Great Lakes Dredge & Dock (GLDD) Noble Capital Markets Virtual Equity Conference summary

Company overview and market position

• Largest U.S. dredging provider with a diverse fleet of about 200 vessels and a 33–40% market share, expected to grow in 2024 due to strong project wins.

• Focuses on capital (port deepening), coastal protection (beach rebuilding), and maintenance dredging, with a current shift toward higher-margin capital and coastal projects.

• Currently operates 100% domestically due to a robust U.S. market, with a record backlog exceeding $1 billion entering 2024.

• Major client is the U.S. Army Corps of Engineers, benefiting from consecutive record federal budgets and disaster relief appropriations.

• New York/New Jersey deepening project, estimated at $6 billion, is being studied for late-decade execution.

Financial performance and outlook

• 2023 marked a recovery after a challenging 2022, with 2024 showing strong revenue, profit, and margin growth.

• Over $300 million in liquidity, no debt maturities until 2029, and a recent S&P credit rating upgrade.

• First half of 2024 saw an $80 million revenue increase year-over-year, with gross profit and EBITDA more than doubling.

• Backlog and new project wins nearly fill the 2025 and 2026 schedules, supporting high fleet utilization.

• Capital and coastal protection projects drive margins in the high 20% range, with maintenance projects generally lower.

Fleet development and competitive landscape

• Recent delivery of the Galveston Island hopper dredge, with Amelia Island expected in about a year; no further new builds planned soon.

• Acadia, a Jones Act-compliant subsea rock installation vessel, will serve the offshore wind sector starting late 2025.

• Vessel retirements and rationalization continue to balance capacity; competitors are also scrapping or selling older vessels.

• One cold-stacked vessel may be reactivated due to increased demand.