 million in the prior year [9][16] - Adjusted EBITDA for the quarter was $60.1 million, reflecting a significant increase from $42.9 million in the first quarter of 2024 [9][16][27] Dredging Backlog - As of March 31, 2025, the dredging backlog stood at approximately $1 billion, with an additional $265.3 million in low bids and options pending award [3][9] - Capital and coastal protection projects accounted for 95% of the backlog, which typically yield higher margins [3][9] Project Updates - The company is gaining momentum in dredging for private companies in the LNG market, with new projects including the Woodside Louisiana LNG project expected to commence in early 2026 [4] - The backlog includes significant projects such as the Port Arthur LNG Phase 1 Project and the Brownsville Ship Channel Project, the latter being the largest in the company's history [4] Shareholder Actions - The board approved a $50 million share repurchase program, with $10.4 million spent to repurchase 1.2 million shares as of April 30, 2025 [5] - The company amended its Revolving Credit Facility, increasing its size from $300 million to $330 million to enhance liquidity [6] Operational Developments - The company is progressing on its new build program, with the delivery of the hopper dredge Amelia Island expected in the third quarter of 2025 [7] - The Acadia, a Jones Act compliant subsea rock installation vessel, is under construction, targeting markets including offshore wind projects and subsea infrastructure protection [8] Market Environment - The U.S. Army Corps of Engineers is operating under a continuing resolution that sustains funding levels through September 30, 2025, supporting a busy project schedule for the company [11] - The reauthorization of the Water Resources Development Act (WRDA) provides funding for various dredging and flood protection projects, enhancing the company's project pipeline [12]

Since the start of 2025, the United States construction sector has been navigating through choppy waters, hit by several unfavorable market factors, including a still-high mortgage rate scenario and an unhinged interest rate environment. With the 30-year mortgage rate lingering between 6.9% and 6.7% (during the January-March 2025 period), reaching as high as 7.04% for the week ending on Jan. 16, 2025, the residential construction market is likely to have remained soft, mainly for the multi-family starts. Ho ...

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $9.14, reflecting a +1.11% change from the previous day, outperforming the S&P 500's gain of 0.58% [1] - Over the past month, GLDD shares increased by 3.91%, contrasting with the Construction sector's decline of 1.18% and the S&P 500's drop of 0.84% [2] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $0.25, which is a decrease of 19.35% year-over-year, while revenue is projected at $209.9 million, an increase of 5.66% from the previous year [3] - For the full year, earnings are expected to be $0.69 per share, down 17.86% from the prior year, with revenue forecasted at $775.45 million, reflecting a growth of 1.67% [4] Analyst Sentiment - Recent revisions to analyst forecasts for GLDD are being monitored, as they indicate short-term business trends and analyst optimism regarding the company's profitability [5] - The Zacks Rank system, which assesses stocks from 1 (Strong Buy) to 5 (Strong Sell), currently ranks GLDD at 3 (Hold), with no changes in the EPS estimate over the last 30 days [7] Valuation Metrics - GLDD is trading at a Forward P/E ratio of 13.2, which is below the industry average of 14.63, indicating a discount relative to its peers [8] - The company has a PEG ratio of 1.1, aligning with the average PEG ratio of 1.1 for Building Products - Heavy Construction stocks [9] Industry Context - The Building Products - Heavy Construction industry is part of the Construction sector and holds a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [10]

Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and has a significant history of international projects [3] - The company is expanding its core business into the offshore energy industry [3] - Great Lakes operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - The company has a disciplined training program for engineers to ensure performance based on experience [3] - Great Lakes has a strong commitment to safety through its Incident-and Injury-Free® (IIF®) safety management program, which is integrated into its culture [3] Upcoming Financial Results - Great Lakes Dredge & Dock Corporation will release its financial results for the three months ended March 31, 2025, on May 6, 2025, at 7:00 a.m. C.D.T. [1] - A conference call will be held on the same day at 9:00 a.m. C.D.T. for investors and analysts [1] Conference Call Registration - Investors and analysts are encouraged to pre-register for the conference call to gain immediate access [2] - Pre-registration can be completed at any time up to the call start time [2] - The live call and replay will be available on the company's website under the Investor Relations page [2]

