New low bid pending award of $47.7 million for work on the Jersey shore moves potential 3Q2021 awards into the $308 million range. GLDD was recently low bidder on the Sandy Hook to Barnegat Inlet Beach Erosion Control Project Section II (W912DS21B0015) at $47.7 million, or $15.9 million below the other bid of $63.6 million submitted by Weeks Marine.Announced 3Q2021 awards currently in the $261 million range, but potential awards exceed $308 million. Dredging market outlook remains solid and potential infrastructure spending creates a tailwind. Bidding has been active, and announced 3Q2021 awards of $261.3 million yesterday is positive. As highlighted above, GLDD was also low bidder on the Sandy Hook to Barnegat Inlet Beach erosion control work for $47.7 million so potential 3Q2021 awards could exceed $309 million. Bids on several other projects are slated for opening in September so 3Q2021 bidding sets up for a 2H2021 recovery.No change to 2021 EBITDA estimate. 1H2021 start slow due to COVID-19 issues, but 2H2021 should recover. Our 2021 revenue estimate of $756.6 million is ~$19 million higher than 2020, but gross profit of $150.2 million is lower, by ~$21 million, due to lower gross margin of 20.0%, down ~330 basis points due to the negative impact of COVID-19 in 1H2021.No change to our EBITDA estimate of $132.3 million. The down year is the result of a 300 basis point drop in EBITDA margin to 17.6%, mainly due to strong outperformance on several projects last year and the negative impact of COVID-19 this year on 1H2021 operating results.Maintain Outperform rating and price target of $17.05/share due to recent awards, the fleet renewal program and disciplined capital allocation. With positive 2020 operating results and significant awards and support from a stock buyback program, GLDD finished last year on a high note and was up 16% for the year. While softer 2Q2021 results pushed the stock down almost 4% over the past two months, the stock is still up 14% this year. We attribute most of the 2Q2021 shortfall to COVID-19, which should be transitory, the risk/reward profile remains favorable so we expect the stock to rebound. Read More >>