Friday, February 19, 2021

Great Lakes Dredge & Dock (GLDD)
A Softer End to Year, But Positive Outlook Intact

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.

4Q2020 results softer than expected due to higher costs and downtime/delays. Adjusted EBITDA of $29.4 million was below expectations of $33.5 million and EBITDA margin of 17.1% was below expectations of 17.7% due to higher S,G&A expenses, including severance and relocation costs, and higher maintenance expense caused by unexpected downtime. Good execution on most projects was offset by some weather delays in Florida.


Fine tuning 2021 EBITDA estimate of $150.0 million which is down slightly from 2020 due to a 90 basis point drop in EBITDA margin to 19.7% mainly due to strong outperformance on several projects this year, especially in 1Q2020.  S,G&A expenses are expected to remain elevated in the 8.5% of revenue range due to costs to move to Texas. Admittedly, we are setting the bar at a reasonable level given …

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.