Posted on August 5, 2025
Second quarter net income of $9.7 million
Second quarter Adjusted EBITDA of $28.0 million
Dredging backlog of $1 billion at June 30, 2025
HOUSTON, Aug. 05, 2025 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) (Nasdaq: GLDD), the largest provider of dredging services in the United States, today reported financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Revenue was $193.8 million
- Total operating income was $17.1 million
- Net income was $9.7 million
- Adjusted EBITDA was $28.0 million
- Backlog as of June 30, 2025, was $1.0 billion
Management Commentary
Lasse Petterson, President and Chief Executive Officer, commented, “Great Lakes delivered a solid second quarter, driven by strong project execution and high equipment utilization. We ended the quarter with revenue of $193.8 million, net income of $9.7 million, and adjusted EBITDA of $28.0 million, despite four dredges undergoing their regulatory drydocking. Our substantial dredging backlog stood at approximately $1.0 billion as of the end of the second quarter, with an additional $215.4 million in low bids and options pending award, providing expected revenue visibility for the remainder of 2025 and well into 2026. Capital and coastal protection projects account for 93% of our dredging backlog, which typically yield higher margins.
Dredging activity for private clients in the Liquefied Natural Gas (LNG) sector remains strong. In the second quarter, we received notice to proceed for dredging operations on the Woodside Louisiana LNG project. This project has been added to our Q2 2025 backlog, along with two additional options currently included in our Q2 2025 options pending award. Dredging for this project is scheduled to begin in early 2026.
Our current backlog also includes two additional major LNG projects awarded in 2023: the Port Arthur LNG Phase 1 Project and the Brownsville Ship Channel Project, part of NextDecade Corporation’s Rio Grande LNG initiative, the latter marking the largest project in our Company’s history. Dredging operations for both projects began in Q3 2024 and are actively ongoing.
In the first quarter of 2025, we initiated a $50 million share repurchase program, as we believed our share price did not appropriately reflect the Company’s financial performance and long-term outlook. As of June 30, 2025, we have repurchased 1.3 million shares under the program for a total spend of $11.6 million.
In addition, on May 2, 2025, we executed an amendment to our Revolving Credit Facility, increasing the size from $300 million to $330 million, further enhancing our liquidity. All other terms remained the same.
Our newbuild program is coming towards completion with our newest hopper dredge, the Amelia Island, expected to be delivered within the next few weeks and plans to immediately go to work when she leaves the shipyard. The Amelia Island and her sister ship, the Galveston Island, which was delivered in early 2024, will primarily work on projects aimed at the redevelopment and enhancement of our shorelines, which are consistently impacted by severe weather.
The Acadia, the first U.S.-flagged, Jones Act-compliant subsea rock installation vessel, hit a key milestone with her launch from drydock in July with expected completion in the first quarter of 2026. Upon delivery, the Acadia is expected to immediately commence operations, first on Equinor’s Empire Wind I project and then onto Orsted’s Sunrise Wind project, which will provide full utilization for the vessel for 2026. The Acadia is designed to serve projects in both domestic and international markets focused on safeguarding critical subsea infrastructure, including subsea cables for power transmission, telecommunications cables, oil and gas pipelines and offshore wind developments.
The Company had an exceptional first half of 2025, which we expect to continue for the remainder of this year and into 2026 driven by a modernized fleet, superior project execution, and a robust backlog.”
Operational Update
Second Quarter 2025
- Revenue was $193.8 million, an increase of $23.7 million from the second quarter of 2024. The higher revenue in the second quarter of 2025 was due primarily to higher capital project revenue as compared to the same period in the second quarter last year, partially offset by lower coastal protection and maintenance project revenue.
- Gross profit was $36.6 million, an improvement of $6.8 million compared to the gross profit from the second quarter of 2024 and gross margin percentage increased to 18.9% in the second quarter of 2025 from 17.5% in the second quarter of 2024 primarily due to improved utilization and project performance and a larger number of capital and coastal protection projects which typically yield higher margins, partially offset by higher drydocking cost.
- Operating income was $17.1 million, which increased from $14.6 million in the prior year second quarter primarily driven by higher gross profit partially offset by an increase in general and administrative expenses primarily from higher incentive compensation due to the increased results in the first half of 2025.
- Net income for the quarter was $9.7 million, which is a $2.0 million increase compared to net income of $7.7 million in the prior year second quarter. The increase is mostly driven by improved operating results partially offset by an increase in income tax provision.
Balance Sheet, Dredging Backlog & Capital Expenditures
- At June 30, 2025, the Company had $2.9 million in cash and cash equivalents and total long-term debt of $419.6 million including $5.0 million drawn on our $330 million revolver. As of June 30, 2025, our liquidity was $272 million.
