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

Executive summary

• Q3 2024 revenue rose to $191.2 million, up $74 million or 63% year-over-year, with net income of $8.9 million versus a $6.2 million loss in Q3 2023, driven by robust project performance and major contract wins in capital, coastal protection, and offshore wind.

• Adjusted EBITDA for Q3 2024 was $27 million, up from $5.3 million in Q3 2023, with a margin of 14.1%.

• Backlog at September 30, 2024 reached a record $1.21 billion, with $465 million in pending low bids/options, providing revenue visibility into 2026.

• Offshore wind market expansion continues, with the Acadia vessel under construction and reservation agreements extending utilization into 2029.

• Major project wins included $543 million in new contracts, such as port deepening and beach renourishment.

Financial highlights

• Gross profit increased to $36.2 million (19% margin) from $9 million (7.7% margin) year-over-year, aided by improved project performance and higher-margin work.

• General and administrative expenses rose to $19.8 million, mainly due to higher incentive pay.

• Net interest expense increased to $4.9 million, reflecting new term loan costs.

• Cash and cash equivalents stood at $12 million at quarter-end; total long-term debt was $412.5 million.

• Diluted EPS for Q3 2024 was $0.13, compared to a loss in the prior year period.

Outlook and guidance

• Q4 2024 expected to see higher utilization, revenue, and margins, with all active dredges working and no regulatory dry dockings planned.

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

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

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

• The company expects to fund operations and capex through cash, operating cash flow, revolver availability, and the Second Lien Credit Agreement.