Great Lakes Dredge & Dock (GLDD) stock plummeted 5.01% in intraday trading on Wednesday, following an executive order signed by President Trump that paused the issuance of new offshore wind leases and permits, and ordered a review of the U.S. wind generation permitting and leasing process.
While the executive order does not directly impact fully permitted and ongoing construction projects that GLDD has secured contracts for, it raises uncertainty around the company's long-term growth plans in the offshore wind energy market.
As stated in the Q4 2024 earnings call, GLDD has been broadening its target market for the subsea rock installation vessel Acadia to include international offshore wind projects, as well as protecting critical subsea infrastructure like oil and gas pipelines and telecommunication cables. However, the executive order signals a potential slowdown in the U.S. offshore wind market in 2027 and 2028, which could impact GLDD's offshore energy initiatives.
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