Nasdaq:GLDD
Great Lakes Dredge & Dock CORP
A global leader in specialized maritime dredging and diving services supporting critical infrastructure and energy projects worldwide.
Key Metrics
Investment Thesis
Bull Case
GLDD offers compelling value as a cyclical play on global infrastructure spending and energy exploration, evidenced by the 56% year-over-year profit growth in 2025. The company's specialized asset base creates high barriers to entry, protecting margins in niche underwater construction markets where few competitors operate at this scale. Recent profitability improvements suggest the business is stabilizing and potentially entering a new growth cycle driven by port modernization needs.
Bear Case
Investors should be wary of the company's heavy reliance on capital-intensive projects that may face delays or cost overruns, as seen in the large cash outflows from investing activities. The revenue volatility observed over the last five years indicates sensitivity to macroeconomic shifts and commodity prices that could quickly erode earnings if demand slows. Additionally, the significant retained earnings deficit of $201.0M suggests historical financial stress that may limit future dividend capabilities or stock repurchase programs.
About Great Lakes Dredge & Dock CORP
Great Lakes Dredge & Dock Corp. (GLDD) is a specialized maritime engineering firm providing dredging, diving, salvage, and marine construction services globally. The company serves diverse markets including port maintenance, environmental remediation, offshore energy support, and infrastructure development. Key products include custom-built dredgers, salvage operations, and underwater construction solutions delivered through its extensive fleet and skilled workforce.
Analysis
Management Discussion
The company delivered a robust recovery in 2025 with revenue rising to $888.3M and net profit reaching $73.5M, marking a significant turnaround from previous years. This strong operational performance was driven by strategic project wins in the energy sector and efficient fleet utilization despite heavy capital expenditures of $147.2M. The balance sheet remains manageable with current assets covering current liabilities, though cash flow from investing activities reflects substantial ongoing infrastructure investment.
Industry Overview
The marine construction and dredging industry is a capital-intensive sector driven by global demands for port expansion, offshore energy development, and environmental restoration. Companies in this space face cyclicality tied to economic conditions but offer stable long-term contracts with major infrastructure owners and government entities. Technological advancements in underwater robotics and specialized vessel design are reshaping the competitive landscape, favoring firms with deep technical expertise.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $648.8M | $589.6M | $762.7M | $888.3M |
| Cost of Revenue | $617.6M | $511.9M | $602.1M | $684.8M |
| Gross Profit | $31.2M | $77.7M | $160.6M | $203.5M |
| Operating Expenses | $58.9M | $49.5M | $67.8M | $75.7M |
| Operating Income | $-27.7M | $28.2M | $92.8M | $127.8M |
| G&A | $51.1M | $57.1M | $70.8M | $78.0M |
| Stock-Based Comp | $4.3M | $6.3M | $8.6M | $11.5M |
| D&A | — | — | $42.7M | $43.4M |
| Depreciation | $46.3M | $42.5M | $42.7M | $43.4M |
| Other OpEx | $7.8M | $-7.5M | $-3.0M | $-2.3M |
| Non-Operating Income | $-15.7M | $-9.9M | $-17.4M | $-27.5M |
| Pre-Tax Income | $-43.4M | $18.3M | $75.4M | $100.3M |
| Income Tax | $-9.4M | $4.4M | $18.1M | $26.9M |
| Continuing Ops | $-34.1M | $13.9M | $57.3M | $73.5M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-34.1M | $13.9M | $57.3M | $73.5M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-34.1M | $13.9M | $57.3M | $73.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $182.8M | $226.3M | $263.4M | $217.4M |
| Cash & Equivalents | $6.5M | $22.8M | $10.2M | $13.4M |
| Inventory | $29.2M | $33.9M | $29.9M | $27.9M |
| Other Current Assets | $147.1M | $169.6M | $223.3M | $176.2M |
| Long-Term Assets | $798.9M | $884.5M | $991.7M | $1.07B |
| PP&E (Net) | $543.9M | $614.6M | $703.3M | $803.3M |
| Goodwill | $76.6M | $76.6M | $76.6M | $76.6M |
| Operating Leases | $89.7M | $88.4M | $96.1M | $76.3M |
| Other LT Assets | $88.7M | $104.9M | $115.8M | $112.2M |
| Total Assets | $981.8M | $1.11B | $1.26B | $1.29B |
| Current Liabilities | $160.3M | $179.4M | $216.0M | $215.8M |
| Accounts Payable | $94.1M | $83.8M | $101.3M | $109.5M |
| Current Leases | $26.9M | $28.7M | $47.3M | $22.1M |
| Deferred Revenue | $9.9M | $29.6M | $25.8M | $34.8M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $453.2M | $545.8M | $590.2M | $552.8M |
| Long-Term Debt | $321.5M | $412.1M | $448.2M | $378.2M |
| LT Operating Leases | $65.0M | $61.4M | $50.4M | $55.6M |
| Other LT Liab | $66.7M | $-17.7M | $91.5M | $119.0M |
| Total Liabilities | $613.6M | $725.3M | $806.2M | $768.6M |
| Shareholders' Equity | $368.2M | $385.5M | $448.9M | $517.1M |
| Retained Earnings | $56.3M | $70.2M | $127.5M | $201.0M |
| AOCI | $-191.0K | $-2.0M | $-965.0K | $-1.3M |
| Total L&E | $981.8M | $1.11B | $1.26B | $1.29B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-34.1M | $13.9M | $57.3M | $73.5M |
| Non-Cash Adjustments | $60.8M | $-25.2M | $-68.0M | $197.8M |
| Working Capital Changes | $-25.1M | $58.8M | $80.8M | $-24.6M |
| Cash from Operations | $1.7M | $47.4M | $70.1M | $246.7M |
| Capital Expenditures | $143.0M | $150.8M | $125.1M | $147.2M |
| Cash from Investing | $-140.9M | $-120.1M | $-115.7M | $-144.6M |
| Share Buybacks | — | — | — | $11.6M |
| Cash from Financing | $-1.7M | $89.9M | $32.1M | $-98.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-140.9M | $17.2M | $-13.5M | $3.1M |
| Beginning Cash | $147.5M | $6.5M | $23.8M | $10.2M |
| Ending Cash | $6.5M | $23.8M | $10.2M | $13.4M |
Frequently Asked Questions
How does Great Lakes Dredge & Dock CORP make money?
Core revenue streams include dredging operations for port and harbor maintenance, marine construction for offshore platforms and pipelines, salvage and diving services for underwater recovery, and environmental remediation projects addressing pollution cleanup.
What are the main risks for GLDD?
High exposure to commodity price volatility affecting project margins and equipment costs; sensitivity to global economic downturns reducing demand for capital-intensive marine projects; potential for significant unplanned maintenance costs given the aging nature of specialized maritime assets; regulatory changes in environmental protection increasing compliance burdens.
What is GLDD's competitive advantage?
Ownership of a specialized, high-capacity dredger fleet allows for rapid deployment in remote locations; extensive global project experience provides technical expertise for complex salvage and underwater construction tasks; strong safety record enhances reputation among stringent energy and infrastructure clients.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.