Core Insights - Great Lakes Dredge & Dock (GLDD) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and up from $0.13 per share a year ago [1][2] - The company experienced an earnings surprise of +52.94% for the quarter, having surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $195.21 million, which fell short of the Zacks Consensus Estimate by 3.08%, but showed an increase from $191.17 million year-over-year [3] Earnings Performance - The earnings surprise of +52.94% indicates strong performance relative to expectations, with a previous quarter's surprise of +75% [2] - Over the last four quarters, GLDD has consistently exceeded consensus EPS estimates [2] Revenue Analysis - The reported revenue of $195.21 million missed the consensus estimate, contrasting with the year-ago figure of $191.17 million [3] - The company has topped consensus revenue estimates in two of the last four quarters [3] Stock Performance and Outlook - Since the beginning of the year, GLDD shares have increased by approximately 0.8%, underperforming the S&P 500's gain of 16.5% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $207.85 million, and for the current fiscal year, it is $1.02 on revenues of $845.81 million [8] - The Building Products - Heavy Construction industry, to which GLDD belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [9] Competitor Insights - Tutor Perini (TPC), another company in the same industry, is expected to report quarterly earnings of $0.96 per share, reflecting a year-over-year increase of +150% [10] - TPC's anticipated revenues are projected to be $1.34 billion, up 24.1% from the previous year [11]

Financial Performance - Third quarter revenue was $195.2 million, an increase of $4.0 million compared to the third quarter of 2024[16] - Net income for the third quarter was $17.7 million, up from $8.9 million in the prior year[16] - Adjusted EBITDA for the third quarter was $39.3 million, reflecting improved project performance and higher revenue[4] - Gross profit for the third quarter was $43.8 million, with a gross profit margin of 22.4%, up from 19.0% in the prior year[16] - Contract revenues for Q3 2025 were $195,205,000, a 2% increase from $191,173,000 in Q3 2024[28] - Gross profit for Q3 2025 was $43,760,000, up 21% from $36,233,000 in Q3 2024[28] - Net income for the nine months ended September 30, 2025, was $60,835,000, compared to $37,549,000 for the same period in 2024, representing a 62% increase[28] - Adjusted EBITDA for Q3 2025 was $39,274,000, a 46% increase from $26,983,000 in Q3 2024[31] - Total dredging revenues for the nine months ended September 30, 2025, were $625,703,000, compared to $559,919,000 in 2024, reflecting an 11.7% increase[35] - Basic earnings per share for Q3 2025 were $0.27, up from $0.13 in Q3 2024[28] Backlog and Future Revenue - Dredging backlog as of September 30, 2025, was $934.5 million, down from $1.2 billion at December 31, 2024[16] - The company has an additional $193.5 million in low bids and options pending award, providing revenue visibility into 2026[4] - The total backlog for dredging as of September 30, 2025, was $934,505,000, down from $1,194,199,000 as of December 31, 2024[35] - Capital and coastal protection projects account for over 84% of the dredging backlog, typically yielding higher margins for the company[4] Capital Expenditures and Assets - Total capital expenditures for the third quarter were $32.8 million, including $18.6 million for the construction of the Acadia vessel[16] - Cash and cash equivalents increased to $12,671,000 as of September 30, 2025, from $10,216,000 at the end of 2024[33] - Total equity rose to $502,112,000 as of September 30, 2025, compared to $448,910,000 at the end of 2024[33] - The company reported a total long-term debt of $415,321,000 as of September 30, 2025, down from $448,216,000 at the end of 2024[33] Operational Updates - The company has maintained operations without interruption during the current government shutdown, with all projects in the backlog fully funded[6][15] - The Acadia, a new subsea rock installation vessel, is expected to commence operations in early 2026 with secured contracts for full utilization throughout that year[9][17]

