Great Lakes Dredge & Dock Corporation (GLDD): Business Model Canvas [11-2024 Updated]

In the dynamic world of marine construction, Great Lakes Dredge & Dock Corporation (GLDD) stands out as a leader, providing critical services that ensure our waterways remain navigable and protected. This blog post delves into the company's Business Model Canvas, exploring its key partnerships, activities, resources, and revenue streams that drive its success. Discover how GLDD maintains its competitive edge and meets the diverse needs of its customer segments while navigating the challenges of the dredging industry.

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Key Partnerships

U.S. Army Corps of Engineers for federal contracts

Great Lakes Dredge & Dock Corporation (GLDD) relies heavily on partnerships with the U.S. Army Corps of Engineers (USACE) to secure federal contracts. As of September 30, 2024, approximately 50% of GLDD's dredging backlog of $1.21 billion is attributed to federal government contracts. The company has successfully won contracts for major projects, including the Brownsville Ship Channel project for Next Decade Corporation's Rio Grande LNG project, which constitutes the largest undertaking in the company's history.

State and local government agencies for regional projects

GLDD collaborates with various state and local government agencies to execute regional projects. The company was awarded $389.1 million in domestic capital dredging projects during the first nine months of 2024, with significant contributions from states such as Florida, Alabama, Virginia, and Texas. Coastal protection projects have also seen an increase, with $327.2 million awarded for such projects in New Jersey, New York, Massachusetts, and Florida during the same period.

Private sector clients for capital projects

Partnerships with private sector clients are crucial for GLDD's capital projects. For the three months ending September 30, 2024, the company generated $108.7 million in domestic capital dredging revenue, marking a 99% increase from the same period in 2023. The growth in revenue is primarily attributed to increased project awards and operational efficiency.

Suppliers of dredging equipment and materials

GLDD maintains strategic partnerships with suppliers of dredging equipment and materials, crucial for executing its projects. The company invested approximately $93.2 million in capital expenditures during the nine months ended September 30, 2024, which includes purchasing new dredging vessels and upgrading existing equipment. The company’s operational efficiency is enhanced through reliable supply chains, enabling timely project execution and cost management.

Contractors for specialized services

Collaborations with contractors for specialized services are essential for GLDD's operations. The company often engages subcontractors for tasks requiring specific expertise, such as environmental restoration and habitat improvement. This allows GLDD to manage a diverse range of projects while ensuring compliance with environmental regulations and standards.

Partnership Type	Details	Financial Impact
U.S. Army Corps of Engineers	Federal contracts	50% of $1.21 billion backlog
State and Local Governments	Regional projects	$389.1 million in capital dredging projects awarded
Private Sector Clients	Capital projects	$108.7 million in capital dredging revenue
Suppliers	Dredging equipment and materials	$93.2 million in capital expenditures
Specialized Contractors	Subcontracting for expertise	Varies by project

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Key Activities

Dredging operations for navigation and flood control

Great Lakes Dredge & Dock Corporation (GLDD) specializes in capital dredging, which primarily involves port expansion projects. For the three months ended September 30, 2024, domestic capital dredging revenue was $108.7 million, representing a 99% increase from $54.6 million in the same period of 2023. For the nine months ended September 30, 2024, this revenue totaled $249.3 million, also a 99% increase from $125.2 million in the prior year.

Coastal protection and restoration projects

Coastal protection projects involve relocating sand from the ocean floor to areas where erosion threatens assets. Revenue from coastal protection projects for the third quarter of 2024 was $43.9 million, an increase of 86% compared to $23.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, the revenue reached $178.0 million, up 36% from $131.4 million year-over-year.

Maintenance dredging for sediment removal

Maintenance dredging is crucial for removing accumulated sediments and ensuring navigability. For the three months ended September 30, 2024, maintenance dredging revenue was $37.9 million, a 12% increase from $33.8 million in the same quarter of 2023. However, for the nine months ended September 30, 2024, maintenance revenue was $130.7 million, down 8% from $141.6 million in the prior year.

