Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [10] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [10][4] - Selling, general, and administrative costs decreased by $2.9 million to $14.6 million compared to the same period in 2024 [11] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [13] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, an increase from $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [14] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [15] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [15] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [6] - The company expects to burn approximately 39% of the backlog over the next 12 months [16] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, which is expected to de-risk the earnings profile [6] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with a strong emphasis on data center opportunities [7][8] - The company is well-positioned to benefit from the Infrastructure Investment and Jobs Act (IIJA) and recent state-level funding initiatives, such as Texas's Proposition 4 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for infrastructure projects and the potential for strong cash flow from operations in 2026 [32] - The company anticipates that legacy projects will have less impact on overall results in 2026 as they continue to wind down these projects [16] - Management maintains confidence in the long-term outlook and future direction of the business, expecting to improve profitability as they focus on core work [41] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [16] - A one-time non-cash tax expense of $57.3 million was recorded due to a valuation allowance on net deferred tax assets [12] Q&A Session Summary Question: Inquiry about data centers and private projects - Management indicated that they are looking at data center opportunities that align with their core market, with a mix of private and public projects [21] Question: Progress on legacy claims - Management expressed optimism about settling more legacy claims in the next 12 months, noting progress on smaller disputes [22][23] Question: Free cash flow outlook for Q4 - Management expects to see positive cash flow overall from operations in 2026, despite potential decreases in Q4 and Q1 of 2026 [32] Question: Size and runway of quick-turn projects in the Civil segment - Management highlighted strong civil margins and the positive impact of Texas's Proposition 4 on future projects [34] Question: Competitive advantage with tunnel boring machines - Management noted that they have a significant advantage with their fleet of tunnel boring machines, which positions them well for upcoming opportunities [35] Question: Expectations for core business margins in 2027 - Management anticipates improved profitability in 2027 as they focus on core work and complete legacy projects [41]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [10] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [10][4] - Selling, general, and administrative costs decreased by $2.9 million to $14.6 million compared to the same period in 2024 [11] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [13] - EBITDA was negative $3.5 million, an improvement from negative $58.7 million for the same period in 2024 [13] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, up from $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [14] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [15] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [15] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [6] - The company expects to burn approximately 39% of the backlog over the next 12 months [16] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [6] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with a strong emphasis on data center opportunities [7][8] - The company is positioned to benefit from significant public market opportunities driven by the Infrastructure Investment and Jobs Act (IIJA) [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resolution of legacy disputes and expects significant cash collections from these disputes [5][22] - The outlook for the market remains positive, with robust demand for infrastructure expected to continue for years [6] - The company anticipates improving profitability as it transitions fully into its core business by 2027 [41] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [16] - A one-time non-cash tax expense of $57.3 million was recorded due to a valuation allowance on net deferred tax assets [12] Q&A Session Summary Question: Inquiry about data centers and private projects - Management indicated that they are looking at data centers that align with their core market, with opportunities ranging from $15 million to $75 million [40] Question: Free cash flow outlook for Q4 - Management noted that while positive cash flow from operations was generated, a decrease may be expected in Q4 and Q1 of 2026, but overall positive cash flow is anticipated in 2026 [32] Question: Impact of Texas's Proposition Four on civil projects - Management expressed confidence in civil margins and highlighted the potential benefits from the $20 billion allocated for water projects in Texas [34] Question: Competitive advantage with tunnel boring machines - Management stated that they have a significant advantage with their own tunnel boring machines and a large fleet, positioning them well for upcoming tunnel opportunities [35] Question: Expectations for core business margins in 2027 - Management expects to improve profitability in 2027 as they focus on core work, following a reset year in 2025 [41]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [5][13] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [6][13] - Selling, general, and administrative costs decreased to $14.6 million, down $2.9 million compared to the same period in 2024 [14] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [15] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, compared to $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [16][17] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [18] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [18] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [7][19] - The company expects to burn approximately 39% of the backlog over the next 12 months [19] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [7][11] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with strong demand for large-scale data centers [9][10] - The company is positioned to benefit from significant opportunities under the Infrastructure Investment and Jobs Act (IIJA) and recent funding commitments in Texas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for infrastructure projects and the potential for strong cash flow in 2026 [8][38] - The company anticipates that legacy projects will have less impact on overall