Great Lakes Dredge & Dock -Great Lakes Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Great Lakes Dredge & Dock Corporation reported strong financial results for the fourth quarter and full year 2024, with a net income of $57.3 million and Adjusted EBITDA of$ 136.0 million, marking the second-highest metrics in the company's history [2][3][11] - The company ended 2024 with a dredging backlog of $1.2 billion, with an additional$ 282.1 million in low bids and options pending award, indicating strong revenue visibility into 2026 [3][11][30] - The bid market for 2024 reached a historic level of $2.9 billion, with Great Lakes winning 33% of the bids, contributing to the substantial backlog [3][12] Financial Performance - Fourth quarter revenue was$ 202.8 million, an increase of $21.1 million from the same quarter in 2023, driven primarily by higher revenues from capital and coastal protection projects [11][30] - Full year revenue reached$ 762.7 million, up $173.1 million from 2023, with gross profit improving to$ 160.6 million, a significant increase of $82.9 million year-over-year [11][30] - The gross margin percentage for the full year improved to 21.1% from 13.2% in 2023, reflecting better project performance and higher-margin capital and coastal protection revenues [11][30] Operational Highlights - The company is actively diversifying its project portfolio, including two Liquified Natural Gas (LNG) projects awarded in 2023, which are the largest projects in Great Lakes' history [4][5] - The Acadia, the first U.S.-flagged Jones Act compliant subsea rock installation vessel, is under construction and has secured contracts for offshore wind projects, indicating a strategic expansion into the offshore energy sector [5][6] - Great Lakes continues to pursue additional LNG projects to broaden its client base and enhance growth opportunities [4][5] Market Environment - The U.S. government has shown strong support for the dredging industry, with the 2024 Energy and Water Appropriations Bill providing a record$ 8.7 billion to the U.S. Army Corps of Engineers [12][13] - The 2025 Corps' budget is expected to be another record appropriation, further supporting the market for dredging services [13][14] - The Water Resources Development Act (WRDA) 2024, signed into law, includes funding for various capital projects aimed at enhancing flood protection and coastal resilience [14] Balance Sheet and Capital Expenditures - As of December 31, 2024, the company had $10.2 million in cash and cash equivalents and total long-term debt of$ 448.2 million [11][28][29] - Total capital expenditures for 2024 were $135.7 million, slightly down from$ 144.8 million in 2023, with significant investments in the construction of the Acadia vessel [11][30]