GRAPEVINE, Texas--(BUSINESS WIRE)--August 12, 2026--
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 June 30, 2026.
-- Revenue of $113.3 million for the quarter ended June 30, 2026, compared
to $215.4 million for the quarter ended June 30, 2025.
-- Gross loss of $71.2 million for the quarter ended June 30, 2026,
compared to $13.0 million in gross profit for the quarter ended June 30,
2025.
-- Gross profit margin of (62.9)% for the quarter ended June 30, 2026,
compared to 6.0% gross profit margin for the quarter ended June 30,
2025.
-- Net loss attributable to stockholders of $84.3 million, or $(1.55) per
share for the quarter ended June 30, 2026, compared to a net loss
attributable to stockholders of $10.3 million, or $(0.19) per share for
the quarter ended June 30, 2025.
-- EBITDA of $(73.4) million for the quarter ended June 30, 2026, compared
to $4.2 million for the quarter ended June 30, 2025. (1)
-- Backlog of $1.68 billion. (1)
(1) Please refer to "Non-GAAP Measures" and reconciliations for our non-GAAP
financial measures, including, "EBITDA" and "Backlog"
"Our results this quarter were largely impacted by unfavorable non-cash adjustments related to legacy disputes," said Frank Renda, Southland's President & Chief Executive Officer. "Despite that impact, we continue to work toward finalizing a comprehensive financing agreement and credit amendment with our surety partners, and we're encouraged by their continued support and the confidence they've shown in our strategic plan. At the same time, we remain focused on capturing new opportunities in our core markets -- most recently reflected in the Winnipeg North End Sewage Treatment Plant award we announced in July, which reinforces the strength of our core business as we work through this transition."
2026 Second Quarter Results
Condensed Consolidated Statements of Operations (unaudited)
Three Months Ended
--------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
------------------------------------------ --------------- ---------------
Revenue $ 113,306 $ 215,382
Cost of construction 184,539 202,414
----------- -----------
Gross profit (loss) (71,233) 12,968
Selling, general, and administrative
expenses 16,705 13,572
----------- -----------
Operating loss (87,938) (604)
Gain on investments, net 67 59
Other income, net 6,447 577
Interest expense (7,336) (9,983)
----------- -----------
Losses before income taxes (88,760) (9,951)
Income tax expense (benefit) (1,612) (61)
----------- -----------
Net loss (87,148) (9,890)
Net income (loss) attributable to
noncontrolling interests (2,881) 416
----------- -----------
Net loss attributable to Southland
Stockholders $ (84,267) $ (10,306)
=========== ===========
Net loss per share attributable to common
stockholders
Basic (1) $ (1.55) $ (0.19)
Diluted (1) $ (1.55) $ (0.19)
Weighted average shares outstanding
Basic (1) 54,248,867 54,008,088
Diluted (1) 54,248,867 54,008,088
____________________
(1) Basic net loss per share is the same as diluted net loss per share
attributable to common stockholders for the three months ended June 30,
2026, and June 30, 2025, because the inclusion of potential shares of
common stock would have been anti-dilutive for the period presented.
Revenue for the three months ended June 30, 2026, was $113.3 million, a decrease of $102.1 million, or 47.4%, compared to the three months ended June 30, 2025. Materials & Paving business contributed $11.7 million to revenue in the three months ended June 30, 2026. The decrease in revenue is primarily due to unfavorable changes in estimates related to certain unresolved contract modifications and claims. During the three months ended June 30, 2026, we performed a comprehensive reassessment of expected recoverability of claims on several projects, including substantially completed projects, in light of recent developments and updated information available regarding the timing and amount of potential recoveries. As a result of this reassessment, we reduced the estimated value of certain claims and recorded cumulative catch-up adjustment that negatively impacted revenue and gross profit for the quarter of $102.3 million and $93.6 million, respectively.
Gross loss for the three months ended June 30, 2026, was $71.2 million compared to gross profit of $13.0 million for the three months ended June 30, 2025. Gross margin decreased from 6.0% to (62.9)% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Materials & Paving business negatively impacted gross profit by $16.3 million in the three months ended June 30, 2026.
Selling, general, and administrative costs for the three months ended June 30, 2026, were $16.7 million, an increase of $3.1 million, or 23.1%, compared to the three months ended June 30, 2025. Selling, general, and administrative costs as a percent of revenue were 14.7% for the three months ended June 30, 2026, compared to 6.3% for the three months ended June 30, 2025.
