Thursday, May 05, 2022
Great Lakes Dredge & Dock (GLDD)
Solid 1Q22 Sets the Table for 2022
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q22 Operating Results. Revenue of $194.4 million exceed our $176 million estimate and consensus $170 million, partly due to the pull forward of certain business. Margin was a little lighter than projections due to dry dockings and weather issues that restricted work. Nonetheless, adjusted EBITDA for the quarter was $29.7 million versus our $32.7 million estimate. EPS for the quarter was $0.17 compared to our estimate of $0.18.
Favorable Environment. The operating environment remains favorable. The Omnibus Appropriations Bill for fiscal year 2022 included funding for the U.S. Army Corps of Engineers totaling $8.3 billion for fiscal year 2022, an increase of $548 million above the fiscal year 2021 level and an increase of $1.6 billion above the President’s original budget request….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
