Great Lakes Dredge & Dock Corporation (GLDD): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine room of Great Lakes Dredge & Dock Corporation right now, and after two decades analyzing heavy infrastructure, I can tell you their Q3 2025 positioning is fascinatingly clear: they are aggressively marrying their core dredging might with the burgeoning offshore energy market. This isn't just maintenance work; the company is deploying its massive, specialized fleet-about 200 vessels strong-to secure high-margin opportunities, evidenced by a backlog hitting $934.5 million as of September 30, 2025, all while maintaining strong liquidity of $284.1 million. This Business Model Canvas breaks down precisely how Great Lakes Dredge & Dock Corporation is structuring its partnerships, activities, and revenue streams to execute this dual strategy, so check out the nine blocks below to see the blueprint for their near-term growth.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Great Lakes Dredge & Dock Corporation (GLDD) relies on to execute its work, especially as it pivots toward offshore energy. These aren't just vendors; they are essential clients and collaborators driving the backlog.

U.S. Army Corps of Engineers (USACE) for Federal Dredging Contracts

The USACE remains a foundational partner, securing a significant portion of Great Lakes Dredge & Dock Corporation's near-term revenue visibility. In the third quarter of 2025, Great Lakes Dredge & Dock Corporation announced seven work awards from the USACE totaling over $130 million, though some reports cite the total as $134 million. These awards expand the 2025 dredging backlog, reinforcing revenue visibility through the rest of 2025 and well into 2026. The dredging backlog as of September 30, 2025, stood at $934.5 million. Capital and coastal protection projects, which include many USACE coastal work orders, accounted for over 84 percent of that dredging backlog. The expected total U.S. dredging bid market for 2025 is about $1.8 billion.

Here's a breakdown of the recent USACE contract awards announced in late 2025:

Project Description	Location	Award Value	Expected Start
Mississippi River, Head of Passes Project (Maintenance)	Louisiana	$27.9 million	Q4 2025
South Atlantic Division Regional Harbor Dredging Contract (Maintenance)	North Carolina	$26.9 million	Q4 2025
Baltimore Harbor and Channels Cape Henry (Maintenance)	Virginia	$25.5 million	Q4 2025
Delray Beach Renourishment (Coastal Protection)	Florida	$19.2 million	Q4 2025
East Rockaway Inlet (Maintenance)	New York	$14.0 million	Q4 2025
McLellan-Kerr Arkansas River Navigation System Station Dredging Project (Maintenance)	Arkansas and Oklahoma	$11.7 million	Q4 2025
Indian River Inlet North Beach Renourishment (Coastal Protection)	Delaware	$8.7 million	Q3 2025

Private Energy Developers for LNG Projects

Great Lakes Dredge & Dock Corporation is actively engaged with major energy developers on large-scale capital projects, specifically port deepening required for Liquefied Natural Gas (LNG) facilities. The current backlog includes three major LNG-related port deepening projects. The company secured a contract for the Woodside Louisiana LNG project in the second quarter of 2025, though the specific award amount was undisclosed. Dredging operations for the Port Arthur LNG Phase 1 Project and the Brownsville Ship Channel Project (part of NextDecade Corporation's Rio Grande LNG initiative) both began in the third quarter of 2024 and are actively ongoing. The Woodside Louisiana LNG project is scheduled to commence operations in early 2026.

Offshore Wind Developers like Equinor for Subsea Rock Installation

The Offshore Energy segment is a key growth area, heavily reliant on partnerships with wind developers like Equinor. Great Lakes Dredge & Dock Corporation has secured contracts for the full utilization of its specialized rock installation vessel, the Acadia, throughout 2026. The Acadia is slated to service New York's offshore wind projects with Equinor, specifically Empire Wind I and Empire Wind II. Following a temporary pause resolution, the Empire Wind I project resumed its schedule. The company is also making good progress securing contracts for the Acadia for 2027 and beyond, actively pursuing opportunities in international offshore wind, oil and gas pipeline protection, and cable protection.