Bidding on new projects and securing contracts

As of September 30, 2024, GLDD's total dredging backlog was $1.21 billion, which includes contracts for capital dredging, coastal protection, and maintenance. The company won approximately 30% of the domestic dredging bid market, which totaled $2.49 billion for the year-to-date period. The backlog includes $465.0 million in low bids pending formal award.

Regulatory compliance and vessel maintenance

GLDD is subject to various regulatory requirements, particularly for environmental compliance and safety standards. The company has performance bonds totaling approximately $1.32 billion, covering its contractual obligations. The company is also investing between $130 million and $150 million in capital expenditures for 2024, primarily for new vessels and maintenance.

Key Metrics	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	YTD 2024 Revenue (in millions)	YTD 2023 Revenue (in millions)
Capital Dredging	$108.7	$54.6	$249.3	$125.2
Coastal Protection	$43.9	$23.6	$178.0	$131.4
Maintenance Dredging	$37.9	$33.8	$130.7	$141.6

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Key Resources

Fleet of specialized dredging vessels

Great Lakes Dredge & Dock Corporation operates a fleet of specialized dredging vessels, which includes the newly delivered Galveston Island, a hopper dredge that began operations in February 2024. The fleet is essential for undertaking various dredging projects, including capital and coastal protection work. As of September 30, 2024, the total backlog of dredging projects was approximately $1.21 billion, indicating a robust demand for these specialized vessels.

Experienced workforce in marine construction

The company boasts a skilled workforce with extensive experience in marine construction and dredging operations. This expertise is crucial for ensuring the successful execution of complex projects. The labor force is supported by ongoing training and development initiatives, which enhance operational efficiency and safety standards across projects.

Strong relationships with government agencies

GLDD maintains strong relationships with various government agencies, which are pivotal for securing contracts. Approximately 50% of the company’s backlog relates to federal government contracts, highlighting the significance of these relationships for project funding and execution. The company won 30% of the domestic dredging bid market totaling $1.31 billion in the third quarter of 2024, which underscores its competitive positioning.

Financial resources for project funding

As of September 30, 2024, Great Lakes had cash and cash equivalents of $12.0 million, with total assets amounting to $1.145 billion. The company expects to spend between $130 million and $150 million on capital expenditures in 2024. Recent financing activities included a $150 million second lien credit agreement, which provides additional liquidity for project funding.

Technological expertise in dredging methods

Great Lakes Dredge & Dock Corporation has established technological expertise in advanced dredging methods, which enhances project efficiency and effectiveness. The company is actively pursuing innovative solutions to meet the evolving needs of the dredging market, particularly in offshore wind and environmental restoration projects.

Key Resource	Description	Data/Statistics
Fleet of Specialized Dredging Vessels	Includes advanced vessels for capital and coastal protection projects.	Total backlog: $1.21 billion
Experienced Workforce	Highly skilled labor force trained in marine construction.	Ongoing training programs in place
Strong Relationships with Government	Pivotal for securing contracts, especially federal projects.	50% of backlog from federal contracts
Financial Resources	Liquidity for project funding through various financing activities.	Cash: $12.0 million; Total assets: $1.145 billion
Technological Expertise	Advanced dredging methods for efficiency and innovation.	Active projects in offshore wind and restoration

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Value Propositions

Leading provider of dredging services in the U.S.

Great Lakes Dredge & Dock Corporation (GLDD) stands as the foremost provider of dredging services in the United States, with a total backlog of $1.21 billion as of September 30, 2024. The company has seen significant growth in its capital dredging segment, with revenues from domestic capital dredging reaching $249.3 million for the nine months ended September 30, 2024, up 99% from the previous year. This growth underscores GLDD's position at the forefront of the industry, driven by increasing demand for port expansions and coastal protection projects.

Expertise in large-scale marine projects

GLDD's expertise is particularly evident in large-scale marine projects, which include port deepening and coastal restoration. The company has successfully secured several high-value contracts, including the Brownsville Ship Channel project for Next Decade Corporation, which is the largest project in the company's history. The domestic dredging bid market for the quarter ended September 30, 2024, was $1.31 billion, showing a robust environment for large-scale projects, with GLDD capturing approximately 30% of this market.

