EX-99.1 2 southland_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Southland Announces Second Quarter 2025 Results

 

GRAPEVINE, Texas, August 12, 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 June 30, 2025.

 

● Revenue of $215.4 million for the quarter ended June 30, 2025, compared to $251.5 million for the quarter ended June 30, 2024.

 

● Gross profit of $13.4 million for the quarter ended June 30, 2025, compared to $40.0 million in gross loss for the quarter ended June 30, 2024.

 

● Gross profit margin of 6.2% for the quarter ended June 30, 2025, compared to (15.9)% gross profit margin for the quarter ended June 30, 2024.

 

● Net loss attributable to stockholders of $10.3 million, or $(0.19) per share for the quarter ended June 30, 2025, compared to a net loss attributable to stockholders of $46.1 million, or $(0.96) per share for the quarter ended June 30, 2024.

 

● EBITDA of $4.2 million for the quarter ended June 30, 2025, compared to $(49.9) million for the quarter ended June 30, 2024. (1)

 

● Backlog of $2.32 billion. (1)

 

 

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

 

“We continue to be encouraged by the sustained margin improvement in our core business resulting from our disciplined approach to bidding and operations,” said Frank Renda, Southland’s President & Chief Executive Officer. “As we move into the second half of the year, our outlook remains positive. With IIJA and other government spending initiatives in full swing, we are well-positioned to win our fair-share of the opportunities ahead of us.”

 

2025 Second Quarter Results

 

Condensed Consolidated Statements of Operations (unaudited)

 

    Three Months Ended  
(Amounts in thousands)  

June 30,

2025

    

June 30,

2024

  
Revenue   $ 215,382     $ 251,512  
Cost of construction     202,019       291,534  
Gross profit (loss)     13,363       (40,022 )
Selling, general, and administrative expenses     13,572       15,680  
Operating loss     (209 )     (55,702 )
Gain on investments, net     59       53  
Other income, net     182       1,053  
Interest expense     (9,983 )     (6,720 )
Losses before income taxes     (9,951 )     (61,316 )
Income tax benefit     (61 )     (15,961 )
Net loss     (9,890 )     (45,355 )
Net income attributable to noncontrolling interests     416       722  
Net loss attributable to Southland Stockholders   $ (10,306 )   $ (46,077 )
                 
Net loss per share attributable to common stockholders                
Basic (1)   $ (0.19 )   $ (0.96 )
Diluted (1)   $ (0.19 )   $ (0.96 )
Weighted average shares outstanding                
Basic (1)     54,008,088       48,030,951  
Diluted (1)     54,008,088       48,030,951  

 

 
(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, 2025, and June 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 June 30, 2025, was $215.4 million, a decrease of $36.1 million, or 14.4%, compared to the three months ended June 30, 2024. Materials & Paving business contributed $21.7 million to revenue in the three months ended June 30, 2025.

 

Gross profit for the three months ended June 30, 2025, was $13.4 million compared to gross loss of $40.0 million for the three months ended June 30, 2024. Gross margin increased from (15.9)% to 6.2% for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Materials & Paving business negatively impacted gross profit by $3.8 million in the three months ended June 30, 2025.

 

Selling, general, and administrative costs for the three months ended June 30, 2025, were $13.6 million, a decrease of $2.1 million, or 13.4%, compared to the three months ended June 30, 2024. Selling, general, and administrative costs as a percent of revenue were 6.3% for the three months ended June 30, 2025, compared to 6.2% for the three months ended June 30, 2024.

 

Condensed Consolidated Statements of Operations (unaudited)

 

    Six Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
Revenue   $ 454,868     $ 539,609  
Cost of construction     420,025       559,210  
Gross profit (loss)     34,843       (19,601 )
Selling, general, and administrative expenses     30,037       30,074  
Operating income (loss)     4,806       (49,675 )
Gain (loss) on investments, net     76       (23 )
Other income, net     925       1,589  
Interest expense     (18,857 )     (12,375 )
Losses before income taxes     (13,050 )     (60,484 )
Income tax benefit     (374 )     (15,654 )
Net loss     (12,676 )     (44,830 )
Net income attributable to noncontrolling interests     2,182       1,653  
Net loss attributable to Southland Stockholders   $ (14,858 )   $ (46,483 )
                 
Net loss per share attributable to common stockholders                
Basic (1)   $ (0.28 )     (0.97 )
Diluted (1)   $ (0.28 )     (0.97 )
Weighted average shares outstanding                
Basic (1)     53,985,325       47,978,012  
Diluted (1)     53,985,325       47,978,012  

 

 
(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, 2025, and June 30, 2024, 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, 2025, was $454.9 million, a decrease of $84.7 million, or 15.7%, compared to the six months ended June 30, 2024. Materials & Paving business contributed $39.8 million to revenue in the six months ended June 30, 2025.

