Southland Holdings Earnings Call Transcripts
Fiscal Year 2026
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Revenue declined year-over-year due to legacy dispute impacts, resulting in a net loss and negative EBITDA. Progress on legacy project wind-down, asset monetization, and a restructured credit facility are expected to improve financial flexibility and support a strong core backlog.
Fiscal Year 2025
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Fourth quarter and full year 2025 results were heavily impacted by a major legal charge and legacy project adjustments, resulting in significant losses. Despite these challenges, over $2 billion in backlog and new capital support position the business for recovery as restructuring progresses.
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Revenue and gross profit improved significantly year-over-year, driven by strong core business performance and completion of legacy projects. Backlog remains robust at $2.26 billion, with continued demand in infrastructure and data centers. One-time tax expense impacted net results.
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Q2 revenue declined year-over-year, but gross profit and margins improved significantly as legacy projects wound down and core business performance strengthened. Backlog remains robust at $2.3 billion, with strong market tailwinds from federal and state infrastructure funding.
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Q1 2025 saw improved gross margins and strong Civil segment performance, despite lower revenue and a net loss driven by legacy project impacts. Backlog remains robust at $2.5 billion, with new awards and a strong pipeline supporting positive outlook for the year.
Fiscal Year 2024
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Revenue and margins declined year-over-year due to legacy project issues, but core projects delivered strong double-digit margins and backlog remains robust. Management expects positive EBITDA and strong cash flow in 2025, with new awards ramping up in the second half.
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Revenue fell sharply year-over-year due to legacy project charges and timing delays, resulting in a net loss and negative EBITDA. However, a record core backlog, improved cash position, and strategic initiatives set the stage for a return to profitability in 2025.
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Second quarter results showed a net loss of $46 million on $252 million in revenue, impacted by $40 million in legacy dispute settlements. Strong cash flow, a growing backlog, and new project wins position the company for improved performance as legacy issues are resolved.