Group 1: Suzano (SUZ) - Suzano is a producer of eucalyptus pulp and paper, holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [1] - The company has a PEG ratio of 0.08 compared to the industry average of 0.32, and possesses a Growth Score of A [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 34.8% over the last 60 days [2] - The company has a PEG ratio of 0.96 compared to the industry average of 1.49, and possesses a Growth Score of A [2] Group 3: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions, also holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 9% over the last 60 days [3] - The company has a PEG ratio of 0.44 compared to the industry average of 3.48, and possesses a Growth Score of B [3]

Shares of Great Lakes Dredge & Dock (GLDD) have gained 20.5% over the past four weeks to close the last trading session at $10.70, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $14.33 indicates a potential upside of 33.9%.The average comprises three short-term price targets ranging from a low of $14 to a high of $15, with a standard deviation of $0.58. While the lowest estimat ...

Group 1: Suzano (SUZ) - Suzano is a producer of eucalyptus pulp and paper, holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 4.28, significantly lower than the industry average of 10.80, and possesses a Value Score of A [1] Group 2: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 9% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 6.17, compared to the industry average of 29.90, and possesses a Value Score of A [2] Group 3: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, also holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 34.8% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.57, compared to the industry average of 22.30, and possesses a Value Score of A [4]

Financial Performance - Contract revenues for Q1 2025 increased to $242.865 million, up 22.2% from $198.660 million in Q1 2024[12] - Gross profit for Q1 2025 was $69.523 million, representing a 52.5% increase compared to $45.574 million in Q1 2024[12] - Net income for Q1 2025 rose to $33.416 million, a 58.8% increase from $21.024 million in Q1 2024[12] - Basic earnings per share for Q1 2025 were $0.50, up from $0.32 in Q1 2024, reflecting a 56.3% increase[12] - Total revenues for the three months ended March 31, 2025, were $242.9 million, an increase of 22.2% compared to $198.7 million for the same period in 2024[80] - Adjusted EBITDA for the three months ended March 31, 2025, was $60.1 million, compared to $42.9 million for the same period in 2024, representing an increase of 40.0%[109] - Consolidated gross profit for Q1 2025 was $69.5 million, an increase of $23.9 million or 52% compared to Q1 2024[114] - Operating income for Q1 2025 was $49.9 million, up $18.4 million from $31.5 million in Q1 2024[116] Assets and Liabilities - Total current assets decreased to $257.620 million as of March 31, 2025, down from $263.418 million at the end of 2024[10] - Total liabilities decreased to $753.504 million as of March 31, 2025, down from $806.193 million at the end of 2024[10] - The company’s total equity increased to $479.944 million as of March 31, 2025, up from $448.910 million at the end of 2024[10] - Total property and equipment as of March 31, 2025, was $1,227,555,000, an increase from $1,218,787,000 as of December 31, 2024[36] - Total accrued expenses decreased to $33,349,000 as of March 31, 2025, down from $41,640,000 as of December 31, 2024, indicating a reduction of approximately 19.9%[37] Cash Flow and Financing - Cash provided by operating activities for Q1 2025 was $60.854 million, compared to $38.441 million in Q1 2024, marking a 58.5% increase[21] - The company repurchased 352 shares of common stock for $3.171 million during Q1 2025[19] - The Company repurchased 352,240 shares of common stock for approximately $3.2 million during the three months ended March 31, 2025, as part of a $50.0 million share repurchase program approved on March 14, 2025[27] - The Company had $100.0 million in borrowings on the Second Lien Credit Agreement as of March 31, 2025, with a weighted average interest rate of 12.07% during the quarter[46] - As of March 31, 2025, the Company had zero borrowings on the revolver and $256.2 million of availability under the ABL Credit Agreement[55] - The weighted average interest rates on the Company's outstanding borrowings were 6.78% as of March 31, 2025[59] - The Company has a green loan option with a $35.0 million sublimit, allowing borrowing at rates 0.05% lower if proceeds are used for renewable energy projects[52] Revenue Breakdown - The company’s capital dredging revenue in the U.S. for the three months ended March 31, 2025, was $91.1 million, up from $69.9 million in 2024[80] - Domestic capital dredging revenue was $91.1 million, up $21.2 million, or 30.4%, compared to $69.9 million for the same period in 2024[110] - Coastal protection revenue for the quarter ended March 31, 2025, was $120.3 million, an increase of $56.4 million, or 88.2%, compared to $63.9 million in the prior year period[111] - Maintenance dredging revenue for the first quarter of 2025 was $31.4 million, down $33.4 million, or 51.5%, from $64.8 million in the same period of 2024[113] Backlog and Future Expectations - The company's dredging backlog at March 31, 2025, was $968.5 million, with approximately 60% expected to be completed during the remainder of 2025[79] - Total backlog as of March 31, 2025, was $1.013 billion, down from $1.239 billion at December 31, 2024[121] - Domestic capital dredging backlog decreased to $712.7 million, a decline of $86.8 million from December 31, 2024[128] - Coastal protection dredging backlog was $207.1 million, down $121.0 million from December 31, 2024[129] - The company expects to spend between $140 million and $160 million on capital expenditures in 2025[135] Shareholder and Governance - The company has authorized a new share repurchase program for up to $50 million of its common stock, effective until March 14, 2026[149] - The company cannot guarantee the full implementation of its share repurchase program or that it will enhance long-term stockholder value[149] - There have been no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended March 31, 2025[144] - The company's disclosure controls and procedures were evaluated as effective as of March 31, 2025, providing reasonable assurance[143] Risk Management - The market risk profile of the company has not materially changed since December 31, 2024[141] - No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[148] - The company continues to review its accounting policies and financial information disclosures regularly[139]