Core Insights - Great Lakes Dredge & Dock Corporation reported a strong third quarter for 2025, with net income of $17.7 million and adjusted EBITDA of $39.3 million, driven by effective project execution and high equipment utilization [2][4][10] - The company's dredging backlog stood at $934.5 million as of September 30, 2025, with an additional $193.5 million in low bids and options pending award, indicating strong revenue visibility for the remainder of 2025 and into 2026 [4][10][16] Financial Performance - Revenue for the third quarter was $195.2 million, an increase of $4.0 million compared to the same period in 2024, primarily due to higher capital project revenue [10][16] - Gross profit was $43.8 million, with a gross profit margin of 22.4%, both showing improvement from the previous year's figures of $36.2 million and 19.0% respectively [16] - Operating income increased to $28.1 million from $16.7 million in the prior year's third quarter, attributed to improved gross profit and lower general and administrative expenses [16][25] Operational Highlights - The company has maintained uninterrupted operations during the recent government shutdown, ensuring full project execution and support to the U.S. Army Corps of Engineers [6][14] - Significant projects in the dredging backlog include major port deepening LNG projects, with operations for two projects having commenced in Q3 2024 and another expected to start in early 2026 [5][10] Capital Structure and Investments - An amendment to the revolving credit facility was completed, increasing the amount by $100 million to a total of $430 million, which reduced annual interest expenses by nearly $6 million [7] - Total capital expenditures for the third quarter were $32.8 million, including investments in new vessels such as the Acadia and Amelia Island [16][25] Market Position and Strategy - Great Lakes is the largest provider of dredging services in the U.S. and is expanding into the offshore energy sector, with a focus on safeguarding critical subsea infrastructure [21][17] - The company is actively pursuing opportunities in oil and gas pipeline protection and international offshore wind projects to ensure sustained utilization of its new vessels [17][9]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is expected to report its third-quarter 2025 financial results on November 4, prior to market opening [1] - In the previous quarter, GLDD's adjusted earnings per share (EPS) and revenues exceeded the Zacks Consensus Estimate by 58.5% and 12.3%, with year-over-year growth of 61.5% and 20.9% respectively [1] Financial Performance - The Zacks Consensus Estimate for GLDD's third-quarter adjusted EPS remains at 17 cents, reflecting a 30.8% year-over-year increase from 13 cents [3] - The consensus estimate for revenues is $197.6 million, indicating a 3.4% year-over-year increase [3] - GLDD has surpassed the consensus earnings mark in each of the last four quarters [2] Revenue Drivers - Revenue growth is anticipated due to strong infrastructure demand, expansion in the offshore wind sector, and effective project execution [4] - Maintenance dredging, which accounted for 11.8% of total revenues in Q2 2025, is expected to show weaker demand, particularly in Florida, Texas, Puerto Rico, and Mississippi [5] - Coastal protection dredging, making up 33.7% of Q2 2025 revenues, is projected to gain momentum due to increased government initiatives [5] - Capital dredging, which comprised 54.5% of Q2 2025 revenues, is expected to face challenges due to decreased revenues from Virginia projects [5] Segment Performance - The Zacks Consensus Estimate for Dredging Capital revenues is $107.5 million, a slight decline of 1.1% from the previous year [6] - Dredging Maintenance revenues are estimated at $21.2 million, reflecting a significant decrease of 44.1% from $37.9 million a year ago [6] - Dredging Coastal Protection revenues are expected to reach $72.5 million, indicating a year-over-year growth of 65.1% [6] Earnings Outlook - GLDD's bottom line is projected to improve year-over-year due to better utilization, project performance, and a favorable project mix [7] - Q3 revenues are expected to grow 3.4% year-over-year, driven by strong coastal protection activities [8] - Despite higher labor costs, improved project mix and equipment utilization are likely to enhance margins [8] - The focus on higher-margin capital and coastal protection projects is anticipated to support the bottom line, despite increased employee benefit expenses [9] Earnings Prediction Model - The current model does not predict an earnings beat for GLDD, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [10][11]

Core Viewpoint - Great Lakes Dredge & Dock Corporation will release its financial results for the third quarter of 2025 on November 4, 2025, at 7:00 a.m. CDT, followed by a conference call at 9:00 a.m. CDT [1][2] 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 and employs experienced civil, ocean, and mechanical engineering staff [3] - With over 135 years of history, the company has never failed to complete a marine project and operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - Great Lakes has a disciplined training program for engineers to ensure performance based on experience as they progress through company operations [3] - The company's Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of its culture, promoting a work environment where employee safety is paramount [3]

Core Points - Great Lakes Dredge & Dock Corporation has amended its Revolving Credit Facility, increasing it by $100 million to a total of $430 million and extending the maturity to October 2030 [1][2] - The company used the increased capacity to fully repay $100 million in second lien notes issued in 2024, resulting in significant interest savings [2][3] - The CFO highlighted that this amendment allows for an estimated annual interest saving of $6 million, with no debt maturities until 2029 and a weighted average interest rate below 6% [3] Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S. and has a long history of significant international projects [4] - The company is expanding its core business into the offshore energy industry and operates a diverse fleet of approximately 200 specialized vessels [4] - Great Lakes has a strong safety culture, emphasizing employee safety through its Incident-and Injury-Free® (IIF®) safety management program [4]

