Great Lakes Dredge & Dock (GLDD) AI Stock Analysis

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Great Lakes Dredge & Dock

(NASDAQ:GLDD)

68Neutral

Great Lakes Dredge & Dock's overall score reflects strong revenue growth and strategic market expansion, offset by high leverage and negative free cash flow. The stock appears undervalued with potential for future growth, though technical indicators show mixed momentum. Earnings call insights support a positive outlook, but risks from increased expenses and market delays remain.

Great Lakes Dredge & Dock (GLDD) vs. S&P 500 (SPY)

Market Cap

$593.45M

Dividend YieldN/A

Average Volume (3M)454.24K

Price to Earnings (P/E)10.4

Beta (1Y)1.22

Revenue Growth29.35%

EPS Growth309.98%

CountryUS

Employees381

SectorIndustrials

Sector Strength66

IndustryEngineering & Construction

Share Statistics

EPS (TTM)0.84

Shares Outstanding67,360,695

10 Day Avg. Volume483,700

30 Day Avg. Volume454,236

Financial Highlights & Ratios

PEG Ratio0.03

Price to Book (P/B)N/A

Price to Sales (P/S)0.80

Price to Cash Flow (P/CF)-11.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.00

Price Target Upside58.91% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Great Lakes Dredge & Dock Business Overview & Revenue Model

Company DescriptionGreat Lakes Dredge & Dock Corporation (GLDD) is a leading provider of dredging services in the United States, specializing in the excavation and removal of underwater sediments and debris. Operating primarily in the marine infrastructure sector, GLDD offers a range of services including harbor maintenance, beach nourishment, coastal protection, and land reclamation. The company is known for its advanced fleet of specialized dredging vessels and equipment, enabling it to undertake complex projects for government and commercial clients domestically and internationally.

How the Company Makes MoneyGreat Lakes Dredge & Dock generates revenue by executing dredging contracts for federal, state, and local governments, as well as private entities. The company primarily earns money through competitive bidding on large-scale dredging projects, which are often funded by governmental agencies such as the U.S. Army Corps of Engineers. Key revenue streams include contracts for harbor maintenance, which ensures navigable waterways; beach nourishment, which helps restore and preserve coastlines; and infrastructure development projects like land reclamation. GLDD's earnings are also supported by its ability to leverage strategic partnerships and joint ventures, enabling the company to expand its market reach and participate in international projects. Additionally, GLDD's investments in state-of-the-art dredging technology and equipment enhance operational efficiency, contributing to its profitability.

Great Lakes Dredge & Dock Financial Statement Overview

Summary

Great Lakes Dredge & Dock shows a strong recovery in revenue and profitability, driven by improved operational efficiencies and cost management, as seen in rising profit margins. However, high leverage and negative free cash flow present potential financial risks. The company needs to focus on improving cash flow generation to bolster financial stability.

Income Statement

Positive

Great Lakes Dredge & Dock demonstrated strong revenue growth, with a significant increase from $589.63M in 2023 to $762.69M in 2024, marking a growth rate of 29.33%. The gross profit margin improved to 21.05% in 2024 from 12.77% in 2023, indicating better cost management. The net profit margin also saw improvement, rising to 7.51% from 2.36% in the previous year. The EBIT margin improved to 12.17%, reflecting enhanced operational efficiency. However, the EBITDA margin remained constant at 12.17%, suggesting limited improvement in cash operating performance.

Balance Sheet

Positive

The company's balance sheet shows a moderate debt-to-equity ratio of 1.22 in 2024, up from 1.31 in 2023, indicating a slightly improved leverage position. The return on equity increased to 12.76%, reflecting effective use of equity to generate profits. However, the equity ratio decreased slightly to 39.40% from 34.71% in 2023, suggesting a reduced proportion of equity financing. Overall, the balance sheet demonstrates moderate financial stability, with potential risks due to high leverage.

Cash Flow

Neutral

Operating cash flow improved significantly to $70.06M in 2024 from $47.43M in 2023, indicating better cash generation from operations. However, the free cash flow remained negative at -$55.08M, reflecting high capital expenditures. The free cash flow to net income ratio is negative, indicating challenges in converting net income into free cash flow. The operating cash flow to net income ratio improved to 1.22, showing better alignment with net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
762.69M	589.63M	648.78M	726.15M	733.60M
	Gross Profit
160.58M	75.32M	31.17M	145.27M	171.23M
	EBIT
92.81M	28.22M	-19.94M	41.11M	71.40M
	EBITDA
92.81M	72.98M	16.97M	127.44M	151.06M
	Net Income Common Stockholders
57.27M	13.91M	-34.05M	49.43M	66.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.22M	22.84M	6.55M	145.46M	216.51M
	Total Assets
1.26B	1.11B	981.78M	997.67M	958.02M
	Total Debt
545.92M	503.25M	413.40M	383.69M	389.09M
	Net Debt
535.70M	480.41M	406.86M	238.23M	172.58M
	Total Liabilities
806.19M	725.29M	613.56M	598.67M	611.36M
	Stockholders Equity
448.91M	385.55M	368.22M	399.00M	346.67M
Cash Flow		Free Cash Flow
-55.08M	-103.42M	-141.35M	-67.65M	31.33M
	Operating Cash Flow
70.06M	47.42M	1.65M	49.01M	78.95M
	Investing Cash Flow
-115.69M	-120.14M	-140.91M	-112.20M	-43.17M
	Financing Cash Flow
32.09M	89.93M	-1.66M	-5.86M	-6.26M

Great Lakes Dredge & Dock Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.81

Price Trends

50DMA

8.94

Negative

100DMA

10.38

Negative

200DMA

10.31

Negative

Market Momentum

MACD

-0.04

Negative

RSI

50.28

Neutral

STOCH

82.10

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLDD, the sentiment is Negative. The current price of 8.81 is above the 20-day moving average (MA) of 8.78, below the 50-day MA of 8.94, and below the 200-day MA of 10.31, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 82.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLDD.