Shipyards for New Vessel Construction

Fleet modernization is a critical partnership supporting higher-margin work, involving construction and delivery from shipyards. Total capital expenditures for the third quarter of 2025 were $32.8 million. This CapEx included $18.6 million allocated for the construction of the Acadia and $8.3 million for the Amelia Island. The Amelia Island, the sister ship to the Galveston Island, was delivered in August 2025 and immediately went on contract. The Galveston Island, a new 6,500 cubic yard mid-size hopper dredge, was delivered in 2024.

Carver Sand & Gravel LLC for Rock Procurement

This partnership is central to the execution of the offshore wind contracts, establishing a domestic supply chain. Great Lakes Dredge & Dock Corporation signed the first ever subcontract for rock procurement for a U.S. offshore wind farm with Carver Sand & Gravel LLC, a U.S. quarry in New York State. This rock is designated for scour protection at the foundations and substations for Equinor and bp's Empire Wind I and II farms. The rock will be quarried locally, transported on the Hudson River, and loaded onto the Acadia, with installation work expected to begin in 2025. This arrangement is developing the first U.S. rock supply chain for offshore wind.

• The Acadia will load rock quarried by Carver Sand & Gravel LLC on the Hudson River quayside.
• The rock installation work is scheduled to start in 2025 and continue into 2026.
• Carver Sand & Gravel LLC operates in New York with Aggregates, Construction, and Maritime divisions.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Key Activities

Executing complex capital dredging for port deepening projects

Great Lakes Dredge & Dock Corporation has major port deepening LNG projects in its current backlog, including the Port Arthur LNG Phase 1 Project and the Brownsville Ship Channel Project. The dredging operations for these two projects started in the third quarter of 2024 and are actively ongoing as of late 2025.

Performing coastal protection and beach renourishment projects

Coastal protection work is a significant part of the business, accounting for over 84% of the dredging backlog as of September 30, 2025. The U.S. Army Corps of Engineers' budget for 2025 was expected to reach a record $10 billion, which supports this market.

Subsea rock installation for offshore wind farm foundation protection

The Offshore Energy segment backlog stood at $73.0 million as of September 30, 2025, up from $44.9 million at the end of 2024. The company launched the Acadia, the first U.S.-flagged, Jones Act-compliant subsea rock installation vessel, with expected completion in the first quarter of 2026. The Acadia's target markets include international offshore wind projects.

Managing the largest and most diverse U.S. dredging fleet (approx. 200 vessels)

Great Lakes Dredge & Dock Corporation owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. The company completed the delivery of its newest hopper dredge, the Amelia Island, in August 2025, which immediately began operations.

Capital expenditures in the third quarter of 2025 totaled $32.8 million, which included $18.6 million for the construction of the rock installation vessel Acadia and $8.3 million for the Amelia Island.

Disciplined project execution to maintain high fleet utilization

The company's performance in the third quarter of 2025 was driven by strong project execution and high equipment utilization. The gross profit margin for Q3 2025 increased to 22.4 percent from 19 percent in Q3 2024, largely due to improved utilization and project performance.

Here's a quick look at the financial visibility from the backlog as of September 30, 2025:

Metric	Amount
Dredging Backlog (Reported)	$934.5 million
Low Bids and Options Pending Award	$193.5 million
Capital and Coastal Projects % of Backlog	Over 84%
Q3 2025 Revenue	$195.2 million
Q3 2025 Adjusted EBITDA	$39.3 million

The company's strategy focuses on higher-margin work, as shown by the mix:

• Capital and coastal protection projects account for over 84% of the dredging backlog.
• Offshore Energy backlog reached $73.0 million as of September 30, 2025.
• The company expects full-year revenue growth of 11%-13% for 2025.

Finance: confirm the utilization rate assumption for Q4 2025 by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Key Resources

You're looking at the core assets Great Lakes Dredge & Dock Corporation uses to generate revenue, and honestly, they are heavily weighted toward physical, specialized equipment and the people who run it. This is a capital-intensive business, so these resources are everything.

The foundation of Great Lakes Dredge & Dock Corporation's operational capability is its physical assets. The company owns and operates the largest and most diverse fleet in the U.S. dredging industry. This fleet is comprised of approximately 200 specialized vessels.

