Great Lakes Dredge & Dock Corporation (GLDD) Q3 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary shows strong financial performance with increased revenues, net income, and gross profit margins. The backlog and future revenue growth potential, particularly in offshore wind, are promising. However, there are supply chain and competitive pressures, but the overall sentiment remains positive. The Q&A section revealed a strong bid market and increased gross margins expected. Despite some uncertainties in project timelines, the company's financial health and strategic positioning suggest a positive stock price movement over the next two weeks.
Key Financial Performance
Net Income $8.9 million, increased from a net loss of $6.2 million in Q3 2023.
Adjusted EBITDA $27 million, increased from $5.3 million in Q3 2023.
Revenues $191.2 million, increased by $74 million from Q3 2023, primarily due to the Galveston Island actively working on projects and higher capital and coastal protection project revenues.
Gross Profit $36.2 million, increased from $9 million in Q3 2023.
Gross Profit Margin 19%, increased from 7.7% in Q3 2023, primarily due to improved project performance and higher capital and coastal protection revenue.
G&A Expenses $19.8 million, increased by $5.6 million from Q3 2023, primarily driven by higher incentive pay due to strong financial results.
Net Interest Expense $4.9 million, increased from $2.8 million in Q3 2023, primarily due to interest related to the term loan.
Net Income Tax Expense $3.2 million, increased by $5 million compared to Q3 2023, driven by higher current quarter income.
Total Capital Expenditures $38.4 million, consisting of $19.4 million for the Acadia, $13.6 million for the Amelia Island, and $5.4 million for maintenance and growth.
Cash $12 million at the end of Q3 2024.
Total Liquidity Just over $318 million at the end of Q3 2024.
Backlog $1.2 billion at the end of Q3 2024.
Offshore Wind Backlog $44.6 million with an additional $12.7 million in options pending award.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Hopper Dredge Delivery: The newest hopper dredge, the Galveston Island, was delivered in January 2024 and has shown solid project performance.
Upcoming Dredge Delivery: The sistership, the Amelia Island, is expected to be delivered in the second half of 2025.
Offshore Wind Vessel Construction: The Acadia, a U.S.-flagged vessel for subsea rock installation, is under construction and contracted for projects starting in 2025.
New Contracts Secured: Great Lakes secured $543 million in new contracts during Q3 2024, including significant beach renourishment and port deepening projects.
Record Backlog: The company achieved a record backlog of $1.2 billion, with an additional $465 million in pending awards.
Offshore Wind Market Growth: The U.S. offshore wind development pipeline expanded by 53% over the past year, indicating strong long-term market potential.
Revenue Growth: Revenues increased to $191.2 million in Q3 2024, up $74 million from the previous year, driven by project performance.
Gross Profit Improvement: Gross profit increased to $36.2 million with a margin of 19%, up from $9 million and 7.7% in Q3 2023.
Liquidity Position: Total liquidity at the end of Q3 was over $318 million, with no debt maturities until 2029.
Focus on Offshore Wind: The company remains committed to entering the U.S. offshore wind market, with the Acadia vessel positioned for growth.
Government Support for Dredging: Strong bipartisan support for the U.S. Army Corps of Engineers, with record funding expected for 2025, enhancing market opportunities.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Issues: The Biden administration's temporary pause on approving new LNG export licenses has not impacted the two awarded projects related to LNG export facilities.
Supply Chain Challenges: The construction of the Acadia vessel is dependent on the Philly Shipyard, which is undergoing a sale to a Korean shipyard group, with regulatory approvals expected. This could impact the timeline and costs associated with the vessel's construction.
Economic Factors: The dredging industry is influenced by federal funding, with the 2024 Energy and Water Appropriation Bill providing a record $8.7 billion to the U.S. Army Corps of Engineers, which supports the bid market. However, the ongoing negotiations for the 2025 budget and the Water Resource Development Act (WRDA) could introduce uncertainties.
Competitive Pressures: The company faces competitive pressures in the bid market, particularly in coastal protection and port deepening projects, where they have secured significant contracts but must continue to perform well to maintain their market position.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Record Backlog: Achieved a record backlog of $1.2 billion, with an additional $465 million in pending award low bids and options.
Offshore Wind Market Entry: Steadfast in long-term strategy to enter the U.S. offshore wind market with the Acadia vessel under construction.
New Contracts: Secured $543 million in new contracts, including significant beach renourishment and port deepening projects.
Galveston Island Dredge: The new hopper dredge, Galveston Island, has shown solid project performance since its delivery.
Future Projects: Signed the first vessel reservation agreement for the Acadia and negotiating a second for U.S. offshore wind projects.
Revenue Expectations: Expect utilization and revenues to increase in Q4 2024, with no regulatory dry dockings planned.
CapEx Guidance: Full year CapEx guidance remains between $130 million and $150 million, likely towards the lower end.
