Great Lakes Dredge & Dock Corporation ("Great Lakes" or the "Company") has reported its financial results for the second quarter ended June 30, 2024. The company's revenue for the second quarter of 2024 was $170.1 million, which reflects an increase of $37.4 million from the second quarter of 2023.
The company's total operating income in the second quarter of 2024 was $14.6 million, marking an improvement of $10.9 million compared to the same period in 2023. Additionally, the gross profit for the same period was $29.8 million, showing an improvement of $11.9 million compared to the gross profit from the second quarter of 2023.
In terms of net income, Great Lakes reported a figure of $7.7 million for the second quarter of 2024, which represents a significant increase of $6.0 million compared to the net income of $1.7 million in the prior year's second quarter. The company's dredging backlog at June 30, 2024, amounted to $807.9 million, as compared to $1.04 billion at December 31, 2023.
Furthermore, the company's dredging backlog does not include approximately $273.1 million of low bids and options pending award, along with approximately $44.6 million of performance obligations and $12.7 million in options pending award related to offshore wind contracts.
In terms of operational performance, Great Lakes reported that its revenue increase was primarily due to higher capital and coastal protection project revenues, offset partially by a decrease in maintenance project revenue. The gross margin percentage increased to 17.5% in the second quarter of 2024 from 13.5% in the second quarter of 2023, driven by improved project performance and higher capital and coastal protection revenue.
Looking at the market update, the company highlighted strong support from the Biden administration and Congress for the dredging industry. The 2024 energy and water appropriations bill provided a record $8.7 billion in total funding to the U.S. Army Corps of Engineers, supporting a robust bid market for 2024.
Great Lakes also emphasized its positive outlook and expectations for the dredging bid market to remain robust for the remainder of 2024, citing strong government support, a substantial backlog, an enhanced fleet, and strategic initiatives as reasons for optimism.
In terms of financial position, at June 30, 2024, the company had $23.1 million in cash and cash equivalents and total long-term debt of $411.5 million, with no draws outstanding against its $300 million revolver.
The company also provided an operational update on its new build program, stating that its newest 6,500-cubic-yard-capacity hopper dredge, the Galveston Island, was successfully placed into operation in the first quarter, contributing to solid project performance in the second quarter. Additionally, the company's outlook remains positive, with expectations for the dredging bid market to remain robust for the remainder of 2024.
Great Lakes Dredge & Dock Corporation appears to be well-positioned for continued growth and success, as it navigates through ongoing market opportunities and government support in the dredging industry. Today the company's shares have moved 4.9% to a price of $8.5. Check out the company's full 8-K submission here.