The fleet has recently undergone significant modernization, marking the completion of a major new build program as of late 2025. This renewal effort directly enhances capacity and efficiency across their core dredging segments.

Key fleet and asset milestones include:

• Completion of the new build program with the delivery of the hopper dredge Amelia Island in August 2025.
• The launch of the Acadia, the first U.S.-flagged, Jones Act-compliant subsea rock installation (SRI) vessel, with expected delivery in Q1 2026.
• Capital expenditures in Q3 2025 for newbuilds totaled $30.9 million ($18.6 million for the Acadia and $8.3 million for the Amelia Island).

The financial health of the company, particularly its liquidity, is a critical resource that supports ongoing operations and capital deployment. As of September 30, 2025, Great Lakes Dredge & Dock Corporation reported strong financial footing:

Financial Metric	Amount as of September 30, 2025
Liquidity	$284.1 million
Cash and Cash Equivalents	$12.7 million
Total Long-Term Debt	$415.3 million

A significant indicator of future work is the contracted revenue pipeline, which acts as a resource for revenue visibility. The dredging backlog provides a clear view into near-term operations.

Backlog Component	Amount as of September 30, 2025
Dredging Backlog	$934.5 million
Awards and Options Pending	Approximately $193.5 million
Offshore Energy Backlog	$73.0 million

The composition of the dredging backlog is also a resource, as it points to higher-margin work. Capital and coastal protection projects accounted for over 84 percent of the dredging backlog.

The intellectual capital within Great Lakes Dredge & Dock Corporation is another key resource, ensuring complex projects are executed correctly. This includes:

• Experienced civil, ocean, and mechanical engineering staff.
• Staff are employed in estimating, production, and project management functions.
• The company maintains a disciplined training program for engineers to ensure experienced-based performance.

They have never failed to complete a marine project in their over 135-year history.

Finance: draft 13-week cash view by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Value Propositions

You're looking at the core value Great Lakes Dredge & Dock Corporation (GLDD) delivers to its customers and the market as of late 2025. It's not just about moving dirt; it's about specialized, high-value execution in critical infrastructure and emerging energy sectors.

Superior execution of high-margin, complex capital dredging projects

Great Lakes Dredge & Dock Corporation focuses on complex capital projects, which is where the real margin upside is. As of September 30, 2025, the dredging backlog stood at $934.5 million, with an additional $193.5 million in low bids and options pending award, giving solid revenue visibility into 2026. Capital and coastal protection projects are the engine here, accounting for over 84% of that dredging backlog at the end of the third quarter of 2025. This focus pays off in profitability; for instance, the gross profit margin in Q3 2025 hit 22.4%, up from 19.0% in Q3 2024, largely because of the higher margins these capital projects typically yield. Honestly, the firm expects 2025 to be the highest EBITDA year in company history by a large margin. The specialized nature of the work, supported by a modernized fleet including the recently delivered Amelia Island, allows for this superior execution.

Here's a look at the high-value project concentration:

Metric	Value as of September 30, 2025	Context
Dredging Backlog	$934.5 million	Provides revenue visibility through the remainder of 2025 and well into 2026.
Capital/Coastal Protection % of Backlog	Over 84%	These projects typically yield higher margins for Great Lakes Dredge & Dock Corporation.
Q3 2025 Gross Profit Margin	22.4%	Up from 19.0% in Q3 2024, driven by project mix.
YTD Adjusted EBITDA Margin (through Q3 2025)	25.2%	Reflects strong project execution and high fleet utilization.

Critical infrastructure support for national economic and maritime security

The work Great Lakes Dredge & Dock Corporation does directly supports the nation's economic arteries. Port deepening projects are essential for maintaining safe and efficient navigation channels along the coasts. The backlog explicitly includes three major port deepening LNG projects:

• Port Arthur LNG Phase 1 Project.
• Brownsville Ship Channel Project, part of NextDecade Corporation's Rio Grande LNG initiative.
• Woodside Louisiana LNG project, expected to commence dredging early 2026.