- At June 30, 2025, the Company had $1.0 billion in dredging backlog as compared to $1.2 billion at December 31, 2024. Dredging backlog as of June 30, 2025 does not include approximately $215.4 million of awards and options pending.
- Total capital expenditures for the second quarter of 2025 were $64.6 million including $28.7 million for the construction of the Acadia, $19.8 million for the Amelia Island, $8.8 million for support equipment, and $7.3 million for maintenance and growth.
Market Update
The Administration continues to demonstrate strong and consistent support for the dredging industry. The U.S. Army Corps of Engineers (the “Corps”) is operating in fiscal year 2025 under a continuing resolution, enacted on March 15, 2025, which sustains the funding levels established in the prior fiscal year’s record-setting budget through September 30, 2025. Our $1 billion project backlog and the inclusion of resources from the 2023 Disaster Relief Supplemental Appropriations should enable us to continue to deliver on a very busy 2025.
The Water Resources Development Act (WRDA), reauthorized every two years, funds the Corps’ projects related to flood protection, dredging, and ecosystem restoration. On January 4, 2025, WRDA 2024 was signed into law, authorizing new capital investments to enhance flood protection, coastal resilience, and ecosystem restoration. Previously, WRDA 2022 authorized deepening shipping channels in New York and New Jersey to 55 feet and advanced the Coastal Texas Protection and Restoration Program. In addition to the planned New York and New Jersey deepening, additional large-scale projects are expected to commence in the next two to three years in Tampa Bay, New Haven, Baltimore, among others.
Following the resolution of the temporary pause from the Bureau of Ocean Management, Equinor’s Empire Wind I project, which is part of our Offshore Energy backlog, has resumed in accordance with its schedule. We have secured full utilization of the Acadia for 2026 and are currently bidding work for 2027 and beyond.
In anticipation of potential delays in U.S. offshore wind projects, we proactively expanded the Acadia’s strategic target markets to include oil and gas pipeline protection, power and telecommunications cable protection, and international offshore wind. This diversification increases our opportunities into a broader range of services we now refer to as Offshore Energy. Our strategy is supported by a global shortage of rock placement vessels, and we are actively pursuing opportunities across these sectors to ensure strong and sustained utilization of the Acadia well into the future.
Conference Call Information
The Company will conduct a quarterly conference call, which will be held on Tuesday, August 5, 2025, at 9:00 a.m. C.D.T (10:00 a.m. E.D.T.). Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.
To pre-register, go to https://register-conf.media-server.com/register/BI5eaab857a8e3428387524df1ea5a519c
The live call and replay can also be heard at https://edge.media-server.com/mmc/p/e9ususwz or on the Company’s website, www.gldd.com, under Events on the Investor Relations page. A copy of the press release will be available on the Company’s website.
Use of Non-GAAP Measures
Adjusted EBITDA, as provided herein, represents net income from continuing operations, adjusted for net interest expense, income taxes, depreciation and amortization expense, debt extinguishment, accelerated maintenance expense for new international deployments, goodwill or asset impairments and gains on bargain purchase acquisitions. Adjusted EBITDA is not a measure derived in accordance with GAAP. The Company presents Adjusted EBITDA as an additional measure by which to evaluate the Company’s operating trends. The Company believes that Adjusted EBITDA is a measure frequently used to evaluate the performance of companies with substantial leverage and that the Company’s primary stakeholders (i.e., its stockholders, bondholders and banks) use Adjusted EBITDA to evaluate the Company’s period to period performance. Additionally, management believes that Adjusted EBITDA provides a transparent measure of the Company’s recurring operating performance and allows management to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. For this reason, the Company uses a measure based upon Adjusted EBITDA to assess performance for purposes of determining compensation under the Company’s incentive plan. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, amounts determined in accordance with GAAP including: (a) net income as an indicator of operating performance or (b) cash flows from operations as a measure of liquidity. As such, the Company’s use of Adjusted EBITDA, instead of a GAAP measure, has limitations as an analytical tool, including the inability to determine profitability or liquidity due to the exclusion of accelerated maintenance expense for new international deployments, goodwill or asset impairments, gains on bargain purchase acquisitions, net interest expense and income tax expense and the associated significant cash requirements and the exclusion of depreciation and amortization, which represent significant and unavoidable operating costs given the level of indebtedness and capital expenditures needed to maintain the Company’s business. For these reasons, the Company uses net income to measure the Company’s operating performance and uses Adjusted EBITDA only as a supplement. Adjusted EBITDA is reconciled to net income in the table of financial results. For further explanation, please refer to the Company’s SEC filings.