Great Lakes Dredge & Dock Risk Analysis

Great Lakes Dredge & Dock disclosed 48 risk factors in its most recent earnings report. Great Lakes Dredge & Dock reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Great Lakes Dredge & Dock Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLDN	71 Outperform	$554.41M	24.36	10.40%	―	10.92%	100.59%
GLDD	68 Neutral	$593.45M	10.43	13.73%	―	29.35%	309.98%
BBCP	67 Neutral	$327.85M	21.53	5.57%	―	-7.12%	-19.18%
ORN	63 Neutral	$232.62M	―	-1.21%	―	11.89%	84.04%
Sector *	62 Neutral	$4.17B	11.26	5.46%	215.76%	4.12%	-8.54%
BWMN	59 Neutral	$383.77M	156.44	1.34%	―	23.19%	―
MTRX	51 Neutral	$299.81M	―	-20.38%	―	-7.47%	-74.28%

* Industrials Sector Average

Performance Comparison

GLDD

Great Lakes Dredge & Dock

8.81

1.42

19.22%

MTRX

Matrix Service Company

10.86

-0.60

-5.24%

ORN

Orion Group Holdings

5.99

-1.52

-20.24%

WLDN

Willdan Group

38.48

11.31

41.63%

BBCP

Concrete Pumping Holdings

6.18

0.44

7.67%

BWMN

Bowman Consulting Group

22.23

-8.30

-27.19%

Great Lakes Dredge & Dock Earnings Call Summary

Earnings Call Date: Feb 18, 2025 | % Change Since: -19.91% | Next Earnings Date: May 6, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong financial performance in 2024 with significant revenue and EBITDA growth, a historic bid market, and successful new vessel deployments. However, concerns were raised about increased G&A expenses, potential impacts from a court ruling, and possible delays in future bid markets. Overall, the positive aspects of strong performance and strategic market expansion outweigh the negative concerns.

Highlights

Strong Financial Performance

Great Lakes Dredge & Dock Corporation reported fourth-quarter revenues of $202.8 million and EBITDA of $40.2 million, with full-year revenues of $762.7 million and adjusted EBITDA of $136 million, marking the second highest results in the company's 135-year history.

Historic Bid Market

The bid markets reached a historic level of $2.9 billion, with Great Lakes winning 33% of the overall bid market, resulting in a substantial dredging backlog at year-end of $1.2 billion and an additional $282.1 million in low bids and options pending award.

Successful New Vessel Commissioning

The new Hopper dredge, the Galveston Island, was delivered, commissioned, and contributed strongly to the improved results in 2024. A sister ship, the Amelia Island, is expected in the second half of this year.

Enhanced Financial Position

The company generated strong operational cash flow and entered into a $150 million second lien credit agreement, enhancing liquidity. S&P Global Ratings upgraded the company's credit rating to B minus.

Expansion into International Markets

Great Lakes is broadening its target market for the Arcadia vessel to include international offshore wind projects and protection of critical subsea infrastructure, anticipating a slowdown in the US market in 2027 and 2028.

Lowlights

Increased G&A Expenses

Fourth quarter 2024 G&A expenses increased by $3.3 million compared to the same quarter last year, primarily due to higher incentive pay from improved results.

Court Ruling Impact on Offshore Wind

An adverse court ruling on non-Jones Act vessels' ability to perform certain rock installation tasks may affect the Arcadia vessel's operations, although the company states its position remains unchanged.

Potential Delays in Bid Market Due to Government Resolutions

The company expressed concerns about potential delays in the 2025 bid market due to the extended continuing resolution of the federal government, which could impact backlog generation for 2026.

Company Guidance

In the fourth quarter of 2024, Great Lakes Dredge & Dock Corporation reported strong financial performance with revenues of $202.8 million and an EBITDA of $40.2 million. For the full year, the company achieved revenues totaling $762.7 million and adjusted EBITDA of $136 million, marking the second highest results in their 135-year history. The company successfully secured 33% of the $2.9 billion bid market, resulting in a substantial year-end dredging backlog of $1.2 billion and an additional $282.1 million in low bids and options pending award. This backlog is predominantly composed of large and complex projects, which now account for 94% of it. The successful delivery and commissioning of the new hopper dredge, Galveston Island, significantly contributed to the 2024 results. For 2025, the company expects to convert approximately 60% of its backlog into revenue, with a focus on capital and coastal protection projects. Additionally, they anticipate full-year capital expenditures to range between $140 million and $160 million. Looking ahead, Great Lakes is poised for continued strong performance with a robust project pipeline extending into 2026 and plans to diversify into international offshore wind and subsea infrastructure protection markets.

Great Lakes Dredge & Dock Corporate Events

Executive/Board Changes

Great Lakes Dredge & Dock Elects New Board Member

Neutral

Jan 8, 2025

Great Lakes Dredge & Dock Corporation has announced the election of Dana Armstrong to its Board of Directors, increasing the board size to seven members. Armstrong, who brings significant experience from her roles in energy and geophysical technology sectors, is expected to enhance the board with her expertise, reflecting the company’s commitment to board refreshment and depth of knowledge.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.