GLDD continues strong performance in Q1

Great Lakes Dredge & Dock Corporation has ended the first quarter of 2024 with strong financial results, including net income of $21.0 million.

Photo courtesy of GLDD

According to Lasse Petterson, President and Chief Executive Officer, Great Lakes ended the first quarter with strong financial results, including net income of $21.0 million and adjusted EBITDA of $42.9 million, which is the best adjusted EBITDA quarter since the fourth quarter of 2021.

The majority of our dredges were actively engaged on projects and our new hopper dredge, the Galveston Island, was successfully placed into operation contributing to the first quarter’s strong project performance,” commented Petterson. “Our dredging backlog at the end of the quarter was $879.4 million with 77% of our backlog in capital projects. Notably, in 2023, we secured four major awards, including the Freeport Deepening Project and the Sabine-Neches Waterway Channel Improvement Project, both of which are currently underway.”

He added that with a record 2024 U.S. Army Corps of Engineer’s budget of $8.7 billion, that was approved in the first quarter, the bid market is expected to be robust and remain strong, particularly in the capital and coastal protection target markets.

In 2023, Great Lakes was awarded two large Liquified Natural Gas (“LNG”) projects, the Port Arthur LNG Phase 1 project for Marine Dredging and Disposal and the Brownsville Ship Channel project for Next Decade Corporation’s Rio Grande LNG project, which is the largest project undertaken in Great Lakes’ history. Subcontractor work has begun on both projects with dredging expected to commence mid-year 2024.

GLDD also continues to make progress on the new build program, and as stated previously, has taken delivery of the newest 6,500-cubic-yard-capacity hopper dredge, the Galveston Island, which is currently in operation. Her sistership, the Amelia Island, is expected to be delivered in 2025.

In addition, the Acadia, the first and only U.S.-flagged Jones Act compliant, inclined fallpipe vessel for subsea rock installation, is under construction with expected delivery in 2025.

Our outlook remains positive and we expect the dredging bid market to continue to remain strong in 2024. With our substantial backlog, enhanced fleet, and strategic initiatives, we firmly believe that our company is well-prepared for the future,” added Petterson.

First Quarter 2024 Highlights

  • Revenue was $198.7 million
  • Total operating profit was $31.5 million
  • Net income was $21.0 million
  • Adjusted EBITDA was $42.9 million

For the full first quarter business update report, click here.