Condensed Consolidated Statements of Operations (unaudited)
Six Months Ended
--------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
------------------------------------------ --------------- ---------------
Revenue $ 285,711 $ 454,868
Cost of construction 361,700 421,421
----------- -----------
Gross profit (loss) (75,989) 33,447
Selling, general, and administrative
expenses 31,648 30,037
----------- -----------
Operating income (loss) (107,637) 3,410
Gain on investments, net 214 76
Other income, net 6,521 2,321
Interest expense (16,017) (18,857)
----------- -----------
Losses before income taxes (116,919) (13,050)
Income tax expense (benefit) (1,593) (374)
----------- -----------
Net loss (115,326) (12,676)
Net income (loss) attributable to
noncontrolling interests (2,707) 2,182
----------- -----------
Net loss attributable to Southland
Stockholders $ (112,619) $ (14,858)
=========== ===========
Net loss per share attributable to common
stockholders
Basic (1) $ (2.08) (0.28)
Diluted (1) $ (2.08) (0.28)
Weighted average shares outstanding
Basic (1) 54,184,621 53,985,325
Diluted (1) 54,184,621 53,985,325
____________________
(1) Basic net loss per share is the same as diluted net loss per share
attributable to common stockholders for the six months ended June 30,
2026, and June 30, 2025, because the inclusion of potential shares of
common stock would have been anti-dilutive for the period presented.
Revenue for the six months ended June 30, 2026, was $285.7 million, a decrease of $169.2 million, or 37.2%, compared to the six months ended June 30, 2025. Materials & Paving business contributed $22.7 million to revenue in the six months ended June 30, 2026.
Gross loss for the six months ended June 30, 2026, was $76.0 million compared to gross profit of $33.4 million for the six months ended June 30, 2025. Gross margin decreased from 7.4% to (26.6)% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Materials & Paving business negatively impacted gross profit by $29.4 million in the six months ended June 30, 2026.
Selling, general, and administrative costs for the six months ended June 30, 2026, were $31.6 million, an increase of $1.6 million, or 5.4%, compared to the six months ended June 30, 2025. Selling, general, and administrative costs as a percent of revenue were 11.1% for the six months ended June 30, 2026, compared to 6.6% for the six months ended June 30, 2025.
Segment Revenue
Three Months Ended
----------------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
------------------- -------------------
% of % of
Total Total
Segment Revenue Revenue Revenue Revenue
----------------------- -------- --------- -------- ---------
Civil $ 40,987 36.2% $ 81,530 37.9%
Transportation 72,319 63.8% 133,852 62.1%
------- -------
Total revenue $113,306 100.0% $215,382 100.0%
======= =======
Six Months Ended
----------------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
------------------- -------------------
% of % of
Total Total
Segment Revenue Revenue Revenue Revenue
----------------------- -------- --------- -------- ---------
Civil $144,779 50.7% $184,446 40.5%
Transportation 140,932 49.3% 270,422 59.5%
------- -------
Total revenue $285,711 100.0% $454,868 100.0%
======= =======
Segment Gross Profit (Loss)
Three Months Ended
--------------------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
--------------------- ---------------------
% of % of
Segment Segment
Segment Gross Loss Revenue Gross Profit Revenue
----------------------- ------------ ------- ------------ -------
Civil $ (27,074) (66.1)% $ 14,257 17.5%
Transportation (44,159) (61.1)% (1,289) (1.0)%
-------- --------
Gross profit (loss) $ (71,233) (62.9)% $ 12,968 6.0%
======== ========
Six Months Ended
--------------------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
--------------------- ---------------------
% of % of
Segment Segment
Segment Gross Loss Revenue Gross Profit Revenue
----------------------- ------------ ------- ------------ -------
Civil $ (12,422) (8.6)% $ 36,766 19.9%
Transportation (63,567) (45.1)% (3,319) (1.2)%
-------- --------
Gross profit (loss) $ (75,989) (26.6)% $ 33,447 7.4%
======== ========
EBITDA Reconciliation
Three Months Ended Six Months Ended
-------------------- ---------------------
June 30, June 30, June 30, June 30,
(Amounts in thousands) 2026 2025 2026 2025
----------------------- --------- --------- ---------- ---------
Net loss attributable to
Southland Stockholders $(84,267) $(10,306) $(112,619) $(14,858)
Depreciation and
amortization 5,437 5,376 11,081 11,901
Income tax expense
(benefit) (1,612) (61) (1,593) (374)
Interest expense 7,336 9,983 16,017 18,857
Interest income (270) (802) (368) (1,252)
-------- -------- --------- --------
EBITDA (73,376) 4,190 (87,482) 14,274
======== ======== ========= ========
Backlog
(Amounts in thousands)
---------------------------------------------- ----------
Balance December 31, 2025 $2,031,080
New contracts, change orders, and adjustments (68,681)
Less: contract revenue recognized in 2026 (285,711)
---------
Balance June 30, 2026 $1,676,688
=========
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands, except share
and per share data) As of
------------------------------------
ASSETS June 30, 2026 December 31, 2025
--------------- -------------------
Current assets
Cash and cash equivalents $ 34,878 $ 52,713
Restricted cash 10,845 14,755
Accounts receivable, net 108,371 145,031
Retainage receivables 93,368 101,779
Contract assets 272,344 389,362
Other current assets 26,771 30,326