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) is experiencing mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show significant growth in earnings per share and revenue [1][2][3][4]. Company Performance - GLDD's stock closed at $11.15, reflecting a gain of 1.73% from the previous trading session, outperforming the S&P 500's daily gain of 0.79% [1]. - Over the past month, GLDD shares have depreciated by 6.8%, underperforming the Construction sector's loss of 0.94% and the S&P 500's gain of 1.27% [2]. Earnings Expectations - Analysts expect GLDD to report earnings of $0.17 per share, indicating a year-over-year growth of 30.77% [3]. - The Zacks Consensus Estimate for revenue is projected at $197.6 million, which represents a 3.36% increase from the previous year [3]. - For the entire year, earnings are forecasted at $1.02 per share and revenue at $831.51 million, reflecting changes of +21.43% and +9.02%, respectively, compared to the previous year [4]. Analyst Forecasts - Recent revisions to analyst forecasts for GLDD are crucial as they often indicate changing business trends, with positive revisions seen as a favorable sign for the business outlook [5]. - The Zacks Rank system, which incorporates estimate changes, currently ranks GLDD at 3 (Hold) [7]. Valuation Metrics - GLDD is trading with a Forward P/E ratio of 10.78, which is a discount compared to the industry average Forward P/E of 26.8 [8]. - The company has a PEG ratio of 0.9, significantly lower than the average PEG ratio of 2.06 for the Building Products - Heavy Construction industry [9]. Industry Context - The Building Products - Heavy Construction industry is part of the Construction sector and holds a Zacks Industry Rank of 98, placing it in the top 40% of over 250 industries [10].

Core Insights - Wall Street analysts' recommendations significantly influence investors' decisions regarding stock transactions, particularly for Great Lakes Dredge & Dock (GLDD) [1][5] - The average brokerage recommendation (ABR) for GLDD is 1.50, indicating a consensus leaning towards a "Buy" rating, with 75% of the recommendations classified as "Strong Buy" [2][5] Brokerage Recommendation Trends - The ABR of 1.50 is derived from four brokerage firms, with three firms issuing "Strong Buy" ratings [2] - Despite the positive ABR, reliance solely on brokerage recommendations may not yield optimal investment decisions, as studies indicate limited success in guiding investors towards high-potential stocks [5][10] Analyst Bias and Limitations - Analysts from brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of "Strong Buy" recommendations compared to "Strong Sell" [6][10] - This misalignment of interests suggests that brokerage recommendations may not accurately reflect future stock price movements [7][10] Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and has shown a strong correlation with near-term stock price movements [8][11] - The Zacks Rank is distinct from ABR, as it is based on quantitative models rather than solely on brokerage recommendations, providing a more balanced assessment of stock performance [9][12] Current Earnings Estimates for GLDD - The Zacks Consensus Estimate for GLDD's current year earnings remains unchanged at $1.02, indicating stable analyst views on the company's earnings prospects [13] - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for GLDD, suggesting a cautious approach despite the positive ABR [14]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) has received seven new work awards totaling approximately $134 million, enhancing its revenue visibility through 2026 [1][2][3] Group 1: New Work Awards - The new awards include a significant $27.9 million maintenance project for the Mississippi River, which is federally funded and involves dredging for marsh development [3] - All seven projects were awarded in Q3 2025, contributing to the company's dredging backlog for 2025 [2][3] Group 2: Operational Stability - The company's operations are unaffected by the current government shutdown, as all projects in the backlog are fully funded [2] Group 3: Company Overview - Great Lakes Dredge & Dock Corporation specializes in dredging services in the US, including capital dredging for port expansions, coastal restoration, and land reclamation [4]

Core Insights - Great Lakes Dredge & Dock (GLDD) stock closed at $11.18, reflecting a -1.5% change from the previous day, which is less than the S&P 500's daily loss of 0.63% [1] - The company is expected to report an EPS of $0.17, representing a 30.77% increase year-over-year, with a revenue forecast of $197.6 million, indicating a 3.36% growth compared to the same quarter last year [2] - For the annual period, earnings are anticipated to be $1.02 per share and revenue at $831.51 million, showing increases of +21.43% and +9.02% respectively from the previous year [3] Company Performance and Estimates - Recent changes in analyst estimates for Great Lakes Dredge & Dock reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Great Lakes Dredge & Dock at a rank of 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged [5] Valuation Metrics - Great Lakes Dredge & Dock is trading at a Forward P/E ratio of 11.16, which is a discount compared to the industry average Forward P/E of 27.19 [6] - The company has a PEG ratio of 0.93, significantly lower than the industry average PEG ratio of 2.04 [6] Industry Context - The Building Products - Heavy Construction industry, which includes Great Lakes Dredge & Dock, ranks in the top 11% of all industries according to the Zacks Industry Rank [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]