Great Lakes Dredge & Dock (GLDD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose to $191.2 million, up $74 million year-over-year, with net income of $8.9 million versus a $6.2 million loss in Q3 2023, driven by strong capital and coastal protection project performance and major contract wins.

• Backlog reached a record $1.21 billion at September 30, 2024, with $465 million in pending awards/options and $543 million in new contracts secured, providing revenue visibility into 2026.

• Offshore wind market entry advanced, with the Acadia vessel under construction, multiple reservation agreements signed for projects through 2029, and backlog in the segment at $44.6 million.

• Delivered the new Hopper Dredge Galveston Island, with sister ship Amelia Island expected in H2 2025, both supporting high-margin projects.

• Nine-month revenue increased 37% to $559.9 million, and net income reached $37.5 million, up from a $7.7 million loss in the prior year period.

Financial highlights

• Q3 2024 gross profit was $36.2 million (19% margin), up from $9 million (7.7%) in Q3 2023, with improved project mix and performance.

• Adjusted EBITDA for Q3 2024 was $27 million (14.1% margin), up from $5.3 million in Q3 2023; trailing 12-month Adjusted EBITDA margin was 18.4%.

• General and administrative expenses increased to $19.8 million in Q3 2024, reflecting higher incentive compensation.

• Net interest expense rose to $4.9 million in Q3 2024 due to higher borrowings and new credit agreements.

• Ended Q3 with $12 million in cash, over $318 million in total liquidity, and no debt maturities until 2029.

Outlook and guidance

• Backlog and pending awards provide strong revenue visibility through 2026, with 18% expected to be completed in 2024.

• Q4 2024 expected to see higher utilization, revenue, and margins due to all vessels working and favorable project mix.

• Full-year 2024 CapEx guidance remains $130–$150 million, focused on new vessel builds and maintenance, likely at the lower end.

• Offshore wind market expansion expected to drive long-term growth, with Acadia vessel operational in H2 2025 and new contracts signed post-quarter.

• 2025 expected to be a higher dry docking year, but revenue visibility remains high due to long-term projects.