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 85% in capital projects and over $273 million in low bids/options pending award.

• Offshore wind market entry progressing, with Acadia vessel under construction, contracts secured for 2025–2026, and additional international opportunities being pursued.

• Fleet modernization advanced with Galveston Island hopper dredge operational and Amelia Island expected in H2 2025.

• Strong project execution despite drydockings, with capital and coastal protection projects offsetting maintenance revenue declines.

Financial highlights

• Q2 2024 revenues: $170.1 million (Q2 2023: $132.7 million); gross profit: $29.8 million (17.5% margin); adjusted EBITDA: $25.8 million (15.2% margin); net income: $7.7 million (Q2 2023: $1.7 million).

• Operating income for Q2 2024 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.

• Ended Q2 with $23.1 million in cash, over $325 million in total liquidity, and no debt maturities until 2029.

• Net interest expense rose to $4.2 million due to new term loan; net income tax expense increased to $2.8 million on higher earnings.

Outlook and guidance

• Full-year CapEx guidance lowered to $130–$150 million due to milestone payment timing shifts, focused on new build vessels and maintenance.

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

• Q3 expected to see increased utilization and revenue as LNG projects ramp up; no regulatory dry dockings planned for the rest of 2024.

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

• Long-term market outlook remains positive, with significant growth expected in offshore wind and continued support for coastal and capital projects.