Furthermore, legislative support like the WRDA of 2024, signed into law on January 4, 2025, includes capital projects designed to enhance flood protection, which is a clear value proposition tied to national security and resilience.

Coastal resilience and environmental restoration services for shorelines

Coastal resilience is a major driver for the current and near-term bid market. The focus on coastal protection projects is evident in the backlog composition. The company expects the 2025 dredging bid market, estimated around $1.8 billion, to be more focused on these coastal protection projects, many of which are funded by the 2023 disaster relief supplemental act. The new 6,500 cubic yard trailing suction hopper dredge, Amelia Island, delivered in 2025, was specifically designed to work efficiently in shallow and narrow waters along the U.S. coastlines, directly supporting these restoration efforts.

Unique, Jones Act-compliant subsea rock installation for U.S. offshore wind

This is a key area of growth and differentiation for Great Lakes Dredge & Dock Corporation. The company secured a third rock installation contract for subsea rock cable protection on an offshore wind project off the East Coast, with operations scheduled to start in 2025 and run into 2026. This work utilizes the Acadia, the first U.S.-flagged, Jones Act-compliant subsea rock installation vessel (SRI), which measures 461 feet by 112 feet and can install up to 20,000 metric tons of rock. The Acadia's first contract is set for the Empire Wind I offshore wind farm. The offshore energy backlog reflects this growth, standing at $73.0 million as of September 30, 2025, a significant jump from $44.9 million at the end of 2024. The Acadia is slated for delivery in Q1 2026, and management is actively pursuing engagements for full utilization in 2027 and beyond.

High-quality, safe operations via the Incident-and-Injury-Free (IIF®) program

Safety isn't just a talking point; it's a core operational value underpinning their ability to execute complex, high-value work. The Incident-and-Injury-Free® (IIF®) safety management program is integrated into every aspect of the culture, promoting a work environment where employee safety is paramount. This commitment to safety excellence is part of a legacy that spans over 135 years, during which the company has never failed to complete a marine project. This operational discipline supports the high utilization rates that drive the strong margins you see in the capital project segment.

You should note the operational stability: management confirmed that business continued without disruption during the current government shutdown, with all current and upcoming projects in the backlog being fully funded and receiving timely payments.

Finance: draft 13-week cash view by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Customer Relationships

You're looking at how Great Lakes Dredge & Dock Corporation maintains its key client ties, which is really the bedrock of their business model, especially with government work.

Long-term, trust-based relationships with key government agencies (USACE)

The relationship with the U.S. Army Corps of Engineers (USACE) is defintely long-haul. This isn't about one-off sales; it's about being the reliable choice for critical national infrastructure maintenance and enhancement. You see this trust reflected in the consistent flow of work, even when the government is under a continuing resolution, as it was for fiscal year 2025.

The work is heavily weighted toward federal clients. As of the third quarter of 2025, capital and coastal protection projects made up over 84 percent of the dredging backlog, which is where the USACE plays a massive role. Consider some of the firm-fixed-price awards secured from the USACE in 2025:

Date Awarded (2025)	Project Type	Contract Value	Client/District
November 20	Beach Renourishment (Palm Beach)	$20,244,400	USACE
August 26	Maintenance Dredging (East Rockaway Inlet, NY)	$13,971,960	USACE
May 30	Dredging (Galveston, TX)	$35,814,600	USACE, Galveston District

Also, a major capital dredging win on the Sabine-Neches Waterway was valued around $219 million. These aren't small jobs; they represent years of established working rapport.

Dedicated business development team for private sector LNG and energy clients

While government work is the bulk, Great Lakes Dredge & Dock Corporation has a focused effort on the private energy sector, particularly Liquefied Natural Gas (LNG) clients. This requires a dedicated business development approach to secure those large, multi-year private infrastructure build-outs. The results show this strategy is working, as the offshore energy backlog grew to $73.0 million as of September 30, 2025, up from $44.9 million at the end of 2024.

The team is actively targeting new energy frontiers, too. They have a contract for subsea rock installation for foundation stabilization on the Empire Wind I project off New York, signaling a strong push into offshore wind. The deployment of the new subsea rock installation vessel, the Acadia, expected in 2025, directly supports this specialized client relationship.

