Great Lakes Dredge & Dock Corporation Q2 FY2025 earnings call

• Strong Q2 results driven by high equipment utilization and project performance, with revenues of $193.8 million and adjusted EBITDA of $28 million. • Dredging backlog remained strong at $1 billion, with 93% from capital and coastal protection projects and $215.4 million in awards/options pending. • Initiated a $50 million share repurchase program, with $11.6 million spent on repurchasing 1.3 million shares as of June 30. • Newbuild program nearing completion: Amelia Island hopper dredge expected soon, Acadia subsea rock installation vessel launched in July, target markets include offshore energy projects. • Financial performance: Revenues $193.8 million, net income $9.7 million, adjusted EBITDA $28 million and margin 14.4%. Gross profit $36.6 million and margin 18.9% vs prior year. • Balance sheet: Upsized revolving credit facility to $330 million, trailing 12-month net leverage ratio 2.7x, no debt maturities until 2029.

Revenues for the second quarter were $193.8 million, with adjusted EBITDA of $28 million. The dredging backlog was strong at $1 billion, with 93% coming from capital and coastal protection projects, plus an additional $215.4 million in awards and options pending. Capital and coastal protection projects accounted for over 88% of second quarter revenue.

• Full year 2025 expected to be highest in company history for revenue and net income. • Third quarter EBITDA expected higher than second quarter due to strong vessel utilization despite dry docks. • Newbuild program completion to lead to significant growth in free cash flow starting in 2026. • Next wave of deepening projects expected in next 18 months.

• Potential delays in U.S. offshore wind market affecting Acadia's work. • Market ebbs and flows potentially affecting win rates and award levels. • Uncertainties in the general LNG market and its absorption capacity for volumes.

Q: How is the pace of awards running? Any concerns about award level for 2025?

A: Expected a more normalized bid market, current deepening cycle ending means few capital projects. Utilization limited participation in bids. Win rate will ebb and flow.

Q: Confidence in Acadia delivery in Q1 2026? Revenue expectations?

A: High confidence in Q1 delivery, yard working to improve delivery. Revenue expectations involve several months of work, potentially well over $100 million full year.

Q: Thoughts on capital allocation beyond CapEx, expansion of credit facility?

A: Priorities are to get through newbuild program then delever. Credit facility upsized due to expiring second lien paper, favorable pricing, and need for letters of credit for LNG/offshore energy projects.