Great Lakes Dredge & Dock (GLDD)

History and Background

Founded in 1890, Great Lakes Dredge & Dock (GLDD) is the largest provider of dredging services in the United States. Initially focused on harbor improvements, the company has expanded its services to include coastal restoration, land reclamation, and subsea rock installation.

Core Business Areas

• Dredging: Maintenance and improvement of navigation channels, harbors, and ports. Includes capital projects, beach renourishment, and coastal protection.
• Coastal Restoration: Projects aimed at restoring and protecting coastlines from erosion and storm damage.
• Land Reclamation: Creating new land from bodies of water through dredging and filling operations.
• Subsea Rock Installation: Placing rock to support offshore infrastructure, such as pipelines and wind turbines.

Leadership and Structure

Lasse Petterson serves as the Chief Executive Officer. The company has a hierarchical structure with various departments responsible for different aspects of dredging operations, project management, and support functions.

Key Offerings

• Capital Dredging: Creating or deepening channels and harbors. Significant revenue driver. Competitors include Manson Construction, Weeks Marine.
• Maintenance Dredging: Maintaining existing channels and harbors. Recurring revenue stream. Competitors include Manson Construction, Weeks Marine.
• Beach Renourishment: Restoring eroded beaches. Competitors include Callan Marine, Cottrell Contracting.
• Coastal Protection: Constructing structures like sea walls and breakwaters. Competitors include Orion Marine Group.

Industry Overview

The dredging industry is driven by infrastructure development, port expansion, coastal erosion, and environmental regulations. Demand fluctuates with government spending and private investment in maritime infrastructure.

Positioning

GLDD is the largest dredging company in the U.S., holding a leading market share. It has a competitive advantage due to its large fleet of specialized equipment, experienced workforce, and strong relationships with government agencies.

Total Addressable Market (TAM)

The US dredging market is estimated to be worth $7-8 billion annually. GLDD, with its leading market position, is well-placed to capitalize on a significant portion of this TAM.

Key Competitors

• JEF (Weeks Marine)
• MYRG (Orion Marine Group)
• None (Manson Construction is privately held)

Competitive Landscape

GLDD has an advantage in terms of fleet size and experience, but faces competition from other established dredging companies. Competition is intense in bidding processes.

Historical Growth: Historically, GLDD's growth has been driven by infrastructure projects and coastal restoration initiatives. Growth has varied year to year.

Future Projections: Future growth is expected to be supported by increased government spending on infrastructure and coastal protection, as well as the growing offshore wind market.

Recent Initiatives: Recent initiatives include investments in new equipment, expansion into the offshore wind market, and a focus on improving project execution.

Great Lakes Dredge & Dock is the largest dredging company in the U.S., benefiting from a strong market position and government infrastructure spending. However, its performance is subject to cyclical trends, weather-related risks, and project execution challenges. The company's future growth is tied to infrastructure investments, offshore wind development, and efficient project management. They should watch out for fuel costs and government budget cuts.

Data Sources:

• Company SEC Filings (10K, 10Q), Industry Reports, Analyst Estimates

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source.