Financial Data and Key Metrics Changes - The company reported revenues of $242.9 million for Q1 2025, an increase of $44.2 million compared to Q1 2024, marking the second highest revenue quarter in company history [12][6] - Adjusted EBITDA for the quarter was $60.1 million, with an adjusted EBITDA margin of 24.7% [12] - Net income for Q1 2025 was $33.4 million, up from $21 million in the same quarter of the previous year [12][14] - Gross profit increased to $69.5 million with a gross profit margin of 28.6%, compared to $45.6 million and 22.9% in Q1 2024 [12] Business Line Data and Key Metrics Changes - The dredging backlog stood at $1 billion, with capital and coastal protection projects accounting for 95% of this backlog [7] - Over 87% of revenue in Q1 2025 came from capital and coastal protection projects, which typically yield higher margins [12] Market Data and Key Metrics Changes - The company anticipates a normalized bid market of approximately $2 billion for 2025, focusing on coastal protection projects funded by the 2023 Disaster Relief Supplemental Appropriation Act [18] - The visibility of large projects is currently limited due to the ongoing continuing resolution affecting new port deepening projects [32] Company Strategy and Development Direction - The company is focused on executing large and complex projects, leveraging its modernized fleet and strong backlog to maintain high asset utilization [6][19] - A $50 million share repurchase program was approved by the Board of Directors, reflecting confidence in the company's financial performance and long-term outlook [9] - The company is expanding its offshore wind business into international markets, recognizing potential delays in the U.S. offshore wind market [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued support from the U.S. Army Corps of Engineers and the federal government for the dredging industry [17] - The company expects full-year 2025 results to exceed those of 2024, which was the second highest in company history [16] - Management acknowledged a slower start to the year in terms of new port deepening projects but remains confident in the upcoming coastal restoration projects [32] Other Important Information - The company has a robust liquidity position with $11.3 million in cash and an upsized revolving credit facility of $330 million [14] - The newbuild program is expected to be cash flow positive starting in 2026 [15] Q&A Session Summary Question: Inquiry about the Equinor project, Empire Wind One - Management confirmed that the project was fully funded and permitted, and the temporary pause was unexpected. They are in contact with Equinor to clarify the situation [24][25] Question: Market pace of awards given the continuing resolution - Management noted that the year has been slow for new port deepening projects but expects large and complex coastal restoration projects to come out to bid in Q2 and Q3 [32] Question: Competitive environment - Management indicated that the competitive environment remains similar to historical levels, with some dredges taken out of operation and new builds entering the market [37] Question: Dry dock impact on Q1 performance - Management acknowledged that the dry dock for one hopper dredge impacted revenue, but overall project performance on capital jobs drove the strong results [51][60] Question: Future project mix normalization - Management stated that the focus on larger projects is due to the extensive fleet, and they expect continued strong performance in capital and coastal work [66][67]

