Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2: Great Lakes Dredge & Dock (GLDD) Analysis - GLDD has shown a four-week price change of 5%, indicating growing investor interest [4] - The stock gained 7.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - GLDD has a beta of 1.4, suggesting it moves 40% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [6] Group 3: Earnings Estimates and Valuation - GLDD has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.99, indicating it is reasonably valued at 99 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant driver of stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions in influencing near-term stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade for GLDD reflects an improvement in its underlying business, which is expected to lead to increased stock prices as investor sentiment becomes more favorable [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Earnings Estimate Revisions for GLDD - For the fiscal year ending December 2025, GLDD is expected to earn $1.10 per share, with no year-over-year change; however, the Zacks Consensus Estimate has increased by 10.8% over the past three months, reflecting positive sentiment among analysts [8].

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) has shown strong stock performance, with a 9.4% increase over the past month and a 13.1% gain since the start of the year, outperforming both the Zacks Construction sector and the Zacks Building Products - Heavy Construction industry [1] Financial Performance - The company has consistently beaten earnings estimates, reporting an EPS of $0.26 against a consensus estimate of $0.17 in its last earnings report [2] - For the current fiscal year, GLDD is expected to post earnings of $1.02 per share on revenues of $845.81 million, reflecting a 21.43% change in EPS and a 10.9% change in revenues [3] - For the next fiscal year, earnings are projected to remain at $1.02 per share with revenues increasing to $880.7 million, indicating a year-over-year change of 0% in EPS and 4.13% in revenues [3] Valuation Metrics - The stock trades at 12.6 times current fiscal year EPS estimates, significantly lower than the peer industry average of 25.2 times [7] - On a trailing cash flow basis, GLDD trades at 6.9 times compared to the peer group's average of 15.9 times [7] - The company has a PEG ratio of 1.05, positioning it favorably among value stocks [7] Investment Ratings - GLDD holds a Value Score of A, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [6] - The stock has a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Given the Zacks Rank and Style Scores, GLDD appears to be a promising investment opportunity in the near future [9]

Financial Performance - Contract revenues for Q3 2025 were $195.2 million, a 2% increase from $191.2 million in Q3 2024[11] - Gross profit for Q3 2025 was $43.8 million, up 21% from $36.2 million in Q3 2024[11] - Net income for Q3 2025 reached $17.7 million, compared to $8.9 million in Q3 2024, representing a 99% increase[11] - Basic earnings per share for Q3 2025 were $0.27, up from $0.13 in Q3 2024[11] - Operating income for the nine months ended September 30, 2025, was $95.2 million, compared to $62.8 million for the same period in 2024, reflecting a 52% increase[11] - The company reported a comprehensive income of $18.4 million for Q3 2025, compared to $6.2 million in Q3 2024[13] - Net income for the nine months ended September 30, 2025, was $60,835,000, compared to $37,549,000 for the same period in 2024, representing a 62% increase[22] - Basic earnings per share for the nine months ended September 30, 2025, was $0.91, compared to $0.56 for the same period in 2024, marking a 62.5% increase[34] - Adjusted EBITDA for Q3 2025 was 20.1%, up from 14.1% in Q3 2024[116] - Adjusted EBITDA for Q3 2025 was $39.3 million, up $12.3 million from $27.0 million in Q3 2024[133] Assets and Liabilities - Total current assets decreased to $229.8 million as of September 30, 2025, down from $263.4 million at the end of 2024[9] - Total liabilities decreased to $765.6 million as of September 30, 2025, compared to $806.2 million at the end of 2024[9] - Total equity increased to $502.1 million as of September 30, 2025, up from $448.9 million at the end of 2024[9] - The company’s long-term debt decreased to $415.3 million as of September 30, 2025, down from $448.2 million at the end of 2024[9] - The company had a total of $40,455,000 in accrued expenses as of September 30, 2025, slightly down from $41,640,000 at the end of 2024[37] Cash Flow and Investments - Cash provided by operating activities increased to $166,930,000 for the nine months ended September 30, 2025, up from $83,581,000 in 2024, indicating a 100% growth[22] - Cash used in investing activities totaled $115,220,000 for the nine months ended September 30, 2025, compared to $93,203,000 in 2024, representing a 23.6% increase[22] - The company reported cash, cash equivalents, and restricted cash of $12,671,000 at the end of the period, up from $12,037,000 at the end of 2024[22] - The company incurred $19,614,000 in cash paid for interest during the nine months ended September 30, 2025, compared to $17,452,000 in 2024, a 12.3% increase[22] Backlog and Revenue Streams - As of September 30, 2025, the company had a total dredging backlog of $934.5 million, excluding $193.5 million of domestic low bids pending formal award[81] - The company expects to convert the majority of its dredging backlog and all offshore energy backlog into revenue by the end of 2026[81] - Dredging revenues for the three months ended September 30, 2025, were $189.083 million, slightly down from $191.173 million in 2024, a decrease of approximately 1.1%[84] - The federal government accounted for $90.306 million of revenues in Q3 2025, up from $85.876 million in Q3 2024, reflecting a growth of about 5.0%[84] - The Company’s contracted dredging backlog was $934.5 million as of September 30, 2025, down from $1.2 billion at December 31, 2024[140] Shareholder Activities - The company repurchased 1,312,493 shares of common stock for approximately $11.6 million during the nine months ended September 30, 2025, as part of a $50 million share repurchase program[27] - The Company believes its cash and cash equivalents, anticipated cash flows, and revolving credit facility will be sufficient to fund operations and capital expenditures for the next twelve months[155] Debt and Credit Facilities - The Company secured a senior secured second-lien term loan facility of $100.0 million, fully funded on the Closing Date, with net proceeds of approximately $88.7 million after costs[39] - The ABL Credit Agreement provides for a senior secured revolving credit facility with an aggregate principal amount of up to $300.0 million, which was increased to $330.0 million in May 2025[50] - The Company had $271.1 million of availability under the ABL Credit Agreement as of September 30, 2025, compared to $221.2 million as of December 31, 2024[56] - The Company had no borrowings on the revolver as of September 30, 2025, compared to $35.0 million as of December 31, 2024[56] Operational Developments - The Acadia, the first Jones Act subsea rock installation vessel, was launched in July 2025 and is expected to be operational in 2026[110] - The company has secured contracts for full utilization of the Acadia for 2026 and is actively bidding for projects in 2027 and beyond[111] - The company anticipates continued growth in offshore energy capabilities despite potential delays in U.S. offshore wind projects due to recent legislative changes[113] Compliance and Governance - The certifications pursuant to the Sarbanes-Oxley Act of 2002 were included in the report, ensuring compliance with financial reporting standards[171] - The report was signed by Scott Kornblau, Senior Vice President and Chief Financial Officer, on November 4, 2025[174]

