Core Insights - The recent rate cut by the Fed has led to increased optimism on Wall Street, with investors favoring profitable companies, although even profitable firms can face bankruptcy if cash flow is inconsistent [1][3] Cash Flow Importance - A company's resilience can be effectively assessed by its cash flow generation efficiency, which protects against market volatility and indicates proper profit allocation [2][3] - Healthy cash flow is crucial for a company's survival, growth, and success, providing flexibility for business decisions and investments [3][5] Cash Flow Analysis - Net cash flow is a key metric to determine how much actual money a company generates, as cash flows in and out of the business [4] - Positive cash flow signifies an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow indicates declining liquidity [5] Growth and Management Efficiency - Positive cash flow alone does not guarantee future growth; increasing cash flow is essential as it reflects management's efficiency and reduces reliance on external financing [6] Screening Parameters for Stocks - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average, indicating a positive trend [7] - Additional criteria included Zacks Rank 1, average broker rating of 1, current price of at least $5, and a VGM Score of B or better [8] Stock Recommendations - Century Aluminum Company (CENX) has seen an 11.7% increase in earnings estimates with a VGM Score of A [9][10] - Daktronics, Inc. (DAKT) has a 6.9% rise in fiscal 2026 earnings estimates and a VGM Score of B [9][11] - Great Lakes Dredge & Dock Corporation (GLDD) has a 6.3% upward revision in 2025 earnings estimates with a VGM Score of B [9][12] - NCS Multistage Holdings, Inc. (NCSM) has a significant 62% improvement in earnings outlook with a VGM Score of A [9][13]

Summary of Great Lakes Dredge & Dock Conference Call Company Overview - **Company Name**: Great Lakes Dredge & Dock Corporation (Ticker: GLDD) - **Industry**: Dredging and Marine Construction - **Market Position**: Largest dredger in the United States with over 135 years of experience [3][4] Key Highlights - **Strong Performance**: The company has maintained a backlog of $1 billion and has experienced strong project execution over the past two years [3][4] - **Investment in Fleet**: Recently completed a $550 million new build program, with the final vessel, Acadia, expected to be delivered in early 2026 [12][13][14] - **Diverse Project Types**: Engages in capital projects (port deepening), coastal protection, and maintenance dredging, with a strong focus on federal government contracts [5][6][9] Financial Performance - **Record Backlog**: The current backlog is significantly higher than the historical average of $550 million, indicating strong future revenue visibility [16] - **EBITDA Growth**: 2024 was the second-best year in company history for EBITDA, with the first half of 2025 showing even higher revenue and margins despite a heavy dry docking year [17][19] - **Liquidity Position**: Liquidity exceeded $300 million, with a leverage ratio well under three times and no debt maturities until 2029 [19][20] Market Dynamics - **Government Funding**: The U.S. Army Corps of Engineers has a record budget for 2024 and 2025, ensuring continued funding for dredging projects [10][24][25] - **LNG Projects**: The company is currently executing three large LNG projects, with potential for additional work in the future [8][26][27] Future Outlook - **Upcoming Projects**: Anticipation of new deepening projects, particularly in New York Harbor, which is expected to be a multi-billion dollar project [11][12] - **Offshore Energy Expansion**: The Acadia vessel will enable the company to enter the offshore wind market, with contracts already secured for projects in the U.S. [14][15][37] - **Capital Expenditure Strategy**: Future CapEx is expected to normalize, focusing on maintenance rather than new builds, with an average maintenance CapEx projected at $25 million annually [18][28][29] Additional Insights - **Technological Advancements**: The company is implementing automation and remote operation systems to enhance efficiency and productivity [35][36] - **Market Positioning**: The company has a strong market share of over 30% in the U.S. dredging market, with a win rate approaching 40% for recent projects [9][10] Conclusion - **Positive Cash Flow Outlook**: With the completion of the new build program, the company is positioned for strong cash flow generation and has plans to prioritize debt reduction [39][41]