• Targeting private sector LNG projects.
• Expanding into U.S. offshore wind foundation work.
• New vessel Acadia supports energy client needs.

Contractual, project-based engagement for large, multi-year infrastructure work

The core of the relationship structure is contractual, centered on massive infrastructure projects that span multiple fiscal periods. You see this clearly in the overall backlog figures. At the end of the third quarter of 2025, the total dredging backlog stood at $934.5 million, with an additional $193.5 million in low bids and options pending award. This backlog provides revenue visibility well into 2026.

These large projects are often capital-intensive and high-margin. For instance, the backlog includes three major port deepening LNG projects: the Port Arthur LNG Phase 1 Project, the Brownsville Ship Channel Project, and the Woodside Louisiana LNG project. The company secured notice to proceed for the Woodside Louisiana LNG project in Q2 2025, with dredging expected to start in early 2026.

High-touch, collaborative approach for complex, high-margin projects

For the complex, high-margin work, the relationship moves beyond just the contract signature. The fact that capital and coastal protection projects typically yield higher margins suggests a close, collaborative execution style is necessary to meet the client's specific, often technical, requirements. Revenue in Q3 2025 was $195.2 million, with higher capital project revenue driving the increase year-over-year.

The company's structure includes experienced civil, ocean, and mechanical engineering staff managing production and projects, which speaks directly to the high-touch support provided to clients on these intricate jobs. The company's gross profit margin improved to 22.4 percent in Q3 2025, up from 19 percent in Q3 2024, partly due to the larger number of these higher-margin capital projects.

Emphasizing safety and proven track record to secure repeat business

Safety isn't just a compliance issue here; it's a core relationship tool used to secure future work. Great Lakes Dredge & Dock Corporation emphasizes its Incident-and-Injury-Free® (IIF®) safety management program integrated into its culture. This commitment is backed by a history that includes never failing to complete a marine project over its more than 135 years in business.

This proven track record is what keeps the government agencies and private developers coming back. The company owns and operates approximately 200 specialized vessels, supported by disciplined training programs, ensuring experienced-based performance. The S&P Global Ratings upgrade to "B" in November 2025 was partly based on improved revenues, earnings, expanding margins, and decreasing capital expenditures, all of which signal stability to clients looking for long-term partners.

Finance: review Q4 2025 contract pipeline against USACE FY2026 budget projections by end of January.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Channels

You're looking at how Great Lakes Dredge & Dock Corporation moves its services to market, which is heavily reliant on government contracts and major infrastructure plays. Honestly, the numbers tell the story of where their focus is right now.

Direct bidding on publicly funded contracts (USACE, state/local RFPs)

This remains the bedrock. The USACE budget for 2025 was expected to hit a record $10B, which fuels the bid market. As of September 30, 2025, the dredging backlog stood at $934.5M, with over 84% of that backlog tied up in capital and coastal protection projects, which generally means government work. You can see the direct wins from this channel:

• Awarded a $20.2M contract for beach renourishment in Palm Beach, Florida, in November 2025.
• Secured the $219.1M Sabine-Neches Waterway Improvement, Contract 6 (TX).
• Won seven work awards in Q3 2025 totaling over $130M, including maintenance dredging in the Mississippi River for $27.9M and coastal protection work in Delray Beach, Florida, for $19.2M.
• A prior award for the Freeport Harbor Channel was valued at $157,399,830, with completion expected in April 2026.

At the end of 2024, Great Lakes Dredge & Dock Corporation won 33% of the $2.9B bid market from the USACE, setting up this strong 2025 visibility. Plus, there were an additional $193.5M in low bids and options pending award as of September 30, 2025.

Direct negotiation and contracting with major private energy companies

The push into the offshore energy sector is clearly visible in the backlog shift. The offshore energy backlog grew to $73.0M as of September 30, 2025, up from $44.9M at the end of 2024. This channel involves direct deals for major industrial infrastructure, specifically LNG projects.

