HOUSTON - Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD), the largest provider of dredging services in the United States, today announced the acquisition of several dredging contracts valued at $342.3 million. The projects, awarded by various districts of the U.S. Army Corps of Engineers and other clients, span multiple states and are aimed at improving waterways and coastal protection.
The largest of the contracts is the Sabine-Neches Waterway Channel Improvement, Contract 6 Project in Texas, with a value of $219.1 million. This capital project involves deepening the channel to facilitate the passage of larger vessels, which is expected to enhance efficiency and safety for the local port stakeholders. The work is scheduled to commence in mid-2025 and is anticipated to conclude by late 2026.
In Florida, the Canaveral Harbor Sand Bypass Project 5, valued at $40.6 million, will involve maintenance dredging and the transport of sand to beaches south of the Cape Canaveral south jetty. This project is set to start and finish in the first quarter of 2025.
New Jersey's coastal protection will be bolstered by the Brigantine Inlet to Great Egg Harbor Inlet, Absecon Island Beach Renourishment Project, with a contract worth $38.2 million. This work is slated to begin in the fourth quarter of 2024 and is expected to be completed in the first quarter of 2025.
Additional coastal protection projects include the Captiva Island Beach Renourishment Project in Florida at $26.7 million and the Cape Cod Canal and Sandwich Beaches Renourishment Project in Massachusetts at $8.9 million. Both projects are aimed at restoring beaches eroded by storms.
The Brazos Island Harbor, Texas Entrance and Jetty Channels Dredging Project, also in Texas and valued at $8.8 million, involves maintaining channel depths and reusing the dredged material on nearby beaches. This project is scheduled for the fourth quarter of 2024.
Lasse Petterson, President and CEO of Great Lakes, expressed confidence in the company's project backlog, which provides clear revenue visibility into 2026. He highlighted the robust bid market of 2024 and the potential pipeline of work exceeding $1.5 billion.
Great Lakes has a history of over 134 years in the industry and operates the largest and most diverse fleet in the U.S. dredging industry. The company emphasizes safety with its Incident-and Injury-Free® program.
The announcement is based on a press release statement and includes no endorsements of the company's claims.
In other recent news, Great Lakes Dredge & Dock Corporation has secured several dredging contracts totaling $256.2 million. The projects span various types of dredging work across multiple states, including Alabama, Florida, New Jersey, and New York. These recent developments are a part of the company's ongoing efforts to support the improvement and resilience of the nation's environment, coastlines, and infrastructure.
Great Lakes Dredge & Dock Corporation also disclosed its financial results for the second quarter and the first half of the year, although specific financial figures were not included in the provided summary. The company reported a significant dredging backlog of $879 million, marking its strongest EBITDA since Q4 2021. This was largely driven by effective fleet deployment, including the new hopper dredge, the Galveston Island.
The company's involvement in the offshore wind sector has also seen significant milestones, with projects like Vineyard Wind and South Fork Wind. These recent developments indicate a solid year ahead for Great Lakes Dredge & Dock, with potential for margin improvement as capital backlog execution progresses. The company's financial strategies and outlook were further discussed by Scott Kornblau, who emphasized secured financing with favorable terms.
InvestingPro Insights
Great Lakes Dredge & Dock Corporation's recent acquisition of $342.3 million in dredging contracts aligns well with several key financial metrics and insights from InvestingPro. The company's revenue growth of 12.08% over the last twelve months, as reported by InvestingPro, suggests a strong market position that supports its ability to secure large contracts like those announced.
InvestingPro Tips indicate that analysts anticipate sales growth in the current year, which is consistent with the company's expanded project backlog. This positive outlook is further supported by the expectation that net income will grow this year, potentially driven by the execution of these newly acquired contracts.
The company's profitability over the last twelve months, coupled with analysts' predictions of profitability this year, underscores Great Lakes' financial stability as it takes on these significant projects. With a P/E ratio of 16.16, the company's valuation appears reasonable in light of its growth prospects and market leadership in the U.S. dredging industry.
It's worth noting that Great Lakes is trading near its 52-week high, with a strong return of 23.01% over the last three months. This performance may reflect investor confidence in the company's ability to capitalize on the robust bid market mentioned by CEO Lasse Petterson.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform currently lists 9 additional tips for Great Lakes Dredge & Dock Corporation, providing a deeper understanding of the company's financial health and market position.
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