Financial Data and Key Metrics Changes - The company reported revenues of $195.2 million for Q3 2025, an increase of $4 million from the prior year's third quarter [9] - Adjusted EBITDA for the quarter was $39.3 million, with an adjusted EBITDA margin of 20.1% [9] - Net income for Q3 2025 was $17.7 million, up from $8.9 million in the prior year quarter [10] - Gross profit increased to $43.8 million, with a gross profit margin of 22.4%, compared to $36.2 million and 19% in Q3 2024 [10] Business Line Data and Key Metrics Changes - The dredging backlog stood at $935 million, with 84% allocated to capital and coastal protection projects [4] - New project awards during Q3 totaled $136 million, contributing to a high-quality backlog [4] - The offshore energy team commenced rock placement operations, indicating growth in this segment [5] Market Data and Key Metrics Changes - The 2025 dredging bid market is expected to normalize at approximately $1.8 billion, focusing on coastal protection projects funded by the 2023 Disaster Relief Supplemental Appropriations Act [16] - The company has secured full utilization for the Acadia in 2026, indicating strong demand in the offshore wind market [17] Company Strategy and Development Direction - The company aims to maintain operational momentum and expects 2025 to be the highest EBITDA year in its history [13] - The strategic focus includes expanding into offshore energy services, particularly for protecting critical subsea infrastructure [17] - The company is diversifying its client portfolio, achieving a balance of 50% private and 50% federal government-funded work [44] Management's Comments on Operating Environment and Future Outlook - Management noted that operations remain unaffected by the current government shutdown, with timely payments and ongoing project execution [5][15] - The company anticipates a strong fourth quarter, despite two hopper dredges undergoing dry dock [12][55] - There is optimism regarding the 2026 bid market, with expectations for new port deepening projects to commence bidding towards the end of 2026 [32] Other Important Information - The company completed the refinancing and upsizing of its revolving credit facility to $430 million, extending maturity to 2030 [6] - Total capital expenditures for Q3 were $32.8 million, with full-year guidance remaining between $140-$150 million [11] Q&A Session Summary Question: Bidding trends and order trajectory for dredging - Management expects bidding to continue normally for maintenance dredging and coastal protection projects, despite a reduction in the overall bid market size [21] Question: Cash interest expense and GAAP interest expense convergence - The company anticipates a reduction in cash interest expense due to the repayment of the second lien term loan, with a projected interest expense of about $11 million in Q4 [22] Question: Payment issues during government shutdown - Management clarified that the U.S. Army Corps of Engineers has a majority of its workforce funded through project-based accounts, allowing for normal payment processes [28] Question: 2026 bid market outlook - The company expects the 2026 bid market to include maintenance-related work and coastal protection projects, with new port deepening projects likely to commence bidding in 2027 [32] Question: Success in securing contracts with non-wind-oriented customers - Management indicated that while contracts are still a work in progress, they have been actively bidding in Europe for cable protection projects [34] Question: Comparison of Q4 expectations to Q1 - Management noted that Q4 is expected to be extremely strong, with most vessels working throughout the quarter [40] Question: Coastal protection market and upcoming bidding opportunities - The company sees numerous beach restoration and coastal protection projects coming out to bid, supported by different funding streams [44]

Core Viewpoint - Great Lakes Dredge & Dock Corporation held its Q2 2025 earnings call, discussing key developments and financial performance for the quarter [1][2]. Group 1: Company Overview - The earnings call was led by Eric Birge, Vice President of Investor Relations, with participation from CEO Lasse Petterson and CFO Scott Kornblau [1][2][4]. - The company emphasized that certain statements made during the call are forward-looking and subject to various risks and uncertainties [3][4]. Group 2: Financial Performance - The call included discussions on non-GAAP financial measures, specifically adjusted EBITDA, with reconciliations available in the earnings release and on the investor website [4].

Core Insights - Great Lakes Dredge & Dock (GLDD) reported a revenue of $193.76 million for the quarter ended June 2025, reflecting a year-over-year increase of 13.9% [1] - The company's earnings per share (EPS) was $0.14, up from $0.11 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $174.33 million by 11.14%, showcasing a strong performance relative to market expectations [1] Financial Performance Metrics - Contract Revenues from Dredging - Capital reached $105.67 million, significantly surpassing the average estimate of $76 million, marking a year-over-year increase of 49.4% [4] - Contract Revenues from Dredging - Maintenance were reported at $22.85 million, slightly above the average estimate of $21.6 million, but showing a decline of 19.7% year-over-year [4] - Contract Revenues from Dredging - Coastal Protection totaled $65.23 million, falling short of the average estimate of $78.65 million, with a year-over-year decrease of 7.1% [4] Stock Performance - Over the past month, shares of Great Lakes Dredge & Dock have declined by 10.2%, contrasting with a 1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]