Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.34
• 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: 3,216,909
• 30 Day Avg. Volume: 1,753,088
• 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: 1.01
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: $18.50
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.08
• Revenue Forecast (FY): $892.63M

• Rating: 73 Outperform
• Price Target: $19.00 ▲(12.43% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by improving financial performance (higher profitability, positive free cash flow, and declining leverage) and strong technical trend signals. Positive earnings-call guidance and the announced acquisition add support, while the main offsets are historical cash-flow/earnings volatility and a valuation that looks reasonable rather than deeply discounted (with no dividend yield data to add support).

Positive Factors

Robust backlog with high-quality mix

A $935M backlog with 84% allocated to capital and coastal protection creates durable revenue visibility and a higher-margin project mix. This supports vessel utilization planning, secures near-term revenue into 2026, and reduces short-term bid-dependent volatility in project awards.

Improved and sustainable margins

Margin recovery to ~20% adjusted EBITDA and near-23% gross margin alongside revenue growth reflects stronger execution and project mix. Sustained higher margins enhance ability to absorb cost pressures, fund maintenance capex, and bid competitively on future contracts.

Stronger cash generation

Material improvement to operating cash flow and positive free cash flow in 2025 signals better cash conversion after years of deficits. Persistent positive FCF enables deleveraging, funds fleet maintenance and dry docking, and increases strategic optionality for bids or M&A.

Negative Factors

Historical earnings and cash volatility

The business has exhibited multi-year lumpy earnings and cash flow driven by project timing and execution variability. That structural volatility complicates forecasting, capital allocation, and consistent debt reduction, leaving exposure if project awards slow or costs spike.

Sizable remaining leverage

Although leverage is improving, substantial absolute debt levels remain. High leverage heightens sensitivity to slower revenue or rising rates, restricts financial flexibility during downturns, and can pressure interest costs and covenant headroom over the medium term.

Fleet availability and demand timing risk

Regulatory dry docking reduces available fleet capacity and can delay revenue recognition for months; potential offshore-wind delays create demand uncertainty in a key growth area. Together these structural risks can depress utilization and lengthen project cycles.

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

Financial trajectory is improving: revenue growth and stronger margins in 2024–2025, deleveraging in 2025 (debt-to-equity down to ~0.88), and a sharp rebound to positive free cash flow in 2025. The main constraint on the score is historical volatility (including a 2022 loss and multiple years of negative free cash flow), reflecting project/cycle-driven variability.

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	455.87M	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: 16.90
• 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 16.9 is above the 20-day moving average (MA) of 16.14, above the 50-day MA of 14.79, and above the 200-day MA of 12.48, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 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
WLDN	75 Outperform	$1.65B	42.03	16.38%	―	12.90%	72.61%
GLDD	73 Outperform	$1.13B	15.57	15.21%	―	12.53%	35.68%
ORN	65 Neutral	$550.63M	58.27	6.31%	―	7.02%	―
BBCP	64 Neutral	$339.71M	74.75	3.32%	―	-8.98%	-38.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTRX	58 Neutral	$310.82M	-16.44	-16.33%	―	17.16%	24.10%
BWMN	57 Neutral	$563.24M	34.76	6.31%	―	16.73%	―

Great Lakes Dredge & Dock Corporate Events

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.