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

Great Lakes Dredge & Dock (GLDD) reported its fiscal 2025 Q2 earnings on Aug 5, 2025, showing robust revenue and net income growth. The company beat expectations with a 13.9% revenue increase and a 26.4% rise in net income. Management raised guidance for the year, citing strong project execution and a $1 billion backlog.

Revenue
Revenue for the second quarter of 2025 reached $193.75 million, a 13.9% increase compared to the same period in 2024. The Dredging segment accounted for the entirety of this revenue, with the U.S. Capital segment driving much of the growth at $105.67 million. Coastal protection added $65.23 million, while maintenance revenue stood at $22.85 million. Combined, these segments delivered a solid performance, reflecting strong demand for dredging and coastal restoration projects.

Earnings/Net Income
Earnings per share (EPS) rose 36.4% year-over-year to $0.15, outpacing the top-line growth. The company's net income surged 26.4% to $9.70 million, underscoring improved operational efficiency and strong project execution. The healthy profit growth reflects the company’s effective cost management and high utilization rates.

Price Action
Shares of GLDD edged up 0.26% during the latest trading day and gained 0.44% over the past week. However, the stock has declined 5.06% month-to-date, reflecting broader market pressures.

Post Earnings Price Action Review
A strategy of buying GLDD shares following the earnings report and holding for 30 days yielded a 29.36% return, slightly outperforming the 9.29% CAGR but underperforming the 48.58% benchmark return. The strategy recorded no maximum drawdown and a Sharpe ratio of 0.20, indicating a low-risk approach with limited reward. Despite the positive earnings, the stock underperformed relative to the broader market.

CEO Commentary
Lasse J. Petterson, CEO, credited the strong second-quarter results to high equipment utilization and effective project execution in port deepening and coastal restoration. He highlighted a $1 billion backlog and $215.4 million in pending awards, offering visibility into future revenue. The delivery of new vessels like the Amelia Island and Acadia is nearing completion, enhancing GLDD’s capabilities in coastal and offshore energy projects.

Guidance
GLDD expects record revenue and net income for 2025, with Q3 EBITDA anticipated to exceed Q2. The Acadia, expected to be delivered in Q1 2026, will support the Empire Wind I project. Capital expenditures are guided at $140–160 million, including newbuilds. Strong liquidity, with $272 million in available funds, supports ongoing and future projects. Free cash flow is expected to grow significantly post-2025.

Additional News
Great Lakes Dredge & Dock recently expanded its fleet with the near-completion of the Amelia Island and Acadia dredge vessels, enhancing its offshore and coastal project capabilities. The company also announced plans to diversify into international markets in response to delays in U.S. offshore wind projects. No major executive changes or dividend adjustments were reported, but GLDD remains focused on strategic investments and long-term infrastructure opportunities.