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Great Lakes Dredge & Dock Corp. (GLDD)
NASDAQ:GLDD
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Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

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GLDD

Great Lakes Dredge & Dock

(NASDAQ:GLDD)

Rating:73Outperform
Price Target:
$13.00
▲(10.83% Upside)
Great Lakes Dredge & Dock's strong earnings call performance and undervalued P/E ratio are significant positives, contributing to a high overall score. The company's financial performance shows recovery, though cash flow management remains a concern. Technical indicators suggest moderate bullish momentum, supporting the stock's favorable outlook.

Great Lakes Dredge & Dock (GLDD) vs. SPDR S&P 500 ETF (SPY)

Great Lakes Dredge & Dock Business Overview & Revenue Model

Company DescriptionGreat 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 MoneyGreat Lakes Dredge & Dock generates revenue primarily through its dredging and marine construction contracts. The company bids on projects, often funded by government agencies or private developers, which results in significant revenue from large-scale dredging operations. Key revenue streams include capital dredging contracts for new waterway construction, maintenance dredging for the upkeep of existing channels, and environmental remediation projects that involve the removal of contaminated sediments. GLDD also benefits from strategic partnerships with government bodies and private firms, which can provide a steady flow of contracts and enhance its market position. The company's ability to secure long-term contracts and engage in multi-year projects significantly contributes to its earnings stability and growth potential.

Great Lakes Dredge & Dock Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with increased revenue, a robust backlog, and strategic investments in new vessels and share repurchases. Despite challenges such as heavy dry docking and potential delays in the U.S. offshore wind market, the company's outlook remains positive with expectations of a record year in 2025.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Second quarter 2025 revenues reached $193.8 million, an increase of $23.7 million from the prior year. Adjusted EBITDA was $28 million with a margin of 14.4%.
Solid Backlog
The dredging backlog remained strong at $1 billion, with 93% from capital and coastal protection projects and an additional $215.4 million in awards and options pending.
Share Repurchase Program
A $50 million share repurchase program was initiated in March, with $11.6 million spent to repurchase 1.3 million shares by June 30.
New Hopper Dredge Delivery
The new hopper dredge, Amelia Island, is expected to be delivered soon and will begin work on backlog projects immediately.
Credit Facility Upsize
Revolving credit facility was upsized by $30 million to $330 million to enhance liquidity, ending the quarter with liquidity of $272 million.
Projected Record Year
Despite a heavy dry dock year, 2025 is expected to be a record year for both revenue and net income.
Subsea Rock Installation Vessel
The Acadia, a Jones Act-compliant subsea rock installation vessel, hit a key milestone and is expected to be delivered in Q1 2026.
Negative Updates
Heavy Dry Dock Year
Four dredges underwent regulatory dry dockings during the second quarter, with more planned, affecting utilization.
General and Administrative Expenses Increase
Operating income increase was partially offset by higher general and administrative expenses, mostly due to increased incentive compensation.
U.S. Offshore Wind Market Delays
There are early signs of potential delays in the U.S. offshore wind market, leading to a strategic adjustment for the Acadia.
Company Guidance
During the Q2 2025 earnings call for Great Lakes Dredge & Dock Corp., guidance was provided for both the current fiscal year and beyond. The company reported revenues of $193.8 million and an adjusted EBITDA of $28 million, demonstrating strong performance in projects such as port deepenings and coastal restoration. The dredging backlog remained robust at $1 billion, with an additional $215.4 million in awards and options pending. The company expects full-year 2025 results to be the highest in its history for both revenue and net income, despite a significant number of vessels undergoing dry docking. Looking ahead to 2026, Great Lakes Dredge & Dock forecasts strong revenue visibility, driven by its current backlog and strategic new build program, which includes the imminent delivery of the Amelia Island hopper dredge and the Acadia subsea rock installation vessel. The company has also initiated a $50 million share repurchase program, reflecting confidence in its long-term outlook. Additionally, the expansion of the credit facility by $30 million to $330 million aims to enhance liquidity, supporting strategic growth and operational flexibility.

