GLDD ended 2024 with $1.2 billion dredging backlog

Image: GLDD

“Great Lakes had an outstanding 2024, with strong project performance and exceptional financial results,” said Lasse Petterson, president and CEO of Houston-headquartered Great Lakes Dredge & Dock Corporation (Nasdaq: GLDD), as the company reported financial results for the fourth quarter and year ended December 31, 2024.

Fourth quarter 2024 highlights

Revenue was $202.8 million
Total operating income was $30.0 million
Net income was $19.7 million
Adjusted EBITDA was $40.2 million

Full year 2024 highlights

Revenue was $762.7 million
Total operating income was $92.8 million
Net income was $57.3 million
Adjusted EBITDA was $136.0 million

“We capped off the year with another strong quarter and ended 2024 with revenue of $762.7 million, net income of $57.3 million, and Adjusted EBITDA of $136.0 million, the latter two metrics being the second-highest in Great Lakes’ history,” said Pettersen. “The bid market for 2024 hit a historic level of $2.9 billion of which Great Lakes won 33%. This further added to our substantial dredging backlog which as of the end of 2024 stood at $1.2 billion, with an additional $282.1 million in low bids and options pending award, providing expected revenue visibility well into 2026. At the end of the year, capital and coastal protection projects accounted for 94% of our backlog, which typically yield higher margins. The largest capital project bid in the year was the Sabine-Neches Contract 6 Deepening project, won by Great Lakes, with awarded base and open options totaling $235 million.”

Petterson noted that included in the GLDD backlog were two LNG projects that were awarded in 2023, the Port Arthur LNG Phase 1 project and the Brownsville Ship Channel project for Next Decade Corporation’s Rio Grande LNG project — the largest project undertaken in GLDD’s history. Dredging began on both capital projects in the third quarter of 2024. The company continues to tender bids on several pending LNG projects,” he noted.

UPBEAT ON OFFSHORE WIND

“We remain steadfast in our commitment to executing a long-term strategy that maximizes growth opportunities for the company,” said Petterson. “The Acadia, the first U.S.-flagged Jones Act compliant subsea rock installation (SRI) vessel, is currently under construction and has secured offshore wind rock placement contracts for Equinor’s Empire Wind 1 and Ørsted’s Sunrise Wind projects to protect foundations and cables. In addition, during the fourth quarter, we signed a vessel reservation agreement for the Acadia for another wind project in the United States. All three of these projects are fully permitted and we believe will not be directly impacted by the President’s Executive Order pausing issuance of new offshore wind leases and permits.

“The Acadia is also well suited for work outside of U.S. offshore wind and over the past year we have been broadening our target markets for the Acadia to include international offshore wind projects, as well as protecting critical subsea infrastructure such as oil and gas pipelines and telecommunication and power cables. These additional markets pave the way for the rebranding of our offshore wind division to Offshore Energy.”

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