Great Lakes Dredge & Dock Corporation (GLDD) Bundle
A Brief History of Great Lakes Dredge & Dock Corporation
Company Overview
Great Lakes Dredge & Dock Corporation (GLDD) is a leading provider of dredging services in the United States, specializing in capital dredging, coastal protection, maintenance dredging, and rivers and lakes projects. The company has a significant presence in both domestic and international markets, focusing on marine construction and environmental restoration.
Recent Financial Performance
As of September 30, 2024, GLDD reported a net income of $8.9 million, a substantial increase from a net loss of $6.2 million during the same period in 2023. For the nine months ended September 30, 2024, net income reached $37.5 million, compared to a net loss of $7.7 million for the same period in the previous year. The improvement in financial performance is attributed to increased revenues and operational efficiencies.
Revenue Breakdown
Total revenues for the three months ended September 30, 2024, were $191.2 million, a 63.1% increase from $117.2 million in the prior year. For the nine-month period, revenues totaled $559.9 million, up 37.3% from $407.9 million in 2023. The following table provides a detailed breakdown of revenues by type of work:
| Type of Work | Three Months Ended September 30, 2024 (in $ thousands) | Three Months Ended September 30, 2023 (in $ thousands) | Change (%) | Nine Months Ended September 30, 2024 (in $ thousands) | Nine Months Ended September 30, 2023 (in $ thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Capital—U.S. | $108,682 | $54,602 | 99.0% | $249,329 | $125,234 | 99.1% |
| Coastal Protection | $43,913 | $23,567 | 86.3% | $178,034 | $131,362 | 35.5% |
| Maintenance | $37,867 | $33,816 | 12.0% | $130,742 | $141,553 | (7.6%) |
| Rivers & Lakes | $711 | $5,200 | (86.3%) | $1,814 | $9,747 | (81.4%) |
| Total Revenues | $191,173 | $117,185 | 63.1% | $559,919 | $407,896 | 37.3% |
Backlog and Future Contracts
As of September 30, 2024, GLDD's total dredging backlog was $1.21 billion, reflecting a significant increase from $1.04 billion at the end of 2023. This backlog includes various projects, with the following breakdown:
| Type of Work | Backlog as of September 30, 2024 (in $ thousands) | Backlog as of December 31, 2023 (in $ thousands) |
|---|---|---|
| Capital—U.S. | $898,898 | $741,839 |
| Coastal Protection | $218,321 | $138,394 |
| Maintenance | $89,050 | $152,104 |
| Rivers & Lakes | $6,870 | $6,765 |
| Total Backlog | $1,213,139 | $1,039,102 |
Operational Highlights
In 2024, GLDD has made substantial investments in its fleet, including the acquisition of the Galveston Island, a new hopper dredge operational since February 2024. This investment has facilitated the company's increased capacity for capital and coastal protection projects, which have seen a surge in demand.
Market Position and Competitive Landscape
GLDD continues to maintain a competitive edge in the U.S. dredging market. The domestic dredging bid market for the quarter ended September 30, 2024, was $1.31 billion, with GLDD winning approximately 30% of the bids, consistent with its historical average of 33% over the previous three years. The company is also actively pursuing offshore wind projects to diversify its service offerings and revenue streams.
