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The U.S. marine construction and dredging market is gaining support from ongoing infrastructure spending, coastal protection needs and port expansion activity. Within this landscape, Great Lakes Dredge & Dock Corporation (GLDD) and Orion Group Holdings, Inc. (ORN) stand out as important peers. Great Lakes Dredge & Dock focuses on strong execution, funded coastal and port projects and high utilization supported by a modern fleet and steady backlog visibility, while Orion Group operates with disciplined bidding, balanced marine awards, a solid pipeline and improving financial flexibility as demand remains healthy across key marine markets.
Recent monetary easing may also provide a supportive backdrop for infrastructure activity, as lower financing costs can help fund stability and contracting momentum. This setup could help Great Lakes Dredge & Dock and Orion Group sustain project execution and revenue visibility heading into 2026.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one may be the better investment now.
This Texas-based dredging services provider is showing solid operating progress as strong execution and healthy utilization continue to support results. For the first nine months of 2025, contract revenues increased 12.8% year over year to $631.8 million, reflecting stronger activity levels, improved mix and better project performance. Profitability also strengthened during this period, supported by higher-margin capital and coastal protection projects, efficient execution and disciplined cost control. Alongside improving financial performance, the company continued to emphasize utilization stability, strategic project selection and a modernized fleet to support sustained operating momentum.
The company is supported by a strong backlog base, which stood at $935 million, with a significant portion tied to capital and coastal protection work. An additional $194 million of low bids and options pending further strengthens visibility. New awards of $136 million during the third quarter and continued progress on LNG-related port deepening and coastal restoration projects are helping sustain utilization and performance momentum.
However, challenges remain. The company noted a normalized bid market in 2025 compared with the unusually strong port-deepening cycle of recent years. Some vessels remain in regulatory dry dock at intervals and uncertainty surrounding federal budget cycles and the timing of certain large future projects can create visibility risk. Offshore wind timing has also required strategic adjustments to deployment plans.
Even with these headwinds, the company appears well positioned heading into 2026. Liquidity remains strong, supported by an upsized revolving credit facility, lower borrowing costs and improving cash generation. With a modern fleet, a diversified mix between federal and private work and projects extending well into 2026, the company expects continued strong activity and sustained execution momentum as coastal protection, LNG work and offshore energy opportunities advance.
Orion Group operates as a specialty construction company focused on marine and concrete services, supporting infrastructure projects across transportation, ports, defense and industrial end markets. The company benefits from balanced exposure to both public and private investment, where long-duration projects and specialized capabilities provide demand stability. Activity across marine and concrete markets has remained steady, supported by continuing government and commercial spending, helping sustain execution momentum across core operations.
Project visibility continues to strengthen. In the first nine months of 2025, revenues increased approximately 7% year over year to $619 million, reflecting consistent performance and ongoing activity across the company’s key segments. The opportunity pipeline remains constructive, supported by continued bidding activity in marine infrastructure, including port facilities, dredging and defense-related projects, while concrete operations continue to benefit from demand tied to data centers, industrial construction and manufacturing-related developments.
At the same time, certain challenges persist. The company has faced earnings pressure at times from variability in project timing, weather impacts and periods where prior-year closeout benefits did not repeat. Select concrete projects also experienced softer profitability, while some large marine opportunities have seen timing shifts, influencing near-term visibility and pacing of contribution.
Even so, the company remains positioned to pursue growth as opportunities convert. Pipeline strength, expanding market participation and improving financial flexibility support forward prospects. Importantly, in October 2025, the company increased its aggregate bonding capacity by $400 million, enhancing the ability to compete for larger and more complex work. With a broader bidding platform, improved project execution focus and continuing infrastructure demand, the company aims to support sustained growth and expanded project participation heading into 2026 and beyond.
As witnessed from the chart below, in the past year, Great Lakes Dredge & Dock’s share price performance stands below Orion Group and the Zacks Building Products - Heavy Construction industry.
Considering valuation, Great Lakes Dredge & Dock is currently trading at a discount compared with Orion Group on a forward 12-month price-to-earnings (P/E) ratio basis.
The Zacks Consensus Estimate for GLDD’s 2026 EPS indicates 0.2% year-over-year decline. However, the 2026 EPS estimate has increased to $1.09 over the past 60 days.
The Zacks Consensus Estimate for ORN’s 2026 earnings estimates implies year-over-year improvements of 44.7%. Its 2026 EPS estimate has remained unchanged at 27 cents over the past 60 days.
Great Lakes Dredge & Dock and Orion Group both benefit from strengthening U.S. marine infrastructure spending, but their fundamentals point to different investment setups. GLDD appears to carry stronger near-term operating momentum, supported by higher-quality backlog composition, improving profitability, disciplined bidding and clearer execution visibility. Orion Group, while well positioned with a solid pipeline, balanced exposure across marine and concrete markets and improving financial flexibility, continues to face comparatively more variability in margins and project timing.
Given current trends, GLDD looks better positioned for potential near-term outperformance, supported by stronger earnings momentum, margin stability, a more attractive forward valuation profile and a Zacks Rank #1 (Strong Buy), while Orion Group offers stability with a Zacks Rank #3 (Hold) but may need more consistent margin traction before upside potential becomes stronger. You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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