Great Lakes Dredge & Dock Q3: Profit Up, Revenue Slightly Miss
Great Lakes Dredge & Dock Corporation (Nasdaq: GLDD), the largest U.S. dredging contractor, reported third-quarter 2025 earnings that topped profit estimates but came in just shy of revenue expectations, reflecting steady operations amid a cooling federal project environment and a shrinking backlog.
The company reported revenue of $195.2 million, a modest 2% increase from last year’s $191.2 million but below analyst estimates of around $200 million. Net income rose to $17.7 million, up from $8.9 million in Q3 2024, and adjusted EBITDA climbed to $39.3 million, a 46% year-over-year increase.
Gross profit margins improved to 22.4% from 19%, helped by stronger capital dredging activity and higher fleet utilization, but total dredging revenue fell slightly as coastal protection and maintenance work slowed.
At the end of the quarter, the company’s dredging backlog stood at $934.5 million, down from $1.2 billion at year-end 2024. About 84% of that backlog is tied to higher-margin capital and coastal protection work, including three major LNG port-deepening projects at Port Arthur, Brownsville (Rio Grande LNG), and Louisiana.
On the fleet side, Great Lakes took delivery of the hopper dredge Amelia Island in August—its second newbuild of the program—and continued construction of the Jones Act-compliant subsea rock installation vessel Acadia, which is expected to enter service in early 2026 for Equinor and Ørsted’s Empire Wind and Sunrise Wind projects.
The company’s offshore energy backlog grew to $73 million, up from $45 million at the start of the year, as it broadens beyond wind into subsea cable and pipeline protection.
Despite a federal government shutdown in October, Great Lakes said its Army Corps of Engineers projects remain fully funded and on schedule. The company recently expanded its revolving credit facility to $430 million and paid off a $100 million term loan, trimming annual interest costs by about $6 million.
Looking ahead, management expects steady utilization through 2026 supported by LNG, port deepening, and coastal resilience work, but warned that lower maintenance dredging volumes and a reduced backlog could temper growth.
Bottom line: Great Lakes beat profit expectations, narrowly missed on revenue, and continues to ride strong LNG and offshore energy activity—but faces a smaller book of future work heading into next year.
