Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.33
• Revenue Growth: 12.53%
• EPS Growth: 35.68%
• Country: US
• Employees: 381
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.31
• Shares Outstanding: 66,780,800
• 10 Day Avg. Volume: 1,905,228
• 30 Day Avg. Volume: 2,147,134
• PEG Ratio: 0.41
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 8.82
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $17.00
• Price Target Upside: 0.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.1
• Revenue Forecast (FY): $904.63M

• Rating: 76 Outperform
• Price Target: $19.00 ▲(12.16% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by improving financial performance (stronger margins, deleveraging, and a return to positive free cash flow) and favorable technical trends (price above key moving averages with positive MACD). Positive earnings commentary and backlog visibility further support the outlook, while the acquisition provides an added catalyst. Offsetting factors are historical cash-flow volatility and project-driven cyclicality, plus execution/timing risks around vessel downtime and offshore wind delays.

Positive Factors

Backlog visibility

A $935M backlog with 84% in capital/coastal protection provides multi-period revenue visibility and reduces near-term bid-dependency. High share of capital projects tends to be higher margin and less price-sensitive than spot maintenance work, supporting durable revenue and utilization into 2026.

Fleet and operational capability

Owning the largest, advanced hopper-dredge fleet strengthens execution control, lowers reliance on subcontractors, and enables bids on capital-intensive projects. Fleet scale and newer vessels are structural advantages for efficiency, schedule reliability, and margin resilience across contract cycles.

Improving financials and cash generation

Material improvement in revenue, margins and a return to positive free cash flow ($99.5M) plus falling debt-to-equity reflect stronger cash generation and financial flexibility. This durable shift reduces refinancing risk and supports capital allocation or absorbtion of project timing variability.

Negative Factors

Project-driven cyclicality

The company’s project-based model causes lumpy revenue and inconsistent cash conversion historically, including a 2022 loss and several years of negative free cash flow. That inherent cyclicality can strain margins and liquidity during slower tender cycles or project delays.

Remaining balance-sheet exposure

Although leverage has improved, the company still carries sizable absolute debt levels. In a downturn or with project delays, fixed obligations could restrict flexibility, limit new bidding capacity, and raise refinancing or covenant risks absent sustained cash generation.

Operational downtime risk (dry docking)

Regulatory dry docking and repairs reduce vessel availability and directly compress utilization and revenue timing. Given fleet-driven capacity and tight scheduling on multi-month projects, such recurring maintenance windows can materially affect quarterly throughput and margins.

Great Lakes Dredge & Dock Business Overview & Revenue Model

Company Description

Great Lakes Dredge & Dock Corporation provides dredging services in the United States. The company engages in capital dredging that consists of port expansion projects; coastal restoration and land reclamations; trench digging for pipelines, tunnels, and cables; and other dredging related to the construction of breakwaters, jetties, canals, and other marine structures. It is also involved in coastal protection projects that comprises of moving sand from the ocean floor to shoreline locations where erosion threatens shoreline assets; maintenance dredging, which consists of the re-dredging of previously deepened waterways and harbors to remove silt, sand, and other accumulated sediments; land reclamations, channel deepening, and port infrastructure development; and lake and river dredging, inland levee and construction dredging, environmental restoration and habitat improvement, and other marine construction projects. The company serves federal, state, and local governments; foreign governments; and domestic and foreign private concerns, such as utilities, oil, and other energy companies. It operates a fleet of 18 dredges, 17 material transportation barges, 1 drillboat, and various other support vessels. The company was formerly known as Lydon & Drews Partnership and changed its name to Great Lakes Dredge & Dock Corporation in 1905. Great Lakes Dredge & Dock Corporation was founded in 1890 and is headquartered in Houston, Texas.

How the Company Makes Money

GLDD primarily makes money by performing dredging and marine construction services under customer contracts and recognizing revenue as project work is performed. Its key revenue streams generally come from: (1) dredging services for U.S. federal, state, and local government agencies—commonly including coastal protection and beach nourishment, navigation channel deepening, and ongoing maintenance dredging of ports and waterways; and (2) dredging and related services for private-sector customers such as port operators, industrial facilities, and energy-related projects. Revenue is driven by winning bids (often through competitive tenders), executing projects using its owned and operated dredging fleet, and managing utilization, production rates, and project costs (labor, fuel, materials, subcontractors, and equipment). Profitability depends on contract pricing and terms, execution performance (e.g., weather impacts, differing site conditions, and schedule changes), fleet availability and operating efficiency, and the mix of work between higher- and lower-margin projects. Specific significant partnerships contributing to earnings: null.

Great Lakes Dredge & Dock Financial Statement Overview

Summary

Fundamentals are improving: revenue grew to $888.3M in 2025 and profitability strengthened materially (gross margin ~22.9%, net margin ~8.3%). Leverage improved (debt-to-equity down to ~0.88) and 2025 saw a major cash-flow rebound with positive free cash flow ($99.5M). Key risk remains cyclicality and lumpiness (2022 loss; multiple years of negative free cash flow prior to 2025), which can pressure consistency in project-driven results.

Income Statement

Results show a clear earnings recovery and improved profitability versus the 2022 loss. Annual revenue rose to $888.3M in 2025 (up ~6.4% YoY after modest growth in 2024), while gross margin improved to ~22.9% (from ~21.1% in 2024 and ~13.2% in 2023). Net margin strengthened to ~8.3% in 2025 (vs ~7.5% in 2024 and ~2.4% in 2023), indicating better execution and/or project mix. The main weakness is volatility across the cycle (including negative profitability in 2022) and some uneven operating profitability metrics year to year, which is typical for project-based construction but still a risk to consistency.

