Core Viewpoint - Great Lakes Dredge & Dock Corporation has successfully delivered its newest hopper dredge, the Amelia Island, enhancing its fleet and operational capabilities in the U.S. dredging industry [1][4]. Group 1: Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, with a history of completing significant international projects [5]. - The company operates approximately 200 specialized vessels, making it the owner of the largest and most diverse fleet in the U.S. dredging industry [5]. - Great Lakes is expanding its core business into the offshore energy industry and employs experienced civil, ocean, and mechanical engineering staff [5]. Group 2: New Vessel Details - The Amelia Island is designed for efficient operations in shallow and narrow waters, measuring approximately 346 feet in length, 69 feet in breadth, and 23 feet in depth, with a total horsepower of 16,500 [3]. - The dredge features two 800mm trailing suction pipes capable of dredging depths up to 100 feet and has a hopper capacity of 6,330 cubic yards [3]. - The main engines and generators of the Amelia Island are EPA Tier IV rated for low emissions, positioning it as a modern and environmentally friendly dredge [3]. Group 3: Operational Impact - The delivery of the Amelia Island marks the completion of the company's dredging newbuild program, resulting in the largest and most advanced hopper fleet in the United States [4]. - The vessel is already scheduled for operations in 2025 and 2026, indicating strong demand for dredging services [4]. - The Amelia Island will support diverse operations such as beach renourishment, coastal protection, channel deepening, and maintenance dredging [4].

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to stock price fluctuations based on their buying or selling activities [4]. Company Performance and Outlook - The upgrade reflects an improvement in Great Lakes Dredge & Dock's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, the company is expected to earn $1.02 per share, with a 6.3% increase in the Zacks Consensus Estimate over the past three months [8]. 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]. - The upgrade places Great Lakes Dredge & Dock in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their inflated valuations [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] - Great Lakes Dredge & Dock (GLDD) is highlighted as a strong candidate due to a 4.6% price increase over the past four weeks, reflecting growing investor interest [4] Group 3: Performance Metrics of GLDD - GLDD has demonstrated a 3.4% price gain over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.35, suggesting it moves 35% more than the market in either direction, indicating fast-paced momentum [5] Group 4: Valuation and Earnings Estimates - GLDD has a Momentum Score of B, suggesting it is an opportune time to invest in the stock for potential success [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - GLDD is trading at a Price-to-Sales ratio of 0.95, indicating it is relatively undervalued, as investors pay only 95 cents for each dollar of sales [7] Group 5: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to outperform the market, providing additional avenues for stock selection [9]

Investment Philosophy - The investment approach is based on fundamental analysis, focusing on companies with a strong competitive moat, consistent growth in free cash flow, and robust financial performance [1] - The philosophy emphasizes long-term investing over short-term trading tactics, believing in the power of long-term strategies to unlock value [1] Market Engagement - The company aims to explore a wide array of topics relevant to investors, including uncovering undervalued stocks poised for growth and identifying overvalued stocks [1] - Writing for Seeking Alpha is viewed as a contribution to a community that values deep, analytical insights into the market [1] Professional Background - The analyst has a university degree specializing in business and economics, providing a solid foundation for investment analysis [1] - Currently, the analyst is working in a local brokerage firm, which supports their investment strategies and insights [1]