Core Points - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and is expanding into the offshore energy industry [3] - The company will present at the Sidoti Small Cap Virtual Conference on September 18, 2025, at 12:15 PM ET [1][2] Company Overview - Great Lakes has over 135 years of experience and has never failed to complete a marine project [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 employs experienced civil, ocean, and mechanical engineers in its operations and has a disciplined training program for engineers [3] - The company's safety management program, Incident-and Injury-Free® (IIF®), is integrated into its culture, emphasizing employee safety [3]

Core Insights - Investors prioritize companies with consistent profitability, measured effectively by net profit margin, which reflects operational efficiency and management quality [1][2] - Companies such as Great Lakes Dredge & Dock Corporation (GLDD), InfuSystem Holdings, Inc. (INFU), Interface, Inc. (TILE), and Century Aluminum Company (CENX) demonstrate strong net profit margins [1] Net Profit Margin - Net profit margin is calculated as Net Profit/Sales * 100, indicating a company's ability to convert sales into profits after all expenses [2] - A strong net profit margin signifies effective cost control and operational strength, essential for attracting investors and rewarding stakeholders [2] Industry Comparisons - Net profit margin varies across industries, complicating direct comparisons; it is more critical in traditional sectors than in technology [3] - Differences in accounting practices, particularly regarding non-cash expenses, further complicate comparisons [4] Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought by investors [5] - Screening parameters include a net margin greater than or equal to 0, positive EPS growth, high broker ratings, and favorable Zacks Ranks [6] Stock Picks - The selected stocks (GLDD, INFU, TILE, CENX) have shown upward EPS estimate revisions, indicating positive outlooks [7] - GLDD is the largest U.S. dredging service provider with a Zacks Rank 1 and a VGM Score of A, with 2025 earnings estimates revised upward by $0.06 to $1.02 per share [8][9] - INFU, a healthcare services company, has seen its 2025 earnings estimate rise to $0.26 per share from $0.06, with an average surprise of 79.2% [10][11] - CENX, involved in primary aluminum production, has a revised earnings estimate of $2.06 per share, reflecting a 15.7% increase [11][12] - TILE, the largest modular carpet manufacturer, has its 2025 earnings estimate increased to $1.70 per share, consistently outperforming estimates [12][13]

Core Viewpoint - Great Lakes Dredge & Dock Corporation has successfully delivered its newest hopper dredge, the Amelia Island, enhancing its fleet and operational capabilities in the U.S. dredging industry [1][4]. Group 1: 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 [5]. - The company operates approximately 200 specialized vessels, making it the owner of the largest and most diverse fleet in the U.S. dredging industry [5]. - Great Lakes is expanding its core business into the offshore energy industry and employs experienced civil, ocean, and mechanical engineering staff [5]. Group 2: New Vessel Details - The Amelia Island is designed for efficient operations in shallow and narrow waters, measuring approximately 346 feet in length, 69 feet in breadth, and 23 feet in depth, with a total horsepower of 16,500 [3]. - The dredge features two 800mm trailing suction pipes capable of dredging depths up to 100 feet and has a hopper capacity of 6,330 cubic yards [3]. - The main engines and generators of the Amelia Island are EPA Tier IV rated for low emissions, positioning it as a modern and environmentally friendly dredge [3]. Group 3: Operational Impact - The delivery of the Amelia Island marks the completion of the company's dredging newbuild program, resulting in the largest and most advanced hopper fleet in the United States [4]. - The vessel is already scheduled for operations in 2025 and 2026, indicating strong demand for dredging services [4]. - The Amelia Island will support diverse operations such as beach renourishment, coastal protection, channel deepening, and maintenance dredging [4].