The current backlog includes three major port deepening LNG projects, showing this is a key negotiated channel:

• Port Arthur LNG Phase 1 Project (dredging started Q3 2024).
• Brownsville Ship Channel Project for NextDecade Corporation's Rio Grande LNG initiative (dredging started Q3 2024).
• Woodside Louisiana LNG project, which received notice to proceed in Q2 2025 and is scheduled to start in early 2026.

The new subsea rock installation vessel, the Acadia, is also being marketed directly to private energy clients for oil and gas pipeline protection, power, and telecommunications cable protection, with operations expected to start in early 2026.

Investor relations and public disclosures to communicate financial health

The financial reporting itself acts as a channel to institutional and retail investors, signaling operational strength and future revenue visibility. For the third quarter ending September 30, 2025, the numbers communicated were:

Metric	Amount (Q3 2025)	Comparison Point
Revenue	$195.2M	Up from $191.2M in Q3 2024
Net Income	$17.7M	Up from $8.9M in Q3 2024
Adjusted EBITDA	$39.3M	Up from $27.0M in the prior year
Dredging Backlog	$934.5M	Down from $1.2B at December 31, 2024

Financial flexibility is also communicated through balance sheet management. Great Lakes Dredge & Dock Corporation amended its revolving credit facility, increasing it by $100M to a total of $430M, extending the maturity to 2030. They also reduced annual interest expense by nearly $6M by paying off a $100M second lien term loan. You can reach Eric Birge, Vice President of Investor Relations, at 313-220-3053 for further detail.

Industry conferences and trade associations (e.g., AAPA) for market visibility

Market visibility is maintained through direct engagement with industry peers and potential clients at key events. While specific 2025 AAPA participation data isn't here, the company's history shows executive participation in industry conferences, like the Noble Capital Markets' Basic Industries Emerging Growth Virtual Equity Conference in September 2024, which is a standard channel for projecting confidence and securing future opportunities. This is how they keep their name top-of-mind for upcoming state/local RFPs and private sector needs.

Direct deployment of specialized fleet to project sites across the U.S. and internationally

The physical deployment of the fleet is the final, critical channel. Great Lakes Dredge & Dock Corporation owns and operates approximately 200 specialized vessels. The fleet modernization is a key focus, with capital expenditures for 2025 guided between $140M and $160M.

Key fleet deployment activities in 2025 include:

• Delivery of the 6,500 cubic yard trailing suction hopper dredge, the Amelia Island, in August 2025. Q3 2025 CapEx included $8.3M for its completion.
• Continued construction of the Acadia, the subsea rock installation vessel, which saw $18.6M in CapEx in Q3 2025, with expected completion in Q1 2026.
• Project awards in Q3 2025 required deployment across the country, from Texas (Sabine-Neches) to New York (East Rockaway Inlet) and Delaware (Indian River Inlet).

The company also has a history of performing significant international projects, a channel they are actively expanding, particularly with the Acadia's new mandate.

Finance: draft 13-week cash view by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Customer Segments

You're looking at the core clients driving Great Lakes Dredge & Dock Corporation's business as of late $\text{2025}$. Honestly, the numbers show a clear preference for large, complex, and higher-margin work over routine maintenance.

As of the end of the third quarter ($\text{Q3}$) $\text{2025}$, Great Lakes Dredge & Dock Corporation's total dredging backlog stood at \$934.5 million, with an additional \$193.5 million in low bids and options pending award. The composition of this backlog is key to understanding who pays the bills.

U.S. Army Corps of Engineers (USACE) for Maintenance and Capital Projects

The USACE remains a foundational customer, funding both maintenance and larger capital work. Maintenance dredging projects are often federally funded, providing a steady revenue stream, though typically at lower margins than capital work. For instance, the Galveston Entrance Channel and Houston Ship Channel maintenance project, awarded in $\text{Q2 2025}$, was valued at \$36.2 million and funded by the Federal Government and the City of Galveston. Similarly, the Charleston Entrance Channel maintenance project, completed in $\text{Q2 2025}$, was valued at \$10.8 million and federally funded. A significant capital win from the USACE was the Sabine-Neches Waterway Channel Improvement Project, valued at \$219.1 million, with work expected to extend into late $\text{2026}$.

