Amidst the current trading session, the shares of Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) are undergoing a remarkable surge in valuation, marking a substantial increase of 19.40% to $8.42. This upward trajectory in GLDD stock is attributable to the unveiling of its financial performance.
Great Lakes (GLDD) reported $198.7 million in total sales and $21.0 million in net income for the first quarter of 2024. Notably, the $42.9 million adjusted EBITDA shows a trajectory towards normalcy and is the most robust adjusted EBITDA performance since the fourth quarter of 2021.
The Galveston Island, Great Lakes’ new hopper dredge, was successfully deployed, which greatly aided in the first quarter’s excellent project performance. A sizeable section of the company’s dredging fleet was actively engaged in a variety of projects.
As of the end of the quarter, the dredging backlog stood at $879.4 million, with 77% of the backlog pertaining to capital projects. Remarkably, Great Lakes secured four major awards in 2023, including the Freeport Deepening Project and the Sabine-Neches Waterway Channel Improvement Project, both of which are currently in progress.
The approval of a record $8.7 billion budget by the U.S. Army Corps of Engineers for 2024 in the first quarter is anticipated to sustain a robust bid market, particularly in the capital and coastal protection segments, further bolstering Great Lakes’ prospects.
In 2023, Great Lakes secured contracts for two substantial Liquified Natural Gas (LNG) projects, namely 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, marking significant milestones in the company’s history.
Subcontractor activities have commenced for both LNG projects, with dredging operations set to begin in the middle of 2024. The company remains actively engaged in tendering bids for several LNG projects, aiming to diversify and expand its clientele.
Furthermore, Great Lakes continues to advance its new build program, having taken delivery of its latest 6,500-cubic-yard-capacity hopper dredge, the Galveston Island, which is presently operational. The anticipated delivery of its counterpart, the Amelia Island, is scheduled for 2025.
