HOUSTON, Nov. 25, 2025 (GLOBE NEWSWIRE) -- Great Lakes Dredge & Dock Corporation ("Great Lakes" or the “Company”) (NASDAQ: GLDD), the largest provider of dredging services in the United States, announced today that the Company’s issuer credit rating has been upgraded to “B” from “B-” by S&P Global Ratings (“S&P”) with the outlook remaining stable. S&P based its ratings upgrade in part due to the Company’s improved revenues, earnings and expanding margins along with decreasing capital expenditures that wil ...

Market Overview - The U.S. Senate's actions to resolve the government shutdown have restored access to delayed official data, leading to increased investor optimism regarding economic indicators related to inflation, employment, and Federal Reserve actions [1] - Major U.S. stock indexes experienced significant gains, with the S&P 500 rising 1.5% to 6,832.43, the Nasdaq Composite gaining 2.3% to 23,527.17, and the Dow Jones Industrial Average increasing 0.8% to 47,368.63, reflecting renewed confidence in the economy [2] Value Stocks - The change in market sentiment has enhanced the attractiveness of value stocks, which typically benefit from stabilizing economic conditions and reduced market volatility [3] - Companies such as Great Lakes Dredge & Dock Corporation (GLDD), StoneCo Ltd. (STNE), PG&E Corporation (PCG), and Pan American Silver Corp. (PAAS) are highlighted for their low Price to Cash Flow (P/CF) ratios, indicating strong potential for recovery as investors recognize their inherent value [4][10] Price to Cash Flow Ratio - The P/CF ratio is emphasized as a critical metric for evaluating a company's financial health, as it assesses the market price of a stock relative to its cash flow per share, with lower values being more favorable [7][11] - Positive cash flow is indicative of a company's ability to manage debt, reinvest, and provide returns to shareholders, while negative cash flow suggests liquidity issues [9] Investment Strategy - A comprehensive investment strategy should not rely solely on the P/CF metric; it should also incorporate other valuation metrics such as price-to-earnings (P/E), price-to-book (P/B), and price-to-sales (P/S) ratios to avoid value traps [10][11] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and a Zacks Rank of 1 or 2, which indicates strong buy potential [11][14] Company Performance Highlights - Great Lakes Dredge & Dock (GLDD) has a trailing four-quarter earnings surprise of 65.5% and is projected to see sales and EPS growth of 11.6% and 31%, respectively [15][16] - StoneCo (STNE) has a trailing earnings surprise of 9.1% and is expected to grow sales and EPS by 11.8% and 24.4%, respectively, with shares having rallied 47.9% in the past year [16][17] - PG&E Corporation (PCG) has a trailing earnings surprise of 0.5% and is projected for sales and EPS growth of 6.7% and 10.3%, respectively, despite a 21.9% decline in shares over the past year [17][18] - Pan American Silver (PAAS) has a trailing earnings surprise of 45.2% and is expected to see significant growth in sales and EPS of 23.9% and 173.4%, respectively, with shares surging 70% in the past year [18][19]

