Market Overview - The U.S. stock market remains strong despite concerns over credit downgrade and fiscal outlook, with major indexes finishing higher due to optimism from U.S.-China trade talks [1] - A temporary 90-day pause in tariffs and an agreement to lower mutual tariffs to 10% have positively influenced market sentiment [1] - The S&P 500 has closed higher in 16 of the past 19 trading days, indicating a strong performance [1] Inflation and Economic Indicators - Easing inflation indicators, with both CPI and PPI showing signs of cooling, have contributed to market buoyancy [2] - Despite Moody's downgrade raising long-term concerns about debt, the focus remains on near-term growth momentum and improving global trade relations [2] Investment Strategy - A relative price strength strategy is recommended, focusing on stocks that outperform the broader market [2][4] - Stocks that are underperforming on fundamental factors should be avoided, while those outperforming their sectors in price should be selected for better returns [5] Stock Recommendations - Recommended stocks based on relative price strength include Great Lakes Dredge & Dock Corporation (GLDD), Sprouts Farmers Market, Inc. (SFM), EverQuote, Inc. (EVER), and Encompass Health Corp. (EHC) [3] Screening Parameters - Stocks should be screened based on relative price change over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks that have historically outperformed the S&P 500 are considered [9] Company Highlights - **Great Lakes Dredge & Dock Corporation (GLDD)**: Market cap of $760.8 million, with a 34.8% upward revision in 2025 earnings estimates and a 15.6% increase in shares over the past year [11][10] - **Sprouts Farmers Market, Inc. (SFM)**: Unique grocery model with a market cap of $1.5 billion, showing a 35.5% growth in 2025 earnings estimates and a 115.4% increase in shares over the past year [12][13] - **EverQuote, Inc. (EVER)**: Market cap of $867 million, with a 33% growth in 2025 earnings estimates, but shares have decreased by 3.5% in the past year [13][14] - **Encompass Health Corp. (EHC)**: Market cap not specified, with a 13.1% growth in 2025 earnings estimates and a 41.2% increase in shares over the past year [15]

Group 1: Suzano (SUZ) - Suzano is a producer of eucalyptus pulp and paper, holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 4.28, significantly lower than the industry average of 10.80, and possesses a Value Score of A [1] Group 2: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 9% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 6.17, compared to the industry average of 29.90, and possesses a Value Score of A [2] Group 3: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, also holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 34.8% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.57, compared to the industry average of 22.30, and possesses a Value Score of A [4]

Financial Data and Key Metrics Changes - The company reported revenues of $242.9 million for Q1 2025, an increase of $44.2 million compared to Q1 2024, marking the second highest revenue quarter in company history [12][6] - Adjusted EBITDA for the quarter was $60.1 million, with an adjusted EBITDA margin of 24.7% [12] - Net income for Q1 2025 was $33.4 million, up from $21 million in the same quarter of the previous year [12][14] - Gross profit increased to $69.5 million with a gross profit margin of 28.6%, compared to $45.6 million and 22.9% in Q1 2024 [12] Business Line Data and Key Metrics Changes - The dredging backlog stood at $1 billion, with capital and coastal protection projects accounting for 95% of this backlog [7] - Over 87% of revenue in Q1 2025 came from capital and coastal protection projects, which typically yield higher margins [12] Market Data and Key Metrics Changes - The company anticipates a normalized bid market of approximately $2 billion for 2025, focusing on coastal protection projects funded by the 2023 Disaster Relief Supplemental Appropriation Act [18] - The visibility of large projects is currently limited due to the ongoing continuing resolution affecting new port deepening projects [32] Company Strategy and Development Direction - The company is focused on executing large and complex projects, leveraging its modernized fleet and strong backlog to maintain high asset utilization [6][19] - A $50 million share repurchase program was approved by the Board of Directors, reflecting confidence in the company's financial performance and long-term outlook [9] - The company is expanding its offshore wind business into international markets, recognizing potential delays in the U.S. offshore wind market [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued support from the U.S. Army Corps of Engineers and the federal government for the dredging industry [17] - The company expects full-year 2025 results to exceed those of 2024, which was the second highest in company history [16] - Management acknowledged a slower start to the year in terms of new port deepening projects but remains confident in the upcoming coastal restoration projects [32] Other Important Information - The company has a robust liquidity position with $11.3 million in cash and an upsized revolving credit facility of $330 million [14] - The newbuild program is expected to be cash flow positive starting in 2026 [15] Q&A Session Summary Question: Inquiry about the Equinor project, Empire Wind One - Management confirmed that the project was fully funded and permitted, and the temporary pause was unexpected. They are in contact with Equinor to clarify the situation [24][25] Question: Market pace of awards given the continuing resolution - Management noted that the year has been slow for new port deepening projects but expects large and complex coastal restoration projects to come out to bid in Q2 and Q3 [32] Question: Competitive environment - Management indicated that the competitive environment remains similar to historical levels, with some dredges taken out of operation and new builds entering the market [37] Question: Dry dock impact on Q1 performance - Management acknowledged that the dry dock for one hopper dredge impacted revenue, but overall project performance on capital jobs drove the strong results [51][60] Question: Future project mix normalization - Management stated that the focus on larger projects is due to the extensive fleet, and they expect continued strong performance in capital and coastal work [66][67]

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 - 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]

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 Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and has a long history of executing significant international projects [3] - The company is actively 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 an Incident-and Injury-Free® (IIF®) safety management program integrated into its culture, emphasizing employee safety [3] Upcoming Events - The Senior Vice President and Chief Financial Officer, Scott Kornblau, will present and host one-on-one meetings with investors at the Sidoti Small Cap Virtual Conference on March 19, 2025 [1] - The presentation will begin at 10:00 AM ET and will be accessible live [2]