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Mar 31, 2024
Great Lakes Q1 2024 Earnings Report
Great Lakes reported strong first quarter 2024 results with significant net income and adjusted EBITDA.
Key Takeaways
Great Lakes Dredge & Dock Corporation reported a strong first quarter in 2024, marked by a net income of $21.0 million and an adjusted EBITDA of $42.9 million. The company's dredging backlog stood at $879.4 million at the end of March 2024, with a significant portion allocated to capital projects. The company is also making strides in the offshore wind market, with contracts awarded for rock installation in New York.
Net income for the first quarter reached $21.0 million.
Adjusted EBITDA for the first quarter was $42.9 million, the best since Q4 2021.
Dredging backlog totaled $879.4 million as of March 31, 2024, with 77% in capital projects.
Company secured two large Liquified Natural Gas (“LNG”) projects, the Port Arthur LNG Phase 1 project and the Brownsville Ship Channel project.
Revenue by Segment
Forward Guidance
Great Lakes anticipates a robust dredging bid market in 2024, supported by a substantial backlog, enhanced fleet, and strategic initiatives. The company expects increased bidding and budgeted appropriations to support the funding of several capital port improvement projects.
Positive Outlook
- Strong support from the Biden Administration and Congress for the dredging industry.
- Record $8.7 billion in total funding to the U.S. Army Corps of Engineers for fiscal year 2024.
- Increased budget and additional funding to support a strong bid market for 2024.
- Expect bidding to increase and budgeted appropriations to support the funding of several capital port improvement projects that are still expected to bid in the first half of 2024, including Sabine and Mobile.
- Offshore wind will play a crucial role in helping the U.S. meet its decarbonization and clean energy goals.
Challenges Ahead
- Reduction in government funding for dredging and other contracts, or government cancellation of such contracts, or the inability of the Corps to let bids to market.
- Cost over-runs, operating cost inflation and potential claims for liquidated damages, particularly with respect to our fixed cost contracts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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