Company Performance - Great Lakes Dredge & Dock (GLDD) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.31 per share a year ago [1][2] - The earnings surprise for this quarter was 96%, following a previous surprise of 38.10% when earnings were $0.29 per share against an expectation of $0.21 [2] - The company achieved revenues of $242.87 million for the quarter, surpassing the Zacks Consensus Estimate by 15.71%, compared to $198.66 million in the same quarter last year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $168.6 million, and for the current fiscal year, it is $0.69 on revenues of $775.45 million [8] - The estimate revisions trend for Great Lakes Dredge & Dock is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - Great Lakes Dredge & Dock operates within the Zacks Building Products - Heavy Construction industry, which is currently ranked in the top 5% of over 250 Zacks industries [9] - The industry has shown strong performance, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by a factor of more than 2 to 1 [9]

Financial Data and Key Metrics Changes - The company reported revenues of $242.9 million for Q1 2025, an increase of $44.2 million compared to Q1 2024, marking the second highest revenue quarter in company history [11] - Adjusted EBITDA for the quarter was $60.1 million, with an adjusted EBITDA margin of 24.7% [11] - Net income for Q1 2025 was $33.4 million, up from $21 million in the same quarter of the previous year [12] - Gross profit increased to $69.5 million with a gross profit margin of 28.6%, compared to $45.6 million and 22.9% in Q1 2024 [11][12] Business Line Data and Key Metrics Changes - The dredging backlog remains strong at $1 billion, with capital and coastal protection projects accounting for 95% of this backlog [7] - Over 87% of revenue in Q1 2025 came from capital and coastal protection projects, which typically yield higher margins [12] Market Data and Key Metrics Changes - The U.S. Army Corps of Engineers is operating under a continued resolution for fiscal year 2025, sustaining record funding levels established in the prior fiscal year's budget [15] - The bid market for 2025 is expected to normalize at approximately $2 billion, focusing on coastal protection projects funded by the 2023 Disaster Relief Supplemental Appropriation Act [16] Company Strategy and Development Direction - The company is focusing on large and complex projects, particularly in the beach renourishment and port deepening markets, which are expected to continue delivering strong performance [15][17] - The company is expanding its offshore wind business into international markets, including the UK, EU, and Asia, to mitigate potential delays in the U.S. offshore wind market [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong performance and backlog, indicating that 2025 results are expected to exceed those of 2024 [14][17] - The company anticipates being cash flow positive starting in 2026, with a robust liquidity position to support ongoing strategic initiatives [13][18] Other Important Information - The company has initiated a $50 million share repurchase program, citing that the share price does not reflect the company's financial performance and long-term outlook [8] - The company has upsized its revolving credit facility to $330 million, enhancing liquidity [13] Q&A Session Summary Question: Update on the Equinor project, Empire Wind One - Management stated that the project was fully funded and permitted, and the temporary pause was unexpected. They are in contact with Equinor to clarify the situation [22][23] Question: How quickly can the Acadia's time slots be refilled if the project is canceled? - Management indicated that it would be difficult to fill the time slots quickly, but there are cancellation arrangements in the contract that would mitigate some costs [25][26] Question: Update on the Woodside job and ongoing LNG projects - The base work for the Woodside project is in low bid pending and will be added to the backlog in Q2. The ongoing LNG projects are performing well and are expected to wrap up as scheduled [42][43] Question: Competitive environment and bid market pace - Management noted that the competitive environment remains similar to historical levels, with some dredges taken out of operation and new builds entering the market [35] Question: Impact of dry docks on Q1 performance - Management confirmed that the dry dock in Q1 was a hopper dredge and that Q2 will be most impacted by dry docks, but they expect a normalization in the second half of the year [49][51]

