Stock Information
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GLDDGreat Lakes Dredge & Dock Corporation

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Company Info

CEO

Lasse J. Petterson

Location

Texas, USA

Exchange

Nasdaq

Website

https://gldd.com

Summary

Great Lakes Dredge & Dock Corporation provides dredging services in the United States.

Company Info

CEO

Lasse J. Petterson

Location

Texas, USA

Exchange

Nasdaq

Website

https://gldd.com

Summary

Great Lakes Dredge & Dock Corporation provides dredging services in the United States.

AI Insights for GLDD
2 min read

Quick Summary

Great Lakes Dredge & Dock Corporation is a leading provider of dredging services across the United States. The company specializes in capital dredging for port expansions, coastal restoration, land reclamation, and trench digging for pipelines, tunnels, and cables. Its portfolio also includes projects that offer coastal protection by moving sand from ocean floors to the shorelines, helping combat erosion and safeguard vulnerable infrastructure. The company's national reach and advanced fleet make it a critical player for government and private sector clients involved in large-scale marine and coastal construction. Great Lakes Dredge & Dock primarily serves port authorities, government agencies, energy companies, and private developers engaged in heavy construction and infrastructure initiatives.

The Bull Case

  • GLDD's main strengths include its leadership position in the U.S.
  • dredging market, a technologically advanced and diversified fleet, and a substantial project backlog that provides earnings visibility.
  • The company's demonstrated track record of project execution, disciplined cost control, and successful bidding on large-scale infrastructure contracts have enabled margin improvement and positive EPS performance.
  • Its expansion into offshore energy projects and regular fleet upgrades position it well against international and domestic competitors.
  • Favorable valuations—such as a low price-to-earnings and price-to-sales ratio—make GLDD attractive for value investors.

The Bear Case

  • One of GLDD's key weaknesses is the volatile nature of its project-driven revenue, where delays or cancellations can pressure top-line growth.
  • The backlog recently shrank by 17%, suggesting potential headwinds for future sales and earnings.
  • Historical revenue and margin growth have been relatively slow, and the company faces persistent labor and cost challenges typical in the construction industry.
  • It currently lacks a dividend, which may limit its appeal to income-focused investors.
  • Its fortunes remain tightly tied to infrastructure policy and public sector spending trends, reducing flexibility in adverse policy or budgetary environments.

Key Risks

  • GLDD faces risks from fluctuating government budgets and policy shifts that could delay or cancel major projects, impacting backlog and revenues.
  • The construction and dredging sectors are exposed to cyclical economic conditions, making earnings volatile.
  • Labor shortages, increased input and fuel costs, and regulatory changes in environmental standards pose operational risks.
  • The company operates in a highly competitive space with several large international rivals.

What to Watch

UpcomingIn the most recent quarter, Great Lakes Dredge & Dock reported revenues of $195.2M, representing a year-over-year increase but slightly missing analyst estimates.
UpcomingHowever, the company beat EPS expectations and grew operating margins to 14.4%.
UpcomingThe backlog decreased by 17% to $1.01 billion, although a number of major projects were completed successfully, supporting higher utilization rates for its fleet.
ExpectedLooking into the next quarter, analysts anticipate ongoing robust demand for coastal restoration and port dredging projects, supported by continuing government infrastructure investment.

Price Drivers

  • The primary drivers of GLDD's stock price are rising infrastructure spending by the U.S.
  • government, particularly in coastal and port expansion projects, as well as overall demand for heavy construction and dredging services.
  • The company's large backlog, disciplined bidding strategy, and improved project execution have contributed to margin growth and increased investor confidence.
  • Share price is also influenced by trends in federal infrastructure policy, energy sector developments, utilization rates of its fleet, and industry-wide backlog trends.

Recent News

  • Recent news highlights include GLDD's strong recent stock performance, with share price gains outpacing the industry and S&P 500 over the past month and quarter.
  • The company beat earnings expectations, despite missing revenue estimates, and saw a post-earnings bounce as analysts noted margin improvement and execution.
  • Expanded fleet capabilities and increased focus on offshore energy have drawn positive analyst coverage, with upgrades and strong buy ratings from major firms.
  • However, the company did record a decline in its backlog and was noted by analysts for wary guidance regarding next year’s earnings.

Market Trends

  • The broader market is experiencing heightened demand for infrastructure and heavy construction services due to major U.S.
  • government spending initiatives.
  • The dredging market is forecast to expand steadily, driven by growth in trade, port expansion, oil and gas, and coastal protection in response to climate challenges.
  • Industry consolidation and technological innovations in vessel fleets are changing competitive dynamics.

AI-generated summary. Not investment advice. DYOR.

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Topics: Company overview • Products • Competitors • Strengths & Risks

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