Group 1 - Great Lakes Dredge & Dock (GLDD) closed at $11.28, with a 0.8% gain over the past four weeks, and a mean price target of $15 indicates a 33% upside potential [1] - The mean estimate includes four short-term price targets with a standard deviation of $1.41, where the lowest estimate of $14.00 suggests a 24.1% increase, and the highest estimate of $17.00 indicates a potential surge of 50.7% [2] - Analysts show strong agreement on GLDD's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock upside [4][11] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for GLDD's current year has increased by 3.5%, with one estimate moving higher and no negative revisions [12] - GLDD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13] - While the consensus price target may not be entirely reliable, it provides a directional guide for potential price movement [14]

Group 1 - The article discusses Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) and its recent performance, highlighting that it is being analyzed for the first time since mid-2024 [2] - The company is part of a portfolio managed by The Insiders Forum, which focuses on small and mid-cap stocks with significant insider purchases [2] - The goal of The Insiders Forum is to outperform the Russell 2000 benchmark over time, with the current portfolio consisting of 12-25 top stocks across various sectors [2]

[PART I — Financial Information (Unaudited)](index=4&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information%20(Unaudited)) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) Total assets slightly decreased to **$1,241,650 thousand** by June 30, 2025, with liabilities decreasing and equity increasing | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Assets | $1,241,650 | $1,255,103 | (1.1%) | | Total Liabilities | $759,781 | $806,193 | (5.7%) | | Total Equity | $481,869 | $448,910 | 7.3% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Contract revenues, gross profit, and net income significantly increased for both the three and six months ended June 30, 2025 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Contract revenues | $193,755 | $170,086 | 13.9% | $436,620 | $368,746 | 18.4% | | Costs of contract revenues | $157,189 | $140,246 | 12.1% | $330,531 | $293,332 | 12.7% | | Gross profit | $36,566 | $29,840 | 22.5% | $106,089 | $75,414 | 40.7% | | Operating income | $17,087 | $14,585 | 17.2% | $67,032 | $46,064 | 45.5% | | Net income | $9,695 | $7,673 | 26.4% | $43,111 | $28,697 | 50.2% | | Basic earnings per share | $0.15 | $0.11 | 36.4% | $0.64 | $0.43 | 48.8% | | Diluted earnings per share | $0.14 | $0.11 | 27.3% | $0.64 | $0.42 | 52.4% | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Comprehensive income increased by **23.6%** for Q2 2025 and **44.2%** for H1 2025, primarily due to higher net income | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Net income | $9,695 | $7,673 | 26.4% | $43,111 | $28,697 | 50.2% | | Net change in cash flow derivative hedges—net of tax | $(150) | $50 | (400.0%) | $212 | $1,338 | (84.2%) | | Comprehensive income | $9,545 | $7,723 | 23.6% | $43,323 | $30,035 | 44.2% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Total equity increased to **$481,869 thousand** by June 30, 2025, primarily due to net income, offset by share repurchases | Metric (in thousands) | January 1, 2025 | June 30, 2025 | Change | | :-------------------- | :-------------- | :------------ | :----- | | Total Equity | $448,910 | $481,869 | 7.3% | | Net Income | N/A | $43,111 | N/A | | Repurchase of common stock | N/A | $(11,594) | N/A |\ | Share-based compensation | N/A | $1,746 | N/A | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Operating cash flow significantly increased for H1 2025, while investing and financing cash outflows rose due to capital investments and debt/share repurchases | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash provided by operating activities | $117,771 | $56,809 | 107.3% | | Net cash used in investing activities | $(81,307) | $(55,230) | (47.2%) | | Net cash used in financing activities | $(43,755) | $(2,206) | (1889.8%) | | Net decrease in cash, cash equivalents and restricted cash | $(7,291) | $(627) | (1063.0%) | | Cash, cash equivalents and restricted cash at end of period | $2,925 | $23,134 | (87.4%) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of presentation](index=11&type=section&id=1.