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- **Record Q3 Performance**: $195.2 million revenue and $39.3 million EBITDA, with 22.4% gross margin.
- **Backlog Visibility**: $935 million backlog, 84% in high-margin projects, $136 million new awards.
- **Strategic Fleet Expansion**: Amelia Island and Acadia vessels enhance capabilities for coastal and offshore energy work.
- **Financial Strength**: $17.7 million net income, 2.5x leverage, and $52 million free cash flow year-to-date.
- **2026 Outlook**: Fully booked Acadia, strong cash flow, and expectations for another record year.

### CEO Summary Section
- **Revenue and EBITDA**: Q3 2025 revenue of $195.2 million and adjusted EBITDA of $39.3 million, driven by high utilization and project performance.
- **Backlog Strength**: $935 million backlog, 84% in capital and coastal protection projects, with $136 million in new awards.
- **Newbuild Program**: Delivery of Amelia Island dredge and Acadia rock installation vessel (expected Q1 2026), enhancing fleet capabilities.
- **Offshore Energy**: Active in Empire Wind 1 and Sunrise Wind projects, with Acadia fully booked for 2026.
- **Financial Moves**: Refinanced $430 million credit facility, repaid $100 million second-lien notes, reducing interest expense by $6 million annually.

### CFO Financial Commentary
- **Net Income and Margins**: Q3 net income of $17.7 million (vs. $8.9 million YoY), gross profit margin at 22.4% (up from 19% YoY) due to higher-margin projects.
- **Cost Management**: Operating expenses down, free cash flow positive for 2025, with expectations for significant growth in 2026.
- **Balance Sheet**: $12.7 million cash, 2.5x leverage ratio, and no debt maturities until 2029.
- **Capital Expenditures**: Q3 CapEx of $32.8 million, full-year guidance of $140-150 million for newbuild completion.

### Q&A Highlights
- **Bidding Trends**: 2025 bid market normalized at $1.8 billion, focused on coastal protection and maintenance dredging.
- **Government Shutdown Impact**: Minimal disruption; projects fully funded and ongoing.
- **Acadia Strategy**: 2026 utilization secured, exploring international and non-wind subsea protection markets.
- **Q4 Outlook**: Strong revenue and margins despite 2 dredges in dry dock, with environmental projects driving higher margins.
- **Cash Flow Priorities**: Deleveraging and paying down revolver, targeting 2026 free cash flow positivity.

Great Lakes Dredge & Dock Corporation (GLDD) Q3 2025 Earnings Call Transcript

Dredging

Offshore Energy

GLDD

GLDD fundamentals

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