Great Lakes Dredge & Dock (GLDD) - 2024 Q4 - Annual Report

Revenue and Contracts - In 2024, approximately 57% of the Company's dredging revenues were generated from 33 different contracts with federal agencies or third parties operating under contracts with federal agencies[36]. - The Company's backlog includes only those projects for which it has obtained a signed contract with the customer, and backlog can fluctuate significantly from quarter to quarter[59][61]. Fleet and Equipment - The Company took delivery of a 6,500 cubic yard trailing suction hopper dredge, the Galveston Island, which began operations in February 2024, and expects delivery of a second similar dredge, the Amelia Island, in the second half of 2025[46]. - Great Lakes' fleet is the largest and most diverse in the U.S., with a focus on hopper dredges, hydraulic dredges, and mechanical dredges[45]. - The Company has the largest fleet of material barges in the domestic industry, with thirteen scows in its fleet having capacities ranging from 5,000 to 8,800 cubic yards[49]. - The Company has a commitment to a reliability-assured maintenance program, which contributes to the long lives of its equipment and low levels of unscheduled downtime[54]. Financial Performance and Debt - The Company generated gross cash proceeds of $29.5 million from a sale-leaseback transaction for three scows placed into service in 2022[50]. - The Company sold$325.0 million of unsecured 5.25% Senior Notes due June 1, 2029, using the proceeds to redeem all prior outstanding 8% Notes[297]. - As of December 31, 2024, the Company had long-term senior notes outstanding with a recorded face value of $325.0 million, with a fair value of$301.5 million based on market prices[297]. - The Company has $135.0 million of variable rate indebtedness, with$75 million hedged by interest rate swaps[298]. - The weighted average interest rate on variable rate indebtedness was 10.4% as of December 31, 2024, and a hypothetical 10% increase would raise annual interest costs by approximately $0.5 million[298]. Labor and Safety - The Company employed an average of approximately 637 hourly personnel to meet domestic project requirements during 2024[62]. - The Company is committed to a safety culture with a focus on incident prevention and sustainable safety excellence[65]. - The Company has not experienced major labor disputes in the past five years, with collective bargaining agreements with unions expiring in 2026 and 2027[66]. Environmental Compliance - The Company is subject to various environmental laws and regulations that could impact project costs and compliance[68]. - The Company believes future compliance costs with environmental laws will not materially affect its business or financial position[72]. Executive Team and Employee Relations - The Company has a diverse executive team with extensive experience in engineering, finance, and project management[74-82]. - The Company maintains a competitive compensation and benefits structure to attract and retain talented employees[64]. Fuel Costs and Hedging - Diesel fuel represents approximately 10$0.8 million effect on fuel expense[299]. - The company has hedged approximately 80% of its anticipated domestic fuel requirements through May 2026[299]. - As of December 31, 2024, there were 17.8 million gallons remaining on fuel hedging contracts[299]. - Fixed prices under these agreements range from $2.18 to$2.90 per gallon[299]. - The fair value liabilities on fuel hedging contracts was $1.1 million as of December 31, 2024[299]. - A 10$4.2 million change in the fair value of outstanding fuel hedges[299].