%20Basis%20of%20presentation) Financial statements follow SEC rules and GAAP; the Company operates in one dredging segment and approved a **$50.0 million** share repurchase program - The Company operates in a single reportable segment: dredging[28](index=28&type=chunk) - A share repurchase program of up to **$50.0 million** was approved on March 14, 2025, with **$11.6 million** of common stock repurchased by June 30, 2025[29](index=29&type=chunk)[135](index=135&type=chunk) - The Company is evaluating the impact of new accounting pronouncements, ASU 2024-03 (Disaggregation of Income Statement Expenses) and ASU 2023-09 (Income Taxes), effective for fiscal years ending December 31, 2027 and after December 15, 2024, respectively[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [2. Earnings per share](index=13&type=section&id=2.%20Earnings%20per%20share) Basic and diluted EPS increased significantly for both the three and six months ended June 30, 2025, reflecting higher net income | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :----- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Basic EPS | $0.15 | $0.11 | 36.4% | $0.64 | $0.43 | 48.8% | | Diluted EPS | $0.14 | $0.11 | 27.3% | $0.64 | $0.42 | 52.4% | [3. Property and equipment](index=13&type=section&id=3.%20Property%20and%20equipment) Net property and equipment increased to **$757,924 thousand** by June 30, 2025, driven by a **20.6%** rise in construction in progress | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Property and equipment—net | $757,924 | $703,252 | 7.8% | | Construction in progress | $319,042 | $264,525 | 20.6% | [4. Accrued expenses](index=14&type=section&id=4.%20Accrued%20expenses) Total accrued expenses decreased to **$32,896 thousand** by June 30, 2025, primarily due to lower payroll, benefits, and insurance | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total accrued expenses | $32,896 | $41,640 | (21.0%)| | Payroll and employee benefits | $14,777 | $20,140 | (26.6%)| | Insurance | $10,421 | $13,832 | (24.7%)| | Contract reserves | $1,779 | $148 | 1102.0%| [5. Long-term debt](index=14&type=section&id=5.%20Long-term%20debt) Long-term debt includes a **$100.0 million** term loan, a **$330.0 million** ABL facility, and **$325.0 million** in Senior Notes, with a **6.80%** weighted average interest rate - Second Lien Credit Agreement: **$100.0 million** in borrowings as of June 30, 2025, with a weighted average interest rate of **12.07%** for the quarter ended June 30, 2025. The **$50.0 million** delayed draw facility expired undrawn on April 24, 2025[40](index=40&type=chunk)[46](index=46&type=chunk) - ABL Credit Agreement: Increased to **$330.0 million** from **$300.0 million** on May 2, 2025. Borrowings on the revolver were **$5.0 million** at June 30, 2025, down from **$35.0 million** at December 31, 2024[49](index=49&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk) - Senior Notes: **$325.0 million** of unsecured **5.25%** Senior Notes due 2029[57](index=57&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Weighted average interest rate (adjusted for swaps) | 6.80% | 6.77% | [6. Fair value measurements](index=19&type=section&id=6.%20Fair%20value%20measurements) The Company uses Level 2 derivative instruments for fuel and interest rate risk, with **$0.5 million** in fuel hedge liabilities and **$109 thousand** in interest rate swap liabilities - The Company uses fuel hedge contracts to hedge approximately **90%** of eligible fuel requirements for dredging backlog, with **15.8 million gallons** remaining on contracts through December 2026 at fixed prices from **$2.03** to **$2.66 per gallon**[64](index=64&type=chunk)[65](index=65&type=chunk) - Interest rate swaps with a total notional value of **$75 million** are in place, converting a portion of variable rate debt to a weighted average fixed interest rate of **11.62%** through August 2026[71](index=71&type=chunk) | Derivative Type (in thousands) | Fair Value at June 30, 2025 (Liabilities) | Fair Value at December 31, 2024 (Liabilities) | | :----------------------------- | :---------------------------------------- | :-------------------------------------------- | | Fuel hedge contracts | $454 | $1,065 | | Interest rate swaps | $109 | $0 (Assets: $217) | - The fair value of the 2029 Notes was **$312.3 million** at June 30, 2025, a Level 1 fair value measurement[74](index=74&type=chunk) [7. Share-based compensation](index=23&type=section&id=7.