Southland Announces First Quarter 2026 Results

Published: 2026-05-12 16:31:07 ET SLND

Published on 05/12/2026 at 04:31 pm EDT

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, 2026.

(1)

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

“We are encouraged by the early progress made toward our strategic plan announced in March. Our strengthened capital position has improved operations, further evidenced by our Civil segment’s 14% gross margin this quarter. While consolidated results reflect non-cash adjustments from certain legacy disputes, our core project portfolio continues to perform on plan,” said Frank Renda, Southland’s President & Chief Executive Officer. “As we continue to execute our plan, we remain focused on optimizing our asset base, maintaining strict bidding discipline and prioritizing the high-margin opportunities in our core end markets.”

2026 First Quarter Results

Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended

(Amounts in thousands)

March 31, 2026

March 31, 2025

Revenue

172,405

239,486

Cost of construction

177,161

218,006

Gross profit (loss)

(4,756)

21,480

Selling, general, and administrative expenses

14,943

16,465

Operating income (loss)

(19,699)

5,015

Gain on investments, net

147

Other income, net

743

Interest expense

(8,681)

(8,874)

Losses before income taxes

(28,159)

(3,099)

Income tax expense (benefit)

(313)

Net loss

(28,178)

(2,786)

Net income attributable to noncontrolling interests

174

1,766

Net loss attributable to Southland Stockholders

(28,352)

(4,552)

Net loss per share attributable to common stockholders

Basic (1)

(0.52)

(0.08)

Diluted (1)

(0.52)

(0.08)

Weighted average shares outstanding

Basic (1)

54,119,661

53,961,744

Diluted (1)

54,119,661

53,961,744

____________________

(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, 2026, and March 31, 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 March 31, 2026, was $172.4 million, a decrease of $67.1 million, or 28.0%, compared to the three months ended March 31, 2025. Materials & Paving business contributed $11.0 million to revenue in the three months ended March 31, 2026.

Gross loss for the three months ended March 31, 2026, was $4.8 million compared to gross profit of $21.5 million for the three months ended March 31, 2025. Gross margin decreased from 9.0% to (2.8)% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Materials & Paving business negatively impacted gross profit by $13.1 million in the three months ended March 31, 2026.

Selling, general, and administrative costs for the three months ended March 31, 2026, were $14.9 million, a decrease of $1.5 million, or 9.2%, compared to the three months ended March 31, 2025. Selling, general, and administrative costs as a percent of revenue were 8.7% for the three months ended March 31, 2026, compared to 6.9% for the three months ended March 31, 2025.

Segment Revenue

Three Months Ended

(Amounts in thousands)

March 31, 2026

March 31, 2025

% of Total

Segment

Revenue

Civil

103,792

60.2

102,916

43.0

Transportation

68,613

39.8

136,570

57.0

Total revenue

172,405

100.0

239,486

100.0

Segment Gross Profit (Loss)

Three Months Ended

(Amounts in thousands)

March 31, 2026

March 31, 2025

% of Segment

Segment

Gross Profit

Revenue

Gross Profit

Revenue

Civil

14,652

14.1

22,631

22.0

Transportation

(19,408)

(28.3)

(1,151)

(0.8)

Gross profit (loss)

(4,756)

(2.8)

21,480

9.0

EBITDA Reconciliation

Three Months Ended

(Amounts in thousands)

March 31, 2026

March 31, 2025

Net loss attributable to Southland Stockholders

(28,352)

(4,552)

Depreciation and amortization

5,644

6,525

Income tax expense (benefit)

(313)

Interest expense

8,681

8,874

Interest income

(98)

(450)

EBITDA

(14,106)

10,084

Backlog

(Amounts in thousands)

Balance December 31, 2025

2,031,080

New contracts, change orders, and adjustments

18,887

Less: contract revenue recognized in 2026

(172,405)

Balance March 31, 2026

1,877,562

Condensed Consolidated Balance Sheets (unaudited)

