Wednesday, August 04, 2021

Great Lakes Dredge & Dock (GLDD)
Tough 1H2021 With COVID-19, But 2H2021 Rebound Ahead

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q2021 EBITDA of $20 million was dragged down by higher costs and downtime/delays due to COVID-19. For the second consecutive quarter, 2Q2021 operating results were softer than expected due to COVID-19 disruptions and unexpected downtime. Despite increasing vaccination rates amongst crews, extensive testing and preventive measures, several vessels were sidelined and scheduling was disrupted again. The number of days of downtime was not quantified, but extra direct costs totaled $3.0 million, which compares to 23 days of downtime and extra direct costs of $4.3 million in 1Q2021.


Fine tuning 2021 EBITDA estimate.  1H2021 start slow due to COVID-19 issues, but 2H2021 should recover. Our EBITDA estimate of $132.3 million is lower than our previous estimate of $146 million and down compared to 2020 EBITDA of $151.1 million due to a 300 basis point drop in EBITDA margin to 17.6%, mainly due to strong outperformance on several projects last year and the negative impact of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.