Menu Search

Company Announcements

GRAPEVINE, Texas--(BUSINESS WIRE)--May 13, 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 March 31, 2025.

  • Revenue of $239.5 million for the quarter ended March 31, 2025, compared to $288.1 million for the quarter ended March 31, 2024.
  • Gross profit of $21.5 million for the quarter ended March 31, 2025, compared to $20.4 million in gross profit for the quarter ended March 31, 2024.
  • Gross profit margin of 9.0% for the quarter ended March 31, 2025, compared to 7.1% gross profit margin for the quarter ended March 31, 2024.
  • Net loss attributable to stockholders of $4.6 million, or $(0.08) per share for the quarter ended March 31, 2025, compared to a net loss attributable to stockholders of $0.4 million, or $(0.01) per share for the quarter ended March 31, 2024.
  • EBITDA of $10.1 million for the quarter ended March 31, 2025, compared to $10.9 million for the quarter ended March 31, 2024. (1)
  • Backlog of $2.47 billion. (1)
(1)

Please refer to “Non-GAAP Measures” and reconciliations for our non-GAAP financial measures, including, “EBITDA” and “Backlog”.

“We are off to a strong start in 2025, delivering improved margins and positive operating cash flow in the first quarter,” said Frank Renda, Southland’s President & Chief Executive Officer. “With strong demand across our markets and a robust pipeline of critical infrastructure opportunities, we are confident in our ability to drive long-term value for our clients and stakeholders.”

2025 First Quarter Results

Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

Three Months Ended

(Amounts in thousands)

March 31, 2025

 

March 31, 2024

Revenue

$

239,486

 

$

288,097

Cost of construction

 

218,006

 

 

267,676

Gross profit

 

21,480

 

 

20,421

Selling, general, and administrative expenses

 

16,465

 

 

14,394

Operating income

 

5,015

 

 

6,027

Gain (loss) on investments, net

 

17

 

 

(76)

Other income, net

 

743

 

 

536

Interest expense

 

(8,874)

 

 

(5,655)

Earnings (losses) before income taxes

 

(3,099)

 

 

832

Income tax expense (benefit)

 

(313)

 

 

307

Net income (loss)

 

(2,786)

 

 

525

Net income attributable to noncontrolling interests

 

1,766

 

 

931

Net loss attributable to Southland Stockholders

$

(4,552)

 

$

(406)

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

Basic (1)

$

(0.08)

 

$

(0.01)

Diluted (1)

$

(0.08)

 

$

(0.01)

Weighted average shares outstanding

 

 

 

 

 

Basic (1)

 

53,961,744

 

 

47,925,072

Diluted (1)

 

53,961,744

 

 

47,925,072

____________________
(1)

Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three months ended March 31, 2025, and March 31, 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 March 31, 2025, was $239.5 million, a decrease of $48.6 million, or 16.9%, compared to the three months ended March 31, 2024. Materials & Paving business contributed $18.1 million to revenue in the three months ended March 31, 2025.

Gross profit for the three months ended March 31, 2025, was $21.5 million compared to gross profit of $20.4 million for the three months ended March 31, 2024. Gross margin increased from 7.1% to 9.0% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Materials & Paving business negatively impacted gross profit by $9.1 million in the three months ended March 31, 2025.

Selling, general, and administrative costs for the three months ended March 31, 2025, were $16.5 million, an increase of $2.1 million, or 14.4%, compared to the three months ended March 31, 2024. Selling, general, and administrative costs as a percent of revenue were 6.9% for the three months ended March 31, 2025, compared to 5.0% for the three months ended March 31, 2024.

Segment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(Amounts in thousands)

 

March 31, 2025

 

March 31, 2024

 

 

 

 

 

 

% of Total

 

 

 

 

% of Total

 

Segment

 

Revenue

 

Revenue

 

Revenue

 

Revenue

 

Civil

 

$

102,916

 

43.0

%

$

84,273

 

29.3

%

Transportation

 

 

136,570

 

57.0

%

 

203,824

 

70.7

%

Total revenue

 

$

239,486

 

100.0

%

$

288,097

 

100.0

%

Segment Gross Profit (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(Amounts in thousands)

 

March 31, 2025

 

March 31, 2024

 

 

 

 

 

% of Segment

 

 

 

% of Segment

 

Segment

 

Gross Profit (Loss)

 

Revenue

 

Gross Profit

 

Revenue

 

Civil

 

$

22,631

 

22.0

%

$

17,870

 

21.2

%

Transportation

 

 

(1,151)

 

(0.8)

%

 

2,551

 

1.3

%

Gross profit

 

$

21,480

 

9.0

%

$

20,421

 

7.1

%

EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

Three Months Ended

(Amounts in thousands)

 

March 31, 2025

 

March 31, 2024

Net loss attributable to Southland Stockholders

 

$

(4,552)

 

$

(406)

Depreciation and amortization

 

 

6,525

 

 

5,577

Income tax expense (benefit)

 

 

(313)

 

 

307

Interest expense

 

 

8,874

 

 

5,655

Interest income

 

 

(450)

 

 

(184)

EBITDA

 

 

10,084

 

 

10,949

Backlog

 

 

 

 

(Amounts in thousands)

 

Balance December 31, 2024

$

2,572,912

New contracts, change orders, and adjustments

 

136,542

Less: contract revenue recognized in 2025

 

(239,486)

Balance March 31, 2025

$

2,469,968

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands, except share and per share data)

As of

ASSETS

March 31, 2025

 

December 31, 2024

Current assets

 

 

 

 

 

Cash and cash equivalents

$

65,052

 

$

72,185

Restricted cash

 

16,064

 