Core Insights - Great Lakes Dredge & Dock Corporation reported a strong third quarter for 2025, with net income of $17.7 million and adjusted EBITDA of $39.3 million, driven by effective project execution and high equipment utilization [2][4][10] - The company's dredging backlog stood at $934.5 million as of September 30, 2025, with an additional $193.5 million in low bids and options pending award, indicating strong revenue visibility for the remainder of 2025 and into 2026 [4][10][16] Financial Performance - Revenue for the third quarter was $195.2 million, an increase of $4.0 million compared to the same period in 2024, primarily due to higher capital project revenue [10][16] - Gross profit was $43.8 million, with a gross profit margin of 22.4%, both showing improvement from the previous year's figures of $36.2 million and 19.0% respectively [16] - Operating income increased to $28.1 million from $16.7 million in the prior year's third quarter, attributed to improved gross profit and lower general and administrative expenses [16][25] Operational Highlights - The company has maintained uninterrupted operations during the recent government shutdown, ensuring full project execution and support to the U.S. Army Corps of Engineers [6][14] - Significant projects in the dredging backlog include major port deepening LNG projects, with operations for two projects having commenced in Q3 2024 and another expected to start in early 2026 [5][10] Capital Structure and Investments - An amendment to the revolving credit facility was completed, increasing the amount by $100 million to a total of $430 million, which reduced annual interest expenses by nearly $6 million [7] - Total capital expenditures for the third quarter were $32.8 million, including investments in new vessels such as the Acadia and Amelia Island [16][25] Market Position and Strategy - Great Lakes is the largest provider of dredging services in the U.S. and is expanding into the offshore energy sector, with a focus on safeguarding critical subsea infrastructure [21][17] - The company is actively pursuing opportunities in oil and gas pipeline protection and international offshore wind projects to ensure sustained utilization of its new vessels [17][9]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is expected to report its third-quarter 2025 financial results on November 4, prior to market opening [1] - In the previous quarter, GLDD's adjusted earnings per share (EPS) and revenues exceeded the Zacks Consensus Estimate by 58.5% and 12.3%, with year-over-year growth of 61.5% and 20.9% respectively [1] Financial Performance - The Zacks Consensus Estimate for GLDD's third-quarter adjusted EPS remains at 17 cents, reflecting a 30.8% year-over-year increase from 13 cents [3] - The consensus estimate for revenues is $197.6 million, indicating a 3.4% year-over-year increase [3] - GLDD has surpassed the consensus earnings mark in each of the last four quarters [2] Revenue Drivers - Revenue growth is anticipated due to strong infrastructure demand, expansion in the offshore wind sector, and effective project execution [4] - Maintenance dredging, which accounted for 11.8% of total revenues in Q2 2025, is expected to show weaker demand, particularly in Florida, Texas, Puerto Rico, and Mississippi [5] - Coastal protection dredging, making up 33.7% of Q2 2025 revenues, is projected to gain momentum due to increased government initiatives [5] - Capital dredging, which comprised 54.5% of Q2 2025 revenues, is expected to face challenges due to decreased revenues from Virginia projects [5] Segment Performance - The Zacks Consensus Estimate for Dredging Capital revenues is $107.5 million, a slight decline of 1.1% from the previous year [6] - Dredging Maintenance revenues are estimated at $21.2 million, reflecting a significant decrease of 44.1% from $37.9 million a year ago [6] - Dredging Coastal Protection revenues are expected to reach $72.5 million, indicating a year-over-year growth of 65.1% [6] Earnings Outlook - GLDD's bottom line is projected to improve year-over-year due to better utilization, project performance, and a favorable project mix [7] - Q3 revenues are expected to grow 3.4% year-over-year, driven by strong coastal protection activities [8] - Despite higher labor costs, improved project mix and equipment utilization are likely to enhance margins [8] - The focus on higher-margin capital and coastal protection projects is anticipated to support the bottom line, despite increased employee benefit expenses [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 2 (Buy) [10][11]

Core Viewpoint - Great Lakes Dredge & Dock Corporation will release its financial results for the third quarter of 2025 on November 4, 2025, at 7:00 a.m. CDT, followed by a conference call at 9:00 a.m. CDT [1][2] 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 and employs experienced civil, ocean, and mechanical engineering staff [3] - With over 135 years of history, the company has never failed to complete a marine project and operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - Great Lakes has a disciplined training program for engineers to ensure performance based on experience as they progress through company operations [3] - The company's Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of its culture, promoting a work environment where employee safety is paramount [3]

Core Points - Great Lakes Dredge & Dock Corporation has amended its Revolving Credit Facility, increasing it by $100 million to a total of $430 million and extending the maturity to October 2030 [1][2] - The company used the increased capacity to fully repay $100 million in second lien notes issued in 2024, resulting in significant interest savings [2][3] - The CFO highlighted that this amendment allows for an estimated annual interest saving of $6 million, with no debt maturities until 2029 and a weighted average interest rate below 6% [3] Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S. and has a long history of significant international projects [4] - The company is expanding its core business into the offshore energy industry and operates a diverse fleet of approximately 200 specialized vessels [4] - Great Lakes has a strong safety culture, emphasizing employee safety through its Incident-and Injury-Free® (IIF®) safety management program [4]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) has received seven new work awards totaling approximately $134 million, enhancing its revenue visibility through 2026 [1][2][3] Group 1: New Work Awards - The new awards include a significant $27.9 million maintenance project for the Mississippi River, which is federally funded and involves dredging for marsh development [3] - All seven projects were awarded in Q3 2025, contributing to the company's dredging backlog for 2025 [2][3] Group 2: Operational Stability - The company's operations are unaffected by the current government shutdown, as all projects in the backlog are fully funded [2] Group 3: Company Overview - Great Lakes Dredge & Dock Corporation specializes in dredging services in the US, including capital dredging for port expansions, coastal restoration, and land reclamation [4]