Here's a look at some specific USACE-related awards around the reporting period:

Project Type/Name	Location	Award Value (USD)	Award/Completion Period
Sabine-Neches Waterway Improvement (Capital)	Texas	\$219,100,000	Awarded late 2024, work begins mid-2025
Galveston Entrance & Houston Ship Channel (Maintenance)	Texas	\$36,200,000	Awarded Q2 2025, expected completion Q4 2025
Mississippi River Hopper Dredge Contract No. 3 (Rental/Maintenance)	Louisiana	\$17,600,000	Awarded Q2 2025, work started May 2025
Charleston Entrance Channel (Maintenance)	South Carolina	\$10,800,000	Awarded Q1 2025, completed Q2 2025

Private Liquefied Natural Gas (LNG) Terminal Developers

This segment represents the high-value capital projects that drive margin expansion. Great Lakes Dredge & Dock Corporation has three major port deepening LNG projects active or pending in its backlog. These projects are crucial for supporting increased US energy export capacity.

The company's backlog includes work for:

• Port Arthur LNG Phase 1 Project
• Brownsville Ship Channel Project (NextDecade Corporation's Rio Grande LNG initiative)
• Woodside Louisiana LNG project

Dredging operations for the Port Arthur and Brownsville projects began in $\text{Q3 2024}$ and are actively ongoing as of $\text{Q3 2025}$. The Rio Grande LNG Phase 1 project financing itself is noted at \$18.4 billion. The Woodside Louisiana LNG dredging work, awarded in $\text{2Q25}$ via Bechtel Energy, involves constructing a ship berthing basin and is expected to commence in early $\text{2026}$.

State and Local Governments for Coastal Protection and Beach Renourishment

Coastal protection and beach renourishment fall under the higher-margin capital and coastal protection category, which makes up over 84% of the dredging backlog as of $\text{Q3 2025}$. These projects often align with FEMA-backed initiatives. A specific award in this category was the Palm Beach Renourishment Contract, secured in November $\text{2025}$ with a value of \$20,244,400.

Offshore Wind Energy Developers

This is a growing segment for Great Lakes Dredge & Dock Corporation, focused on subsea foundation protection and related work. The backlog dedicated to the offshore energy sector showed clear growth, standing at \$73.0 million as of September 30, $\text{2025}$, up from \$44.9 million at the end of $\text{2024}$. This growth signals increased activity in preparing sites for offshore wind farm installations.

Port Authorities Seeking Channel Deepening and Expansion

Channel deepening and expansion for port authorities is often bundled within the larger capital projects, frequently overlapping with the LNG developer segment, as seen with the Port Arthur and Brownsville projects. These projects are essential for accommodating larger commercial vessels. The overall strength in capital projects, which accounted for 95% of the backlog at $\text{Q1 2025}$-end, reflects strong demand from port authorities and related energy infrastructure clients for deeper navigation channels.

The mix of work is definitely tilting toward these capital segments; the higher revenue in $\text{Q3 2025}$ compared to $\text{Q3 2024}$ was primarily due to higher capital project revenue. Finance: draft $\text{13}$-week cash view by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Great Lakes Dredge & Dock Corporation's operational expenses, which is key to understanding their margins, especially with a large backlog of capital projects. Honestly, this business is capital-intensive, plain and simple.

High Capital Expenditures (CapEx) for New Vessel Construction

The investment in the fleet is a massive cost driver right now. For the third quarter of 2025, total capital expenditures hit $32.8 million. This spending is heavily weighted toward finishing off the newbuild program, which is expected to be substantially complete by the end of the year, setting up better free cash flow starting in 2026. That's a big shift coming.

Here is the breakdown of that $32.8 million CapEx for Q3 2025:

Capital Expenditure Category	Amount (Q3 2025)
Construction of rock installation vessel Acadia	$18.6 million
Construction of trailing suction hopper dredger Amelia Island	$8.3 million
Maintenance and Growth CapEx	$5.9 million
Total Capital Expenditures (Q3 2025)	$32.8 million

The full-year CapEx guidance was set between $140 million.