%20Share-based%20compensation) Shareholders approved an increase of **3,000,000** shares for the 2021 Long-Term Incentive Plan, with compensation expense rising to **$5.3 million** for H1 2025 - The 2021 Long-Term Incentive Plan was amended on May 8, 2025, increasing available shares by **3,000,000**[75](index=75&type=chunk) - **538 thousand** restricted stock units were granted to employees during the six months ended June 30, 2025[78](index=78&type=chunk) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Compensation cost charged to expense | $3,400 | $1,800 | 88.9% | $5,300 | $2,600 | 103.8% | [8. Revenue](index=23&type=section&id=8.%20Revenue) Total dredging backlog reached **$960.4 million** at June 30, 2025, with capital revenues significantly increasing and maintenance revenues decreasing - Total dredging backlog was **$960.4 million** at June 30, 2025, with approximately **40%** expected to be completed in the remainder of 2025[79](index=79&type=chunk) - Offshore energy contracts had **$52.4 million** in remaining performance obligations and **$14.5 million** in pending awards at June 30, 2025[79](index=79&type=chunk) | Revenue Type (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Capital | $105,674 | $70,747 | 49.4% | $196,492 | $140,647 | 39.7% | | Coastal protection | $65,227 | $70,195 | (7.1%) | $185,831 | $134,121 | 38.6% | | Maintenance | $22,854 | $29,144 | (21.6%) | $54,297 | $93,978 | (42.2%) | | Total revenues | $193,755 | $170,086 | 13.9% | $436,620 | $368,746 | 18.4% | | Customer Type (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Federal government | $90,941 | $118,687 | $225,349 | $253,476 | | State and local government | $21,109 | $21,463 | $57,503 | $69,163 | | Private | $81,705 | $29,936 | $153,768 | $46,107 | | Total revenues | $193,755 | $170,086 | $436,620 | $368,746 | [9. Commitments and contingencies](index=25&type=section&id=9.%20Commitments%20and%20contingencies) Outstanding performance bonds totaled approximately **$1.3 billion**, with no material impact expected from legal proceedings or environmental claims - Outstanding performance bonds totaled approximately **$1.3 billion** at June 30, 2025, with **$651.9 million** related to dredging backlog[82](index=82&type=chunk) - The Company is not currently a party to any material legal proceedings or environmental claims, and management does not expect current proceedings to have a material effect on financial condition[85](index=85&type=chunk) [10. Segment information](index=25&type=section&id=10.%20Segment%20information) The Company operates in a single dredging segment, with the CEO using net income and Adjusted EBITDA to assess performance and allocate resources - The Company has one reportable segment: dredging[87](index=87&type=chunk)[89](index=89&type=chunk) - The CODM (CEO) uses net income and Adjusted EBITDA to evaluate segment performance and resource allocation[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [General](index=27&type=section&id=General) Great Lakes, the largest U.S. dredging provider, is expanding into offshore energy with its new SRI vessel, Acadia, diversifying services amid potential U.S. offshore wind delays - Great Lakes is the largest provider of dredging services in the U.S. and is expanding into the offshore energy industry[95](index=95&type=chunk) - The Acadia, the first Jones Act SRI vessel, was launched in July 2025 and is expected to be operational in 2026, with secured offshore wind contracts for 2026[102](index=102&type=chunk)[103](index=103&type=chunk) - The Company is diversifying the Acadia's target markets to include oil and gas pipeline protection, power and telecommunications cable protection, and international offshore wind, in anticipation of potential delays in U.S. offshore wind projects[104](index=104&type=chunk)[105](index=105&type=chunk) - Federal government contracts, primarily with the U.S. Army Corps of Engineers, accounted for approximately **52%** of revenues in the first six months of 2025, down from a three-year average of **65%** due to increased private customer revenues[99](index=99&type=chunk) [Results of