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $9.04, down 1.31% from the previous trading session, underperforming the S&P 500's gain of 0.06% [1] - Over the past month, GLDD shares increased by 3.62%, contrasting with the Construction sector's decline of 6.22% and the S&P 500's drop of 4.29% [2] Earnings Projections - The upcoming earnings report is anticipated to show earnings per share (EPS) of $0.25, a decrease of 19.35% year-over-year, while revenue is projected at $209.9 million, reflecting a 5.66% increase from the same quarter last year [3] - For the annual period, earnings are expected to be $0.69 per share, down 17.86% from last year, with revenue projected at $775.45 million, indicating a 1.67% increase [4] Analyst Estimates and Rankings - Recent changes to analyst estimates for GLDD are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [5] - The Zacks Rank system, which assesses estimate changes, currently ranks GLDD at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [7] Valuation Metrics - GLDD is currently trading at a Forward P/E ratio of 13.37, which is below the industry average of 14.56 [8] - The company has a PEG ratio of 1.11, aligning with the industry average, indicating a balanced consideration of projected earnings growth [8] Industry Context - The Building Products - Heavy Construction industry, to which GLDD belongs, ranks in the top 12% of all industries according to the Zacks Industry Rank, which measures the strength of industry groups [9]

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $8.81, reflecting a +1.03% change from the previous session, outperforming the S&P 500's gain of 0.13% [1] - The company's shares have decreased by 5.63% over the last month, which is better than the Construction sector's loss of 7.68% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - The company is expected to report an EPS of $0.25, indicating a 19.35% decline compared to the same quarter last year [2] - Revenue is anticipated to be $209.9 million, showing a 5.66% increase from the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates predict earnings of $0.69 per share and revenue of $775.45 million for the year, reflecting changes of -17.86% and +1.67% respectively compared to the previous year [3] Analyst Revisions - Recent revisions to analyst forecasts for Great Lakes Dredge & Dock are important as they indicate changing near-term business trends, with positive revisions seen as a good sign for the company's outlook [4] Zacks Rank - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Great Lakes Dredge & Dock at 3 (Hold) [6] - The Zacks Rank has a strong track record, with 1 stocks generating an average annual return of +25% since 1988 [6] Valuation Metrics - Great Lakes Dredge & Dock has a Forward P/E ratio of 12.73, which is lower than the industry average of 15.03, suggesting it is trading at a discount [7] - The company's PEG ratio is currently 1.06, matching the average PEG ratio of the Building Products - Heavy Construction industry [8] Industry Context - The Building Products - Heavy Construction industry is part of the Construction sector and holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [9]

Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, with a history of completing significant international projects [3] - The company operates approximately 200 specialized vessels, making it the owner of the largest and most diverse fleet in the U.S. dredging industry [3] - Great Lakes has a disciplined training program for engineers and a strong commitment to safety through its Incident-and Injury-Free® (IIF®) safety management program [3] Financial Performance - In 2024, the company achieved the second-best results in its history, indicating strong business performance [2] - As of December 31, 2024, Great Lakes reported a backlog of $1.2 billion, suggesting a robust outlook for 2025 and 2026 [2] Share Repurchase Program - The Board of Directors has authorized a share repurchase program allowing the company to repurchase up to $50 million of its common stock [1][2] - The share repurchase may occur through open market purchases or privately negotiated transactions, with the program set to expire on March 14, 2026 [2] Strategic Outlook - The company believes its current share price does not reflect its business strength and views the share repurchase program as accretive to shareholders [2] - The new build program is expected to be substantially completed in 2025, further enhancing the company's operational capabilities [2]