Great Lakes Dredge & Dock reported third‑quarter 2025 results with revenue of $195.2 million, net income of $17.7 million, and adjusted EBITDA of $39.3 million. Diluted earnings per share were $0.26, surpassing the consensus estimate of $0.17.
Revenue fell slightly short of analyst expectations, which ranged from $197.6 million to $204.4 million. Net income more than doubled from $8.9 million in Q3 2024, and the company’s gross profit margin rose to 22.4% from 19.0% in the prior year, driven by a higher proportion of capital‑project work that typically yields higher margins.
The dredging backlog stood at $934.5 million as of September 30 2025, with an additional $193.5 million in low‑bid and option work pending award. Capital and coastal‑protection projects account for over 84% of the backlog, a segment that usually delivers higher margins.
Key projects in the quarter included Port Arthur LNG Phase 1, the Brownsville Ship Channel, and the Woodside Louisiana LNG initiative. Operations on these projects continued without interruption, even during the recent federal government shutdown.
The company refinanced its revolving credit facility, upsizing it to $430 million, lowering the interest rate, and extending the maturity to 2030. It also paid off a $100 million second‑lien term loan, cutting annual interest expense by nearly $6 million.
The new‑build program is near completion: the Amelia Island hopper dredge is already in service, and the Acadia subsea rock installation vessel is expected to commence operations in early 2026. These additions support the company’s strategy to modernize its fleet and expand into the offshore energy sector.
Liquidity stood at $284.1 million as of September 30 2025. CEO Lasse Petterson highlighted strong project execution and high equipment utilization as the primary drivers of the quarter’s performance, noting that operations remained unaffected by the federal shutdown.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.