Great Lakes Dredge & Dock (US:GLDD)2025-05-06 15:02Financial 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]