Significant Fleet Maintenance and Regulatory Drydocking Costs

Keeping that specialized fleet ready is non-negotiable, and it shows up in the costs. In the second quarter of 2025, for example, higher drydocking costs were specifically noted as partially offsetting the gross margin improvement. Looking ahead to the fourth quarter of 2025, the company expected two hopper dredges to be in the shipyard undergoing regulatory dry dockings.

The overall cost base is substantial; Great Lakes Dredge & Dock Corporation reported $502.11 million in Operating Expenses for the fiscal quarter ending in September of 2025.

Variable Costs for Fuel, Materials, and Rock Procurement for Projects

These costs fluctuate directly with project activity. While specific Q3 2025 figures for fuel and materials aren't itemized separately from the total operating expenses, general analysis points to high fuel costs as a risk factor that can crush margins if not properly managed through contract pricing. Rock procurement is a major material component, especially for coastal protection projects.

Key cost pressures that feed into variable project costs include:

• Regional marine diesel/bunker fuel prices.
• Procurement costs for project-specific materials like rock.
• General supply chain risks impacting mobilization.

Labor Costs for Specialized Marine Crew and Engineering Staff

The expertise of the marine crew and engineering staff is a key resource, and their compensation is a major fixed/semi-variable cost. While specific 2025 labor costs aren't isolated in the Q3 reports, the overall increase in operating income year-over-year was driven by higher gross profit and lower general and administrative expenses, suggesting G&A costs were managed well relative to revenue growth.

Interest Expense on Total Long-Term Debt

Servicing the debt load is a fixed financial cost you have to account for. As of September 30, 2025, Great Lakes Dredge & Dock Corporation reported total long-term debt of $415.3 million. The net interest expense for the third quarter of 2025 was $4.6 million, which was down slightly from the $4.9 million reported in Q3 2024. To be fair, the weighted average interest rate on their total debt was under 6% for the first nine months of 2025, which helps manage that expense line.

Finance: draft 13-week cash view by Friday.

Great Lakes Dredge & Dock Corporation (GLDD) - Canvas Business Model: Revenue Streams

Great Lakes Dredge & Dock Corporation's revenue generation is heavily weighted toward large, complex infrastructure projects, providing significant revenue visibility through its backlog.

The Trailing Twelve Month (TTM) revenue for Great Lakes Dredge & Dock Corporation as of September 30, 2025, was $834.60 million. For the third quarter ending September 30, 2025, the company posted revenue of $195.2 million.

The composition of the dredging backlog as of September 30, 2025, is a key indicator for future revenue recognition:

Backlog Component	Amount as of September 30, 2025	Notes
Total Dredging Backlog	$934.5 million
Capital and Coastal Protection Projects Share	over 84% of Dredging Backlog	Typically yield higher margins.
Offshore Energy Backlog	$73.0 million	Up from $44.9 million at December 31, 2024.
Awards and Options Pending Award	$193.5 million	Not included in the $934.5 million backlog total.

The primary revenue drivers, as reflected in the backlog, are:

• Revenue from Capital Dredging projects, which constitute a significant portion of the backlog and typically yield higher margins.
• Revenue from Coastal Protection and Restoration projects, which are heavily funded by the 2023 Disaster Relief Supplemental Operation Art Act.

The third quarter 2025 revenue performance saw higher capital project revenue, which was partially offset by lower revenue from the other two segments:

• Revenue from Maintenance Dredging contracts, funded by the US Army Corps of Engineers.
• Revenue from Coastal Protection and Restoration projects.

Emerging revenue is growing from the Offshore Energy segment, which includes specialized services like subsea rock installation. During the third quarter of 2025, Great Lakes Dredge & Dock Corporation commenced rock placement operations on Equinor's South Brooklyn Marine Terminal. The company also started installation of armor rock for the Empire Wind 1 project in the fourth quarter of 2025. The specialized subsea rock installation vessel, the Acadia, is slated for delivery in the first quarter of 2026, with secured contracts for full utilization in 2026. The margins for this emerging offshore work were described as healthy.

The company secured new projects totaling $136 million during the third quarter of 2025.