 

Gross profit for the six months ended June 30, 2025, was $34.8 million compared to gross loss of $19.6 million for the six months ended June 30, 2024. Gross margin increased from (3.6)% to 7.7% for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Materials & Paving business negatively impacted gross profit by $12.9 million in the six months ended June 30, 2025.

 

Selling, general, and administrative costs for the six months ended June 30, 2025, were $30.0 million, a decrease of $0.1 million, or 0.1%, compared to the six months ended June 30, 2024. Selling, general, and administrative costs as a percent of revenue were 6.6% for the six months ended June 30, 2025, compared to 5.6% for the six months ended June 30, 2024.

 

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Segment Revenue

 

    Three Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
Segment   Revenue     % of Total
Revenue		     Revenue     % of Total
Revenue		  
Civil   $ 81,530       37.9 %   $ 79,368       31.6 %
Transportation     133,852       62.1 %     172,144       68.4 %
Total revenue   $ 215,382       100.0 %   $ 251,512       100.0 %

 

    Six Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
          % of Total           % of Total  
Segment   Revenue     Revenue     Revenue     Revenue  
Civil   $ 184,446       40.5 %   $ 163,641       30.3 %
Transportation     270,422       59.5 %     375,968       69.7 %
Total revenue   $ 454,868       100.0 %   $ 539,609       100.0 %

 

Segment Gross Profit (Loss)

 

    Three Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
          % of Segment           % of Segment  
Segment   Gross Profit     Revenue     Gross Profit     Revenue  
Civil   $ 14,605       17.9 %   $ 9,160       11.5 %
Transportation     (1,242 )     (0.9 )%     (49,182 )     (28.6 )%
Gross profit (loss)   $ 13,363       6.2 %   $ (40,022 )     (15.9 )%

 

    Six Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
          % of Segment           % of Segment  
Segment   Gross Profit     Revenue     Gross Profit     Revenue  
Civil   $ 37,236       20.2 %   $ 27,030       16.5 %
Transportation     (2,393 )     (0.9 )%     (46,631 )     (12.4 )%
Gross profit (loss)   $ 34,843       7.7 %   $ (19,601 )     (3.6 )%

 

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EBITDA Reconciliation

 

    Three Months Ended     Six Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		     June 30,
2025		     June 30,
2024		  
Net loss attributable to Southland Stockholders   $ (10,306 )   $ (46,077 )   $ (14,858 )   $ (46,483 )
Depreciation and amortization     5,376       5,572       11,901       11,149  
Income tax benefit     (61 )     (15,961 )     (374 )     (15,654 )
Interest expense     9,983       6,720       18,857       12,375  
Interest income     (802 )     (176 )     (1,252 )     (360 )
EBITDA     4,190       (49,922 )     14,274       (38,973 )

 

Backlog

 

(Amounts in thousands)      
Balance December 31, 2024   $ 2,572,912  
New contracts, change orders, and adjustments     203,259  
Less: contract revenue recognized in 2025     (454,868 )
Balance June 30, 2025   $ 2,321,303  

 

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Condensed Consolidated Balance Sheets (unaudited)

 

    As of  
(Amounts in thousands, except share and per share data)   June 30,
2025		     December 31,
2024		  
ASSETS            
Current assets                
Cash and cash equivalents   $ 46,517     $ 72,185  
Restricted cash     16,779       15,376  
Accounts receivable, net     158,134       179,320  
Retainage receivables     115,529       112,264  
Contract assets     500,520       483,181  
Other current assets     29,704       19,326  
Total current assets     867,183       881,652  
                 
Property and equipment, net     108,437       116,328  
Right-of-use assets     10,135       14,897  
Investments - unconsolidated entities     132,541       126,705  
Investments - limited liability companies     2,590       2,590  
Investments - private equity     2,580       2,699  
Deferred tax asset     57,396       54,531  
Goodwill     1,528       1,528  
Intangible assets, net     1,180       1,180  
Other noncurrent assets     1,698       1,539  
Total noncurrent assets     318,085       321,997  
Total assets   $ 1,185,268     $ 1,203,649  
                 
