Great Lakes Dredge & Dock (GLDD) Q4 2023 earnings summary

Executive summary

• Q4 2023 net income was $21.6 million and adjusted EBITDA was $40.8 million; FY 2023 net income was $13.9 million and adjusted EBITDA was $73.0 million. Both periods included gains tied to an offshore wind contract termination.

• Year-end dredging backlog reached a record $1.04 billion, supported by capital-project and LNG awards; management expects a robust 2024 dredging bid market.

Financial highlights

• Q4 revenue was $181.7 million, up $35.1 million YoY; operating income was $30.5 million versus an operating loss of $36.7 million in Q4 2022.

• Q4 net income was $21.6 million versus a $31.2 million loss YoY; it included a $5.6 million gain from termination of an offshore wind contract.

• FY revenue was $589.6 million, down $59.2 million YoY; operating income was $28.2 million versus an operating loss of $27.7 million in 2022.

• FY net income was $13.9 million versus a $34.1 million loss in 2022; adjusted EBITDA was $73.0 million, including a $7.4 million contract-termination gain.

Outlook and guidance

• Management anticipates a robust dredging bid market in 2024, supported by record backlog, fleet improvements and strategic initiatives.

• Several delayed capital port projects, including Sabine, Houston and Mobile, were expected to bid in H1 2024; appropriations were still under a continuing resolution pending approval.

• Acadia and Amelia Island are expected to be delivered in 2025; offshore wind rock installation opportunities are planned for 2026 and beyond.