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

As of

ASSETS

March 31, 2026

December 31, 2025

Current assets

Cash and cash equivalents

20,544

52,713

Restricted cash

11,408

14,755

Accounts receivable, net

152,406

167,786

Retainage receivables

100,988

101,779

Contract assets

366,431

366,607

Other current assets

26,766

30,326

Total current assets

678,543

733,966

Property and equipment, net

101,276

107,305

Right-of-use assets

9,969

10,524

Investments - unconsolidated entities

130,751

129,696

Investments - limited liability companies

2,262

2,323

Investments - private equity

2,403

2,588

Deferred tax asset

Goodwill

1,528

Intangible assets, net

1,180

Other noncurrent assets

159

167

Total noncurrent assets

249,535

255,314

Total assets

928,078

989,280

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

128,615

224,915

Retainage payable

31,603

36,977

Accrued liabilities

77,653

80,011

Current portion of long-term debt

56,094

53,731

Short-term operating lease liabilities

6,738

6,808

Contract liabilities

226,709

252,543

Total current liabilities

527,412

654,985

Long-term debt

174,697

203,971

Long-term operating lease liabilities

15,200

16,403

Deferred tax liabilities

2,981

3,032

Financing obligations, net

41,417

41,440

Long-term accrued liabilities

58,075

Surety payable

228,342

103,205

Other noncurrent liabilities

40,593

40,675

Total long-term liabilities

561,305

466,801

Total liabilities

1,088,717

1,121,786

Commitments and contingencies (Note 6)

Stockholders' equity (deficit)

Preferred stock, $0.0001 par value, authorized 50,000,000 shares, none issued and outstanding as of March 31, 2026 and December 31, 2025

—

Common stock, $0.0001 par value, authorized 500,000,000 shares, 54,198,220 and 54,113,036 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in-capital

293,737

293,237

Accumulated deficit

(459,510)

(431,158)

Accumulated other comprehensive loss

(3,174)

(3,018)

Total stockholders' equity (deficit)

(168,942)

(140,934)

Noncontrolling interest

8,303

8,428

Total equity (deficit)

(160,639)

(132,506)

Total liabilities and equity

928,078

989,280

Condensed Consolidated Statement of Cash Flows (unaudited)

Three Months Ended

(Amounts in thousands)

March 31, 2026

March 31, 2025

Cash flows from operating activities:

Net loss

(28,178)

(2,786)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

5,644

6,525

Amortization of deferred financing costs

471

—

Deferred taxes

(3)

(1,530)

Share based compensation

530

464

Gain on sale of assets

(534)

(1,028)

Foreign currency remeasurement (gain) loss

(9)

Earnings from equity method investments

(2,136)

(2,688)

Gain on trading securities, net

(147)

(17)

Changes in assets and liabilities:

Accounts and retainage receivables

16,193

8,565

Contract assets

262

(10,684)

Other current assets

3,561

(7,534)

Right-of-use assets

555

2,836

Accounts payable, retainage payable and accrued liabilities

(104,068)

10,352

Contract liabilities

(25,842)

6,888

Operating lease liabilities

(756)

(2,846)

Other

542

(79)

Net cash provided by (used in) operating activities

(133,865)

6,429

Cash flows from investing activities:

Purchase of property and equipment

(28)

(1,796)

Proceeds from sale of property and equipment

955

2,882

Distributions from other investments

331

Return of investment in limited liability company

—

Net cash provided by investing activities

1,319

1,117

Cash flows from financing activities:

Borrowings on notes payable

—

Payments on notes payable

(27,378)

(13,593)

Payments of deferred financing costs

—

(49)

Payments from related parties

Payments on finance lease and financing obligations

(530)

(267)

Distribution to members

(217)

—

Payment of taxes related to net share settlement of RSUs

(30)

(111)

Proceeds from advancement of surety funds

125,137

—

Net cash provided by (used in) financing activities

96,987

(13,989)

Effect of exchange rate on cash

(2)

Net decrease in cash and cash equivalents and restricted cash

(35,516)

(6,445)

Beginning of period

67,468

87,561

End of period

31,952

81,116

Supplemental cash flow information

Cash paid for income taxes

409

Cash paid for interest

8,457

8,934

Non-cash investing and financing activities:

Lease assets obtained in exchange for new leases

1,213

—

Assets obtained in exchange for notes payable

—

1,186

Conference Call

Southland will host a conference call at 10:00 a.m. Eastern Time on Wednesday, May 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 “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.

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