Great Lakes Dredge & Dock to Report Q2 Earnings: What's in Store?

Great Lakes Dredge & Dock Corporation GLDD is scheduled to report its second-quarter 2025 results on Aug. 5, before the opening bell.

In the last reported quarter, the company’s earnings per share (EPS) and revenues topped the Zacks Consensus Estimate by 96% and 15.7%, respectively. On a year-over-year basis, both metrics grew 58.1% and 22.3%, respectively.

Great Lakes Dredge & Dock’s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 93.3%.

Trend in GLDD’s Estimates

The Zacks Consensus Estimate for the company’s second-quarter EPS has remained unchanged at eight cents over the past 60 days. The estimated figure indicates a 27.3% year-over-year decline from 11 cents.

Great Lakes Dredge & Dock Corporation Price and EPS Surprise

Great Lakes Dredge & Dock Corporation price-eps-surprise | Great Lakes Dredge & Dock Corporation Quote

The consensus estimate for revenues is pegged at $174.3 million, indicating a 2.5% increase from $170.1 million reported in the year-ago quarter.

Factors Likely to Shape Great Lakes Dredge & Dock’s Q2 Results

Revenues

The second-quarter top-line performance of Great Lakes Dredge & Dock is likely to have been driven by the robust infrastructure demand currently absorbing the market, alongside its strategic efforts to expand its offshore wind business in international markets and focus on the new build program. Due to the boost in government spending, the demand for capital and coastal protection projects is reaching the roof currently.

Besides, the company highlighted that the second quarter is expected to be weaker sequentially, due to the impact of receiving four vessels at the dock at different times. Nonetheless, it expects the utilization of the vessels to remain strong amid favorable market fundamentals.

These tailwinds are likely to have resulted in the increased contributions from GLDD’s Dredging Capital (comprising 37.5% of first-quarter 2025 total revenues) and Dredging Coastal Protection (comprising 49.5% of first-quarter 2025 total revenues) lines of business, even if year-over-year comparisons for the Dredging Maintenance (comprising 12.9% of first-quarter 2025 total revenues) business are likely to have been on the softer side

Per the line of business, the Zacks Consensus Estimate for Dredging Capital revenues is currently pegged at $76 million, indicating an increase of 7% from $71 million in the year-ago period. The consensus mark for Dredging Coastal Protection revenues of $79 million indicates year-over-year growth of 12.9%. However, the consensus mark for Dredging Maintenance revenues of $21.6 million implies a decline of 24.2% from $28.5 million a year ago.

Earnings

Great Lakes Dredge & Dock’s bottom line is expected to have declined year over year during the second quarter because of the increasing expense structure, mainly because of elevated incentive compensation and employee benefit expenses.

However, its focus on higher-margin capital and coastal protection projects is likely to have eased the pressures on the bottom line to some extent.

What the Zacks Model Says About GLDD

Our proven model does not conclusively predict an earnings beat for Great Lakes Dredge & Dock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: GLDD has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Primoris Services Corporation PRIM has an Earnings ESP of +5.33% and a Zacks Rank of 2.

Primoris Services’ earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

Knife River Corporation KNF currently has an Earnings ESP of +1.19% and a Zacks Rank of 3.

Knife River’s earnings beat estimates in two of the last four quarters and missed on the remaining two occasions, the negative average surprise being 6.3%. Knife River’s earnings for the second quarter of 2025 are expected to tumble 7.3%.

Martin Marietta Materials, Inc. MLM currently has an Earnings ESP of +0.20% and a Zacks Rank of 3.

Martin Marietta’s earnings beat estimates in one of the last four quarters and missed on the remaining three occasions, the negative average surprise being 2.8%. Martin Marietta’s earnings for the second quarter of 2025 are expected to inch up 0.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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