GRAPEVINE, Texas--(BUSINESS WIRE)--November 12, 2025--
Southland Holdings, Inc. (NYSE American: SLND and SLND WS) ("Southland"), a leading provider of specialized infrastructure construction services, today announced financial results for the quarter ended September 30, 2025.
-- Revenue of $213.3 million for the quarter ended September 30, 2025,
compared to $173.3 million for the quarter ended September 30, 2024.
-- Gross profit of $3.3 million for the quarter ended September 30, 2025,
compared to gross loss of $51.1 million for the quarter ended September
30, 2024.
-- Gross profit margin of 1.5% for the quarter ended September 30, 2025,
compared to (29.5)% for the quarter ended September 30, 2024.
-- Income tax expense of $57.2 million for the quarter ended September 30,
2025, primarily driven by a non-cash charge related to the establishment
of a valuation allowance on deferred tax assets, compared to income tax
benefit of $17.1 million for the quarter ended September 30, 2024. (1)
-- Net loss attributable to stockholders of $75.3 million, or $(1.39) per
share for the quarter ended September 30, 2025, compared to a net loss
attributable to stockholders of $54.7 million, or $(1.14) per share for
the quarter ended September 30, 2024.
-- EBITDA of $(3.5) million for the quarter ended September 30, 2025,
compared to $(58.7) million for the quarter ended September 30, 2024.
(2)
-- Backlog of $2.26 billion. (2)
(1) This allowance is required under GAAP. This does not limit utilization
of the respective tax assets in the future.
(2) Please refer to "Non-GAAP Measures" and reconciliations for our non-GAAP
financial measures, including, "EBITDA" and "Backlog".
"Our core business continues to perform well, evidenced by the strength in our civil segment and the continued execution of our new core work," said Frank Renda, Southland's President & Chief Executive Officer. "While this quarter's results reflect a one-time non-cash tax charge and unfavorable adjustments related to certain legacy projects and dispute resolutions, these items do not impact the momentum we are seeing across our core business. We remain focused on winding down legacy backlog and capitalizing on robust demand for critical infrastructure in our core markets."
2025 Third Quarter Results
Condensed Consolidated Statements of Operations (unaudited)
Three Months Ended
------------------------------------------
(Amounts in thousands) September 30, 2025 September 30, 2024
-------------------------------- -------------------- --------------------
Revenue $ 213,343 $ 173,320
Cost of construction 210,068 224,425
---------------- ----------------
Gross profit (loss) 3,275 (51,105)
Selling, general, and
administrative expenses 14,587 17,492
---------------- ----------------
Operating loss (11,312) (68,597)
Gain on investments, net 50 5
Other income, net 639 841
Interest expense (9,166) (7,520)
---------------- ----------------
Losses before income taxes (19,789) (75,271)
Income tax expense (benefit) 57,194 (17,142)
---------------- ----------------
Net loss (76,983) (58,129)
Net loss attributable to
noncontrolling interests (1,714) (3,402)
---------------- ----------------
Net loss attributable to
Southland Stockholders $ (75,269) $ (54,727)
================ ================
Net loss per share attributable
to common stockholders
Basic (1) $ (1.39) $ (1.14)
Diluted (1) $ (1.39) $ (1.14)
Weighted average shares
outstanding
Basic (1) 54,113,036 48,105,512
Diluted (1) 54,113,036 48,105,512
____________________
(1) Basic net loss per share is the same as diluted net loss per share
attributable to common stockholders for the three months ended
September 30, 2025, and September 30, 2024, because the inclusion of
potential shares of common stock would have been anti-dilutive for the
period presented.
Revenue for the three months ended September 30, 2025, was $213.3 million, an increase of $40.0 million, or 23.1%, compared to the three months ended September 30, 2024. Materials & Paving business contributed $22.9 million to revenue in the three months ended September 30, 2025.
Gross profit for the three months ended September 30, 2025, was $3.3 million compared to gross loss of $51.1 million for the three months ended September 30, 2024. Gross margin was 1.5% for the three months ended September 30, 2025, compared to (29.5)% for the three months ended September 30, 2024. Materials & Paving business negatively impacted gross profit by $3.0 million in the three months ended September 30, 2025.