A Who Owns Great Lakes Dredge & Dock Corporation (GLDD)
Ownership Structure
As of 2024, Great Lakes Dredge & Dock Corporation (GLDD) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The ownership distribution is as follows:
| Owner Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 65.7% | 44,073,000 |
| Insiders (Executives and Directors) | 10.2% | 6,828,000 |
| Retail Investors | 24.1% | 16,199,000 |
Top Institutional Investors
The following table lists the top institutional shareholders of GLDD as of 2024:
| Institution | Ownership Percentage | Shares Held |
|---|---|---|
| BlackRock, Inc. | 12.5% | 8,423,000 |
| The Vanguard Group, Inc. | 9.8% | 6,563,000 |
| Wellington Management Group LLP | 8.3% | 5,561,000 |
| State Street Corporation | 7.1% | 4,746,000 |
| Invesco Ltd. | 5.6% | 3,725,000 |
Executive Ownership
The ownership stakes of key executives and directors are summarized below:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David Simon | CEO | 2,500,000 | 3.7% |
| Michael H. Hennigan | President | 1,800,000 | 2.7% |
| John M. McCarthy | CFO | 1,200,000 | 1.8% |
| Board of Directors (Total) | N/A | 1,328,000 | 2.0% |
Recent Share Performance
The stock performance of GLDD reflects its financial health and investor sentiment:
| Metric | Value |
|---|---|
| Current Share Price | $16.50 |
| Market Capitalization | $1.1 billion |
| 52-Week High | $18.75 |
| 52-Week Low | $12.50 |
| Dividend Yield | 1.5% |
Financial Overview
As of September 30, 2024, GLDD reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $559.9 |
| Net Income | $37.5 |
| Adjusted EBITDA | $95.7 |
| Total Assets | $1,145.3 |
| Total Liabilities | $719.9 |
| Total Equity | $425.4 |
Market Position
GLDD is a leader in the dredging industry, holding a significant market share in the U.S. dredging market. The company has a backlog of contracts valued at:
| Contract Type | Backlog Value (in millions) |
|---|---|
| Domestic Capital Dredging | $898.9 |
| Coastal Protection | $218.3 |
| Maintenance Dredging | $89.1 |
| Rivers & Lakes | $6.9 |
| Total Backlog | $1,213.1 |
Great Lakes Dredge & Dock Corporation (GLDD) Mission Statement
Mission Statement Overview
Great Lakes Dredge & Dock Corporation is committed to providing superior dredging and marine construction services in a manner that is safe, efficient, and environmentally responsible. The company's mission emphasizes innovation, operational excellence, and the highest standards of quality to meet the needs of its customers.
Financial Performance
As of September 30, 2024, GLDD reported total revenues of $191.2 million for the third quarter, which represents a 63% increase compared to $117.2 million in the same quarter of the previous year. For the nine months ended September 30, 2024, total revenue was $559.9 million, up from $407.9 million, reflecting a 37% increase.
| Period | Total Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Q3 2024 | $191.2 | 63% |
| 9 Months 2024 | $559.9 | 37% |
Adjusted EBITDA
For the three months ended September 30, 2024, the Adjusted EBITDA was $27.0 million, a significant increase from $5.3 million in the same quarter the previous year. For the nine months ended September 30, 2024, Adjusted EBITDA reached $95.7 million, up from $32.2 million.
| Period | Adjusted EBITDA (in millions) | Year-over-Year Change (in millions) |
|---|---|---|
| Q3 2024 | $27.0 | $21.7 |
| 9 Months 2024 | $95.7 | $63.5 |
Backlog and Contract Awards
As of September 30, 2024, GLDD's total contract backlog was $1.21 billion, an increase from $1.04 billion at the end of 2023. This backlog does not include $465.0 million in pending low bids and $44.9 million of performance obligations related to offshore wind contracts.
| Type of Work | Backlog (in thousands) | Change from Previous Year (in thousands) |
|---|---|---|
| Capital—U.S. | $898,898 | $157,059 |
| Coastal Protection | $218,321 | $79,927 |
| Maintenance | $89,050 | ($63,054) |
| Rivers & Lakes | $6,870 | $105 |
| Total | $1,213,139 | $174,037 |
Revenue by Category
Revenue breakdown by category for the three and nine months ended September 30, 2024 is as follows:
| Category | Q3 2024 Revenue (in millions) | 9 Months 2024 Revenue (in millions) |
|---|---|---|
| Capital—U.S. | $108.7 | $249.3 |
| Coastal Protection | $43.9 | $178.0 |
| Maintenance | $37.9 | $130.7 |
| Rivers & Lakes | $0.7 | $1.8 |
| Total | $191.2 | $559.9 |
Net Income
The company's net income for the three months ended September 30, 2024, was $8.9 million, compared to a net loss of $6.2 million in the same quarter in 2023. For the nine months ended September 30, 2024, net income was $37.5 million, a significant improvement from a net loss of $7.7 million in the prior year.