Financial Data and Key Metrics Changes - The company reported revenues of $195.2 million for Q3 2025, an increase of $4 million from the prior year's third quarter [9] - Adjusted EBITDA for the quarter was $39.3 million, with an adjusted EBITDA margin of 20.1% [9] - Net income for Q3 2025 was $17.7 million, up from $8.9 million in the prior year quarter [10] - Gross profit increased to $43.8 million, with a gross profit margin of 22.4%, compared to $36.2 million and 19% in Q3 2024 [10] Business Line Data and Key Metrics Changes - The dredging backlog stood at $935 million, with 84% allocated to capital and coastal protection projects [4] - New project awards during Q3 totaled $136 million, contributing to a high-quality backlog [4] - The offshore energy team commenced rock placement operations, indicating growth in this segment [5] Market Data and Key Metrics Changes - The 2025 dredging bid market is expected to normalize at approximately $1.8 billion, focusing on coastal protection projects funded by the 2023 Disaster Relief Supplemental Appropriations Act [16] - The company has secured full utilization for the Acadia in 2026, indicating strong demand in the offshore wind market [17] Company Strategy and Development Direction - The company aims to maintain operational momentum and expects 2025 to be the highest EBITDA year in its history [13] - The strategic focus includes expanding into offshore energy services, particularly for protecting critical subsea infrastructure [17] - The company is diversifying its client portfolio, achieving a balance of 50% private and 50% federal government-funded work [44] Management's Comments on Operating Environment and Future Outlook - Management noted that operations remain unaffected by the current government shutdown, with timely payments and ongoing project execution [5][15] - The company anticipates a strong fourth quarter, despite two hopper dredges undergoing dry dock [12][55] - There is optimism regarding the 2026 bid market, with expectations for new port deepening projects to commence bidding towards the end of 2026 [32] Other Important Information - The company completed the refinancing and upsizing of its revolving credit facility to $430 million, extending maturity to 2030 [6] - Total capital expenditures for Q3 were $32.8 million, with full-year guidance remaining between $140-$150 million [11] Q&A Session Summary Question: Bidding trends and order trajectory for dredging - Management expects bidding to continue normally for maintenance dredging and coastal protection projects, despite a reduction in the overall bid market size [21] Question: Cash interest expense and GAAP interest expense convergence - The company anticipates a reduction in cash interest expense due to the repayment of the second lien term loan, with a projected interest expense of about $11 million in Q4 [22] Question: Payment issues during government shutdown - Management clarified that the U.S. Army Corps of Engineers has a majority of its workforce funded through project-based accounts, allowing for normal payment processes [28] Question: 2026 bid market outlook - The company expects the 2026 bid market to include maintenance-related work and coastal protection projects, with new port deepening projects likely to commence bidding in 2027 [32] Question: Success in securing contracts with non-wind-oriented customers - Management indicated that while contracts are still a work in progress, they have been actively bidding in Europe for cable protection projects [34] Question: Comparison of Q4 expectations to Q1 - Management noted that Q4 is expected to be extremely strong, with most vessels working throughout the quarter [40] Question: Coastal protection market and upcoming bidding opportunities - The company sees numerous beach restoration and coastal protection projects coming out to bid, supported by different funding streams [44]