Core Insights - Net profit is a crucial indicator of a company's financial health, reflecting its ability to convert sales into profits [1] - A low profit margin indicates higher risks, while companies like Mission Produce, Electromed, Great Lakes Dredge & Dock, and Century Aluminum demonstrate solid net profit margins [2] Financial Metrics - Net Profit Margin is calculated as Net Profit divided by Sales, multiplied by 100, serving as a reference for operational strength and cost control [3] - A higher net profit is essential for rewarding stakeholders and attracting investors and skilled employees, providing a competitive edge [4] Investment Considerations - Net profit margin offers clarity on a company's business model, but it varies significantly across industries, making comparisons challenging [5] - Differences in accounting treatments, especially for non-cash expenses, complicate performance analysis [6] Investment Strategy - A healthy net profit margin and solid EPS growth are key elements for a successful business model [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullishness [8] Selected Companies - Mission Produce, Electromed, Great Lakes Dredge & Dock, and Century Aluminum were selected for their strong net profit margins and upward EPS estimate revisions [9] - Each of these companies has a Zacks Rank of 1 or 2, indicating strong performance potential [10] Company Profiles - **Mission Produce**: Engaged in avocado sourcing and distribution, with a Zacks Rank of 1 and a VGM Score of A. The fiscal 2025 earnings estimate was revised upward by 13.6% to $0.67 per share [11][10] - **Electromed**: Manufacturer of airway clearance therapy products, holding a Zacks Rank of 1 and a VGM Score of B. The fiscal 2026 earnings estimate increased by $0.04 to $1.04 per share [12][13] - **Great Lakes Dredge & Dock**: Largest U.S. dredging service provider, with a Zacks Rank of 2 and a VGM Score of A. The fiscal 2025 earnings estimate rose by $0.03 to $1.02 per share [14][15] - **Century Aluminum**: Engaged in primary aluminum production, with a Zacks Rank of 2 and a VGM Score of A. The fiscal 2025 earnings estimate increased by 11.6% to $2.30 per share [15][16]

Core Viewpoint - Great Lakes Dredge & Dock Corporation has received seven work awards totaling over $130 million, enhancing its project backlog and revenue visibility through 2026 [1][9]. Project Summaries - The Mississippi River project involves dredging maintenance material to support marsh development, with a contract value of $27.9 million [1][8]. - The SAD Regional Harbor Dredging project focuses on maintenance dredging of navigation channels in North Carolina, valued at $26.9 million [2][8]. - The Baltimore Harbor project entails dredging near Chesapeake Bay, with a contract worth $25.5 million [3][8]. - The Delray Beach Renourishment project involves dredging near shore to deposit material on the beach, valued at $19.2 million [4][8]. - The East Rockaway Inlet project includes maintenance dredging with sand disposal to Rockaway Beach, worth $14.0 million [5][8]. - The McLellan-Kerr Arkansas River project aims to restore navigation channels, with a contract value of $11.7 million [6][8]. - The Indian River Inlet project involves dredging to construct a beach berm and dune system, valued at $8.7 million [7][8]. Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S., with a history of completing significant international projects [10]. - The company operates a diverse fleet of approximately 200 specialized vessels and has a disciplined training program for engineers [10]. - Great Lakes emphasizes safety through its Incident-and Injury-Free® (IIF®) safety management program, integrated into its corporate culture [10].

Core Insights - Three stocks are highlighted with strong growth characteristics and buy ranks for investors to consider: Montrose Environmental Group, Micron Technology, and Great Lakes Dredge & Dock Montrose Environmental Group (MEG) - Provides environmental services primarily in the United States - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 100% over the last 60 days - PEG ratio is 1.13 compared to the industry average of 5.11 - Possesses a Growth Score of A [1][2] Micron Technology (MU) - A leading global provider of semiconductor memory solutions - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 35.1% over the last 60 days - PEG ratio is 0.33 compared to the industry average of 1.43 - Possesses a Growth Score of A [2][3] Great Lakes Dredge & Dock (GLDD) - Largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and coastline renourishment - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 6.3% over the last 60 days - PEG ratio is 0.97 compared to the industry average of 5.42 - Possesses a Growth Score of B [3][4]