Great Lakes Dredge & Dock (GLDD) Q4 2024 earnings summary

Executive summary

• Achieved fourth quarter 2024 revenues of $202.8 million and Adjusted EBITDA of $40.2 million; full year revenues reached $762.7 million and Adjusted EBITDA $136 million, both near record highs.

• Full year net income was $57.3 million, with Q4 net income of $19.7 million.

• Year-end dredging backlog stood at $1.2 billion, with an additional $282.1 million in low bids and options pending award, providing revenue visibility into 2026.

• Major project wins included the $235 million Sabine-Neches Contract 6 Deepening and two large LNG projects.

• Offshore wind and energy diversification advanced, with the Acadia vessel securing contracts and the segment expanding internationally.

Financial highlights

• Fourth quarter revenues increased $21.1 million year-over-year, driven by new vessel deployment and higher capital/coastal protection revenue.

• Q4 gross profit was $48.9 million (24.1% margin), up from $38.7 million (21.3%) in Q4 2023; full year gross profit was $160.6 million, up $82.9 million from 2023.

• Full year operating income was $92.8 million, up $64.6 million year-over-year.

• Adjusted EBITDA for 2024 increased $63 million year-over-year to $136 million.

• Ended year with $10.2 million in cash and $35 million drawn on a $300 million revolver, which was fully repaid after year-end.

Outlook and guidance

• Expect approximately 60% of $1.2 billion backlog to convert to revenue in 2025, mostly from capital and coastal protection projects.

• The Acadia vessel is expected to drive growth in offshore energy, with work planned for 2026 and beyond in global wind and subsea infrastructure markets.

• 2025 capital expenditures projected at $140–$160 million, including new builds and maintenance.

• Q1 2025 expected to be the highest revenue quarter due to strong utilization and project mix.

• Revenue for 2025 anticipated to exceed 2024 despite increased dry dockings; margins to remain strong due to high-margin project mix.