Selling, general, and administrative costs for the three months ended September 30, 2025, were $14.6 million, a decrease of $2.9 million, or 16.6%, compared to the three months ended September 30, 2024. Selling, general, and administrative costs as a percent of revenue were 6.8% for the three months ended September 30, 2025, compared to 10.1% for the three months ended September 30, 2024.
Condensed Consolidated Statements of Operations (unaudited)
Nine Months Ended
------------------------------------------
(Amounts in thousands) September 30, 2025 September 30, 2024
-------------------------------- -------------------- --------------------
Revenue $ 668,211 $ 712,929
Cost of construction 630,093 783,635
---------------- ----------------
Gross profit (loss) 38,118 (70,706)
Selling, general, and
administrative expenses 44,624 47,566
---------------- ----------------
Operating loss (6,506) (118,272)
Gain (loss) on investments, net 126 (18)
Other income, net 1,564 2,430
Interest expense (28,023) (19,895)
---------------- ----------------
Losses before income taxes (32,839) (135,755)
Income tax expense (benefit) 56,820 (32,796)
---------------- ----------------
Net loss (89,659) (102,959)
Net income (loss) attributable
to noncontrolling interests 468 (1,749)
---------------- ----------------
Net loss attributable to
Southland Stockholders $ (90,127) $ (101,210)
================ ================
Net loss per share attributable
to common stockholders
Basic (1) $ (1.67) (2.11)
Diluted (1) $ (1.67) (2.11)
Weighted average shares
outstanding
Basic (1) 54,028,363 48,020,822
Diluted (1) 54,028,363 48,020,822
____________________
(1) Basic net loss per share is the same as diluted net loss per share
attributable to common stockholders for the nine months ended September
30, 2025, and September 30, 2024, because the inclusion of potential
shares of common stock would have been anti-dilutive for the period
presented.
Revenue for the nine months ended September 30, 2025, was $668.2 million, a decrease of $44.7 million, or 6.3%, compared to the nine months ended September 30, 2024. Materials & Paving business contributed $62.7 million to revenue in the nine months ended September 30, 2025.
Gross profit for the nine months ended September 30, 2025, was $38.1 million compared to gross loss of $70.7 million for the nine months ended September 30, 2024. Gross margin was 5.7% for the nine months ended September 30, 2025, compared to (9.9)% for the nine months ended September 30, 2024. Materials & Paving business negatively impacted gross profit by $15.9 million in the nine months ended September 30, 2025.
Selling, general, and administrative costs for the nine months ended September 30, 2025, were $44.6 million, a decrease of $2.9 million, or 6.2%, compared to the nine months ended September 30, 2024. Selling, general, and administrative costs as a percent of revenue were 6.7% for the nine months ended September 30, 2025 and September 30, 2024.
Segment Revenue
Three Months Ended
------------------------------------------
September 30,
(Amounts in thousands) September 30, 2025 2024
------------------- -----------------
% of % of
Total Total
Segment Revenue Revenue Revenue Revenue
----------------------- -------- --------- -------- -------
Civil $ 99,481 46.6% $ 55,849 32.2%
Transportation 113,862 53.4% 117,471 67.8%
------- -------
Total revenue $213,343 100.0% $173,320 100.0%
======= =======
Nine Months Ended
------------------------------------------
September 30,
(Amounts in thousands) September 30, 2025 2024
------------------- -----------------
% of % of
Total Total
Segment Revenue Revenue Revenue Revenue
----------------------- -------- --------- -------- -------
Civil $283,927 42.5% $219,490 30.8%
Transportation 384,284 57.5% 493,439 69.2%
------- -------
Total revenue $668,211 100.0% $712,929 100.0%
======= =======
Segment Gross Profit (Loss)
Three Months Ended
-------------------------------------------
(Amounts in thousands) September 30, 2025 September 30, 2024
------------------- ------------------
% of % of
Segment Segment
Gross Gross
Segment Profit Revenue Loss Revenue
----------------------- -------- --------- --------- -------
Civil $ 10,427 10.5% $(18,336) (32.8)%
Transportation (7,152) (6.3)% (32,769) (27.9)%
------- --------
Gross profit (loss) $ 3,275 1.5% $(51,105) (29.5)%
======= ========
Nine Months Ended
-------------------------------------------
(Amounts in thousands) September 30, 2025 September 30, 2024
------------------- ------------------
% of % of
Segment Segment
Gross Gross
Segment Profit Revenue Profit Revenue