Financial Data and Key Metrics Changes - The company reported revenues of $193.8 million for Q2 2025, an increase of $23.7 million from the same quarter in 2024 [12] - Adjusted EBITDA for the quarter was $28 million, with an adjusted EBITDA margin of 14.4% [12] - Net income for Q2 2025 was $9.7 million, up from $7.7 million in the prior year [13] - Gross profit increased to $36.6 million, with a gross profit margin of 18.9%, compared to $29.8 million and 17.5% in Q2 2024 [12][13] - The company ended the quarter with $2.9 million in cash and $5 million drawn on its revolving credit facility [14] Business Line Data and Key Metrics Changes - The dredging backlog stood at $1 billion, with 93% from capital and coastal protection projects [6] - Over 88% of Q2 revenue came from capital and coastal protection projects, which typically yield higher margins [12] Market Data and Key Metrics Changes - The U.S. dredging bid market is expected to normalize at approximately $2 billion, focusing on coastal protection projects [18] - The company is seeing early signs of the next phase of deepening projects, with work likely to commence in 2027 [19] Company Strategy and Development Direction - The company initiated a $50 million share repurchase program, believing its share price did not reflect its financial performance [7] - The newbuild program is nearing completion, with the Amelia Island hopper dredge expected to be delivered soon [8] - The Arcadia vessel is being positioned for both domestic and international projects, expanding its target markets to include offshore energy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong project execution and results for the remainder of 2025, with expectations for the highest revenue and net income in company history [15][21] - The U.S. Army Corps of Engineers is expected to maintain record funding levels, providing revenue visibility extending into 2026 [17] Other Important Information - The company has a trailing twelve-month net leverage ratio of 2.7 times and no debt maturities until 2029 [14] - Total capital expenditures for Q2 were $64.6 million, with guidance for full-year CapEx remaining unchanged at $140 million to $160 million [14] Q&A Session Summary Question: Is the pace of awards running to expectations? - Management noted that they expected a more normalized bid market and acknowledged that they did not bid on over 50% of projects due to availability constraints [25][26] Question: What is the likelihood of the Acadia being in the U.S. in 2027? - Management indicated that most efforts are focused on international markets, particularly in Europe, for the Acadia in 2027 [27][28] Question: Will there be any need for new vessels in the near future? - Management stated that they do not see a need for new dredges in the coming years, as the current fleet is modern and competitive [30][31] Question: What is the confidence level for Acadia's delivery in 2026? - Management expressed high confidence in the Q1 2026 delivery of the Acadia, with revenue expectations exceeding $100 million for the full year [34][37] Question: Are there any changes in customer hesitation in the base dredging business? - Management noted that while the Corps cannot bid new projects under the current resolution, many projects are still being executed, indicating a strong market [41] Question: What is the capital allocation strategy beyond CapEx? - Management emphasized a focus on completing the newbuild program before considering debt paydown or further share repurchases [59][60] Question: What drove the expansion of the credit facility? - The expansion was driven by favorable pricing and the need for letters of credit for LNG and offshore energy projects [61]

Financial Performance - The company reported second quarter revenue of $193.8 million, an increase of $23.7 million compared to the same period in 2024 [11][17] - Net income for the quarter was $9.7 million, up from $7.7 million in the prior year [11][30] - Adjusted EBITDA for the second quarter was $28.0 million, reflecting improved operating results [11][30] Dredging Backlog - The dredging backlog stood at approximately $1.0 billion as of June 30, 2025, down from $1.2 billion at the end of 2024 [11][34] - An additional $215.4 million in low bids and options are pending award, providing revenue visibility for the remainder of 2025 and into 2026 [4][11] - Capital and coastal protection projects account for 93% of the dredging backlog, which typically yield higher margins [4] Project Updates - Dredging activity for private clients in the LNG sector remains strong, with new projects added to the backlog, including the Woodside Louisiana LNG project [5][6] - The company is actively engaged in two major LNG projects awarded in 2023, with operations ongoing [6] - The Acadia, a new subsea rock installation vessel, is expected to commence operations in 2026, enhancing the company's capabilities in offshore energy [10][16] Capital Management - The company initiated a $50 million share repurchase program, having repurchased 1.3 million shares for a total of $11.6 million as of June 30, 2025 [7] - An amendment to the Revolving Credit Facility increased its size from $300 million to $330 million, enhancing liquidity [8] Market Environment - The U.S. Army Corps of Engineers is operating under a continuing resolution, sustaining funding levels for dredging projects through September 30, 2025 [14] - The reauthorization of the Water Resources Development Act (WRDA) supports new capital investments in flood protection and ecosystem restoration [15]