Financial Performance - First quarter revenue was $242.9 million, an increase of $44.2 million from the first quarter of 2024[3] - Net income for the first quarter was $33.4 million, a $12.4 million increase compared to $21.0 million in the prior year[15] - Adjusted EBITDA for the first quarter was $60.1 million, reflecting improved project performance[3] - Contract revenues for Q1 2025 were $242.865 million, a 22.2% increase from $198.660 million in Q1 2024[26] - Gross profit for Q1 2025 was $69.523 million, compared to $45.574 million in Q1 2024, reflecting a significant improvement[26] - Net income for Q1 2025 increased to $33.416 million, up from $21.024 million in Q1 2024, representing a 58.9% growth[26] - Adjusted EBITDA for Q1 2025 was $60.108 million, compared to $42.924 million in Q1 2024, indicating a 40.0% increase[28] Backlog and Capital Expenditures - Dredging backlog as of March 31, 2025, was $1.0 billion, with an additional $265.3 million in low bids and options pending award[15] - Total dredging backlog as of March 31, 2025, was $968.527 million, down from $1,194.199 million as of December 31, 2024[32] - Total backlog, including offshore energy, was $1,013.472 million as of March 31, 2025, compared to $1,239.144 million as of December 31, 2024[32] - Total capital expenditures for the first quarter were $11.4 million, including $3.9 million for the construction of the Acadia vessel[15] Liquidity and Equity - Cash and cash equivalents increased to $11.336 million as of March 31, 2025, from $10.216 million as of December 31, 2024[30] - Total current liabilities decreased to $193.074 million as of March 31, 2025, from $216.013 million as of December 31, 2024[30] - Total equity increased to $479.944 million as of March 31, 2025, compared to $448.910 million as of December 31, 2024[30] - The Revolving Credit Facility was amended to increase its size from $300 million to $330 million, enhancing liquidity[6] Share Repurchase and Future Projects - A $50 million share repurchase program was approved, with $10.4 million spent to repurchase 1.2 million shares as of April 30, 2025[5] - The company has received notice to proceed for dredging work on the Woodside Louisiana LNG project, expected to commence in early 2026[4] - The company is actively pursuing opportunities in offshore wind projects and subsea infrastructure protection, expanding its market reach[16] Risks and Challenges - The company continues to face risks related to government funding and contract competition, which could impact future performance[24]

Financial Performance - The company reported first quarter revenue of $242.9 million, an increase of $44.2 million compared to the same period in 2024 [9][16] - Net income for the first quarter was $33.4 million, up $12.4 million from $21.0 million in the prior year [9][16] - Adjusted EBITDA for the quarter was $60.1 million, reflecting a significant increase from $42.9 million in the first quarter of 2024 [9][16][27] Dredging Backlog - As of March 31, 2025, the dredging backlog stood at approximately $1 billion, with an additional $265.3 million in low bids and options pending award [3][9] - Capital and coastal protection projects accounted for 95% of the backlog, which typically yield higher margins [3][9] Project Updates - The company is gaining momentum in dredging for private companies in the LNG market, with new projects including the Woodside Louisiana LNG project expected to commence in early 2026 [4] - The backlog includes significant projects such as the Port Arthur LNG Phase 1 Project and the Brownsville Ship Channel Project, the latter being the largest in the company's history [4] Shareholder Actions - The board approved a $50 million share repurchase program, with $10.4 million spent to repurchase 1.2 million shares as of April 30, 2025 [5] - The company amended its Revolving Credit Facility, increasing its size from $300 million to $330 million to enhance liquidity [6] Operational Developments - The company is progressing on its new build program, with the delivery of the hopper dredge Amelia Island expected in the third quarter of 2025 [7] - The Acadia, a Jones Act compliant subsea rock installation vessel, is under construction, targeting markets including offshore wind projects and subsea infrastructure protection [8] Market Environment - The U.S. Army Corps of Engineers is operating under a continuing resolution that sustains funding levels through September 30, 2025, supporting a busy project schedule for the company [11] - The reauthorization of the Water Resources Development Act (WRDA) provides funding for various dredging and flood protection projects, enhancing the company's project pipeline [12]

Since the start of 2025, the United States construction sector has been navigating through choppy waters, hit by several unfavorable market factors, including a still-high mortgage rate scenario and an unhinged interest rate environment. With the 30-year mortgage rate lingering between 6.9% and 6.7% (during the January-March 2025 period), reaching as high as 7.04% for the week ending on Jan. 16, 2025, the residential construction market is likely to have remained soft, mainly for the multi-family starts. Ho ...