operations](index=29&type=section&id=Results%20of%20operations) Total revenue, gross profit, net income, and Adjusted EBITDA all significantly increased for both Q2 and H1 2025, driven by higher capital dredging revenues and improved margins | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Total revenues | $193,755 | $170,086 | 13.9% | $436,620 | $368,746 | 18.4% | | Capital revenues | $105,674 | $70,747 | 49.4% | $196,492 | $140,647 | 39.7% | | Coastal protection revenues | $65,227 | $70,195 | (7.1%) | $185,831 | $134,121 | 38.6% | | Maintenance revenues | $22,854 | $29,144 | (21.6%) | $54,297 | $93,978 | (42.2%) | | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Gross profit | $36,600 | $29,800 | 22.8% | $106,100 | $75,400 | 40.7% | | Gross profit margin | 18.9% | 17.5% | 1.4 pp | 24.3% | 20.5% | 3.8 pp | | Operating income | $17,100 | $14,600 | 17.1% | $67,000 | $46,100 | 45.3% | | Net income | $9,700 | $7,700 | 26.0% | $43,100 | $28,700 | 50.2% | | Diluted EPS | $0.14 | $0.11 | 27.3% | $0.64 | $0.42 | 52.4% | | Adjusted EBITDA | $28,000 | $25,800 | 8.5% | $88,100 | $68,700 | 28.2% | - The increase in gross profit and margins was driven by increased revenues, improved utilization, project performance, and a larger proportion of higher-margin capital and coastal protection projects[114](index=114&type=chunk) - General and administrative expenses increased due to higher incentive compensation and employee benefit expenses[115](index=115&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA), signed July 4, 2025, includes tax reform provisions (e.g., elective R&D deduction, bonus depreciation, §163(j) modifications) whose quantitative financial impact is currently being evaluated[119](index=119&type=chunk) [Bidding activity and backlog](index=33&type=section&id=Bidding%20activity%20and%20backlog) Total backlog decreased to **$1,012.8 million** by June 30, 2025, including **$960.4 million** in dredging and **$52.4 million** in offshore energy, with a lower Q2 2025 bid win rate | Backlog Type (in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | Change (Dec 2024 to Jun 2025) | | :-------------------------- | :------------ | :---------------- | :------------ | :---------------------------- | | Capital | $751,350 | $799,565 | $683,131 | (6.1%) | | Coastal protection | $140,012 | $328,073 | $38,205 | (57.4%) | | Maintenance | $69,051 | $66,561 | $86,538 | 3.7% | | Total dredging backlog | $960,413 | $1,194,199 | $807,874 | (19.5%) | | Offshore energy | $52,431 | $44,945 | $44,604 | 16.7% | | Total backlog | $1,012,844 | $1,239,144 | $852,478 | (18.3%) | - Total backlog does not include **$215.4 million** of domestic low bids pending formal award and options, nor **$14.5 million** of pending offshore energy contracts[122](index=122&type=chunk)[127](index=127&type=chunk) - The domestic dredging bid market for Q2 2025 was **$197.5 million**, a **$583.5 million** decrease YoY. The Company won **14%** of bids, below its **31%** three-year average[126](index=126&type=chunk) - Backlog includes three LNG projects, with the Brownsville Ship Channel project being the largest in Company history, and the Woodside Louisiana LNG project expected to commence operations in early 2026[127](index=127&type=chunk)[128](index=128&type=chunk) [Liquidity and capital resources](index=35&type=section&id=Liquidity%20and%20capital%20resources) Operating cash flow significantly increased for H1 2025, while investing and financing cash outflows rose due to capital investments and debt/share repurchases, with **$140-$160 million** in expected 2025 capital expenditures | Cash Flow (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :----------------------- | :--------------------------- | :--------------------------- | :--------- | | Operating Activities | $117,771 | $56,809 | 107.3% | | Investing Activities | $(81,307) | $(55,230) | (47.2%) | | Financing Activities | $(43,755) | $(2,206) | (1889.8%) | - Investing activities included **$21.9 million** in the Amelia Island and **$32.6 million** in the Acadia during H1 2025[134](index=134&type=chunk) - Financing activities included **$30.0 million** in net repayments under the revolving debt facility and **$11.6 million** in common stock repurchases during H1 2025[135](index=135&type=chunk) - Expected capital expenditures for 2025 are between **$140 million** and **$160 million**, including new build programs and maintenance[136](index=136&type=chunk) - The Company believes its cash, anticipated cash flows from operations, and revolving credit facility availability will be sufficient to fund operations and debt service for the next twelve months[139](index=139&type=chunk) [Critical accounting policies and estimates](index=37&type=section&id=Critical%20accounting%20policies%20and%20estimates) Critical accounting policies and estimates remain materially unchanged since December 31, 2024, as detailed in Note 1 - No material changes in critical accounting policies or estimates since December 31, 2024[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's market risk profile for financial instruments has not materially changed since December 31, 2024 - No material changes in the Company's market risk profile for financial instruments as of June 30, 2025, compared to December 31, 2024[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were effective as of June 30, 2025[143](index=143&type=chunk) - No material changes in internal control over financial reporting during the fiscal quarter ended June 30, 2025[144](index=144&type=chunk) [PART II — Other Information](index=38&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings and contingencies are detailed in Note 9, with no material impact expected on financial position or operations - Legal proceedings and other contingencies are detailed in Note 9, with no material impact expected[146](index=146&type=chunk)[85](index=85&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the December 31, 2024 Annual Report on Form 10-K and March 31, 2025 Quarterly Report on Form 10-Q - No material changes to risk factors since the December 31, 2024 Annual Report on Form 10-K and March 31, 2025 Quarterly Report on Form 10-Q[147](index=147&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased **960,253 shares** for **$8.77** average per share during Q2 2025, as part of a **$50.0 million** share repurchase program | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Aggregate Dollar Value That May Yet Be Purchased Under the Plans or Programs | | :--------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | 839,561 | $8.67 | $39,553,293 | | May 1, 2025 - May 31, 2025 | 120,692 | N/A | $38,406,008 | | June 1, 2025 - June 30, 2025 | 0 | N/A | $38,406,008 | | Total (Q2 2025) | 960,253 | $8.77 | $38,406,008 | - A share repurchase program of up to **$50.0 million** was approved on March 14, 2025, through March 14, 2026[148](index=148&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities during the period - None[149](index=149&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[150](index=150&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) CFO Scott Kornblau adopted a Rule 10b5-1 trading arrangement on May 9, 2025, to sell up to **59,805 shares** by May 1, 2026 - CFO Scott Kornblau adopted a Rule 10b5-1 trading arrangement on May 9, 2025, to sell up to **59,805 shares** by May 1, 2026[152](index=152&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments, the incentive plan, and various certifications - Key exhibits include Amendment No. 2 to the Revolving Credit and Security Agreement (May 2, 2025) and the amended 2021 Long-Term Incentive Plan (May 12, 2025)[154](index=154&type=chunk) [Signature](index=40&type=section&id=Signature) The report was signed by Scott Kornblau, SVP and CFO of Great Lakes Dredge & Dock Corporation, on August 5, 2025 - Report signed by Scott Kornblau, SVP and CFO, on August 5, 2025[157](index=157&type=chunk)

Core Viewpoint - Great Lakes Dredge & Dock Corporation held its Q2 2025 earnings call, discussing key developments and financial performance for the quarter [1][2]. Group 1: Company Overview - The earnings call was led by Eric Birge, Vice President of Investor Relations, with participation from CEO Lasse Petterson and CFO Scott Kornblau [1][2][4]. - The company emphasized that certain statements made during the call are forward-looking and subject to various risks and uncertainties [3][4]. Group 2: Financial Performance - The call included discussions on non-GAAP financial measures, specifically adjusted EBITDA, with reconciliations available in the earnings release and on the investor website [4].

