Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 727.18K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.36
• Revenue Growth: 12.53%
• EPS Growth: 35.68%
• Country: US
• Employees: 381
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.26
• Shares Outstanding: 67,999,306
• 10 Day Avg. Volume: 859,701
• 30 Day Avg. Volume: 727,185
• PEG Ratio: 0.04
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -13.75
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $18.50
• Price Target Upside: 23.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $17.50 ▲(16.82% Upside)

Great Lakes Dredge & Dock's strong technical indicators and positive earnings call sentiment are the most significant factors driving the score. The company's financial performance is solid, though free cash flow challenges need addressing. Valuation is reasonable, supporting a positive outlook.

Positive Factors

Market Leadership

Scale as the largest U.S. dredging provider grants durable advantages: preferred access to public contracts, stronger multi-year client relationships, and higher bargaining power for equipment and labor. This structural position supports steady contract flow and competitive bidding success.

Robust Backlog and Project Mix

A $935m backlog, heavily weighted to capital and coastal protection, provides multi-quarter revenue visibility and reduces cyclicality exposure. Capital projects typically have longer timelines and stable public funding, supporting sustained utilization and predictable cash generation over 2–3 years.

Fleet Modernization Advantage

Finishing the new-build program yields a modern, advanced hopper dredge fleet, improving operating efficiency, lower unit costs, and higher utilization. A superior fleet is a durable competitive moat for winning large, complex projects and reducing maintenance downtime long-term.

Negative Factors

Free Cash Flow Weakness

Negative free cash flow despite rising operating cash flow signals structural cash conversion challenges. Sustained negative FCF limits capacity to self-fund capex, repay debt, or invest in growth without external financing, constraining financial flexibility over multiple quarters.

Elevated Leverage

A net leverage around 2.5x and a debt-to-equity backdrop increases sensitivity to cash flow volatility. Elevated leverage narrows margin for execution hiccups, may increase financing costs or restrict bidding on large projects, and requires consistent FCF improvement to de-risk the balance sheet.

Offshore Wind Demand Uncertainty

Signs of U.S. offshore wind delays create structural uncertainty for a potential growth market and diversification avenue. Slower project timing can reduce high-margin opportunities and capital deployment plans, forcing strategic adjustments and extending reliance on traditional dredging markets.

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

Great Lakes Dredge & Dock generates revenue primarily through its dredging and marine construction services. The company earns money by securing contracts for large-scale projects, which can include dredging operations for federal, state, and local government agencies, as well as private sector clients involved in construction and infrastructure. Key revenue streams include maintenance dredging contracts, capital dredging projects, and specialty services such as environmental remediation. GLDD often benefits from long-term relationships with government entities and infrastructure partners, enabling it to secure repeat business and participate in multi-year projects. Additionally, the company's strategic investments in advanced dredging equipment and technologies enhance its operational efficiency and competitiveness in the market.

Great Lakes Dredge & Dock Financial Statement Overview

Summary

Great Lakes Dredge & Dock has demonstrated strong revenue and profit growth, with improved margins and effective equity utilization. However, challenges in free cash flow generation could impact liquidity. Continued focus on cost management and cash flow improvement will be crucial for sustaining financial health.

Income Statement

Great Lakes Dredge & Dock has shown impressive revenue growth with a TTM increase of 48.5%, indicating strong demand and operational efficiency. The gross profit margin improved to 23.03%, and the net profit margin increased to 8.63%, reflecting enhanced profitability. EBIT and EBITDA margins also improved, showcasing effective cost management. However, the company should continue to monitor cost pressures to maintain these margins.

Balance Sheet

The company's debt-to-equity ratio stands at 1.03, indicating a balanced leverage position compared to previous years. Return on equity improved to 15.62%, demonstrating effective use of equity to generate profits. However, the equity ratio is moderate, suggesting a need for cautious financial management to avoid over-leveraging.

Cash Flow

Operating cash flow has increased significantly, but free cash flow remains negative, with a concerning decline in free cash flow growth. The operating cash flow to net income ratio is healthy at 0.68, but the negative free cash flow to net income ratio indicates potential liquidity challenges. The company should focus on improving free cash flow generation to support long-term financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	834.60M	762.69M	589.63M	648.78M	726.15M	733.60M
Gross Profit	198.78M	160.58M	77.73M	31.17M	145.27M	171.23M
EBITDA	167.59M	135.96M	72.98M	16.97M	127.44M	149.45M
Net Income	80.55M	57.27M	13.91M	-34.05M	49.43M	66.10M
Balance Sheet
Total Assets	1.27B	1.31B	1.11B	981.78M	997.67M	958.02M
Cash, Cash Equivalents and Short-Term Investments	12.67M	10.22M	22.84M	6.55M	145.46M	216.51M
Total Debt	486.58M	550.21M	505.87M	413.40M	383.69M	389.09M
Total Liabilities	765.63M	857.21M	725.29M	613.56M	598.67M	611.36M
Stockholders Equity	502.11M	448.91M	385.55M	368.22M	399.00M	346.67M
Cash Flow
Free Cash Flow	23.93M	-55.08M	-103.42M	-142.33M	-72.05M	31.33M
Operating Cash Flow	164.30M	70.06M	47.42M	672.00K	44.61M	78.95M
Investing Cash Flow	-137.71M	-115.69M	-120.14M	-140.91M	-112.20M	-43.17M
Financing Cash Flow	-25.95M	32.09M	89.93M	-679.00K	-1.46M	-6.26M

Great Lakes Dredge & Dock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.98 is above the 20-day moving average (MA) of 14.38, above the 50-day MA of 13.57, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 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	81 Outperform	$1.02B	12.64	17.37%	―	12.53%	35.68%
WLDN	75 Outperform	$1.86B	45.30	16.38%	―	12.90%	72.61%
ORN	65 Neutral	$487.59M	50.64	6.31%	―	7.02%	―
BBCP	64 Neutral	$293.94M	63.45	3.32%	―	-8.98%	-38.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BWMN	57 Neutral	$605.11M	36.63	6.31%	―	16.73%	―
MTRX	47 Neutral	$402.74M	-16.70	-16.33%	―	17.16%	24.10%