GLDD's backlog (Company data, GS Analytics Research) I expect an unfavorable mix and lower volume to negatively impact the margins in the coming quarters. As explained before, these maintenance projects typically earn lower margins due to the nature of the work and competitive landscape. However, the company's backlog at the end of FY2022 was only $377 million, and out of it, only $148 million of the backlog is high-margin capital projects, while the rest is maintenance projects. The company entered the previous year, i.e., FY2022, with a backlog of $551 million which supported the revenues despite of slow bid market. The slowdown in the bidding market resulted in a low backlog level for GLDD entering FY2023, which is concerning for revenue. Although it slightly helped the company's revenue, the maintenance projects are low-margin, which further diluted the margins in FY2022. To offset some of these impacts, the company took on more maintenance projects. Additionally, due to the slow bid market, the company was left with fewer capital projects, resulting in more-than-expected idle time and operational deleverage in FY2022. The adjusted EBITDA margin saw a downside due to rapid inflation, unplanned maintenance of vessels, and drydocking scope increases. GLDD's Historical Revenue (Company data, GS Analytics Research) This severely impacted the company's 2022 revenue as well as the year-end backlog. According to the management, the overall bid market for beach renourishment projects in FY2022 was only about 73% of the 2021 levels, and coastal restoration projects were ~57% of the 2021 levels. However, bidding activities turned out to be even lower in FY2022, which impacted revenue. The company entered FY2022 with high expectations of returning to normal operations after the last two years of COVID-19-related challenges when these challenges delayed the bidding activity for some of the large projects from the U.S. In the fourth quarter, the company reported revenue of $146.7 million, down 30% YoY, with a net loss of $31.2 million, along with an adjusted EBITDA margin of negative 16.5%, down 39 percentage points Y-o-Y. In 1995 the company's main office was located in Oakbrook, IL, and the Cleveland office served as a small regional center.Great Lakes Dredge & Dock ( NASDAQ: GLDD) stock has experienced a significant correction of ~40% in the last six months, with the recent Q4 2022 earnings release serving as another downside catalyst for the stock. was taken over by real estate magnate Sam Zell, who sold the company in 1992 to Blackstone Investment Group of New York. Management change took place in early Nov. became the holding company for the firm and its subsidiaries. as a wholly owned subsidiary, and 2 years later Great Lakes Intl. established the North American Trailing Co. Dredging the Cuyahoga River was an annual task, and among other projects managed by the Cleveland office during these years was revamping the breakwater at the Avon Lake Power Plant and performing marine work at the CLEVELAND ELECTRIC ILLUMINATING CO. It also participated in construction of the St. Marie and built the southwest pier at that location to protect the Power Canal from out-of-control freighters. ![]() In the 50-year period 1920-70, Great Lakes Dredge & Dock worked on the McArthur Lock at Sault Ste. In 1914-15 the firm participated in the construction of piers and abutments for the Detroit-Superior and Clark Ave. In addition to dredging and dock construction, Great Lakes has also fabricated and laid pipelines, installed piers for bridges, built up breakwaters, and added sand to eroding beaches. ![]() ![]() Lydon, the company has grown since then and expanded its operations to Central and South America, as well as the Middle East, Africa, and the Caribbean Islands. was established when the use of larger ships on the Great Lakes created a need for deeper channels and sturdier docks.
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