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

Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

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Great Lakes Dredge & Dock

(NASDAQ:GLDD)

Rating:78Outperform
Price Target:
$14.00
▲(17.06%Upside)
Great Lakes Dredge & Dock's stock score is primarily driven by strong technical indicators and robust financial performance. Reasonable valuation further supports its attractiveness, despite some operational challenges highlighted in the earnings call.

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 (GLDD) is a leading provider of dredging services in the United States, with a strong presence in the international market. The company specializes in a range of dredging activities, including capital, coastal protection, and maintenance dredging, as well as land reclamation and other related projects. GLDD operates primarily in the maritime construction sector, offering services that are vital for the creation and maintenance of waterways, ports, and coastlines.
How the Company Makes MoneyGreat Lakes Dredge & Dock makes money primarily through contracts for its dredging services, which are often secured with government agencies, port authorities, and private sector clients. These contracts typically involve large-scale projects, such as deepening and maintaining shipping channels, beach nourishment, and land reclamation efforts. The company's revenue streams are driven by ongoing demand for infrastructure development and maintenance, which are critical for trade and coastal protection. Additionally, GLDD may enter into joint ventures or partnerships that allow it to expand its capabilities and access new markets, further bolstering its revenue potential. The company's success is influenced by factors such as government funding for infrastructure projects, environmental regulations, and the overall economic climate, which can impact the availability and scope of dredging projects.

Great Lakes Dredge & Dock Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 25.37%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, a robust backlog, and strategic initiatives such as share repurchases and credit facility expansion. However, challenges such as the temporary pause on a key project and a heavy dry dock schedule were noted. Overall, the positive aspects, including financial achievements and strategic positioning, outweigh the concerns.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Great Lakes Dredge & Dock reported revenues of $242.9 million and adjusted EBITDA of $60.1 million for Q1 2025, marking the second-highest revenue quarter in company history and a significant increase from the previous year.
Zero Recordable Injuries
The company reported zero recordable injuries for the first quarter, highlighting its strong safety culture.
Robust Backlog
The dredging backlog remains strong at $1 billion, with capital and coastal protection projects accounting for 95% of the backlog, plus an additional $265 million in low bids and options pending award.
Share Repurchase Program
The Board of Directors approved a $50 million share repurchase program, with 1.2 million shares repurchased for $10.4 million as of April 30.
Expansion of Credit Facility
Post quarter end, the company upsized its revolving credit facility to $330 million, enhancing liquidity.
New Build Developments
The new hopper dredge, Amelia Island, is expected to be delivered in Q3 2025, and the subsea rock installation vessel, Acadia, is scheduled for delivery in Q1 2026.
Negative Updates
Temporary Pause on Equinor's Empire Wind 1 Project
There was a temporary pause on Equinor's Empire Wind 1 project, included in the company's offshore energy backlog, with uncertainties about the duration and impact.
High Number of Regulatory Dry Docks
2025 is a heavier-than-normal regulatory dry dock year, with Q2 expected to be most impacted due to four vessels being in the dock at various times.
Company Guidance
During the Q1 2025 earnings call, Great Lakes Dredge & Dock Corp. reported robust financial results, with revenues reaching $242.9 million and an adjusted EBITDA of $60.1 million, reflecting a margin of 24.7%. The company noted a strong safety performance with zero recordable injuries. The dredging backlog stood at $1 billion, with 95% focused on capital and coastal protection projects, alongside $265 million in low bids and options pending award. A $50 million share repurchase program was approved, with $10.4 million already spent. Additionally, the company's revolving credit facility was increased to $330 million. The newbuild program is on track, with the Amelia Island dredge expected by Q3 2025 and the Acadia vessel by Q1 2026. Despite dry dock impacts anticipated in Q2, full-year 2025 results are projected to exceed the previous year, driven by a strong backlog and continued support for coastal protection projects.

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 (Trailing-Twelve-Months) 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 Revenue806.90M762.69M589.63M648.78M726.15M733.60M
Gross Profit185.01M160.58M77.73M31.17M145.27M171.23M
EBITDA153.00M135.96M72.98M16.97M127.44M149.45M
Net Income69.66M57.27M13.91M-34.05M49.43M66.10M
Balance Sheet
Total Assets1.23B1.26B1.11B981.78M997.67M958.02M
Cash, Cash Equivalents and Short-Term Investments11.34M10.22M22.84M6.55M145.46M216.51M
Total Debt499.98M547.75M503.25M413.40M383.69M389.09M
Total Liabilities753.50M806.19M725.29M613.56M598.67M611.36M
Stockholders Equity479.94M448.91M385.55M368.22M399.00M346.67M
Cash Flow
Free Cash Flow-53.27M-55.08M-103.42M-141.35M-67.65M31.33M
Operating Cash Flow81.58M70.06M47.42M1.65M49.01M78.95M
Investing Cash Flow-128.14M-115.69M-120.14M-140.91M-112.20M-43.17M
Financing Cash Flow34.54M32.09M89.93M-1.66M-5.86M-6.26M

Great Lakes Dredge & Dock Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.96
Price Trends
50DMA
10.95
Positive
100DMA
9.91
Positive
200DMA
10.78
Positive
Market Momentum
MACD
0.31
Positive
RSI
57.26
Neutral
STOCH
48.33
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 11.96 is above the 20-day moving average (MA) of 11.80, above the 50-day MA of 10.95, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 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 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$965.42M40.1710.78%12.40%81.98%
78
Outperform
$802.89M11.7015.67%28.03%80.90%
72
Outperform
$493.38M194.801.25%21.78%
ORORN
70
Outperform
$355.19M147.962.25%15.58%
68
Neutral
£2.94B10.248.40%3.45%2.87%-9.95%
64
Neutral
$326.74M27.364.58%-9.91%-25.58%
63
Neutral
$376.33M-14.26%-0.29%-6.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GLDD
Great Lakes Dredge & Dock
11.96
3.64
43.75%
MTRX
Matrix Service Company
13.95
5.19
59.25%
ORN
Orion Group Holdings
9.07
0.42
4.86%
WLDN
Willdan Group
67.82
38.29
129.66%
BBCP
Concrete Pumping Holdings
6.33
1.34
26.85%
BWMN
Bowman Consulting Group
28.85
-3.34
-10.38%

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: Jun 25, 2025