Great Lakes Dredge & Dock Corporation (GLDD)

Great Lakes Dredge & Dock Corporation (GLDD) Industrial Operations Profile

Great Lakes Dredge & Dock Corporation, founded in 1890, is the largest U.S. dredging company, providing essential services such as capital and maintenance dredging, coastal protection, and land reclamation. GLDD serves federal, state, and local governments, as well as private sector clients, operating a fleet of specialized vessels.

What Is the Investment Thesis for GLDD?

Great Lakes Dredge & Dock Corporation presents a compelling investment case based on its dominant market position and the increasing demand for dredging services. With a market capitalization of $1.14B and a P/E ratio of 15.5, GLDD demonstrates financial stability and profitability, supported by a gross margin of 22.9% and a profit margin of 8.3%. Growth catalysts include ongoing coastal restoration projects and infrastructure development initiatives. However, potential risks include fluctuations in government spending and project delays. The company's beta of 1.37 indicates higher volatility compared to the market. Investors should monitor project backlog and contract awards to assess future revenue visibility.

Based on FMP financials and quantitative analysis

GLDD Key Highlights

• Market capitalization of $1.14B, reflecting substantial investor confidence in GLDD's market position.
• P/E ratio of 15.5, indicating a reasonable valuation relative to earnings.
• Gross margin of 22.9%, showcasing efficient project management and cost control.
• Profit margin of 8.3%, demonstrating the ability to convert revenue into profit.
• Beta of 1.37, suggesting higher volatility compared to the overall market, which investors may want to evaluate.

Who Are GLDD's Competitors?

GLDD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are GLDD's Key Strengths?

• Dominant market share in the U.S. dredging industry.
• Diversified service offerings across capital, maintenance, and coastal protection dredging.
• Experienced management team and skilled workforce.
• Strong relationships with government and private sector clients.

What Are GLDD's Weaknesses?

• Reliance on government spending and project approvals.
• Exposure to weather-related risks and project delays.
• Capital-intensive business with high operating costs.
• Fluctuations in commodity prices, particularly fuel.

What Could Drive GLDD Stock Higher?

• Infrastructure bill providing increased funding for dredging projects.
• Award of new contracts for coastal restoration projects in Q3 2026.
• Expansion of offshore wind energy projects requiring trench digging and marine construction.

What Are the Key Risks for GLDD?

• Delays in government project approvals due to regulatory hurdles.
• Weather-related disruptions impacting project timelines and costs.
• Fluctuations in fuel prices affecting operating expenses.
• Increased competition from other dredging companies bidding on projects.

What Are the Growth Opportunities for GLDD?

• Coastal Restoration Projects: Increasing frequency and intensity of storms are driving demand for coastal restoration projects. GLDD is well-positioned to capitalize on this trend, with its expertise in moving sand from the ocean floor to eroded shorelines. The market for coastal restoration is estimated to grow to $50 billion by 2030, presenting a significant opportunity for GLDD to expand its revenue base.
• Port Expansion and Infrastructure Development: Growing global trade requires ongoing investment in port infrastructure. GLDD's capital dredging services are essential for port expansion projects, including deepening channels and constructing marine structures. The global port infrastructure market is projected to reach $150 billion by 2028, offering substantial growth potential for GLDD.
• Maintenance Dredging: Maintaining navigable waterways is crucial for commerce and transportation. GLDD's maintenance dredging services ensure that harbors and channels remain free of silt and sediment. The market for maintenance dredging is stable and recurring, providing a consistent revenue stream for GLDD. This segment is expected to grow at a rate of 3% annually.
• Environmental Restoration and Habitat Improvement: Increasing awareness of environmental issues is driving demand for restoration projects. GLDD's expertise in lake and river dredging, inland levee construction, and habitat improvement positions it to benefit from this trend. Government initiatives and private funding are supporting these projects, creating new opportunities for GLDD.
• Offshore Wind Farm Development: The growth of offshore wind energy requires trench digging for subsea cables and construction of foundations. GLDD's marine construction capabilities make it a valuable partner for offshore wind farm developers. The offshore wind market is projected to grow rapidly, with investments reaching $1 trillion by 2030, providing a significant growth driver for GLDD.

