• Fourth Quarter Revenue: $202.8 million.
• Fourth Quarter Net Income: $19.7 million.
• Fourth Quarter Adjusted EBITDA: $40.2 million with a margin of 20%.
• Full Year 2024 Revenue: $762.7 million.
• Full Year 2024 Adjusted EBITDA: $136 million.
• Full Year 2024 Net Income: $57.3 million.
• Gross Profit (Q4 2024): $48.9 million with a margin of 24.1%.
• Backlog at Year End: $1.2 billion with an additional $282.1 million in low bids and options pending award.
• Capital Expenditures for 2024: $135.7 million.
• Cash Position at Year End: $10.2 million.
• Revolver Status: $35 million drawn on a $300 million revolver, fully paid off after year-end.
• Second Lien Credit Agreement: $150 million.
• Interest Expense (Q4 2024): $4.9 million.
• Net Income Tax (Q4 2024): $5.1 million.

• Warning! GuruFocus has detected 4 Warning Signs with GLDD.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Great Lakes Dredge & Dock Corp (NASDAQ:GLDD) reported strong financial performance in 2024, with revenues of $762.7 million and adjusted EBITDA of $136 million, marking the second highest results in the company's history.
• The company successfully executed complex port deepening and coastal restoration projects, leveraging its extensive fleet and achieving strong margin performance.
• GLDD secured a substantial dredging backlog of $1.2 billion at year-end, with an additional $282.1 million in low bids and options pending award.
• The new hopper dredge, Galveston Island, contributed significantly to the improved results in 2024, and its sister ship, Amelia Island, is expected to be delivered in the second half of 2025.
• GLDD enhanced its financial position by generating strong operational cash flow and entering into a $150 million second lien credit agreement, providing additional liquidity for its newbuild program.

Negative Points

• The company anticipates a slowdown in the US market in 2027 and 2028, prompting a need to broaden its target market for the Acadia vessel to include international projects.
• GLDD faces potential challenges from an executive order pausing new offshore wind leases and permits, although current projects remain unaffected.
• The company is dealing with increased interest expenses due to the second lien credit agreement, impacting net income.
• There is uncertainty regarding the impact of the federal government's continuing resolution on the 2025 dredging bid market, which could affect backlog generation for 2026.
• GLDD has seven regulatory drydockings planned for 2025, which could impact revenue and margins due to downtime and associated costs.

Q & A Highlights

Q: How might the current political situation and potential budget delays impact Great Lakes Dredge & Dock's operations and backlog? A: Lasse Petterson, CEO, stated that despite potential delays in the bid market due to political factors, the company's strong backlog of funded projects ensures minimal impact on 2025 operations. The backlog will support operations into 2026, providing confidence in their outlook for the next two years.

Q: What is the impact of the recent court ruling on non-Jones Act vessels on Great Lakes' operations, specifically regarding the Acadia? A: Scott Kornblau, CFO, explained that the court ruling does not change their position. The ruling was a technicality, and the second layer of rock installation remains Jones Act protected. The company is evaluating its next legal steps but remains in a strong position.

Q: Can you provide an update on the construction and delivery timeline for the Acadia vessel? A: Lasse Petterson, CEO, mentioned that the Acadia's construction is progressing well at the Philly Shipyard, with delivery expected towards the end of the year or early Q1 next year. Despite some delays, the vessel is on track for completion.

Q: How does Great Lakes plan to utilize the Acadia if existing contracts are canceled due to permit reviews? A: Lasse Petterson, CEO, noted that there are protections in the contracts for such scenarios. If projects are canceled, the Acadia can be deployed internationally, where the market for rock placement activities is strong.

Q: What are the expectations for revenue and margin growth in 2025, considering the number of drydocks planned? A: Scott Kornblau, CFO, expects revenue growth in 2025 despite the seven planned drydocks. Over 90% of the revenue will come from higher-margin projects, and while drydock costs will impact margins, they still anticipate strong financial performance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.