Great Lakes Dredge & Dock’s Positive Earnings Call

Great Lakes Dredge & Dock ((GLDD)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Great Lakes Dredge & Dock Corp. was marked by a positive sentiment, underscoring a strong financial performance and strategic advancements. Despite some increased costs and potential market delays, the company expressed confidence in its future outlook, driven by a significant backlog and progress in its new build program.

Strong Financial Performance

The company reported revenues of $193.8 million and an adjusted EBITDA of $28 million for the second quarter of 2025, reflecting an increase from the previous year. This financial strength highlights the company’s ability to generate solid revenue and maintain profitability.

Robust Backlog

Great Lakes Dredge & Dock’s dredging backlog remains robust at $1 billion, with 93% derived from capital and coastal protection projects. Additionally, the company has $215.4 million in awards and options pending, indicating a strong pipeline of future projects.

High Utilization and Project Wins

The company has achieved high equipment utilization and a successful bid strategy, resulting in numerous project wins. This supports high asset utilization and contributes to solid revenue generation, reinforcing the company’s market position.

New Build Program Progress

Significant advancements have been made in the new build program, with the new hopper dredge, Amelia Island, expected to be delivered soon. The subsea rock installation vessel, Acadia, has reached a key milestone with its launch from dry dock, marking progress in expanding the company’s capabilities.

Share Repurchase Program

A $50 million share repurchase program has been initiated, with $11.6 million spent on repurchasing 1.3 million shares. This move reflects the company’s commitment to returning value to shareholders.

Higher Dry Docking Costs

Increased dry docking costs have partially offset gross profit despite higher revenues. This highlights the challenges the company faces in managing operational costs while maintaining profitability.

Potential US Offshore Wind Market Delays

The company is facing potential delays in the U.S. offshore wind market, leading to strategic adjustments for the Acadia. This situation underscores the need for flexibility in navigating market uncertainties.

Increased G&A Expenses

Higher general and administrative expenses have been reported due to increased incentive compensation. This reflects the company’s investment in talent and its commitment to rewarding performance.

Forward-Looking Guidance

Great Lakes Dredge & Dock Corp. provided a strong forward-looking guidance, expecting 2025 to be a record year for both revenue and net income. With significant cash flow growth anticipated in 2026 as the new build program concludes, the company is well-positioned for future success.

In summary, the earnings call for Great Lakes Dredge & Dock Corp. conveyed a positive outlook, driven by strong financial performance, a robust backlog, and strategic advancements in the new build program. Despite some challenges, the company remains confident in its ability to achieve record results in the coming years.