5 Revealing Analyst Questions From Great Lakes Dredge & Dock's Q1 Earnings Call

Great Lakes Dredge & Dock delivered a first quarter that exceeded Wall Street’s expectations, supported by strong execution on complex port deepening and coastal restoration projects. Management attributed the outperformance to high asset utilization, minimal operational downtime, and an advantageous project mix, with CEO Lasse Petterson emphasizing, “We ended the quarter with revenues of $242.9 million and adjusted EBITDA of $60.1 million.” The company’s robust safety record further contributed to operational continuity, underpinning healthy margins and setting the tone for the remainder of the year.

Is now the time to buy GLDD? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Great Lakes Dredge & Dock’s Q1 Earnings Call

• Joseph Gomes (NOBLE Capital): Asked about the Equinor Empire Wind 1 project pause and contingency plans for the Acadia vessel. CEO Lasse Petterson explained that while reassigning the vessel would be challenging, contract termination provisions and potential work with other clients provide some mitigation.
• Joseph Gomes (NOBLE Capital): Inquired about the pace of project awards under the current government funding resolution. Petterson responded that while port deepening awards have been slow, coastal restoration project visibility remains strong for the coming quarters.
• Joseph Gomes (NOBLE Capital): Questioned changes in the competitive landscape. Petterson noted competition remains consistent, with some vessels leaving and new builds entering the market, and emphasized selectivity in project bidding.
• Adam Thalhimer (Thompson Davis): Requested updates on the Woodside LNG project and ongoing LNG jobs. CFO Scott Kornblau highlighted strong performance and high margins on these large-scale projects, with one expected to conclude late this year and another extending into next year.
• Julio Romero (Sidoti & Company): Asked about the impact of vessel dry docks and gross margin trends in the second quarter. Kornblau confirmed that Q2 will have lower revenue and margins due to four scheduled dry docks, but expects normalization in the second half of the year.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace and quality of backlog conversion, particularly as new LNG and coastal restoration projects commence; (2) the operational impact of scheduled vessel dry docks and subsequent margin recovery; and (3) progress on fleet expansion, especially the integration of the Amelia Island and advancement of the Acadia vessel. Developments in the offshore wind and subsea infrastructure markets will also be important to watch.

Great Lakes Dredge & Dock currently trades at $12.02, up from $9.55 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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