Commitment to operational efficiency and safety

GLDD maintains a strong commitment to operational efficiency and safety, reflected in its operational metrics. For the three months ended September 30, 2024, the company reported an operating income of $16.7 million, a stark contrast to an operating loss of $5.1 million in the same period the previous year. The gross profit margin improved significantly to 19.0% from 7.7%, indicating enhanced operational performance. This commitment to safety is also critical in a sector where operational hazards are prevalent, reinforcing GLDD's reputation as a reliable partner in marine construction projects.

Ability to handle complex environmental projects

GLDD has demonstrated its capability in managing complex environmental projects, particularly in coastal protection. For the nine months ended September 30, 2024, coastal protection revenue totaled $178.0 million, an increase of 36% compared to the previous year. This growth is indicative of the company's adeptness at navigating regulatory environments and executing projects that require specialized knowledge and compliance with environmental standards.

Strong track record of project completion

The company boasts a strong track record of project completion, with approximately 18% of its dredging backlog expected to be completed in 2024. GLDD's ability to deliver projects on time and within budget has led to a high level of repeat business from federal and state government clients, as well as private sector partners. The total revenues for the nine months ended September 30, 2024, were $559.9 million, marking a 37% increase from the same period in 2023, driven by successful project deliveries.

Metric	Q3 2024	Q3 2023	Change (%)
Total Revenue	$191.2 million	$117.2 million	63.1%
Capital Dredging Revenue	$108.7 million	$54.6 million	99.0%
Coastal Protection Revenue	$43.9 million	$23.6 million	86.3%
Gross Profit Margin	19.0%	7.7%	Increase

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Customer Relationships

Long-term contracts with government entities

Great Lakes Dredge & Dock Corporation (GLDD) primarily engages in long-term contracts with federal, state, and local government entities. As of September 30, 2024, approximately 50% of the company's dredging backlog, amounting to $1.21 billion, is related to federal government contracts. The company has seen an increase in capital dredging projects, with domestic capital dredging revenue reaching $249.3 million for the nine months ended September 30, 2024, up 99% from the previous year.

Regular communication and updates throughout projects

GLDD emphasizes maintaining open lines of communication with clients throughout project lifecycles. This includes regular updates on project progress and any changes in timelines or budgets. The company's commitment to transparency is reflected in its project management practices, which are designed to keep clients informed and engaged in the decision-making process.

Client support and advisory services

In addition to project execution, GLDD provides advisory services to clients, assisting them in planning and executing dredging projects. This support includes feasibility studies and environmental assessments. The company’s revenue from private clients was recorded at $112.1 million for the nine months ended September 30, 2024, indicating a growing trust and reliance on its advisory capabilities.

Building trust through consistent performance

GLDD has built a reputation for reliability and quality through consistent project delivery. The company reported a net income of $37.5 million for the nine months ended September 30, 2024, a significant improvement from a net loss of $7.7 million in the same period the previous year. This performance has helped reinforce client relationships and foster trust between GLDD and its customers.

Engagement in community relations for local projects

Community engagement is a crucial aspect of GLDD's operations, especially for local projects. The company actively participates in community relations initiatives, which enhances its public image and strengthens its ties with local stakeholders. For instance, the total domestic dredging bid market for the quarter ended September 30, 2024, was reported at $1.31 billion, indicating a robust demand for dredging services, which GLDD is well-positioned to fulfill through its community-focused approach.

Category	Value
Federal Government Contracts Backlog	$898.9 million
State and Local Government Contracts Backlog	$218.3 million
Total Dredging Revenue (Q3 2024)	$191.2 million
Total Revenue (Nine Months 2024)	$559.9 million
Net Income (Nine Months 2024)	$37.5 million
Private Client Revenue (Nine Months 2024)	$112.1 million
Domestic Dredging Bid Market (Q3 2024)	$1.31 billion

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Channels

Direct bidding for government contracts

The domestic dredging bid market for the quarter ended September 30, 2024, was $1.31 billion, an increase of $454.9 million compared to the same period in the prior year. The Company won approximately 30% of the total domestic dredging bid market, which aligns with its three-year average of 33%.