Core Insights - Great Lakes Dredge & Dock (GLDD) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and up from $0.13 per share a year ago [1][2] - The company experienced an earnings surprise of +52.94% for the quarter, having surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $195.21 million, which fell short of the Zacks Consensus Estimate by 3.08%, but showed an increase from $191.17 million year-over-year [3] Earnings Performance - The earnings surprise of +52.94% indicates strong performance relative to expectations, with a previous quarter's surprise of +75% [2] - Over the last four quarters, GLDD has consistently exceeded consensus EPS estimates [2] Revenue Analysis - The reported revenue of $195.21 million missed the consensus estimate, contrasting with the year-ago figure of $191.17 million [3] - The company has topped consensus revenue estimates in two of the last four quarters [3] Stock Performance and Outlook - Since the beginning of the year, GLDD shares have increased by approximately 0.8%, underperforming the S&P 500's gain of 16.5% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $207.85 million, and for the current fiscal year, it is $1.02 on revenues of $845.81 million [8] - The Building Products - Heavy Construction industry, to which GLDD belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [9] Competitor Insights - Tutor Perini (TPC), another company in the same industry, is expected to report quarterly earnings of $0.96 per share, reflecting a year-over-year increase of +150% [10] - TPC's anticipated revenues are projected to be $1.34 billion, up 24.1% from the previous year [11]

Financial Performance - Third quarter revenue was $195.2 million, an increase of $4.0 million compared to the third quarter of 2024[16] - Net income for the third quarter was $17.7 million, up from $8.9 million in the prior year[16] - Adjusted EBITDA for the third quarter was $39.3 million, reflecting improved project performance and higher revenue[4] - Gross profit for the third quarter was $43.8 million, with a gross profit margin of 22.4%, up from 19.0% in the prior year[16] - Contract revenues for Q3 2025 were $195,205,000, a 2% increase from $191,173,000 in Q3 2024[28] - Gross profit for Q3 2025 was $43,760,000, up 21% from $36,233,000 in Q3 2024[28] - Net income for the nine months ended September 30, 2025, was $60,835,000, compared to $37,549,000 for the same period in 2024, representing a 62% increase[28] - Adjusted EBITDA for Q3 2025 was $39,274,000, a 46% increase from $26,983,000 in Q3 2024[31] - Total dredging revenues for the nine months ended September 30, 2025, were $625,703,000, compared to $559,919,000 in 2024, reflecting an 11.7% increase[35] - Basic earnings per share for Q3 2025 were $0.27, up from $0.13 in Q3 2024[28] Backlog and Future Revenue - Dredging backlog as of September 30, 2025, was $934.5 million, down from $1.2 billion at December 31, 2024[16] - The company has an additional $193.5 million in low bids and options pending award, providing revenue visibility into 2026[4] - The total backlog for dredging as of September 30, 2025, was $934,505,000, down from $1,194,199,000 as of December 31, 2024[35] - Capital and coastal protection projects account for over 84% of the dredging backlog, typically yielding higher margins for the company[4] Capital Expenditures and Assets - Total capital expenditures for the third quarter were $32.8 million, including $18.6 million for the construction of the Acadia vessel[16] - Cash and cash equivalents increased to $12,671,000 as of September 30, 2025, from $10,216,000 at the end of 2024[33] - Total equity rose to $502,112,000 as of September 30, 2025, compared to $448,910,000 at the end of 2024[33] - The company reported a total long-term debt of $415,321,000 as of September 30, 2025, down from $448,216,000 at the end of 2024[33] Operational Updates - The company has maintained operations without interruption during the current government shutdown, with all projects in the backlog fully funded[6][15] - The Acadia, a new subsea rock installation vessel, is expected to commence operations in early 2026 with secured contracts for full utilization throughout that year[9][17]