Core Viewpoint - Great Lakes Dredge & Dock Corporation (GLDD) is expected to report its second-quarter 2025 results on August 5, with earnings per share (EPS) and revenues anticipated to show mixed year-over-year performance [1][3]. Financial Performance - In the last reported quarter, GLDD's EPS and revenues exceeded the Zacks Consensus Estimate by 96% and 15.7%, respectively, with year-over-year growth of 58.1% for EPS and 22.3% for revenues [1]. - The Zacks Consensus Estimate for the second-quarter EPS is unchanged at eight cents, reflecting a 27.3% decline from 11 cents year-over-year [3]. - The revenue estimate for the second quarter is $174.3 million, indicating a 2.5% increase from $170.1 million reported in the same quarter last year [3]. Revenue Drivers - The second-quarter revenue performance is likely driven by strong infrastructure demand and strategic efforts to expand the offshore wind business internationally, alongside a focus on new build programs [4]. - Government spending is significantly boosting demand for capital and coastal protection projects [4]. - Despite expected sequential weakness due to the timing of vessel deliveries, strong utilization is anticipated amid favorable market conditions [5]. Business Segment Performance - Contributions from GLDD's Dredging Capital and Dredging Coastal Protection segments are expected to increase, while Dredging Maintenance may see a decline [6]. - The Zacks Consensus Estimate for Dredging Capital revenues is $76 million, a 7% increase from $71 million year-over-year [6]. - Dredging Coastal Protection revenues are estimated at $79 million, reflecting a year-over-year growth of 12.9% [6]. - Conversely, Dredging Maintenance revenues are expected to decline by 24.2% to $21.6 million from $28.5 million a year ago [6]. Earnings Outlook - The bottom line is projected to decline year-over-year due to rising expenses, particularly from increased incentive compensation and employee benefits [7][8]. - Q2 revenues are expected to rise 2.5% to $174.3 million, driven by capital and coastal protection demand, with respective sales growth of 7% and 12.9% [8]. - The focus on higher-margin projects is likely to mitigate some pressures on the bottom line [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 3 [10][11].

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 [4] - The company is expanding its core business into the offshore energy industry [4] - Great Lakes operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [4] - The company has a disciplined training program for engineers to ensure performance based on experience [4] - Great Lakes has a strong safety management program, Incident-and Injury-Free® (IIF®), integrated into its culture to promote employee safety [4] Financial Results Announcement - Great Lakes will release its financial results for the three months ended June 30, 2025, on August 5, 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. [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 [3]

Core Viewpoint - Great Lakes Dredge & Dock Corporation has launched the Acadia, the first U.S. flagged, Jones Act-compliant subsea rock installation vessel, marking a significant milestone in its Offshore Energy strategy [1][5]. 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 and a focus on expanding into the offshore energy industry [6]. - The company operates approximately 200 specialized vessels, making it the owner of the largest and most diverse fleet in the U.S. dredging industry [6]. Vessel Specifications and Impact - The Acadia is designed to transport and install up to 20,000 metric tons of rock on the seabed, providing essential scour protection for subsea infrastructure [3]. - The construction of the Acadia utilized steel sourced from Ohio and labor from multiple states, creating over one million manhours of high-paying jobs [4]. Future Operations - Upon delivery, the Acadia will begin operations for the Empire Wind I offshore wind farm and will continue contracted work along the U.S. East Coast through the end of 2026 [5]. - The company has been actively engaging with clients for new offshore energy projects for 2027 and beyond [5].