Great Lakes Dredge & Dock Reports Strong Third Quarter
Great Lakes Dredge & Dock Corporation, the largest provider of dredging services in the United States, reported financial results November 4 for the third quarter ending September 30. GLDD reported strong revenue, with no disruptions or slowdowns related to the 43-day government shutdown, with all of its projects fully funded.
“The company had exceptional performance the first nine months of 2025, which we expect to continue for the remainder of this year and into 2026, driven by a modernized fleet, superior project execution, a strong balance sheet and a significant backlog,” President and CEO Lasse Petterson said.
Third quarter highlights included revenues of $195.2 million, total operating income of $28.1 million, net income of $17.7 million and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] of $39.3 million. The backlog of dredging projects as of September 30 was $934.5 million.
Capital And Coastal Projects
“Capital and coastal protection projects account for over 84 percent of our dredging backlog, which typically yield higher margins for GLDD due to our experienced project teams and our extensive fleet,” Petterson said. “Our current backlog includes three major port deepening LNG projects: the Port Arthur LNG Phase 1 Project; the Brownsville Ship Channel Project, part of NextDecade Corporation’s Rio Grande LNG initiative; and the Woodside Louisiana LNG project. Dredging operations for the first two projects began in Q3 2024 and are actively ongoing. The Woodside Louisiana LNG project is expected to commence in early 2026.
“To date, we have seen no interruption to our business during the current government shutdown. Our operations have remained unaffected, and we expect to continue to conduct business as usual, maintaining full schedules, bidding, awards and payments.”
GLDD’s newbuild program is close to completion as its newest hopper dredge, the Amelia Island, was delivered in August and immediately went to work. The Amelia Island and its sister ship, the Galveston Island, which was delivered in early 2024, will primarily work on projects aimed at shoreline redevelopment and enhancement, which are consistently impacted by severe weather.
Acadia On The Way
The Acadia, the first U.S.-flagged, Jones Act-compliant subsea rock installation vessel, hit a key milestone with its launch from drydock in July with expected completion in the first quarter of 2026. Upon delivery, the Acadia is expected to immediately commence operations, first on Equinor’s Empire Wind I project and then onto Orsted’s Sunrise Wind project. In addition, post quarter end, the Acadia was awarded additional scope on Sunrise Wind, providing full utilization for the vessel for 2026. The Acadia is designed to serve projects in both domestic and international markets, focused on safeguarding critical subsea infrastructure, including subsea cables for power transmission, telecommunications cables, oil and gas pipelines and offshore wind developments.
During the third quarter, GLDD’s offshore energy team commenced rock placement operations on Equinor’s South Brooklyn Marine Terminal. During the fourth quarter, the company started installation of armor rock for the Empire Wind 1 project, utilizing a chartered vessel for this scope of the campaign with plans for the Acadia to complete the work once it is delivered and commissioned next year.
Third-Quarter Revenues
Third-quarter revenue was $195.2 million, an increase of $4 million from the third quarter of 2024. The higher revenue in the third quarter of 2025 was due primarily to higher capital project revenue as compared to the same period in the third quarter last year, partially offset by lower coastal protection and maintenance project revenue.
Gross profit and gross profit margin was $43.8 million and 22.4 percent, respectively, both increasing compared to the third quarter of 2024 gross profit and gross profit margin of $36.2 million and 19 percent, respectively. The increase was primarily due to increased revenue, improved utilization and project performance and a larger number of capital projects that typically yield higher margins.
Operating income was $28.1 million, increasing from $16.7 million in the prior year’s third quarter primarily due to the improved gross profit and lower general and administrative expenses. Net income for the third quarter was $17.7 million, increasing from net income of $8.9 million in the prior year’s third quarter.
The increase was mostly driven by improved operating results, partially offset by an increase in net income tax provisions.
As of September 30, the company had $934.5 million in dredging backlog compared to $1.2 billion on December 31, 2024. Dredging backlog as of September 30 does not include approximately $193.5 million in awards and options pending.
Total capital expenditures for the third quarter of 2025 were $32.8 million, including $18.6 million for the construction of the Acadia, $8.3 million for the Amelia Island and $5.9 million for maintenance and growth.
Following the resolution of the temporary pause from the Bureau of Ocean Management, Equinor’s Empire Wind I project, which is part of the company’s offshore energy backlog, has resumed in accordance with its schedule. The company said it has secured contracts for full utilization of the Acadia for 2026 and is making “good progress” on securing contracts for 2027 and beyond.
In anticipation of potential delays in U.S. offshore wind projects, the company expanded the Acadia’s strategic target markets to include oil and gas pipeline protection, power and telecommunications cable protection, and international offshore wind. This diversification increases opportunities into a broader range of services the company now refers to as Offshore Energy. “Our strategy is supported by a global shortage of rock placement vessels, and we are actively pursuing opportunities across these sectors to ensure strong and sustained utilization of the Acadia well into the future,” the company said.