Online platforms for project proposals

GLDD utilizes various online platforms for submitting project proposals. This includes industry-specific portals where government contracts are advertised. The trend towards digitization has facilitated easier access to bid opportunities, allowing GLDD to streamline its proposal processes and enhance its competitiveness in securing contracts.

Networking at industry conferences and events

Networking remains a crucial channel for GLDD. The Company actively participates in industry conferences and events, enhancing its visibility within the dredging and marine construction sectors. These engagements allow GLDD to build relationships with potential clients, government officials, and industry stakeholders, which can lead to contract opportunities.

Partnerships with local governments for project awareness

GLDD has established partnerships with local governments to raise awareness of its capabilities. This collaboration is particularly important for coastal protection and maintenance projects, where local governments play a key role in project initiation and funding. For instance, during the nine months ended September 30, 2024, GLDD was awarded several projects totaling $327.2 million related to coastal protection, indicating strong local government engagement.

Marketing through industry publications

Marketing efforts through industry publications have proven effective for GLDD in reaching potential clients. By advertising in specialized magazines and journals, the Company can highlight its project successes and technological advancements, thus positioning itself as a leader in the dredging industry. This strategy supports its overall marketing and brand visibility efforts.

Channel	Details	Financial Impact
Direct Bidding	Domestic dredging bid market: $1.31 billion	30% win rate translates to $393 million potential revenue.
Online Platforms	Access to multiple bidding opportunities through digitization.	Increased proposal efficiency, potential revenue growth.
Networking Events	Active participation in industry conferences to build relationships.	Leads to contract opportunities; enhances brand recognition.
Local Government Partnerships	Collaboration for project awareness and funding.	Awards totaling $327.2 million for coastal projects in 2024.
Industry Publications	Marketing through specialized magazines.	Increased visibility, potential contracts from targeted marketing.

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Customer Segments

Federal government agencies (e.g., U.S. Army Corps of Engineers)

Great Lakes Dredge & Dock Corporation (GLDD) generates a significant portion of its revenue from federal government agencies. For the three months ended September 30, 2024, revenues from federal government contracts totaled $85.9 million, representing an increase from $78.7 million during the same period in 2023. For the nine months ended September 30, 2024, federal revenues reached $339.4 million, compared to $328.2 million for the same period in the previous year.

State and local governments for infrastructure projects

State and local governments are another key customer segment for GLDD, particularly for infrastructure projects. In the third quarter of 2024, revenues from state and local government projects amounted to $39.3 million, up from $33.3 million in 2023. For the nine months ended September 30, 2024, these revenues were $108.5 million, significantly higher than $74.5 million in the prior year.

Private companies in need of dredging services

GLDD also serves private companies that require dredging services. For the three months ended September 30, 2024, private sector revenues surged to $66.0 million, a substantial increase from $5.2 million in the corresponding quarter of 2023. For the nine months of 2024, revenues from private companies totaled $112.1 million, compared to $5.2 million in the same period the previous year.

Environmental agencies for restoration projects

Environmental agencies also represent an important customer segment for GLDD, particularly for projects focused on restoration and habitat improvement. The company has been actively involved in various environmental initiatives, although specific revenue figures for this segment are typically aggregated within broader categories of dredging services.

Offshore wind energy developers

With the growing focus on renewable energy, GLDD is increasingly targeting offshore wind energy developers. The company has secured contracts related to offshore wind projects, including options pending award totaling $12.7 million. The total dredging backlog at September 30, 2024, included $465.0 million of domestic low bids pending formal award, which may encompass offshore wind contracts.

Customer Segment	Revenue Q3 2024 (in millions)	Revenue Q3 2023 (in millions)	Revenue YTD 2024 (in millions)	Revenue YTD 2023 (in millions)
Federal Government	$85.9	$78.7	$339.4	$328.2
State and Local Governments	$39.3	$33.3	$108.5	$74.5
Private Companies	$66.0	$5.2	$112.1	$5.2
Offshore Wind Energy Developers	N/A	N/A	$12.7 (Pending)	N/A

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Cost Structure

Costs of contract revenues (labor, materials, equipment)

For the three months ended September 30, 2024, the costs of contract revenues were $154.9 million, compared to $108.2 million for the same period in 2023. For the nine months ended September 30, 2024, these costs totaled $448.3 million, up from $368.8 million in the prior year.