----------- ---------------
Total current assets 546,577 733,966
Property and equipment, net 94,580 107,305
Right-of-use assets 8,282 10,524
Investments - unconsolidated entities 126,824 129,696
Investments - limited liability
companies 2,262 2,323
Investments - private equity 2,452 2,588
Deferred tax asset 1,049 3
Goodwill 1,528 1,528
Intangible assets, net 1,180 1,180
Other noncurrent assets -- 167
----------- ---------------
Total noncurrent assets 238,157 255,314
----------- ---------------
Total assets $ 784,734 $ 989,280
=========== ===============
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 80,538 $ 224,915
Retainage payable 28,657 36,977
Accrued liabilities 61,433 80,011
Current portion of long-term debt 58,041 53,731
Short-term operating lease liabilities 5,934 6,808
Contract liabilities 194,416 252,543
----------- ---------------
Total current liabilities 429,019 654,985
Long-term debt 148,754 203,971
Long-term operating lease liabilities 13,871 16,403
Deferred tax liabilities 2,311 3,032
Financing obligations, net 41,394 41,440
Long-term accrued liabilities 58,075 58,075
Surety payable 298,900 103,205
Other noncurrent liabilities 40,594 40,675
----------- ---------------
Total long-term liabilities 603,899 466,801
----------- ---------------
Total liabilities 1,032,918 1,121,786
----------- ---------------
Stockholders' equity (deficit)
Preferred stock, $0.0001 par value,
authorized 50,000,000 shares, none
issued and outstanding as of June 30,
2026 and December 31, 2025 -- --
Common stock, $0.0001 par value,
authorized 500,000,000 shares,
54,435,257 and 54,113,036 issued and
outstanding as of June 30, 2026 and
December 31, 2025, respectively 5 5
Additional paid-in-capital 294,022 293,237
Accumulated deficit (543,777) (431,158)
Accumulated other comprehensive loss (3,783) (3,018)
----------- ---------------
Total stockholders' equity
(deficit) (253,533) (140,934)
Noncontrolling interest 5,349 8,428
----------- ---------------
Total equity (deficit) (248,184) (132,506)
----------- ---------------
Total liabilities and equity $ 784,734 $ 989,280
=========== ===============
Condensed Consolidated Statement of Cash Flows (unaudited)
Six Months Ended
--------------------------------
(Amounts in thousands) June 30, 2026 June 30, 2025
--------------- ---------------
Cash flows from operating activities:
Net loss $ (115,326) $ (12,676)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization 11,081 11,901
Amortization of deferred financing costs 942 916
Bad debt expense 3,173 --
Deferred taxes (1,698) (50)
Share based compensation 815 692
Gain on sale of assets (6,066) (1,417)
Foreign currency remeasurement (gain) loss 73 (73)
Loss (earnings) from equity method
investments 659 (1,503)
Gain on trading securities, net (215) (76)
Changes in assets and liabilities:
Accounts and retainage receivables 64,489 49,131
Contract assets 94,254 (46,552)
Other current assets 3,555 (10,378)
Right-of-use assets 2,242 4,763
Accounts payable, retainage payable and
accrued liabilities (170,973) 12,328
Contract liabilities (58,129) 1,222
Operating lease liabilities (2,383) (4,742)
Other 1,617 (2,490)
----------- -----------
Net cash provided by (used in) operating
activities (171,890) 996
Cash flows from investing activities:
Purchase of property and equipment (384) (2,885)
Proceeds from sale of property and
equipment 7,597 3,448
Distributions from other investments 351 195
Return of investment in limited liability
company 61 --
----------- -----------
Net cash provided by investing activities 7,625 758
Cash flows from financing activities:
Payments on notes payable (51,841) (25,150)
Payments of deferred financing costs -- (295)
Payments from (to) related parties (1) 4
Payments on finance lease and financing
obligations (1,073) (539)
Distribution to members (217) --
Payment of taxes related to net share
settlement of RSUs (30) (121)
Proceeds from advancement of surety funds 195,696 --
----------- -----------
Net cash provided by (used in) financing
activities 142,534 (26,101)
Effect of exchange rate on cash (14) 82
----------- -----------
Net decrease in cash and cash equivalents
and restricted cash (21,745) (24,265)
Beginning of period 67,468 87,561
----------- -----------
End of period $ 45,723 $ 63,296
=========== ===========
Supplemental cash flow information
Cash paid for income taxes $ 762 $ 578
Cash paid for interest $ 12,454 $ 18,047
Non-cash investing and financing
activities:
Lease assets obtained in exchange for new
leases $ 636 $ 10
Assets obtained in exchange for notes
payable $ -- $ 3,016
Conference Call
Southland will host a conference call at 10:00 a.m. Eastern Time on Thursday, August 13, 2026. 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, data centers, transportation and 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, and Southland's officers and representatives may from time to time make, "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 can be identified by words such as "believe," "continue," "expect," "may," "plan," "future," "will," "would," and similar references to future periods. Forward-looking statements may include, among others, statements regarding Southland's future business, plans, strategies, operating results, financial condition, liquidity, backlog, bonding capacity, project performance, claims recoveries, litigation and dispute resolution, financing arrangements, surety support, capital resources, market conditions and other anticipated events or trends. 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.