Southland Holdings, Inc. (NYSE:SLND) ("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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250513926984/en/

Southland Contacts:

Keith Bassano

Chief Financial Officer

kbassano@southlandholdings.com

Alex Murray

Corporate Development & Investor Relations

amurray@southlandholdings.com

Southland Announces First Quarter 2025 Results