Great Lakes Dredge Reports Strong Q1 Results
The company's strong Q1 performance, combined with its expanding presence in the LNG market and fleet modernization efforts, positions it for potential long-term growth and increased profitability, making it an attractive option for investors with a "buy" rating and a median 12-month price target of $14.50.
Great Lakes Dredge & Dock Corporation reported a significant increase in net income and revenue for the first quarter of 2025, with net income rising 59% to $33.4 million and revenue increasing 22% to $242.9 million compared to the same period last year.
The company's gross margin improved to 28.6% from 22.9% in Q1 2024, demonstrating a notable enhancement in operational efficiency. Additionally, the dredging backlog stands at $1 billion, with $265.3 million in pending awards, indicating a strong pipeline of upcoming projects. Great Lakes Dredge & Dock also initiated a $50 million share repurchase program and increased its revolving credit facility to $330 million, showcasing the company's confidence in its financial position.
The company is expanding its presence in the LNG market and modernizing its fleet, which is expected to drive future growth. Great Lakes Dredge & Dock reported Q1 earnings of $0.49 per share, beating estimates by $0.24. Revenue reached $242.87M, surpassing the consensus estimate of $198.5M. The strong financial performance has led to a "buy" rating from analysts, with a median 12-month price target of $14.50.
Despite the stock price closing at $9.54, down 16.39% in the last 3 months, the company's long-term prospects appear promising, with a 16.34% increase in the last 12 months. As the company continues to execute its growth strategy, investors will be closely watching its future results and developments.