LIABILITIES AND EQUITY                
Current liabilities                
Accounts payable   $ 221,818     $ 191,670  
Retainage payable     33,662       33,622  
Accrued liabilities     75,459       91,515  
Current portion of long-term debt     48,895       44,525  
Short-term operating lease liabilities     5,886       10,104  
Contract liabilities     250,942       249,706  
Total current liabilities     636,662       621,142  
                 
Long-term debt     229,728       255,625  
Long-term operating lease liabilities     9,952       10,791  
Deferred tax liabilities     3,138       292  
Financing obligations, net     41,476       41,468  
Long-term accrued liabilities     58,075       58,075  
Other noncurrent liabilities     40,769       40,847  
Total long-term liabilities     383,138       407,098  
Total liabilities     1,019,800       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 June 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 June 30, 2025 and December 31, 2024, respectively     5       5  
Additional paid-in-capital     292,744       292,173  
Accumulated deficit     (139,476 )     (124,618 )
Accumulated other comprehensive loss     (2,156 )     (3,902 )
Total stockholders’ equity     151,117       163,658  
Noncontrolling interest     14,351       11,751  
Total equity     165,468       175,409  
Total liabilities and equity   $ 1,185,268     $ 1,203,649  

 

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Condensed Consolidated Statement of Cash Flows (unaudited)

 

    Six Months Ended  
(Amounts in thousands)   June 30,
2025		     June 30,
2024		  
Cash flows from operating activities:                
Net loss   $ (12,676 )   $ (44,830 )
Adjustments to reconcile net loss to net cash used in operating activities                
Depreciation and amortization     11,901       11,149  
Amortization of deferred financing costs     916       -  
Loss on extinguishment of debt     -       111  
Deferred taxes     (50 )     (15,870 )
Share based compensation     692       1,299  
Gain on sale of assets     (1,417 )     (2,855 )
Foreign currency remeasurement (gain) loss     (73 )     4  
Earnings from equity method investments     (1,503 )     (3,150 )
TZC investment present value accretion     -       (2,234 )
Loss (gain) on trading securities, net     (76 )     23  
Changes in assets and liabilities:                
Accounts receivable     19,516       (64,672 )
Contract assets     (16,937 )     27,398  
Other current assets     (10,378 )     3,181  
Right-of-use assets     4,763       1,873  
Accounts payable and accrued liabilities     12,328       77,204  
Contract liabilities     1,222       31,851  
Operating lease liabilities     (4,742 )     (1,608 )
Other     (2,490 )     (1,340 )
Net cash provided by operating activities     996       17,534  
                 
Cash flows from investing activities:                
Purchase of property and equipment     (2,885 )     (4,232 )
Proceeds from sale of property and equipment     3,448       3,206  
Contributions to other investments     -       (13 )
Distributions from other investments     195       110  
Distributions from investees     -       4,161  
Capital contribution to unconsolidated investments     -       (250 )
Net cash provided by investing activities     758       2,982  
                 
Cash flows from financing activities:                
Borrowings on revolving credit facility     -       5,000  
Payments on revolving credit facility     -       (5,000 )
Borrowings on notes payable     -       24,678  
Payments on notes payable     (25,150 )     (36,910 )
Payments of deferred financing costs     (295 )     (31 )
Pre-payment premium     -       (111 )
Payments from related parties     4       138  
Payments on finance lease and financing obligations     (539 )     (2,656 )
Payment of taxes related to net share settlement of RSUs     (121 )     (206 )
Net cash used in financing activities     (26,101 )     (15,098 )
                 
Effect of exchange rate on cash     82       (69 )
                 
Net increase (decrease) in cash and cash equivalents and restricted cash     (24,265 )     5,349  
Beginning of period     87,561       63,820  
End of period   $ 63,296     $ 69,169  
                 
Supplemental cash flow information                
Cash paid for income taxes   $ 578     $ 203  
Cash paid for interest   $ 18,047     $ 11,970  
Non-cash investing and financing activities:                
Lease assets obtained in exchange for new leases   $ 10     $ 4,272  
Assets obtained in exchange for notes payable   $ 3,016     $ 16,009  
Related party payable exchanged for note payable   $ -     $ 3,797  

 

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Conference Call

 

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

 

Southland Contacts:

 

Keith Bassano

Chief Financial Officer

kbassano@southlandholdings.com

 

Alex Murray

Corporate Development & Investor Relations

amurray@southlandholdings.com

 

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