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Great Lakes Dredge & Dock (GLDD) – When It Rains…..

Transportation
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Wednesday, August 03, 2022

Great Lakes Dredge & Dock (GLDD)
When It Rains…..

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q22 Operating Results. Revenue of $149.3 million fell short of our $185 million estimate and consensus $181 million. Gross margin declined to 7.0% versus our 21.6% expectation. Adjusted EBITDA for the quarter was $10.15 million versus our $35.8 million estimate. The Company reported a loss of $4.0 million, or $0.06 per share, for the quarter, compared to our estimate of net income of $15.4 million, or $0.23 per share.

It Pours. Just about anything that could go wrong during the quarter did: supply chain delays which impacted ship availability, inflationary pressures, which impacted margins on previously won business, adverse weather conditions, with three times as many weather days during the quarter during the same period in 2021, and atypical dredging project challenges at three projects.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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