Great Lakes Dredge & Dock (GLDD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 28% year-over-year to $170.1 million, with net income of $7.7 million and adjusted EBITDA of $25.8 million, driven by strong capital and coastal protection projects and disciplined cost control.

• Dredging backlog at June 30, 2024 was $807.9 million, with $273.1 million in low bids/options pending and 85% in capital projects; additional awards secured post-quarter.

• Offshore wind market entry advancing, with Acadia vessel under construction and contracts for major projects; no impact from federal pause on new LNG export licenses.

• Fleet modernization progressed: Galveston Island vessel operational, Amelia Island and Acadia vessels under construction, with Acadia uniquely positioned for subsea rock installation.

• Six-month net income was $28.7 million versus a $1.5 million loss last year.

Financial highlights

• Q2 2024 revenues were $170.1 million (Q2 2023: $132.7 million); gross profit rose to $29.8 million (17.5% margin), up from $17.9 million (13.5%) in Q2 2023.

• Net income increased to $7.7 million from $1.7 million year-over-year; adjusted EBITDA rose to $25.8 million from $16.6 million.

• Operating income was $14.6 million, up from $3.7 million in Q2 2023.

• Diluted EPS for Q2 2024 was $0.11, up from $0.03 in Q2 2023.

• G&A expenses increased by $1.7 million year-over-year due to higher employee benefit and incentive costs.

Outlook and guidance

• Expect higher utilization and revenue in Q3 as LNG projects ramp up; no regulatory dry dockings planned for the rest of the year.

• Full-year CapEx guidance lowered to $130–$150 million due to timing of milestone payments; about $150 million remains on the new build program, with completion expected in Q3 2025.

• 40% of backlog expected to be completed in 2024, with the remainder in 2025–2026.

• Strong bid market anticipated for 2024 and 2025, supported by record federal appropriations for the U.S. Army Corps of Engineers.

• Sufficient liquidity expected for the next twelve months from cash, operations, and credit facilities.