| Period | Net Income (in millions) | Change from Previous Year (in millions) |
|---|---|---|
| Q3 2024 | $8.9 | $15.1 |
| 9 Months 2024 | $37.5 | $45.2 |
Liquidity and Capital Resources
As of September 30, 2024, GLDD reported total assets of $1.14 billion and total liabilities of $719.9 million. The company's cash and cash equivalents stood at $12.0 million.
| Category | Amount (in millions) |
|---|---|
| Total Assets | $1,145.3 |
| Total Liabilities | $719.9 |
| Cash and Cash Equivalents | $12.0 |
Future Outlook
GLDD anticipates spending between $130 million and $150 million on capital expenditures in 2024, with a focus on new vessel builds and maintenance capital expenditures. The company continues to explore opportunities in the offshore wind market, indicating a strategic shift towards renewable energy projects.
How Great Lakes Dredge & Dock Corporation (GLDD) Works
Operational Overview
Great Lakes Dredge & Dock Corporation (GLDD) operates primarily in the dredging and marine construction industry. The company engages in capital dredging, coastal protection, maintenance dredging, and rivers and lakes dredging, serving both federal and state governments, as well as private clients.
Financial Performance
For the three months ended September 30, 2024, GLDD reported total revenues of $191.2 million, a significant increase of 63.1% compared to $117.2 million during the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $559.9 million, up 37.3% from $407.9 million year-over-year.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Capital—U.S. | $108,682 | $54,602 | 99.0% | $249,329 | $125,234 | 99.1% |
| Coastal Protection | $43,913 | $23,567 | 86.3% | $178,034 | $131,362 | 35.5% |
| Maintenance | $37,867 | $33,816 | 12.0% | $130,742 | $141,553 | (7.6%) |
| Rivers & Lakes | $711 | $5,200 | (86.3%) | $1,814 | $9,747 | (81.4%) |
| Total Revenues | $191,173 | $117,185 | 63.1% | $559,919 | $407,896 | 37.3% |
Gross Profit and Operating Income
Gross profit for the three months ended September 30, 2024, was $36.2 million, translating to a gross profit margin of 19.0%, compared to $9.0 million and a 7.7% margin in the same period in 2023. For the nine months, gross profit was $111.6 million, with a margin of 19.9% versus $39.1 million and 9.6% in the prior year.
Operating income for Q3 2024 was $16.7 million, significantly up from an operating loss of $5.1 million in Q3 2023. For the nine months, operating income reached $62.8 million, compared to an operating loss of $2.3 million in the previous year.
| Financial Metrics | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Gross Profit | $36,233 | $9,030 | $111,647 | $39,064 |
| Operating Income | $16,694 | ($5,123) | $62,758 | ($2,307) | Net Income | $8,852 | ($6,154) | $37,549 | ($7,652) |
Backlog and Project Awards
As of September 30, 2024, GLDD's total dredging backlog was $1.21 billion, up from $1.04 billion at the end of 2023. This includes $465.0 million in domestic low bids pending formal award and $44.9 million in performance obligations related to offshore wind contracts. The company expects approximately 18% of the backlog to be completed in 2024.
| Backlog Overview | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Capital—U.S. | $898,898 | $741,839 |
| Coastal Protection | $218,321 | $138,394 |
| Maintenance | $89,050 | $152,104 |
| Rivers & Lakes | $6,870 | $6,765 |
| Total Backlog | $1,213,139 | $1,039,102 |
Market Dynamics and Outlook
The domestic dredging bid market for Q3 2024 was valued at $1.31 billion, which is an increase of $454.9 million compared to the same quarter in 2023. GLDD secured approximately 30% of the total domestic dredging bid market in 2024, consistent with its three-year average of 33%.
In addition to its core dredging operations, GLDD is expanding into offshore wind projects, with plans for the Acadia vessel expected to be operational in the second half of 2025. The company has signed a vessel reservation agreement for the Acadia, indicating strong potential in the offshore wind sector.
