Nice Lakes Dredge & Dock Company (Nasdaq: GLDD), the biggest U.S. dredging contractor, reported third-quarter 2025 earnings that topped revenue estimates however got here in simply shy of income expectations, reflecting regular operations amid a cooling federal challenge setting and a shrinking backlog.
The corporate reported income of $195.2 million, a modest 2% enhance from final yr’s $191.2 million however under analyst estimates of round $200 million. Internet revenue rose to $17.7 million, up from $8.9 million in Q3 2024, and adjusted EBITDA climbed to $39.3 million, a 46% year-over-year enhance.
Gross revenue margins improved to 22.4% from 19%, helped by stronger capital dredging exercise and better fleet utilization, however complete dredging income fell barely as coastal safety and upkeep work slowed.
On the finish of the quarter, the corporate’s dredging backlog stood at $934.5 million, down from $1.2 billion at year-end 2024. About 84% of that backlog is tied to higher-margin capital and coastal safety work, together with three main LNG port-deepening initiatives at Port Arthur, Brownsville (Rio Grande LNG), and Louisiana.
On the fleet facet, Nice Lakes took supply of the hopper dredge Amelia Island in August—its second newbuild of this system—and continued development of the Jones Act-compliant subsea rock set up vessel Acadia, which is predicted to enter service in early 2026 for Equinor and Ørsted’s Empire Wind and Dawn Wind initiatives.
The corporate’s offshore power backlog grew to $73 million, up from $45 million in the beginning of the yr, because it broadens past wind into subsea cable and pipeline safety.
Regardless of a federal authorities shutdown in October, Nice Lakes stated its Military Corps of Engineers initiatives stay absolutely funded and on schedule. The corporate not too long ago expanded its revolving credit score facility to $430 million and paid off a $100 million time period mortgage, trimming annual curiosity prices by about $6 million.
Wanting forward, administration expects regular utilization by means of 2026 supported by LNG, port deepening, and coastal resilience work, however warned that decrease upkeep dredging volumes and a diminished backlog might mood development.
Backside line: Nice Lakes beat revenue expectations, narrowly missed on income, and continues to trip robust LNG and offshore power exercise—however faces a smaller e-book of future work heading into subsequent yr.
Source link
