Great Lakes Dredge & Dock's Q4 2024: Contradictions in Backlog Revenue, Acadia Status, and Offshore Opportunities

These are the key contradictions discussed in Great Lakes Dredge & Dock's latest 2024 Q4 earnings call, specifically including: Backlog Conversion and Revenue Expectations, Acadia's Construction Status, Offshore Energy Market opportunities, and Acadia's Delivery Date:



Strong Financial Performance:
- Great Lakes Dredge & Dock Corporation reported fourth-quarter revenues of $202.8 million and EBITDA of $40.2 million, with full-year results showing revenues of $762.7 million and adjusted EBITDA of $136 million.
- This strong performance was driven by executing complex port deepening and coastal restoration projects, leveraging their extensive fleet, and the addition of the new hopper dredge Galveston Island.

Backlog Growth and Project Wins:
- The company won 33% of the total bid market, resulting in a substantial dredging backlog at year-end of $1.2 billion, with an additional $282.1 million in low bids and options pending award.
- This was achieved by focusing on large and complex port deepening and coastal protection projects.

Offshore Energy Expansion:
- Great Lakes is expanding its Offshore Energy initiative, renaming it to reflect a broader target market that includes oil and gas pipelines, telecommunication cable protection, and international offshore wind.
- This expansion is in response to strong growth opportunities in offshore wind later this decade and the need for rock placement services globally.

Capital Expenditures and Financing:
- Total capital expenditures for 2024 were $135.7 million, with approximately $110 million to $120 million left for completion of the Acadia and Amelia Island vessels.
- The company secured a five-year $150 million second-lien term loan and is well-positioned with a strong balance sheet and cash flow, supporting its newbuild program.