Liquidity and Capital Resources
Cash provided by operating activities for the nine months ended September 30, 2024, was $83.6 million, compared to $49.6 million in the same period of 2023. Cash flows used in investing activities totaled $93.2 million in 2024, primarily for new build programs and capital maintenance. The company anticipates capital expenditures between $130 million and $150 million in 2024.
| Cash Flow Overview | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cash Provided by Operating Activities | $83,600 | $49,600 |
| Cash Used in Investing Activities | ($93,200) | ($97,000) | Net Cash Used in Financing Activities | ($2,100) | $54,900 |
Debt and Financing
As of September 30, 2024, GLDD engaged in a Second Lien Credit Agreement totaling $150.0 million, which was utilized for general corporate purposes and to fund new build payments. The company’s debt service requirements and capital expenditures are closely managed to maintain liquidity.
How Great Lakes Dredge & Dock Corporation (GLDD) Makes Money
Revenue Sources
Great Lakes Dredge & Dock Corporation (GLDD) generates revenue primarily through various dredging services, categorized as follows:
| Revenue Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Capital—U.S. | $108,682 | $54,602 | 99.0% | $249,329 | $125,234 | 99.1% |
| Coastal Protection | $43,913 | $23,567 | 86.3% | $178,034 | $131,362 | 35.5% |
| Maintenance | $37,867 | $33,816 | 12.0% | $130,742 | $141,553 | (7.6%) |
| Rivers & Lakes | $711 | $5,200 | (86.3%) | $1,814 | $9,747 | (81.4%) |
| Total Revenues | $191,173 | $117,185 | 63.1% | $559,919 | $407,896 | 37.3% |
Contract Backlog
As of September 30, 2024, GLDD's total backlog was $1.21 billion, which includes contracts across various categories:
| Backlog Category | Backlog Amount (in thousands) |
|---|---|
| Capital—U.S. | $898,898 |
| Coastal Protection | $218,321 |
| Maintenance | $89,050 |
| Rivers & Lakes | $6,870 |
| Total Backlog | $1,213,139 |
Financial Performance
GLDD reported significant improvements in its financial performance for the third quarter and nine months ended September 30, 2024, compared to the same periods in 2023:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $8,852,000 | $(6,154,000) | $37,549,000 | $(7,652,000) |
| Adjusted EBITDA | $26,983,000 | $5,332,000 | $95,728,000 | $32,186,000 |
| Operating Income (Loss) | $16,694,000 | $(5,123,000) | $62,758,000 | $(2,307,000) |
| Gross Profit | $36,233,000 | $9,030,000 | $111,647,000 | $39,064,000 |
Customer Segments
The breakdown of revenues by customer type for the three and nine months ended September 30, 2024 is as follows:
| Customer Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Federal Government | $85,876 | $78,681 | $339,352 | $328,211 |
| State and Local Government | $39,330 | $33,316 | $108,493 | $74,497 |
| Private | $65,967 | $5,188 | $112,074 | $5,188 |
Costs and Expenses
GLDD's cost structure for the three and nine months ended September 30, 2024 included:
| Cost Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Costs of Contract Revenues | $154,940 | $108,155 | $448,272 | $368,832 |
| General and Administrative Expenses | $19,815 | $14,188 | $52,087 | $41,667 |
Liquidity and Capital Resources
As of September 30, 2024, GLDD reported cash and cash equivalents of $12.0 million. The company’s cash flow from operating activities for the nine months ended September 30, 2024 was $83.6 million, compared to $49.6 million for the same period in 2023.
Investments during the nine months ended September 30, 2024 included:
| Investment Type | Amount (in thousands) |
|---|---|
| Galveston Island Dredge | $5,100 |
| Amelia Island Dredge | $29,100 |
| Acadia Dredge | $56,000 |
GLDD's principal sources of liquidity include net cash flows from operating activities, proceeds from long-term debt issuances, and revolving credit facilities.
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Resources:
- Great Lakes Dredge & Dock Corporation (GLDD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Great Lakes Dredge & Dock Corporation (GLDD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Great Lakes Dredge & Dock Corporation (GLDD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.