Long-term Growth Outlook: Anticipate solid funding for the U.S. Army Corps of Engineers in 2025, leading to a good bid market.
Offshore Wind Market Growth: The offshore wind development pipeline expanded by 53%, supporting long-term revenue growth opportunities.
Financial Performance: Expect margins to increase in Q4 2024, driven by capital and coastal protection projects.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Shareholder Return Plan: The company has achieved strong operational improvements and results in 2024, driven by strong project performance and higher vessel utilization. Our record backlog gives us good visibility of fleet utilization through 2025 and well into ‘26. This strengthens our ability to deliver strong results, generating higher free cash flows supporting the modernization of our fleet with efficient dredges and our expansion into the growing offshore wind market and thereby generating value for shareholders.
Share Repurchase Program: None
Dividend Program: None
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is your viewpoint of the award environment for the fourth quarter?
A:We have $90 million in low bid pending that was already awarded, and we expect a couple more awards this quarter. There are also about $140 million of options pending, some of which could be exercised in the fourth quarter.
Q:Are you seeing any delays or pushouts of work on the Acadia?
A:The sale of the shipyard has been announced, and the new owner is showing ambitions in the U.S. shipbuilding market. Regulatory approvals are expected this quarter.
Q:What is the competitive environment like regarding new vessels and existing vessels being taken out of the market?
A:The bid market for 2024 is strong, and our fleet is fully occupied. One competitor has retired two older dredges, reducing capacity.
Q:Can you talk about dredging gross margins in the quarter?
A:Margins are expected to increase in the fourth quarter due to higher-margin environmental work that typically occurs during this time.
Q:What is the expectation for the NextDecade project and its impact on utilization?
A:We have no new information, but the project is moving forward. If there are delays, we can shift dredges to other projects.
Q:What is your expectation for G&A going forward?
A:G&A for the fourth quarter is expected to be between $18 million and $19 million, with a reset for next year.
Q:What are the prospects for utilization of Acadia in late '26 and into '27?
A:We have partial utilization from the Empire Wind and Orsted Sunrise projects, with new options being discussed.
Q:Review of Unclear Management Responses
A:Management did not provide a clear timeline for the LNG project or the regulatory approval process for the shipyard sale, which lacked specific details.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Acadia point
Acadia reservation
Adam Thalhimer
Appropriation
Corps President
FERC
Island project
Lasse
Philly
SouthCoast Wind
Tellurian
Thalhimer Thompson
Water
Wind project
agreement wind
amount bid
approval owner
backlog visibility
beach renourishment
capital protection
comp
congrats
contract
cycle
environment
explosion
investment yard
job beach
option end
project NextDecade
project Sabine
project bid
reservation agreement
wind developer
GLDD Transcript
Great Lakes Dredge & Dock Corporation (GLDD) Q3 2025 Earnings Call Transcript
Positive11-4
The earnings call reveals strong financial performance with record net income and gross profit, along with a robust backlog. The Q&A session highlights ongoing revenue visibility and strategic market expansion. While there are some uncertainties in bidding and non-wind contracts, the company's positive cash flow outlook and strategic focus on deleveraging suggest a promising future. Despite management's reluctance to provide specific guidance, the overall sentiment is positive, supported by optimistic revenue and net income projections for 2025.
Great Lakes Dredge & Dock Corporation (GLDD) Q2 2025 Earnings Conference Call Transcript
Positive8-5
The earnings call indicates strong financial performance with record high revenue, a solid dredging backlog, and strategic expansion into offshore wind markets. The share repurchase program and cash flow expectations are positive, despite some uncertainties in project bidding and LNG market insights. The Q&A reveals confidence in asset delivery and market expansion, with a focus on deleveraging post-newbuild program. Overall, the company's strategic plans and financial health suggest a positive stock price movement.
Great Lakes Dredge & Dock Corporation (GLDD) Q1 2025 Earnings Call Transcript
Unknown5-7
The earnings call presents a mixed picture: strong financial performance with increased revenue and net income, but challenges like regulatory dry docks and paused projects. The share repurchase program is positive, yet project delays and competitive pressures temper optimism. The Q&A reveals management's lack of clarity on certain issues, adding uncertainty. Overall, the neutral sentiment reflects balanced positives and negatives, with no strong catalysts for significant stock price movement.
Great Lakes Dredge & Dock Corporation (GLDD) Q3 2024 Earnings Call Transcript
Positive11-5
The earnings call summary shows strong financial performance with increased revenues, net income, and gross profit margins. The backlog and future revenue growth potential, particularly in offshore wind, are promising. However, there are supply chain and competitive pressures, but the overall sentiment remains positive. The Q&A section revealed a strong bid market and increased gross margins expected. Despite some uncertainties in project timelines, the company's financial health and strategic positioning suggest a positive stock price movement over the next two weeks.
GLDD Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
