Great Lakes Dredge & Dock Corporation (GLDD), a leading provider of dredging services in the United States, is rapidly advancing its role in the burgeoning Liquefied Natural Gas (LNG) infrastructure landscape. As geopolitical tensions escalate and global energy dynamics shift, the demand for U.S.-exported LNG has surged, prompting an increased need for coastal dredging and related services to expand and maintain port access. GLDD, with its long-standing expertise and strategic positioning, is capitalizing on this momentum by undertaking several large-scale dredging projects across the Gulf Coast, notably from Port Arthur to Woodside, Louisiana.
Rising Demand for U.S. Dredging Services
The growth of LNG exports from the United States has brought a renewed focus on modernizing and expanding the country’s coastal infrastructure. To accommodate larger LNG tankers and to ensure reliable year-round access to LNG terminals, comprehensive dredging is essential. Coastal dredging involves removing sediment and debris from harbor channels, turning basins, and berths to maintain navigable depths for shipping. Ensuring the safety and efficiency of maritime logistics is critical, especially for large-scale energy operations.
GLDD has positioned itself at the forefront of this demand surge by leveraging its deep technical expertise, fleet capacity, and strategic investments. The company’s dredging services are instrumental in both the development of new LNG terminals and the expansion of existing ones, ensuring they meet current and future transportation needs.
Key Projects Driving Growth
Among GLDD’s most high-profile projects is the Port Arthur LNG Phase 1 Project, part of a major terminal development aimed at increasing LNG export capacity from Texas. This initiative involves substantial channel deepening and berth dredging to allow for the safe navigation of LNG carriers. Additionally, GLDD is actively engaged in the Brownsville Ship Channel Project, which supports the Rio Grande LNG Project for NextDecade Corporation. This project is a significant driver of growth for the company, offering sustained dredging work that supports long-term revenue visibility.
Looking ahead, the company is preparing to commence dredging work for the Woodside Louisiana LNG Project, scheduled to begin in early 2026. GLDD has confirmed that this project will be included in its second-quarter 2025 backlog, reflecting its forward-booked strength and increasing demand pipeline.
Financial Strength and Backlog Growth
GLDD’s solid execution of dredging projects has translated into impressive financial performance. In the first quarter of 2025, the company reported a 22.2% year-over-year increase in revenue, underscoring its ability to convert strong demand into tangible results. More notably, the company’s dredging backlog—a key metric indicating future revenue—climbed to $1 billion, up from $879.4 million in the same quarter last year.
This growing backlog demonstrates how GLDD’s capabilities are in sync with market needs, particularly in coastal dredging for energy infrastructure. With multiple multi-year projects underway or upcoming, the company enjoys strong revenue visibility and the ability to plan strategically for fleet and workforce allocation.
Competitive Edge Through Fleet Modernization
Another factor driving GLDD’s current success is its commitment to fleet renewal. The company has been actively modernizing its dredging fleet as part of a long-term build program, enhancing efficiency, sustainability, and project execution capabilities. This investment not only enables GLDD to meet the rigorous technical demands of complex LNG projects but also positions it favorably compared to competitors in the heavy marine construction sector.
The new and upgraded dredging vessels are designed to handle larger volumes of sediment and operate efficiently in varying coastal conditions. This modernization supports GLDD’s ability to execute contracts on time and within budget, factors that are crucial for energy companies operating under tight schedules and regulatory timelines.
Market Position and Investment Potential
From an investor’s perspective, GLDD offers a compelling value proposition. Despite the strong fundamentals, the company is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.26X, which is significantly lower than that of peers such as Orion Group Holdings (31.32X) and EMCOR Group (19.81X). This discounted valuation, combined with robust growth potential and a solid project pipeline, presents an attractive opportunity for long-term investors.
Analysts have taken note, projecting year-over-year revenue growth of 7% in 2025 and 4.6% in 2026. These estimates reflect confidence in both the macroeconomic tailwinds of LNG demand and GLDD’s ability to capture market share through its competitive advantages in dredging.
Future Outlook
As the global LNG market continues to evolve, the need for reliable and scalable coastal dredging services will only increase. Great Lakes Dredge & Dock is well-positioned to benefit from this demand surge, supported by its project pipeline, fleet modernization strategy, and proven track record of delivering complex marine infrastructure projects.
With the company advancing critical LNG dredging projects from Port Arthur to Woodside, it stands as a central player in the infrastructure buildup supporting America’s energy export future. Its ability to meet both commercial and environmental requirements ensures that GLDD remains a trusted partner not only to private energy developers but also to federal and state authorities overseeing maritime safety and sustainability.
Great Lakes Dredge & Dock Corporation’s active involvement in key LNG infrastructure projects marks a pivotal phase in its growth story. With increasing reliance on coastal dredging to support U.S. LNG exports, the company is poised for sustained success. As its backlog grows and its fleet evolves, GLDD is not just riding the wave of energy demand—it is shaping the very channels through which that energy flows to the world.