The following is a summary of the Great Lakes Dredge & Dock Corporation (GLDD) Q3 2024 Earnings Call Transcript:
Financial Performance:
Great Lakes Dredge & Dock Corporation reported a Q3 2024 revenue of $191.2 million, a significant increase from the previous year, driven by the Galveston Island working on projects as well as higher capital and coastal protection project revenues.
Net income for Q3 2024 was $8.9 million with an adjusted EBITDA of $27 million.
Gross profit margin for the quarter improved to 19%, primarily due to improved project performance and higher capital and coastal protection revenue.
Business Progress:
The company secured $543 million in new contracts during Q3, including key projects such as 6 beach renourishment and 3 port deepening projects.
A record backlog of $1.2 billion was reported, along with an additional $465 million in pending award low bids and options, providing extended revenue visibility into 2026.
Significant progress in the construction and future deployment of the hopper dredges Galveston Island and Amelia Island, and the subsea rock installation vessel, the Acadia.
Opportunities:
Continued support from legislative measures such as the 2024 Energy and Water Appropriation Bill and the Disaster Relief Supplemental Appropriation Act provides a strong outlook for more infrastructure projects.
The expansion of U.S. offshore wind market signals long-term growth opportunities for subsea rock installation and other specialized services provided by vessels like the Acadia.
Risks:
Operational disruptions due to regulatory changes in LNG export licenses, although current projects remained unaffected.
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