General and administrative expenses

General and administrative expenses for the three months ended September 30, 2024, were $19.8 million, an increase from $14.2 million in the same quarter of the previous year. For the nine months ended September 30, 2024, these expenses reached $52.1 million, compared to $41.7 million for the same period in 2023.

Interest expenses on debt financing

Net interest expense for the three months ended September 30, 2024, was $4.9 million, which is an increase from $2.8 million for the same period in 2023. For the nine months ended September 30, 2024, the net interest expense was $13.0 million, up from $9.3 million in the prior year.

Regulatory compliance costs for vessels

There are no specific regulatory compliance costs reported in the financial statements; however, compliance costs typically include maintenance and operational compliance for vessels, which are integral to the dredging operations and can significantly affect overall costs. Specific figures are not disclosed in the available data.

Maintenance and operational costs of equipment

Maintenance and operational costs of equipment are part of the costs of contract revenues but are not separately detailed in the financial reports. However, the company has invested significantly in maintaining and upgrading its fleet. For the nine months ended September 30, 2024, capital expenditures were estimated between $130 million to $150 million, which includes maintenance capital expenditures.

Cost Category	Q3 2024 ($ million)	Q3 2023 ($ million)	9M 2024 ($ million)	9M 2023 ($ million)
Costs of Contract Revenues	154.9	108.2	448.3	368.8
General and Administrative Expenses	19.8	14.2	52.1	41.7
Interest Expenses	4.9	2.8	13.0	9.3
Capital Expenditures (Est.)	—	—	130-150	—

Great Lakes Dredge & Dock Corporation (GLDD) - Business Model: Revenue Streams

Contract revenues from federal projects

As of September 30, 2024, approximately 50% of GLDD's dredging backlog is related to federal government contracts, which totaled $1.21 billion. The Company reported domestic capital dredging revenue of $108.7 million for the third quarter of 2024, a significant increase of 99% compared to $54.6 million for the same period in 2023. This growth is primarily attributed to higher project revenues earned on federal contracts, particularly in Texas.

State and local government contracts

GLDD has a robust pipeline of state and local government contracts, contributing to its revenue streams. For the nine months ended September 30, 2024, coastal protection projects generated $178.0 million, reflecting a 36% increase from $131.4 million in the same period of 2023. State and local contracts are critical for GLDD's operations, particularly in coastal restoration and maintenance projects.

Private sector project revenues

Private sector projects have also been a significant source of revenue for GLDD. The Company reported a total revenue of $191.2 million for the third quarter of 2024, up 63% from $117.2 million in the same quarter of 2023. This increase includes contributions from private sector dredging projects. The total revenue for the nine months ended September 30, 2024, was $559.9 million, representing a 37% increase year-over-year.

Maintenance dredging services

Maintenance dredging is a recurring revenue source for GLDD, necessary for maintaining navigable waterways. For the third quarter of 2024, maintenance dredging revenue was reported at $37.9 million, which is a 12% increase compared to $33.8 million in the same period of 2023. However, for the nine months ended September 30, 2024, maintenance revenue decreased to $130.7 million from $141.6 million in the prior year.

Potential revenues from offshore wind projects

GLDD is positioning itself to capitalize on the emerging offshore wind market, with $12.7 million in options pending award related to offshore wind contracts as of September 30, 2024. The Company expects to utilize its dredging assets for these projects, which are anticipated to increase revenue streams significantly in the coming years.

Revenue Source	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	9M 2024 Revenue (in millions)	9M 2023 Revenue (in millions)
Federal Projects	$108.7	$54.6	$249.3	$125.2
Coastal Protection	$43.9	$23.6	$178.0	$131.4
Maintenance Dredging	$37.9	$33.8	$130.7	$141.6
Private Sector Projects	Included in Total Revenue	Included in Total Revenue	$559.9	$407.9
Offshore Wind Projects	$12.7 (Pending)	N/A	N/A	N/A

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.