GLDD

• Strong Q3 performance with revenues of $195.2 million and adjusted EBITDA of $39.3 million. • Dredging backlog at $935 million, with 84% in capital and coastal protection projects, and $194 million in awards/options pending. • Awarded $136 million in new projects during Q3. • Refinanced and upsized revolver credit facility to $430 million with maturity extended to 2030, repaid $100 million second-lien term loan. • Delivered sixth hopper dredge, Amelia Island, completing new build program. • Acadia, a Jones Act compliant subsea rock installation vessel, launched in July 2025, expected to deliver in Q1 2026. • Operations unaffected by government shutdown; backlog fully funded. • Offshore energy team commenced rock placement on Equinor's South Brooklyn Marine Terminal and armor rock installation on Empire Wind 1.

• 2025 bid market expected to be about $1.8 billion, focused on coastal protection and maintenance projects. • Backlog supports full utilization and revenues for remainder of 2025 and good revenue visibility for 2026. • Acadia expected to commence dredging on Woodside Louisiana LNG early 2026. • Full utilization of Acadia secured for 2026 with Empire Wind 1, Ørsted's Sunrise Wind, and additional scope for Sunrise Wind. • Expect 2025 to be the highest EBITDA year in company history by a large margin. • Fourth quarter expected to be extremely strong despite 2 hopper dredges in dry dock, with strong revenue and margins due to environmental window work with higher margins.

In the third quarter, revenues were $195.2 million and adjusted EBITDA was $39.3 million. The dredging backlog remains strong at $935 million, with 84% in capital and coastal protection projects, plus an additional $194 million in awards and options pending. During the quarter, $136 million in new projects were awarded. The third quarter's revenues included over 85% from capital and coastal protection projects, which typically yield higher margins. The offshore energy team had rock placement operations on Equinor's South Brooklyn Marine Terminal and armor rock installation on Empire Wind 1 in the fourth quarter.

• Government shutdown could potentially impact bidding or project start-ups if extended, though operations remain unaffected during current shutdown. • Uncertainties in the offshore wind market, though proactive adjustments made to strategic outlook for Acadia. • Market uncertainties in the bid market and project execution timelines, though backlog is fully funded and projects are proceeding as scheduled.

Q: Wanted to start on just thinking about bidding trends and the trajectory of orders for dredging expected for the remainder of '25 and '26.

A: As mentioned, under continuing resolution, bidding continues normally for maintenance and coastal protection projects; bid market for 2025 is reduced from '23-'24 but getting back to normal mid-market size, with new East Coast deepening projects likely to commence in 2027.

Q: Going forward, does cash interest expense and GAAP interest expense converge? And if so, what's your estimation of kind of a good quarterly run rate to use going forward?

A: Cash interest expense will converge with GAAP interest expense; after paying off second-lien, interest expense will decrease, with noncash charges in Q4 for extinguishment of financing costs on second-lien, and interest expense expected to come down significantly in subsequent quarters as revolver is paid down.

Q: With the shutdown, many other government services companies are saying they aren't getting paid. Maybe just clarify how you guys are getting paid?

A: Corps of Engineers has most staff funded through project-based accounts, so ongoing projects are being executed as normal, and payments are received on time with no disruption.

Q: Congrats on a great quarter. Scott, I can't help myself. You sounded so good on Q4. I'm just curious, maybe you can compare your expectations for Q4 to the high watermark for the year of Q1?

A: Q4 is going to be extremely strong; while there are 2 hopper dredges in dry dock during the quarter, the fourth quarter is typically a strong quarter, similar to Q1, with strong revenue and margins due to planned work.

Q: You started booking offshore energy revenue in Q3. And your backlog has grown in Q2, grew again in Q3. For the offshore. It seems like that work is starting earlier. You talked about leasing a vessel to get to work. Is it starting early or maybe you can just level set what's going on there?

A: Work is going on as scheduled; there was a delay at the shipyard for Acadia, so a chartered vessel is being used for Empire Wind 1 work, which is ongoing, and additional scope work on South Brooklyn Marine terminal is also being executed with a chartered vessel.

Q: Congrats on a great quarter. Scott, I can't help myself. You sounded so good on Q4. I'm just curious, maybe you can compare your expectations for Q4 to the high watermark for the year of Q1?

A: Q4 is going to be extremely strong; while there are 2 hopper dredges in dry dock during the quarter, the fourth quarter is typically a strong quarter, similar to Q1, with strong revenue and margins due to planned work.

Q: Can you talk a bit about your very strong cash flow as we look into 2026 and beyond?

A: Priority next year is to delever; revolver was upsized and second-lien paid off, with flexibility to pay off revolver as cash flow from operations increases, and then focus on paying down $325 million notes maturing in '29.

Q: I was wondering, if you could talk a little bit more about Q4. I think you guys mentioned ending the year on a high note. Maybe give us a little bit more color on what is currently scheduled to revenue from a backlog perspective and then given the dry docking schedule and how margins are likely to compare to Q3?

A: Every vessel is working majority of the quarter except 2 hopper dredges in dry dock; revenue will be extremely strong despite dry docking, and margins will be strong due to environmental window work with higher margins.

Q: Just in Q3, can you help break out the offshore margin contribution so that maybe we can back into the dredging margins?

A: There was $6 million of revenue from one project in Q3, which had healthy margins as expected for the offshore market, and no change in margin profile expected with Acadia coming online.

Q: Given the outperformance this year at an EBITDA level and maybe the changes in mix as you head into next year, is it possible to meet or beat the EBITDA that you're generating this year in '27 with 2 new ships coming online?

A: Entering next year with healthy backlog and strong project mix; $934 million backlog post quarter end, with about $190 million in low bids and options pending, including high-margin LNG projects, so expect 2026 to be an extremely strong year similar to 2025.