HOUSTON - Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD), the United States' largest dredging service provider, announced today the award of several dredging contracts totaling $256.2 million. The projects encompass various types of dredging work, including deepening and widening harbors, beach renourishment, and maintenance dredging across multiple states, such as Alabama, Florida, New Jersey, and New York.
The contracts include a $65.9 million project for the Mobile Harbor, Alabama Deepening and Widening – Phase 2A, which aims to deepen the channel by six feet and is expected to begin in the fourth quarter of 2024, with completion anticipated in spring 2025. This federally funded project's client is the U.S. Army Corps of Engineers, Mobile District.
In Florida, the company will carry out the Port Everglades Sand Bypass Dredging Project, valued at $59.8 million, to create a sustainable approach for beach renourishment in Broward County. Work on this state and locally funded project is slated to start in the second half of 2025 and conclude in 2026.
New Jersey will see two projects: the $54.4 million Barnegat Inlet to Little Egg Inlet, Long Beach Island Beach Renourishment Project, and the $14.8 million North Wildwood Emergency Beach Renourishment Project. The former is set to commence in the fourth quarter of 2024 and finish in the third quarter of 2025, while the latter has already been completed in the second quarter of 2024.
Additionally, the Fire Island Inlet Dredging Project in New York, worth $52.0 million, will provide emergency beach fill and shore protection with an expected start in the fourth quarter of 2024 and completion in the first half of 2025.
The St. Lucie Inlet Maintenance Dredging Project in Florida, a $9.3 million endeavor, began in July 2024 and is projected to be completed later in the third quarter of the same year.
Lasse Petterson, President and CEO of Great Lakes, highlighted the significance of these projects in supporting the improvement and resilience of the nation's environment, coastlines, and infrastructure. The company also has approximately $318 million in low bids and options pending award, potentially bringing its total pipeline of work to over $1.2 billion.
Great Lakes is not only the largest provider of dredging services in the U.S. but is also expanding into the offshore wind energy industry. The company boasts a diverse fleet of approximately 200 specialized vessels and emphasizes its Incident-and Injury-Free® safety management program. This news is based on a press release statement from Great Lakes Dredge & Dock Corporation.
In other recent news, Great Lakes Dredge & Dock Corporation disclosed its financial results for the second quarter and first half of the year. The company, which released its earnings for the three and six months ending June 30, 2024, did not include specific financial figures in the summary provided. This information was based on the company's latest 8-K filing with the Securities and Exchange Commission.
In addition to this, Great Lakes Dredge & Dock Corporation 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 (NASDAQ: GLDD) has recently secured a series of contracts that bolster its project pipeline and highlight its integral role in infrastructural development and environmental conservation. As investors assess the potential impact of these new contracts on the company's financial health and stock performance, certain metrics from InvestingPro provide valuable insights.
The company's market capitalization stands at a robust $609.4 million, reflecting investor confidence in its business model and market position. With a Price/Earnings (P/E) ratio of 13.71, Great Lakes presents itself as a potentially attractive investment compared to industry peers, especially considering the adjusted P/E ratio for the last twelve months as of Q2 2024 is 17.04. This suggests that the company's earnings may be valued more conservatively by the market, offering room for growth.
Revenue growth is a critical indicator of a company's expansion and its ability to capitalize on market opportunities. Great Lakes has shown a commendable increase of 12.08% in revenue over the last twelve months leading up to Q2 2024. Such growth is indicative of the company's successful acquisition of new projects and its ability to execute them efficiently.
Investors looking for additional insights will find a suite of InvestingPro Tips that could influence their investment decisions. Great Lakes operates with a significant debt burden, which is an important consideration for risk assessment. Nonetheless, analysts expect net income and sales growth in the current year, which could counterbalance concerns about the company's leverage. It's also noted that Great Lakes does not pay a dividend, which might be a decisive factor for income-focused investors. For those interested in a deeper analysis, InvestingPro offers an array of additional tips on Great Lakes, including valuation implications and profitability forecasts.
An important note for investors is the discrepancy between the fair value estimates. Analyst targets suggest a fair value of $13.00 per share, while the InvestingPro Fair Value is calculated at $8.37 per share. This divergence underscores the importance of conducting thorough research and considering multiple valuation perspectives when evaluating investment opportunities.
For more detailed analysis and to explore further InvestingPro Tips on Great Lakes Dredge & Dock Corporation, investors can visit InvestingPro.
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