Great Lakes Dredge & Dock (GLDD) Sidoti Small-Cap Virtual Conference summary

Key business highlights

• Achieved second highest EBITDA in company history for 2024, with $760M+ revenue and $136M EBITDA, and entered 2025 with $1.2B backlog.

• Won major LNG projects and secured 94% of backlog in high-margin capital and coastal protection work.

• Announced a $50M share repurchase program, citing a disconnect between stock price and performance.

• Completed most of a $500M new build program, adding two new hopper dredges and the Acadia subsea rock installation vessel.

• No plans for further major vessel builds after current program; expect normalized CapEx and positive free cash flow from 2025.

Market and industry outlook

• U.S. dredging market remains robust, supported by record federal budgets and disaster relief funding.

• Backlog and bid market strength driven by Army Corps of Engineers' $8.7B budget and $3B bid market.

• Additional $1.5B in disaster relief funds for coastal protection work, with focus on beach restoration in 2024.

• Long-term prospects include a $6B New York Harbor deepening project and continued LNG opportunities.

• Offshore wind market faces U.S. permitting headwinds, but existing contracts and international expansion provide growth avenues.

Offshore energy and vessel strategy

• Acadia, the only Jones Act-compliant subsea rock installation vessel in the U.S., to be delivered in 9-12 months.

• Two U.S. offshore wind contracts secured, with a third vessel reservation for 2028-2029; international tenders ongoing.

• Acadia can serve wind, telecom, and oil/gas pipeline markets; global demand for similar vessels remains high.

• Opened European office and exploring Asian markets to diversify revenue and reduce reliance on U.S. wind market.

• Acadia expected to have a 30+ year operating life.