 

15,376

Accounts receivable, net

 

171,920

 

 

179,320

Retainage receivables

 

111,179

 

 

112,264

Contract assets

 

493,879

 

 

483,181

Other current assets

 

26,860

 

 

19,326

Total current assets

 

884,954

 

 

881,652

 

 

 

 

 

 

Property and equipment, net

 

111,153

 

 

116,328

Right-of-use assets

 

12,061

 

 

14,897

Investments - unconsolidated entities

 

129,177

 

 

126,705

Investments - limited liability companies

 

2,590

 

 

2,590

Investments - private equity

 

2,685

 

 

2,699

Deferred tax asset

 

56,061

 

 

54,531

Goodwill

 

1,528

 

 

1,528

Intangible assets, net

 

1,180

 

 

1,180

Other noncurrent assets

 

1,540

 

 

1,539

Total noncurrent assets

 

317,975

 

 

321,997

Total assets

$

1,202,929

 

$

1,203,649

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

206,577

 

$

191,670

Retainage payable

 

33,651

 

 

33,622

Accrued liabilities

 

86,984

 

 

91,515

Current portion of long-term debt

 

46,789

 

 

44,525

Short-term operating lease liabilities

 

7,693

 

 

10,104

Contract liabilities

 

256,594

 

 

249,706

Total current liabilities

 

638,288

 

 

621,142

 

 

 

 

 

 

Long-term debt

 

241,309

 

 

255,625

Long-term operating lease liabilities

 

10,079

 

 

10,791

Deferred tax liabilities

 

292

 

 

292

Financing obligations, net

 

41,472

 

 

41,468

Long-term accrued liabilities

 

58,075

 

 

58,075

Other noncurrent liabilities

 

40,756

 

 

40,847

Total long-term liabilities

 

391,983

 

 

407,098

Total liabilities

 

1,030,271

 

 

1,028,240

 

 

 

 

 

 

Commitment and contingencies (Note 7)

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

Preferred stock, $0.0001 par value, authorized 50,000,000 shares, none issued and outstanding as of March 31, 2025 and December 31, 2024

 

—

 

 

—

Common stock, $0.0001 par value, authorized 500,000,000 shares, 53,987,169 and 53,936,411 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

 

5

 

 

5

Additional paid-in-capital

 

292,526

 

 

292,173

Accumulated deficit

 

(129,170)

 

 

(124,618)

Accumulated other comprehensive loss

 

(4,231)

 

 

(3,902)

Total stockholders' equity

 

159,130

 

 

163,658

Noncontrolling interest

 

13,528

 

 

11,751

Total equity

 

172,658

 

 

175,409

Total liabilities and equity

$

1,202,929

 

$

1,203,649

Condensed Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

Three Months Ended

(Amounts in thousands)

March 31, 2025

 

March 31, 2024

Cash flows from operating activities:

 

 

 

 

 

Net income (loss)

$

(2,786)

 

$

525

Adjustments to reconcile net income (loss) to net cash used in operating activities

 

 

 

 

 

Depreciation and amortization

 

6,525

 

 

5,577

Deferred taxes

 

(1,530)

 

 

(642)

Share based compensation

 

464

 

 

677

Gain on sale of assets

 

(1,028)

 

 

(2,385)

Foreign currency remeasurement (gain) loss

 

(9)

 

 

64

Earnings from equity method investments

 

(2,688)

 

 

(1,907)

TZC investment present value accretion

 

—

 

 

(627)

Loss (gain) on trading securities, net

 

(17)

 

 

76

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

8,565

 

 

(32,071)

Contract assets

 

(10,684)

 

 

(16,175)

Other current assets

 

(7,534)

 

 

5,450

Right-of-use assets

 

2,836

 

 

1,994

Accounts payable and accrued liabilities

 

10,352

 

 

40,059

Contract liabilities

 

6,888

 

 

(8,162)

Operating lease liabilities

 

(2,846)

 

 

(1,883)

Other

 

(79)

 

 

(467)

Net cash provided by (used in) operating activities

 

6,429

 

 

(9,897)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchase of property and equipment

 

(1,796)

 

 

(3,128)

Proceeds from sale of property and equipment

 

2,882

 

 

2,657

Contributions to other investments

 

—

 

 

(13)

Distributions from other investments

 

31

 

 

52

Net cash provided by (used in) investing activities

 

1,117

 

 

(432)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Borrowings on revolving credit facility

 

—

 

 

5,000

Borrowings on notes payable

 

19

 

 

222

Payments on notes payable

 

(13,593)

 

 

(10,650)

Payments of deferred financing costs

 

(49)

 

 

(75)

Payments from related parties

 

12

 

 

125

Payments on finance lease and financing obligations

 

(267)

 

 

(1,359)

Payment of taxes related to net share settlement of RSUs

 

(111)

 

 

(206)

Net cash used in financing activities

 

(13,989)

 

 

(6,943)

 

 

 

 

 

 

Effect of exchange rate on cash

 

(2)

 

 

(31)

 

 

 

 

 

 

Net decrease in cash and cash equivalents and restricted cash

 

(6,445)

 

 

(17,303)

Beginning of period

 

87,561

 

 

63,820

End of period

$

81,116

 

$

46,517

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

Cash paid for income taxes

$

409

 

$

454

Cash paid for interest

$

8,934

 

$

5,527

Non-cash investing and financing activities:

 

 

 

 

 

Lease assets obtained in exchange for new leases

$

—

 

$

1,252

Assets obtained in exchange for notes payable

$

1,186

 

$

3,341

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 Wednesday, May 14, 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 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 “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.

Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com

Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com

Source: Southland Holdings, Inc.