Great Lakes Dredge Dock 2025 Q2 Earnings Net Income Surges 26.4%

Great Lakes Dredge & Dock (GLDD) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, with the company exceeding expectations by delivering robust revenue and net income growth. CEO Lasse J. Petterson noted a strong quarter driven by high equipment utilization and a $1 billion dredging backlog, with forward-looking guidance projecting continued growth into 2026.

Revenue

Revenue for Great Lakes Dredge & Dock in 2025 Q2 reached $193.75 million, representing a 13.9% increase from $170.09 million in the same period of 2024. The Dredging segment contributed $193.75 million, which encompasses Capital—U.S. projects at $105.67 million and Coastal Protection at $65.23 million. The Maintenance segment added $22.85 million, highlighting a continued emphasis on higher-margin capital and coastal protection projects.

Earnings/Net Income

The earnings performance of Great Lakes Dredge & Dock was equally impressive, with EPS rising 36.4% to $0.15 in 2025 Q2, up from $0.11 in 2024 Q2. The company reported net income of $9.70 million, a 26.4% increase from $7.67 million in the prior year. This growth in earnings was driven by improved project execution and higher utilization rates, despite drydocking costs and other operational challenges.

Price Action

The stock price of Great Lakes Dredge & Dock edged up 0.26% on the latest trading day, 0.44% for the week, but declined 5.06% month-to-date. The post-earnings strategy of buying shares after a revenue drop returned 29.36%, underperforming the 48.58% benchmark return with a Sharpe ratio of 0.20, indicating a low-risk, low-reward approach.

Post-Earnings Price Action Review

The performance of Great Lakes Dredge & Dock following its Q2 earnings report showed that the post-earnings strategy of buying shares after a revenue drop and holding for 30 days delivered moderate returns of 29.36%. However, this fell short of the benchmark return of 48.58%, indicating a negative excess return of -19.22%. Despite a Sharpe ratio of 0.20, the strategy had a CAGR of 9.29% and no drawdowns, suggesting it was a low-risk but low-reward approach.

CEO Commentary

Lasse J. Petterson, President and CEO, highlighted the company's strong second-quarter performance, driven by high equipment utilization and robust project execution in port deepening and coastal restoration. The CEO emphasized a $1 billion dredging backlog and $215.4 million in pending awards, ensuring revenue visibility into 2026. He also outlined strategic priorities, including nearing completion of the newbuild program with the Amelia Island and Acadia vessels enhancing capabilities in coastal and offshore energy projects.

Guidance

The company outlined forward-looking expectations, including record 2025 revenue and net income, with Q3 EBITDA anticipated to exceed Q2. Capital expenditures for 2025 were guided at $140–160 million, including newbuilds. The Acadia, expected in Q1 2026, will support Equinor’s Empire Wind I project, while free cash flow is projected to grow significantly post-2025. Additionally, $272 million in liquidity supports ongoing operations, and the company remains focused on deleveraging after the newbuild program concludes.

Additional News

Recent strategic moves by Great Lakes Dredge & Dock include the initiation of a $50 million share repurchase program in Q1 2025 and an increase in its Revolving Credit Facility to $330 million. As of June 30, 2025, the company had repurchased 1.3 million shares for $11.6 million. The Acadia, a first-of-its-kind subsea rock installation vessel, is nearing completion and set to support offshore energy projects. The company also expanded its strategic focus to include international markets and diversified services to ensure vessel utilization and long-term growth.