Great Lakes Dredge Dock 2025 Q1 Earnings Beats Expectations as Net Income Surges 59%

Great Lakes Dredge & Dock (GLDD) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded Wall Street's revenue expectations, delivering a 22.3% year-on-year growth with $242.9 million in revenue, beating analyst estimates by 17.5%. The earnings per share (EPS) also surpassed expectations, coming in at $0.49 compared to the forecasted $0.26. Furthermore, Great Lakes Dredge & Dock raised its guidance, anticipating full-year results for 2025 to exceed those of 2024, which was the second highest in company history. The company's robust performance and optimistic outlook highlight its strong position in the dredging industry.

Revenue

The total revenue for Great Lakes Dredge & Dock saw a robust growth of 22.3%, reaching $242.87 million in Q1 2025, compared to $198.66 million in Q1 2024. The dredging segment contributed the entire revenue, with capital projects in the U.S. generating $91.12 million, coastal protection projects bringing in $120.30 million, and maintenance activities adding $31.44 million to the total revenue.

Earnings/Net Income

Great Lakes Dredge & Dock's EPS increased significantly by 56.3% to $0.50 in Q1 2025, up from $0.32 in Q1 2024, indicating continued earnings growth. The company's profitability also strengthened, with net income reaching $33.42 million, marking a 58.9% increase from $21.02 million in Q1 2024. This demonstrates strong earnings performance.

Price Action

The stock price of Great Lakes Dredge & Dock dropped 6.89% during the latest trading day, surged 9.41% over the most recent trading week, and increased 16.69% month-to-date.

Post Earnings Price Action Review

Over the past five years, investing in Great Lakes Dredge & Dock (GLDD) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded a 10.14% return, which underperformed the benchmark by 72.98%. This strategy's Sharpe ratio was notably low at 0.18, highlighting limited risk-adjusted returns. The maximum drawdown reached -18.38%, with a volatility rate of 11.25%. The compound annual growth rate (CAGR) was 1.97%, reflecting modest performance amidst market fluctuations. Despite revenue growth, the strategy did not significantly outperform benchmarks, indicating potential risks for investors seeking higher returns.

CEO Commentary

Lasse Petterson, CEO, stated, "Great Lakes started 2025 with a great first quarter, driven by high asset utilization and strong project performance." The company experienced "0 recordable injuries," emphasizing the importance of safety as a core value. Petterson highlighted a strong dredging backlog of $1 billion and noted that successful bidding strategies resulted in large project wins, providing "solid revenue visibility for 2026." He expressed optimism regarding the company's momentum, stating, "We are well positioned for the future," and underscored the unwavering support from the Trump administration for the dredging industry.

Guidance

The company expects full-year 2025 results to exceed those of 2024, which was the second highest in company history. Capital expenditures for the year remain guided at $140 million to $160 million. Petterson mentioned a bid market of approximately $2 billion, largely focused on coastal protection projects. He indicated that dredging operations for the Woodside Louisiana LNG project are expected to commence in early 2026, contributing to revenue visibility extending into that year.

Additional News

Great Lakes Dredge & Dock Corporation has initiated a $50 million share repurchase program, reflecting confidence in its financial health and commitment to returning value to shareholders. As of the end of April 2025, the company has repurchased 1.2 million shares for a total of $10.4 million. Additionally, Great Lakes expanded its revolving credit facility from $300 million to $330 million, enhancing liquidity while maintaining the same terms. These strategic financial moves aim to bolster the company's operational flexibility and underscore its proactive approach in navigating market dynamics. The board's decision to initiate the share buyback program indicates a belief in the company's undervaluation and long-term growth prospects.