Financial Data and Key Metrics Changes - The company reported revenues of $193.8 million for Q2 2025, an increase of $23.7 million from the same quarter in 2024 [12] - Adjusted EBITDA for the quarter was $28 million, with an adjusted EBITDA margin of 14.4% [12] - Net income for Q2 2025 was $9.7 million, up from $7.7 million in the prior year [13] - Gross profit increased to $36.6 million, with a gross profit margin of 18.9%, compared to $29.8 million and 17.5% in Q2 2024 [12][13] - The company ended the quarter with $2.9 million in cash and $5 million drawn on its revolving credit facility [14] Business Line Data and Key Metrics Changes - The dredging backlog stood at $1 billion, with 93% from capital and coastal protection projects [6] - Over 88% of Q2 revenue came from capital and coastal protection projects, which typically yield higher margins [12] Market Data and Key Metrics Changes - The U.S. dredging bid market is expected to normalize at approximately $2 billion, focusing on coastal protection projects [18] - The company is seeing early signs of the next phase of deepening projects, with work likely to commence in 2027 [19] Company Strategy and Development Direction - The company initiated a $50 million share repurchase program, believing its share price did not reflect its financial performance [7] - The newbuild program is nearing completion, with the Amelia Island hopper dredge expected to be delivered soon [8] - The Arcadia vessel is being positioned for both domestic and international projects, expanding its target markets to include offshore energy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong project execution and results for the remainder of 2025, with expectations for the highest revenue and net income in company history [15][21] - The U.S. Army Corps of Engineers is expected to maintain record funding levels, providing revenue visibility extending into 2026 [17] Other Important Information - The company has a trailing twelve-month net leverage ratio of 2.7 times and no debt maturities until 2029 [14] - Total capital expenditures for Q2 were $64.6 million, with guidance for full-year CapEx remaining unchanged at $140 million to $160 million [14] Q&A Session Summary Question: Is the pace of awards running to expectations? - Management noted that they expected a more normalized bid market and acknowledged that they did not bid on over 50% of projects due to availability constraints [25][26] Question: What is the likelihood of the Acadia being in the U.S. in 2027? - Management indicated that most efforts are focused on international markets, particularly in Europe, for the Acadia in 2027 [27][28] Question: Will there be any need for new vessels in the near future? - Management stated that they do not see a need for new dredges in the coming years, as the current fleet is modern and competitive [30][31] Question: What is the confidence level for Acadia's delivery in 2026? - Management expressed high confidence in the Q1 2026 delivery of the Acadia, with revenue expectations exceeding $100 million for the full year [34][37] Question: Are there any changes in customer hesitation in the base dredging business? - Management noted that while the Corps cannot bid new projects under the current resolution, many projects are still being executed, indicating a strong market [41] Question: What is the capital allocation strategy beyond CapEx? - Management emphasized a focus on completing the newbuild program before considering debt paydown or further share repurchases [59][60] Question: What drove the expansion of the credit facility? - The expansion was driven by favorable pricing and the need for letters of credit for LNG and offshore energy projects [61]

Core Insights - Great Lakes Dredge & Dock (GLDD) reported a revenue of $193.76 million for the quarter ended June 2025, reflecting a year-over-year increase of 13.9% [1] - The company's earnings per share (EPS) was $0.14, up from $0.11 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $174.33 million by 11.14%, showcasing a strong performance relative to market expectations [1] Financial Performance Metrics - Contract Revenues from Dredging - Capital reached $105.67 million, significantly surpassing the average estimate of $76 million, marking a year-over-year increase of 49.4% [4] - Contract Revenues from Dredging - Maintenance were reported at $22.85 million, slightly above the average estimate of $21.6 million, but showing a decline of 19.7% year-over-year [4] - Contract Revenues from Dredging - Coastal Protection totaled $65.23 million, falling short of the average estimate of $78.65 million, with a year-over-year decrease of 7.1% [4] Stock Performance - Over the past month, shares of Great Lakes Dredge & Dock have declined by 10.2%, contrasting with a 1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]