Southland Announces Third Quarter 2025 Results

GRAPEVINE, Texas--( BUSINESS WIRE)--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.

(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

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

(Amounts in thousands)

September 30, 2025

September 30, 2024

% of Total

Segment

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

(Amounts in thousands)

September 30, 2025

September 30, 2024

% of Total

Segment

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 Segment

Segment

Gross Profit

Revenue

Gross 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 Segment

Segment

Gross Profit

Revenue

Gross 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

(Amounts in thousands)

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 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

Investments - private equity

2,554

2,699

Deferred tax asset

143

54,531

Goodwill

1,528

Intangible assets, net

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

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

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)

Loss (earnings) from equity method investments

(8,131)

2,453

TZC investment present value accretion

—

(3,367)

Loss (gain) on trading securities, net

(126)

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

(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.