Great Lakes Dredge & Dock (US:GLDD)2025-11-04 21:00Financial Performance - Contract revenues for Q3 2025 were $195.2 million, a 2% increase from $191.2 million in Q3 2024[11] - Gross profit for Q3 2025 was $43.8 million, up 21% from $36.2 million in Q3 2024[11] - Net income for Q3 2025 reached $17.7 million, compared to $8.9 million in Q3 2024, representing a 99% increase[11] - Basic earnings per share for Q3 2025 were $0.27, up from $0.13 in Q3 2024[11] - Operating income for the nine months ended September 30, 2025, was $95.2 million, compared to $62.8 million for the same period in 2024, reflecting a 52% increase[11] - The company reported a comprehensive income of $18.4 million for Q3 2025, compared to $6.2 million in Q3 2024[13] - 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[22] - Basic earnings per share for the nine months ended September 30, 2025, was $0.91, compared to $0.56 for the same period in 2024, marking a 62.5% increase[34] - Adjusted EBITDA for Q3 2025 was 20.1%, up from 14.1% in Q3 2024[116] - Adjusted EBITDA for Q3 2025 was $39.3 million, up $12.3 million from $27.0 million in Q3 2024[133] Assets and Liabilities - Total current assets decreased to $229.8 million as of September 30, 2025, down from $263.4 million at the end of 2024[9] - Total liabilities decreased to $765.6 million as of September 30, 2025, compared to $806.2 million at the end of 2024[9] - Total equity increased to $502.1 million as of September 30, 2025, up from $448.9 million at the end of 2024[9] - The company’s long-term debt decreased to $415.3 million as of September 30, 2025, down from $448.2 million at the end of 2024[9] - The company had a total of $40,455,000 in accrued expenses as of September 30, 2025, slightly down from $41,640,000 at the end of 2024[37] Cash Flow and Investments - Cash provided by operating activities increased to $166,930,000 for the nine months ended September 30, 2025, up from $83,581,000 in 2024, indicating a 100% growth[22] - Cash used in investing activities totaled $115,220,000 for the nine months ended September 30, 2025, compared to $93,203,000 in 2024, representing a 23.6% increase[22] - The company reported cash, cash equivalents, and restricted cash of $12,671,000 at the end of the period, up from $12,037,000 at the end of 2024[22] - The company incurred $19,614,000 in cash paid for interest during the nine months ended September 30, 2025, compared to $17,452,000 in 2024, a 12.3% increase[22] Backlog and Revenue Streams - As of September 30, 2025, the company had a total dredging backlog of $934.5 million, excluding $193.5 million of domestic low bids pending formal award[81] - The company expects to convert the majority of its dredging backlog and all offshore energy backlog into revenue by the end of 2026[81] - Dredging revenues for the three months ended September 30, 2025, were $189.083 million, slightly down from $191.173 million in 2024, a decrease of approximately 1.1%[84] - The federal government accounted for $90.306 million of revenues in Q3 2025, up from $85.876 million in Q3 2024, reflecting a growth of about 5.0%[84] - The Company’s contracted dredging backlog was $934.5 million as of September 30, 2025, down from $1.2 billion at December 31, 2024[140] Shareholder Activities - The company repurchased 1,312,493 shares of common stock for approximately $11.6 million during the nine months ended September 30, 2025, as part of a $50 million share repurchase program[27] - The Company believes its cash and cash equivalents, anticipated cash flows, and revolving credit facility will be sufficient to fund operations and capital expenditures for the next twelve months[155] Debt and Credit Facilities - The Company secured a senior secured second-lien term loan facility of $100.0 million, fully funded on the Closing Date, with net proceeds of approximately $88.7 million after costs[39] - The ABL Credit Agreement provides for a senior secured revolving credit facility with an aggregate principal amount of up to $300.0 million, which was increased to $330.0 million in May 2025[50] - The Company had $271.1 million of availability under the ABL Credit Agreement as of September 30, 2025, compared to $221.2 million as of December 31, 2024[56] - The Company had no borrowings on the revolver as of September 30, 2025, compared to $35.0 million as of December 31, 2024[56] Operational Developments - The Acadia, the first Jones Act subsea rock installation vessel, was launched in July 2025 and is expected to be operational in 2026[110] - The company has secured contracts for full utilization of the Acadia for 2026 and is actively bidding for projects in 2027 and beyond[111] - The company anticipates continued growth in offshore energy capabilities despite potential delays in U.S. offshore wind projects due to recent legislative changes[113] Compliance and Governance - The certifications pursuant to the Sarbanes-Oxley Act of 2002 were included in the report, ensuring compliance with financial reporting standards[171] - The report was signed by Scott Kornblau, Senior Vice President and Chief Financial Officer, on November 4, 2025[174]