The Company
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, which is complemented with a long history of performing significant international projects. In addition, Great Lakes is fully engaged in expanding its core business into the offshore energy industry. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 135-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited and in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Contract revenues | $ | 193,755 | $ | 170,086 | $ | 436,620 | $ | 368,746 | ||||||||
| Gross profit | 36,566 | 29,840 | 106,089 | 75,414 | ||||||||||||
| General and administrative expenses | 19,478 | 16,161 | 39,516 | 32,272 | ||||||||||||
| Other losses (gains) | 1 | (906 | ) | (459 | ) | (2,922 | ) | |||||||||
| Operating income | 17,087 | 14,585 | 67,032 | 46,064 | ||||||||||||
| Interest expense—net | (4,215 | ) | (4,198 | ) | (8,666 | ) | (8,089 | ) | ||||||||
| Other income (expense) | 246 | 128 | (122 | ) | 553 | |||||||||||
| Income before income taxes | 13,118 | 10,515 | 58,244 | 38,528 | ||||||||||||
| Income tax provision | (3,423 | ) | (2,842 | ) | (15,133 | ) | (9,831 | ) | ||||||||
| Net income | $ | 9,695 | $ | 7,673 | $ | 43,111 | $ | 28,697 | ||||||||
| Basic earnings per share | $ | 0.15 | $ | 0.11 | $ | 0.64 | $ | 0.43 | ||||||||
| Basic weighted average shares | 66,698 | 67,118 | 67,037 | 66,924 | ||||||||||||
| Diluted earnings per share | $ | 0.14 | $ | 0.11 | $ | 0.64 | $ | 0.42 | ||||||||
| Diluted weighted average shares | 67,185 | 67,697 | 67,806 | 67,615 | ||||||||||||
| Great Lakes Dredge & Dock Corporation | ||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income | $ | 9,695 | $ | 7,673 | $ | 43,111 | $ | 28,697 | ||||||||
| Adjusted for: | ||||||||||||||||
| Interest expense—net | 4,215 | 4,198 | 8,666 | 8,089 | ||||||||||||
| Income tax provision | 3,423 | 2,842 | 15,133 | 9,831 | ||||||||||||
| Depreciation and amortization | 10,644 | 11,108 | 21,175 | 22,128 | ||||||||||||
| Adjusted EBITDA | $ | 27,977 | $ | 25,821 | $ | 88,085 | $ | 68,745 | ||||||||
| Great Lakes Dredge & Dock Corporation | ||||||||
| Selected Balance Sheet Information | ||||||||
| (Unaudited and in thousands) | ||||||||
| Period Ended | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Cash and cash equivalents | $ | 2,925 | $ | 10,216 | ||||
| Total current assets | 221,972 | 263,418 | ||||||
| Property and equipment—net | ||||||||
| excluding construction in progress | 438,882 | 438,727 | ||||||
| Construction in progress | 319,042 | 264,525 | ||||||
| Total assets | 1,241,650 | 1,255,103 | ||||||
| Total current liabilities | 192,304 | 216,013 | ||||||
| Total long-term debt | 419,619 | 448,216 | ||||||
| Total equity | 481,869 | 448,910 | ||||||
| Great Lakes Dredge & Dock Corporation | ||||||||||||||||
| Revenue and Backlog Data | ||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Revenues | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Capital | $ | 105,674 | $ | 70,747 | $ | 196,492 | $ | 140,647 | ||||||||
| Coastal protection | 65,227 | 70,195 | 185,831 | 134,121 | ||||||||||||
| Maintenance | 22,854 | 29,144 | 54,297 | 93,978 | ||||||||||||
| Total revenues | $ | 193,755 | $ | 170,086 | $ | 436,620 | $ | 368,746 | ||||||||
| As of | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| Backlog | 2025 | 2024 | 2024 | |||||||||
| Dredging: | ||||||||||||
| Capital | $ | 751,350 | $ | 799,565 | $ | 683,131 | ||||||
| Coastal protection | 140,012 | 328,073 | 38,205 | |||||||||
| Maintenance | 69,051 | 66,561 | 86,538 | |||||||||
| Total dredging backlog | 960,413 | 1,194,199 | 807,874 | |||||||||
| Offshore energy | 52,431 | 44,945 | 44,604 | |||||||||
| Total backlog | $ | 1,012,844 | $ | 1,239,144 | $ | 852,478 | ||||||
For further information contact:
Eric Birge
Vice President of Investor Relations
313-220-3053
