Great Lakes Dredge & Dock Corporation Q1 FY2025 earnings call

• Started 2025 with a strong first quarter driven by high asset utilization and project performance, executing complex port deepening and coastal restoration projects. - Ended Q1 with revenues of $242.9M and adjusted EBITDA of $60.1M. - 0 recordable injuries in Q1, showcasing a strong safety culture. - Dredging backlog at $1B, with 95% from capital and coastal protection projects and $265M in low bids/options pending. - Notice to proceed on Woodside Louisiana LNG project, added to backlog in Q2 with options. - Board approved $50M share repurchase program in March, with 1.2M shares repurchased for $10.4M as of April 30. - Upsized revolving credit facility to $330M. - Newbuild program: Amelia Island hopper dredge expected Q3 2025, Acadia subsea rock installation vessel scheduled Q1 2026. - 2025 expected to exceed 2024 results, with Q2 impacted by vessel dry docks but still solid.

In the first quarter of 2025, Great Lakes Dredge & Dock Corp. reported revenues of $242.9 million and adjusted EBITDA of $60.1 million. The dredging backlog remains strong at $1 billion, with capital and coastal protection projects accounting for 95% of the backlog, plus an additional $265 million in low bids and options pending award. Revenues from capital and coastal protection projects made up over 87% of the first quarter's revenue.

• Full year 2025 results expected to exceed 2024. - 2025 bid market expected to be ~$2B, focused on coastal protection and maintenance dredging. - Offshore wind market had temporary pause on Equinor project, but Acadia has international market plans for offshore wind and subsea infrastructure work.

• Temporary pause on Equinor's Empire Wind 1 project, uncertainty around its resolution. - 2025 has heavier regulatory dry dock year, impacting Q2 revenues. - Tariff exposure for international supplies, though currently immaterial.

Q: Joe Gomes asked about the Equinor project, repurposing time, bid market, and competition.

A: Lasse Petterson discussed the Equinor project's situation, repurposing challenges, bid market expectations, and selective bid targeting. Scott Kornblau added on termination provisions.

Q: Adam Thalhimer inquired about Woodside job options and LNG jobs status.

A: Scott Kornblau said base work from Woodside goes into backlog in Q2, options added in Q2; LNG jobs are performing well, one wrapping end of year, larger one into next year.

Q: Julio Romero asked about dry dock effect, gross margins, and tariff exposure.

A: Scott Kornblau discussed dry dock impact on revenue, Q2 as low point for margins, and minimal tariff impact.

Q: Jonathan Tanwanteng asked about project outperformance, backlog liquidation, mix of work, and port budget impact.

A: Scott Kornblau talked about project performance driving results; Lasse Petterson discussed mix of capital/coastal work, funding from Harbor Maintenance Trust Fund, and budget outlook.