Posted on November 4, 2025
Third quarter net income of $17.7 million
Third quarter Adjusted EBITDA of $39.3 million
Dredging backlog of $934.5 million at September 30, 2025
HOUSTON, Nov. 04, 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 third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
- Revenue was $195.2 million
- Total operating income was $28.1 million
- Net income was $17.7 million
- Adjusted EBITDA was $39.3 million
- Dredging backlog as of September 30, 2025 was $934.5 million
Management Commentary
Lasse Petterson, President and Chief Executive Officer, commented, “Great Lakes delivered another solid quarter, driven by strong project execution and high equipment utilization. We ended the quarter with revenue of $195.2 million, net income of $17.7 million, and adjusted EBITDA of $39.3 million. Our substantial dredging backlog stood at $934.5 million as of the end of the third quarter, with an additional $193.5 million in low bids and options pending award, providing revenue visibility for the remainder of 2025 and well into 2026. Capital and coastal protection projects account for over 84% of our dredging backlog, which typically yield higher margins for GLDD due to our experienced project teams and our extensive fleet.
Our current backlog includes three major port deepening LNG projects: the Port Arthur LNG Phase 1 Project, the Brownsville Ship Channel Project, part of NextDecade Corporation’s Rio Grande LNG initiative, and the Woodside Louisiana LNG project. Dredging operations for the first two projects began in Q3 2024 and are actively ongoing. The Woodside Louisiana LNG project is expected to commence in early 2026.
To date, we have seen no interruption to our business during the current government shutdown. Our operations have remained unaffected, and we expect to continue to conduct business as usual, maintaining full schedules, bidding, awards, and payments. Our support to the U.S. Army Corps of Engineers (“Corps”) will proceed without disruption and our backlog of projects are fully funded.
On October 24th, we completed an amendment to our revolving credit facility, upsizing the amount by $100 million to a total of $430 million, decreasing the interest rate, and extending the maturity out to 2030. With the increased capacity under the facility we paid off in full our $100 million second lien term loan entered in 2024 reducing our annual interest expense by almost $6 million and providing us with additional financial flexibility.
Our newbuild program is close to completion as our newest hopper dredge, the Amelia Island, was delivered in August and immediately went to work. 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. In addition, post quarter end, the Acadia was awarded additional scope on Sunrise Wind providing 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.
During the third quarter, our offshore energy team commenced rock placement operations on Equinor’s South Brooklyn Marine Terminal. During the fourth quarter, we started installation of armor rock for the Empire Wind 1 project, utilizing a chartered vessel for this scope of the campaign with plans for the Acadia to complete the work once she is delivered and commissioned next year.
The Company had exceptional performance the first nine months of 2025, which we expect to continue for the remainder of this year and into 2026 driven by a modernized fleet, superior project execution, a strong balance sheet, and a significant backlog.”
Operational Update
Third Quarter 2025
- Revenue was $195.2 million, an increase of $4.0 million from the third quarter of 2024. The higher revenue in the third quarter of 2025 was due primarily to higher capital project revenue as compared to the same period in the third quarter last year, partially offset by lower coastal protection and maintenance project revenue.
- Gross profit and gross profit margin was $43.8 million and 22.4%, respectively, both increasing compared to the third quarter of 2024 gross profit and gross profit margin of $36.2 million and 19.0%, respectively. The increase was primarily due to increased revenue, improved utilization and project performance and a larger number of capital projects which typically yield higher margins.
- Operating income was $28.1 million, increasing from $16.7 million in the prior year’s third quarter primarily due to the improved gross profit and lower general and administrative expenses.
- Net income for the third quarter was $17.7 million, increasing from net income of $8.9 million in the prior year third quarter. The increase was mostly driven by improved operating results partially offset by an increase in net income tax provision.
Balance Sheet, Backlog & Capital Expenditures
- At September 30, 2025, the Company had $12.7 million in cash and cash equivalents, total long-term debt of $415.3 million and liquidity of $284.1 million.
- At September 30, 2025, the Company had $934.5 million in dredging backlog compared to $1.2 billion at December 31, 2024. Dredging backlog as of September 30, 2025 does not include approximately $193.5 million of awards and options pending.
- At September 30, 2025, the Company had $73.0 million in offshore energy backlog compared to $44.9 million at December 31, 2024.
- Total capital expenditures for the third quarter of 2025 were $32.8 million including $18.6 million for the construction of the Acadia, $8.3 million for the Amelia Island, and $5.9 million for maintenance and growth.
Market Update
On October 1, 2025, the federal government shut down due to a lapse in appropriations, impacting operations across multiple agencies and services nationwide. While shutdowns are rare and typically short lived, the annual federal budget process is typically complicated and prone to stop gap provisions like Continuing Resolutions. As a result, federal agencies like the Corps are accustomed to executing their mission within the confines of these complications.
To date, we have seen no interruption to our business during the current government shutdown. Our operations remain unaffected, and we expect to continue to conduct business as usual, maintaining full project operations. Our commitment to supporting the Corps remains steadfast and all of the Corps’ projects in our backlog are fully funded. We remain focused on delivering results and executing all projects.
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 contracts for full utilization of the Acadia for 2026 and are making good progress on securing contracts for the Acadia’s utilization 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, November 4, 2025, at 9:00 a.m. C.S.T (10:00 a.m. E.S.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/BIe06b29e64e414109b574adf941eba177
The live call and replay can also be heard at https://edge.media-server.com/mmc/p/ts2pr24d 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 extinguishments, 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.
