Great Lakes Dredge & Dock Corporation (GLDD) released its financial results for the first quarter of 2021 on May 7th. The company reported a net income of $8.8 million, or $0.16 per diluted share, compared to a net loss of $9.6 million, or $0.17 per diluted share, in the first quarter of 2020. GLDD’s revenue also increased to $197.9 million, up from $184.2 million in the same period last year. The company’s CEO Lasse Petterson attributed this growth to strong performance across all business segments.
GLDD’s dredging segment specifically saw a significant increase in revenue, with a record quarterly performance of $157.8 million, up from $141.2 million in the first quarter of 2020. The company’s environmental & infrastructure segment also saw growth, with revenue increasing to $40.2 million from $38.9 million in the same period last year. Petterson highlighted the company’s diversified business portfolio and strong operational execution as key factors driving its success in the first quarter.
Despite the positive financial results, GLDD’s stock price fell by more than 10% on May 7th following the release of its earnings report. The company’s stock had been trading at around $13.80 per share leading up to the earnings announcement, but dropped to $12.29 per share by the end of the trading day. Some analysts believe that the market may have reacted negatively to GLDD’s failure to meet earnings per share expectations, despite the overall strong performance reported by the company.
GLDD also provided an update on its backlog of projects, reporting a total backlog of $649.4 million as of March 31, 2021. This represents a decrease from the company’s backlog of $668.5 million at the end of 2020. Petterson expressed confidence in GLDD’s ability to secure new projects and grow its backlog in the coming months, citing a strong pipeline of opportunities in the US dredging market.
Looking ahead, GLDD reaffirmed its full-year 2021 guidance, expecting to generate between $780 million and $840 million in revenue and to achieve a net income margin of 5.0% to 6.0%. Petterson emphasized the company’s focus on executing its strategic plan and delivering value to shareholders, while also prioritizing safety and sustainability in its operations. GLDD remains optimistic about its prospects for growth in the dredging and infrastructure markets in the coming months.
Overall, GLDD’s first-quarter financial results reflect a strong performance driven by revenue growth in both the dredging and environmental & infrastructure segments. While the market reaction to the earnings report may have been negative, the company remains confident in its ability to deliver value to shareholders and secure new projects to drive future growth. With a solid backlog of projects and a positive outlook for the US dredging market, GLDD is well-positioned to capitalize on opportunities in the infrastructure sector and continue its success into the remainder of 2021.