Core Insights - Great Lakes Dredge & Dock Corporation reported a strong third quarter for 2025, with net income of $17.7 million and adjusted EBITDA of $39.3 million, driven by effective project execution and high equipment utilization [2][4][10] - The company's dredging backlog stood at $934.5 million as of September 30, 2025, with an additional $193.5 million in low bids and options pending award, indicating strong revenue visibility for the remainder of 2025 and into 2026 [4][10][16] Financial Performance - Revenue for the third quarter was $195.2 million, an increase of $4.0 million compared to the same period in 2024, primarily due to higher capital project revenue [10][16] - Gross profit was $43.8 million, with a gross profit margin of 22.4%, both showing improvement from the previous year's figures of $36.2 million and 19.0% respectively [16] - Operating income increased to $28.1 million from $16.7 million in the prior year's third quarter, attributed to improved gross profit and lower general and administrative expenses [16][25] Operational Highlights - The company has maintained uninterrupted operations during the recent government shutdown, ensuring full project execution and support to the U.S. Army Corps of Engineers [6][14] - Significant projects in the dredging backlog include major port deepening LNG projects, with operations for two projects having commenced in Q3 2024 and another expected to start in early 2026 [5][10] Capital Structure and Investments - An amendment to the revolving credit facility was completed, increasing the amount by $100 million to a total of $430 million, which reduced annual interest expenses by nearly $6 million [7] - Total capital expenditures for the third quarter were $32.8 million, including investments in new vessels such as the Acadia and Amelia Island [16][25] Market Position and Strategy - Great Lakes is the largest provider of dredging services in the U.S. and is expanding into the offshore energy sector, with a focus on safeguarding critical subsea infrastructure [21][17] - The company is actively pursuing opportunities in oil and gas pipeline protection and international offshore wind projects to ensure sustained utilization of its new vessels [17][9]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is expected to report its third-quarter 2025 financial results on November 4, prior to market opening [1] - In the previous quarter, GLDD's adjusted earnings per share (EPS) and revenues exceeded the Zacks Consensus Estimate by 58.5% and 12.3%, with year-over-year growth of 61.5% and 20.9% respectively [1] Financial Performance - The Zacks Consensus Estimate for GLDD's third-quarter adjusted EPS remains at 17 cents, reflecting a 30.8% year-over-year increase from 13 cents [3] - The consensus estimate for revenues is $197.6 million, indicating a 3.4% year-over-year increase [3] - GLDD has surpassed the consensus earnings mark in each of the last four quarters [2] Revenue Drivers - Revenue growth is anticipated due to strong infrastructure demand, expansion in the offshore wind sector, and effective project execution [4] - Maintenance dredging, which accounted for 11.8% of total revenues in Q2 2025, is expected to show weaker demand, particularly in Florida, Texas, Puerto Rico, and Mississippi [5] - Coastal protection dredging, making up 33.7% of Q2 2025 revenues, is projected to gain momentum due to increased government initiatives [5] - Capital dredging, which comprised 54.5% of Q2 2025 revenues, is expected to face challenges due to decreased revenues from Virginia projects [5] Segment Performance - The Zacks Consensus Estimate for Dredging Capital revenues is $107.5 million, a slight decline of 1.1% from the previous year [6] - Dredging Maintenance revenues are estimated at $21.2 million, reflecting a significant decrease of 44.1% from $37.9 million a year ago [6] - Dredging Coastal Protection revenues are expected to reach $72.5 million, indicating a year-over-year growth of 65.1% [6] Earnings Outlook - GLDD's bottom line is projected to improve year-over-year due to better utilization, project performance, and a favorable project mix [7] - Q3 revenues are expected to grow 3.4% year-over-year, driven by strong coastal protection activities [8] - Despite higher labor costs, improved project mix and equipment utilization are likely to enhance margins [8] - The focus on higher-margin capital and coastal protection projects is anticipated to support the bottom line, despite increased employee benefit expenses [9] Earnings Prediction Model - The current model does not predict an earnings beat for GLDD, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [10][11]

Core Viewpoint - Great Lakes Dredge & Dock Corporation will release its financial results for the third quarter of 2025 on November 4, 2025, at 7:00 a.m. CDT, followed by a conference call at 9:00 a.m. CDT [1][2] Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and has a significant history of international projects [3] - The company is expanding its core business into the offshore energy industry and employs experienced civil, ocean, and mechanical engineering staff [3] - With over 135 years of history, the company has never failed to complete a marine project and operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - Great Lakes has a disciplined training program for engineers to ensure performance based on experience as they progress through company operations [3] - The company's Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of its culture, promoting a work environment where employee safety is paramount [3]