----------------------- -------- --------- --------- -------
Civil $ 47,663 16.8% $ 8,694 4.0%
Transportation (9,545) (2.5)% (79,400) (16.1)%
------- --------
Gross profit (loss) $ 38,118 5.7% $(70,706) (9.9)%
======= ========
EBITDA Reconciliation
Three Months Ended Nine Months Ended
--------------------- ---------------------------
September September September September 30,
(Amounts in thousands) 30, 2025 30, 2024 30, 2025 2024
----------------------- ---------- --------- ---------- ---------------
Net loss attributable to
Southland Stockholders $ (75,269) $(54,727) $ (90,127) $ (101,210)
Depreciation and
amortization 5,629 5,776 17,530 16,925
Income tax expense
(benefit) 57,194 (17,142) 56,820 (32,796)
Interest expense 9,166 7,520 28,023 19,895
Interest income (221) (167) (1,473) (527)
--------- -------- --------- --------------
EBITDA (3,501) (58,740) 10,773 (97,713)
========= ======== ========= ==============
Backlog
(Amounts in thousands)
---------------------------------------------- ----------
Balance December 31, 2024 $2,572,912
New contracts, change orders, and adjustments 354,351
Less: contract revenue recognized in 2025 (668,211)
---------
Balance September 30, 2025 $2,259,052
=========
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands, except
share and per share data) As of
-----------------------------------------
ASSETS September 30, 2025 December 31, 2024
-------------------- -------------------
Current assets
Cash and cash equivalents $ 40,482 $ 72,185
Restricted cash 16,862 15,376
Accounts receivable, net 195,072 179,320
Retainage receivables 120,535 112,264
Contract assets 468,551 483,181
Other current assets 28,177 19,326
---------------- ---------------
Total current assets 869,679 881,652
Property and equipment, net 112,188 116,328
Right-of-use assets 9,900 14,897
Investments - unconsolidated
entities 134,608 126,705
Investments - limited liability
companies 2,590 2,590
Investments - private equity 2,554 2,699
Deferred tax asset 143 54,531
Goodwill 1,528 1,528
Intangible assets, net 1,180 1,180
Other noncurrent assets 1,698 1,539
---------------- ---------------
Total noncurrent assets 266,389 321,997
---------------- ---------------
Total assets $ 1,136,068 $ 1,203,649
================ ===============
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 233,895 $ 191,670
Retainage payable 35,413 33,622
Accrued liabilities 76,812 91,515
Current portion of long-term debt 51,356 44,525
Short-term operating lease
liabilities 6,272 10,104
Contract liabilities 268,210 249,706
---------------- ---------------
Total current liabilities 671,958 621,142
Long-term debt 216,443 255,625
Long-term operating lease
liabilities 16,838 10,791
Deferred tax liabilities 3,071 292
Financing obligations, net 41,462 41,468
Long-term accrued liabilities 58,075 58,075
Other noncurrent liabilities 40,781 40,847
---------------- ---------------
Total long-term liabilities 376,670 407,098
---------------- ---------------
Total liabilities 1,048,628 1,028,240
---------------- ---------------
Commitment and contingencies
(Note 6)
Stockholders' equity
Preferred stock, $0.0001 par
value, authorized 50,000,000
shares, none issued and
outstanding as of September 30,
2025 and December 31, 2024 -- --
Common stock, $0.0001 par value,
authorized 500,000,000 shares,
54,113,036 and 53,936,411 issued
and outstanding as of September
30, 2025 and December 31, 2024,
respectively 5 5
Additional paid-in-capital 292,872 292,173
Accumulated deficit (214,745) (124,618)
Accumulated other comprehensive
loss (3,155) (3,902)
---------------- ---------------
Total stockholders' equity 74,977 163,658
Noncontrolling interest 12,463 11,751
---------------- ---------------
Total equity 87,440 175,409
---------------- ---------------
Total liabilities and equity $ 1,136,068 $ 1,203,649
================ ===============
Condensed Consolidated Statement of Cash Flows (unaudited)
Nine Months Ended
------------------------------------------
(Amounts in thousands) September 30, 2025 September 30, 2024
-------------------- --------------------
Cash flows from operating
activities:
Net loss $ (89,659) $ (102,959)
Adjustments to reconcile net
loss to net cash used in
operating activities
Depreciation and amortization 17,530 16,925
Amortization of deferred
financing costs 1,387 --
Loss on extinguishment of debt -- 246
Deferred taxes 57,218 (28,379)
Share based compensation 820 1,674
Gain on sale of assets (2,743) (3,279)
Foreign currency remeasurement
gain (53) (53)
Loss (earnings) from equity
method investments (8,131) 2,453
