Great Lakes Dredge & Dock Corp reported strong financial results for Q3 2024
From GlobeNewswire: 2024-11-05 08:00:00
Great Lakes Dredge & Dock Corporation reported a third quarter net income of $8.9 million and adjusted EBITDA of $27.0 million. They also achieved a record dredging backlog of $1.21 billion as of September 30, 2024. Revenue for the quarter was $191.2 million with total operating income of $16.7 million.
During the third quarter, Great Lakes secured $543.0 million in new work, including three port deepening projects and six beach renourishment projects. The largest project bid was the Sabine-Neches Contract 6 Deepening project worth $235 million. They ended the quarter with a record backlog of $1.21 billion and additional projects in low bids pending.
Great Lakes has two Liquified Natural Gas projects in their backlog, with dredging already underway. They are also progressing with their new build program, with the Galveston Island dredge operational and the Amelia Island dredge expected to be delivered in the second half of 2025. They are also making strides to enter the U.S. offshore wind market with the Acadia vessel anticipated for delivery in 2025.
The U.S. offshore wind market presents significant growth opportunities for Great Lakes. They have secured contracts for Equinor’s Empire Wind 1 and Ørsted’s Sunrise Wind projects. The company is actively pursuing and bidding on various other projects for the Acadia vessel, domestically and internationally, for work planned in 2026 and beyond.
Great Lakes entered into a $150 million second-lien credit agreement in the second quarter to provide additional liquidity for their new build program and pursue other financing alternatives. S&P Global Ratings upgraded their credit rating to “B-” in the third quarter. The company remains confident in their long-term strategy and preparedness for the future.
The Biden Administration and Congress continue to support the dredging industry with record funding for the U.S. Army Corps of Engineers. The 2025 budget is expected to be another record appropriation, supporting a strong bid market for 2024. Great Lakes has established a unique position in the U.S. offshore wind market for subsea rock installation.
Great Lakes Dredge & Dock Corporation’s financial results for the third quarter showed significant improvement compared to the prior year. Their revenue increased by $74.0 million, with gross profit improving by $27.2 million. The company’s robust backlog, enhanced fleet, and strategic initiatives position them well for future growth.
Read more at GlobeNewswire:: Great Lakes Reports Third Quarter 2024 Results