What Opportunities Does GLDD Have?

• Increasing demand for coastal restoration due to climate change.
• Growing investment in port infrastructure to support global trade.
• Expansion into new geographic markets and service areas.
• Potential acquisitions of smaller dredging companies.

What Threats Does GLDD Face?

• Economic downturns and reduced government spending.
• Increased competition from domestic and international players.
• Environmental regulations and permitting challenges.
• Rising fuel costs and supply chain disruptions.

What Are GLDD's Competitive Advantages?

• Largest dredging company in the U.S., providing economies of scale.
• Extensive experience and expertise in complex dredging projects.
• Specialized fleet of dredges and support vessels.
• Strong relationships with government agencies and private clients.

What Does GLDD Do?

Great Lakes Dredge & Dock Corporation (GLDD) traces its origins back to 1890, evolving from Lydon & Drews Partnership to become the largest dredging services provider in the United States. Headquartered in Houston, Texas, GLDD focuses on a range of critical dredging activities, including capital dredging for port expansion and infrastructure development, coastal protection to combat erosion, and maintenance dredging to ensure navigable waterways. The company's services extend to trench digging for pipelines and cables, construction of marine structures, and environmental restoration projects. GLDD serves a diverse clientele, including federal, state, and local governments, as well as private entities such as utilities and energy companies. With a fleet of 18 dredges, 17 material transportation barges, and a drillboat, GLDD possesses the resources and expertise to undertake large-scale and complex projects. The company's commitment to innovation and safety has solidified its position as a leader in the dredging industry, contributing to infrastructure development and environmental sustainability.

What Products and Services Does GLDD Offer?

• Provides capital dredging services for port expansion and infrastructure development.
• Offers coastal protection services to combat erosion and protect shoreline assets.
• Performs maintenance dredging to ensure navigable waterways.
• Engages in land reclamation projects to create new land for development.
• Constructs marine structures such as breakwaters, jetties, and canals.
• Undertakes environmental restoration and habitat improvement projects.
• Digs trenches for pipelines, tunnels, and cables.

How Does GLDD Make Money?

• Generates revenue through contracts for dredging and marine construction projects.
• Bids on projects from federal, state, and local governments, as well as private clients.
• Utilizes its fleet of dredges, barges, and support vessels to execute projects.
• Manages project costs and timelines to ensure profitability.

What Industry Does GLDD Operate In?

Great Lakes Dredge & Dock Corporation operates within the engineering and construction industry, specifically focusing on dredging services. The industry is driven by infrastructure development, coastal protection needs, and the maintenance of navigable waterways. The competitive landscape includes smaller regional players and international firms. GLDD's size and experience provide a competitive advantage, allowing it to secure large-scale projects. Market trends include increasing demand for coastal restoration due to climate change and growing investment in port infrastructure to support global trade.

Who Are GLDD's Key Customers?

• Federal government agencies, such as the U.S. Army Corps of Engineers.
• State and local government entities responsible for infrastructure and coastal management.
• Private sector clients, including utilities, oil and energy companies, and port authorities.
• Foreign governments involved in infrastructure development and coastal protection.

ROE 15%Key Financial Metrics

Return on equity for Great Lakes Dredge & Dock Corporation stands at 14.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.5%, showing how much profit it generates from its asset base. GLDD trades at a trailing price-to-earnings ratio of 15.47, below the Industrials sector average of ~30x. Its free cash flow yield is 8.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.97 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.5%, the inverse of the P/E and a quick read on earnings relative to price.

Great Lakes Dredge & Dock Corporation (GLDD) Valuation Context

Valued at $1.14B, GLDD is classified as a small-cap stock. Relative to its peer group, GLDD's quantitative score of 53/100 is roughly in line with the peer average of 60/100.

Company Profile

Great Lakes Dredge & Dock Corporation operates in the Engineering & Construction industry within the Industrials sector. It is headquartered in Houston, US. The company is led by CEO Lasse J. Petterson. GLDD has traded publicly since 2006.

F-Score 7/9Financial Health

Great Lakes Dredge & Dock Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.08 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Great Lakes Dredge & Dock Corporation revenue of about $903.9M for fiscal 2026, with EPS near $1.10. The estimate reflects 4 contributing analysts.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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