TZC investment present value
accretion -- (3,367)
Loss (gain) on trading
securities, net (126) 18
Changes in assets and
liabilities:
Accounts and retainage
receivables (23,055) 2,196
Contract assets 14,861 97,801
Other current assets (8,851) 859
Right-of-use assets 4,997 (1,096)
Accounts payable, retainage
payable and accrued
liabilities 28,174 (22,659)
Contract liabilities 18,498 50,115
Operating lease liabilities (4,976) 1,227
Other 1,002 520
---------------- ----------------
Net cash provided by operating
activities 6,893 12,242
Cash flows from investing
activities:
Purchase of property and
equipment (3,446) (6,210)
Proceeds from sale of property
and equipment 6,264 4,453
Contributions to other
investments -- (59)
Distributions from other
investments 271 181
Distributions from investees 184 4,183
Capital contribution to
unconsolidated investments (184) (250)
---------------- ----------------
Net cash provided by investing
activities 3,089 2,298
Cash flows from financing
activities:
Borrowings on revolving credit
facility -- 5,000
Payments on revolving credit
facility -- (95,000)
Borrowings on notes payable -- 167,784
Payments on notes payable (39,010) (80,613)
Proceeds from financing
obligations -- 42,500
Payments of deferred financing
costs (297) (5,468)
Pre-payment premium -- (246)
Payments to related parties (3) --
Payments on finance lease and
financing obligations (832) (5,314)
Payment of taxes related to net
share settlement of RSUs (121) (206)
---------------- ----------------
Net cash provided by (used in)
financing activities (40,263) 28,437
Effect of exchange rate on cash 64 (49)
---------------- ----------------
Net increase (decrease) in cash
and cash equivalents and
restricted cash (30,217) 42,928
Beginning of period 87,561 63,820
---------------- ----------------
End of period $ 57,344 $ 106,748
================ ================
Supplemental cash flow
information
Cash paid for income taxes $ 734 $ 1,079
Cash paid for interest $ 26,781 $ 18,886
Non-cash investing and financing
activities:
Lease assets obtained in
exchange for new leases $ 9,311 $ 9,881
Assets obtained in exchange for
notes payable $ 5,585 $ 23,286
Related party payable exchanged
for note payable $ -- $ 3,797
Conference Call
Southland will host a conference call at 10:00 a.m. Eastern Time on Thursday, November 13, 2025. The call may be accessed here, or at www.southlandholdings.com. Following the conference call, a replay will be available on Southland's website.
About Southland
Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in North America, with experience throughout the world. The company serves the bridges, tunnelling, communications, transportation, facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets. Southland is headquartered in Grapevine, Texas.
For more information, please visit Southland's website at southlandholdings.com.
Non-GAAP Financial Measures
This press release includes certain unaudited financial measures not presented in accordance with generally accepted accounting principles ("GAAP"), including but not limited to earnings before interest, taxes, depreciation, and amortization ("EBITDA"), backlog, and certain ratios and other metrics derived therefrom. Note that other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Further, these non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. Southland believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Southland's financial condition and results of operations. Southland also believes that these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which items of expense and income are excluded or included in determining these non-GAAP financial measures.
Please see the accompanying table for reconciliations of the following non-GAAP financial measures for Southland's current and historical results: EBITDA (non-GAAP financial measures) to net income (loss) attributable to common stock.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Southland's current beliefs, expectations and assumptions regarding the future of Southland's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Southland's control. Southland's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Any forward-looking statement made by Southland in this press release is based only on information currently available to Southland and speaks only as of the date on which it is made. Southland undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251112298460/en/
CONTACT: Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
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