Great Lakes Dredge & Dock Financial Statement Overview

Summary
Great Lakes Dredge & Dock demonstrates solid financial performance with improving margins and revenue growth in the TTM period. The balance sheet shows stable leverage with a decent equity base, while cash flow management indicates potential for improvement due to high capital expenditures. Overall, the company is on a positive trajectory but needs to address free cash flow constraints.
Income Statement
78
Positive
Gross profit margin improved in the TTM (Trailing-Twelve-Months) to 22.93% from 21.05% last year, indicating enhanced operational efficiency. Net profit margin also saw an increase to 8.63% from 7.51%. The revenue growth rate from the prior year is strong at 5.80%, reflecting positive business momentum. EBIT and EBITDA margins are healthy at 13.73% and 17.70%, respectively, showcasing robust profitability.
Balance Sheet
72
Positive
The debt-to-equity ratio stood at 1.04, indicating moderate leverage. Return on Equity (ROE) improved to 14.52%, signifying effective use of equity capital. However, the equity ratio is at 38.90%, illustrating a balanced asset funding by equity. Overall, the balance sheet shows stability with a manageable debt level.
Cash Flow
65
Positive
Free cash flow growth is negative, but operating cash flow to net income ratio is 1.17, indicating adequate cash generation capability relative to earnings. Free cash flow to net income ratio is negative due to high capital expenditures, suggesting potential cash flow constraints.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue830.57M762.69M589.63M648.78M726.15M733.60M
Gross Profit191.25M160.58M77.73M31.17M145.27M171.23M
EBITDA116.65M135.96M72.98M16.97M127.44M149.45M
Net Income71.68M57.27M13.91M-34.05M49.43M66.10M
Balance Sheet
Total Assets1.24B1.26B1.11B981.78M997.67M958.02M
Cash, Cash Equivalents and Short-Term Investments2.92M10.22M22.84M6.55M145.46M216.51M
Total Debt493.99M547.75M503.25M413.40M383.69M389.09M
Total Liabilities759.78M806.19M725.29M613.56M598.67M611.36M
Stockholders Equity481.87M448.91M385.55M368.22M399.00M346.67M
Cash Flow
Free Cash Flow-11.70M-55.08M-103.42M-141.35M-67.65M31.33M
Operating Cash Flow131.02M70.06M47.42M1.65M49.01M78.95M
Investing Cash Flow-141.77M-115.69M-120.14M-140.91M-112.20M-43.17M
Financing Cash Flow-9.46M32.09M89.93M-1.66M-5.86M-6.26M

Great Lakes Dredge & Dock Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.73
Price Trends
50DMA
11.48
Positive
100DMA
11.05
Positive
200DMA
10.78
Positive
Market Momentum
MACD
0.10
Positive
RSI
53.92
Neutral
STOCH
33.73
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 11.73 is above the 20-day moving average (MA) of 11.62, above the 50-day MA of 11.48, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 33.73 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 Risk Analysis

Great Lakes Dredge & Dock disclosed 48 risk factors in its most recent earnings report. Great Lakes Dredge & Dock reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Great Lakes Dredge & Dock Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.45B41.2514.68%13.82%96.16%
77
Outperform
$703.66M65.834.26%19.48%
73
Outperform
$797.58M11.1415.93%24.40%61.44%
71
Outperform
$301.19M26.907.90%15.85%
64
Neutral
$402.56M-14.26%-0.29%-6.77%
64
Neutral
$10.75B15.697.62%2.01%2.75%-15.14%
63
Neutral
$393.26M47.043.32%-8.98%-38.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GLDD
Great Lakes Dredge & Dock
11.73
2.43
26.13%
MTRX
Matrix Service Company
14.58
5.44
59.52%
ORN
Orion Group Holdings
7.58
1.17
18.25%
WLDN
Willdan Group
98.86
61.68
165.90%
BBCP
Concrete Pumping Holdings
7.64
2.87
60.17%
BWMN
Bowman Consulting Group
40.79
17.13
72.40%

Great Lakes Dredge & Dock Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Great Lakes Dredge & Dock Stockholders Approve Key Amendments
Positive
May 12, 2025

On May 8, 2025, Great Lakes Dredge & Dock Corporation held its Annual Meeting of Stockholders, where several key decisions were made. Stockholders approved an amendment to the 2021 Long-Term Incentive Plan, increasing the shares available by 3,000,000, and ratified Deloitte & Touche LLP as the independent auditor for 2025. Additionally, the election of two directors, approval of executive compensation, and the 2025 Employee Stock Purchase Plan were confirmed, indicating strong shareholder support for the company’s strategic direction.

The most recent analyst rating on (GLDD) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Great Lakes Dredge & Dock stock, see the GLDD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025