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Jun 30, 2023
Great Lakes Q2 2023 Earnings Report
Great Lakes' performance improved due to better project execution, favorable weather, and successful cost-saving efforts, resulting in higher net income and the highest adjusted EBITDA since Q1 2022.
Key Takeaways
Great Lakes Dredge & Dock Corporation reported improved second-quarter results, marked by increased net income and the highest adjusted EBITDA since Q1 2022. The company secured significant dredging backlog and is expanding into the offshore wind market, supported by strong government funding and project awards.
Second quarter net income reached $1.7 million.
Adjusted EBITDA for the second quarter was $16.6 million.
Dredging backlog stood at $434.6 million as of June 30, 2023.
The company received Notice to Proceed on the Rio Grande LNG project, the largest in its history.
Forward Guidance
Great Lakes anticipates continued improvements in future results due to a strong bid market, fleet adjustments, and cost reduction initiatives. They expect the budgeted appropriations to support the funding of several previously delayed capital port improvement projects. The company is also expanding into the offshore wind market.
Positive Outlook
- Strong overall bid market with several large capital projects.
- Fleet adjustments and cost reduction initiatives in place.
- Expectation of improved results into the future.
- Strong support from the Biden Administration and Congress for the dredging industry.
- Increased budget and additional funding resulting in a strong bid market.
Challenges Ahead
- Project delays related to the increasingly negative impacts of climate change or other unusual, non-historical weather patterns
- Rising costs related to inflation, particularly with the cost of materials needed for general maintenance of our dredges and increasing costs to operate and maintain aging vessels and comply with applicable regulations or standards
Historical Earnings Impact
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Avg. Return Before/After Earnings
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