Balance Sheet

Leverage is moderate and improving. Debt-to-equity declined to ~0.88 in 2025 from ~1.23 in 2024 and ~1.31 in 2023, supported by higher equity ($517.1M in 2025 vs $448.9M in 2024) and lower debt ($455.9M vs $550.2M). This deleveraging trend is a meaningful positive for financial flexibility. Offsetting this, the company still carries sizable absolute debt and historically ran above 1.0 debt-to-equity for multiple years, leaving the balance sheet more exposed if operating conditions soften.

Cash Flow

Cash generation strengthened materially in 2025: operating cash flow rose to $246.7M and free cash flow turned positive at $99.5M (a sharp improvement from negative free cash flow in 2021–2024). Operating cash flow was stronger than net income (coverage ~1.14x), which supports earnings quality. The key weakness is consistency: free cash flow was negative for several consecutive years before 2025, and free cash flow relative to net income in 2025 was still moderate (~40%), suggesting cash conversion can remain lumpy in a capex- and working-capital-intensive business.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	888.28M	762.69M	589.63M	648.78M	726.15M
Gross Profit	203.49M	160.58M	77.73M	31.17M	145.27M
EBITDA	160.49M	135.96M	72.98M	16.97M	127.44M
Net Income	73.47M	57.27M	13.91M	-34.05M	49.43M
Balance Sheet
Total Assets	1.32B	1.31B	1.11B	981.78M	997.67M
Cash, Cash Equivalents and Short-Term Investments	13.36M	10.22M	22.84M	6.55M	145.46M
Total Debt	458.11M	550.21M	505.87M	413.40M	383.69M
Total Liabilities	807.71M	857.21M	725.29M	613.56M	598.67M
Stockholders Equity	517.14M	448.91M	385.55M	368.22M	399.00M
Cash Flow
Free Cash Flow	99.46M	-55.08M	-103.42M	-142.33M	-72.05M
Operating Cash Flow	246.68M	70.06M	47.42M	672.00K	44.61M
Investing Cash Flow	-144.61M	-115.69M	-120.14M	-140.91M	-112.20M
Financing Cash Flow	-98.92M	32.09M	89.93M	-679.00K	-1.46M

Great Lakes Dredge & Dock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLDD, the sentiment is Positive. The current price of 16.94 is above the 20-day moving average (MA) of 16.93, above the 50-day MA of 15.99, and above the 200-day MA of 12.98, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLDD.

Great Lakes Dredge & Dock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	76 Outperform	$1.13B	11.94	14.83%	―	12.53%	35.68%
WLDN	67 Neutral	$1.12B	29.35	19.12%	―	12.90%	72.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BWMN	60 Neutral	$463.36M	44.33	4.94%	―	16.73%	―
MTRX	58 Neutral	$284.66M	-92.28	-13.58%	―	17.16%	24.10%
BBCP	58 Neutral	$342.97M	-30.18	3.32%	―	-8.98%	-38.23%
ORN	55 Neutral	$416.47M	158.32	1.60%	―	7.02%	―

Great Lakes Dredge & Dock Corporate Events

Saltchuk Advances Acquisition With Notes Tender for Great Lakes

On March 18, 2026, Saltchuk Resources and Great Lakes Dredge & Dock announced that Saltchuk has launched a cash tender offer for any and all of Great Lakes Dredge & Dock’s $325 million of 5.25% senior notes due 2029, coupled with a consent solicitation to strip most restrictive covenants, certain events of default and modify redemption notice terms in the notes’ 2021 indenture. The offer, which ties tendering of notes to granting consents and offers enhanced consideration for early tenders through March 31, 2026, is part of the financing plan for Saltchuk’s pending acquisition of Great Lakes Dredge & Dock, expected to close around April 1, 2026 and to make the dredging company a wholly owned Saltchuk subsidiary, with noteholders offered an exit as the capital structure is reshaped.

The tender offer and consent solicitation are scheduled to expire on April 15, 2026, with settlement timing linked to the closing of Saltchuk’s separate equity tender for Great Lakes Dredge & Dock shares at $17.00 per share and the subsequent merger under a February 10, 2026 agreement. The acquisition closing is not conditioned on any minimum note participation or receipt of requisite consents, signaling Saltchuk’s intent to proceed with the takeover while concurrently refinancing and ultimately discharging the notes, affecting bondholders’ options and the post-transaction leverage profile.

The most recent analyst rating on (GLDD) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Great Lakes Dredge & Dock stock, see the GLDD Stock Forecast page.

Great Lakes Dredge & Dock to Be Acquired by Saltchuk

On February 10, 2026, Great Lakes Dredge & Dock Corporation entered into a definitive agreement to be acquired by Saltchuk Resources, Inc. at an aggregate equity value of about $1.2 billion and a total transaction value of $1.5 billion. As a result of this pending acquisition, the company canceled its previously scheduled February 17, 2026 earnings call and plans to release its financial results for the three and twelve months ended December 31, 2025 in conjunction with its upcoming Annual Report filing.

The transaction marks a significant ownership change for Great Lakes Dredge & Dock, potentially reshaping its strategic direction and operations under Saltchuk’s control. Stakeholders will now look to the forthcoming annual financial disclosure for clarity on the company’s recent performance and how it may factor into the integration process and future positioning within the marine infrastructure sector.

The most recent analyst rating on (GLDD) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Great Lakes Dredge & Dock stock, see the GLDD Stock Forecast page.