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Sep 30, 2023
Great Lakes Q3 2023 Earnings Report
Reported a challenging third quarter due to vessel drydocks and idle equipment, but ended with a solid backlog.
Key Takeaways
Great Lakes Dredge & Dock Corporation reported a net loss of $6.2 million for the third quarter of 2023. Despite challenges, the company secured $519.7 million in capital projects and $235.6 million in maintenance and coastal protection projects, ending the quarter with a dredging backlog of $1.03 billion.
Third quarter net loss was $6.2 million.
Adjusted EBITDA for the third quarter was $5.3 million.
Dredging backlog reached $1.03 billion as of September 30, 2023.
Added $519.7 million in capital projects to the backlog in the third quarter.
Forward Guidance
Great Lakes anticipates improved results into 2024 and beyond, driven by an improved dredging bid market, fleet adjustments, and cost reduction initiatives. The company is also focused on expanding into the U.S. offshore wind market.
Positive Outlook
- Improved dredging bid market expected to continue.
- Fleet adjustments and cost reduction initiatives underway.
- Newest hopper dredge, the Galveston Island, expected to be operational in the fourth quarter of 2023.
- Entry into the U.S. offshore wind market with rock installation contracts for Empire Wind I and II projects.
- Strong support from the Biden Administration and Congress for the dredging industry.
Challenges Ahead
- Potential impacts to Empire Wind projects due to refusal to renegotiate power purchase agreements.
- Delays or cancellations of offshore wind projects due to higher interest rates and inflation.
- Challenging quarter due to vessel drydocks and idle equipment.
Historical Earnings Impact
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