results in 2026 as they continue to wind down these projects [19] - Management maintains confidence in the long-term outlook and future direction of the business, expecting to improve profitability in the coming years [12][47] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [20] Q&A Session Summary Question: Inquiry about data centers and private market opportunities - Management indicated that they are looking at data centers that align with their core market, with strong opportunities in both public and private sectors [26][27] Question: Clarification on legacy claims and their resolution - Management expressed optimism about settling more legacy claims in the next 12 months, noting progress on smaller disputes [28][29] Question: Expectations for project delays and Q4 performance - Management expects Q4 to be similar to Q3, with a slight uptick anticipated [30][31] Question: Free cash flow outlook for Q4 - Management indicated positive cash flow from operations year-to-date, with expectations for some decrease in Q4 but overall positive cash flow in 2026 [37][38] Question: Size and runway of quick-turn projects in the Civil segment - Management highlighted strong civil margins and the positive impact of Texas's Proposition 4 on future projects [40] Question: Competitive advantage with tunnel boring machines - Management noted a significant advantage in having a large fleet of tunnel boring machines, positioning them well for upcoming opportunities [41] Question: Typical project sizes for data centers - Management indicated they are looking at data center projects ranging from $15-$20 million to $50-$75 million [46] Question: Future margin expectations post-legacy work - Management expects to improve profitability as they transition fully into core markets by 2027 [47]

Core Insights - Southland Holdings (SLND) reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, but an improvement from a loss of $1.14 per share a year ago [1] - The company posted revenues of $213.34 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 13.87%, but showing an increase from $173.32 million in the same quarter last year [2] - Southland shares have increased by approximately 39.7% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $246.8 million, and for the current fiscal year, it is -$0.59 on revenues of $949.3 million [7] - The estimate revisions trend for Southland was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Building Products - Miscellaneous industry, to which Southland belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Southland's stock performance [5]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $213,343,000, an increase of 23% compared to $173,320,000 for the same period in 2024[17] - Gross profit for the three months ended September 30, 2025, was $3,275,000, compared to a gross loss of $51,105,000 in the same period last year[17] - The net loss attributable to Southland stockholders for the three months ended September 30, 2025, was $75,269,000, compared to a net loss of $54,727,000 for the same period in 2024[17] - The company reported a comprehensive loss of $78,156,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $57,891,000 for the same period in 2024[18] - For the nine months ended September 30, 2024, Southland Holdings reported a net loss of $120.463 million, compared to a net loss of $65.736 million for the same period in 2023, indicating a significant increase in losses[22] - The company reported a net loss of $89.7 million for the nine months ended September 30, 2025[192] Assets and Liabilities - Total current assets decreased to $869,679,000 as of September 30, 2025, from $881,652,000 as of December 31, 2024[16] - Total liabilities increased to $1,048,628,000 as of September 30, 2025, compared to $1,028,240,000 as of December 31, 2024[16] - Cash and cash equivalents decreased to $40,482,000 as of September 30, 2025, from $72,185,000 as of December 31, 2024[16] - The company’s accumulated deficit increased to $214,745,000 as of September 30, 2025, from $124,618,000 as of December 31, 2024[16] - As of September 30, 2025, total cash, cash equivalents, and restricted cash decreased to $57.344 million from $87.561 million at the end of 2024, representing a decline of approximately 34.4%[42] Cash Flow and Financing - Operating activities generated a net cash inflow of $6.893 million for the nine months ended September 30, 2024, a decrease from $12.242 million in the prior year[25] - The company experienced a decrease in cash and cash equivalents, ending the period with $57.344 million, down from $106.748 million at the end of the previous year[25] - Cash paid for interest increased to $26.781 million from $18.886 million, reflecting higher financing costs[25] - The company had a net change in cash, cash equivalents, and restricted cash of $(30.2) million for the nine months ended September 30, 2025, compared to an increase of $42.9 million in 2024[191] - The Credit Agreement provides for a four-year secured $160.0 million term loan facility, with a maturity date of September 30, 2028[197] Segment Performance - The Civil segment generated revenue of $99.5 million (46.6% of total revenue) for the three months ended September 30, 2025, compared to $55.8 million (32.2%) in the same period of 2024[73] - The Transportation segment reported revenue of $113.9 million (53.4% of total revenue) for the three months ended September 30, 2025, down from $117.5 million (67.8%) in the same period of 2024[73] - Civil segment revenue for the nine months ended September 30, 2025, was $283.9 million, an increase of $64.4 million, or 29.4%, compared to the same period in 2024[175] - Transportation segment revenue for the nine months ended September 30, 2025, was $384.3 million, a decrease of $109.2 million, or 22.1%, compared to the same period in 2024[177] Expenses - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $14,587,000, down from $17,492,000 in the same period last year[17] - Interest expense for the three months ended September 30, 2025, was $9.2 million, an increase of $1.6 million, or 21.9%, compared to the same period in 2024[155] - Depreciation and amortization expenses increased to $17.530 million from $16.925 million year-over-year, reflecting ongoing investment in infrastructure[25] Tax and Valuation - The effective tax rate for the three months ended September 30, 2025, was (289.0%), significantly impacted by state income taxes and valuation allowances against deferred tax assets[102] - The company recorded a valuation allowance of approximately $62.5 million related to its U.S. federal and state net deferred tax assets as of September 30, 2025[103] Market and Future Outlook - The company is focused on expanding its capabilities in specialty infrastructure construction, with a diverse portfolio of projects across various sectors[27] - The company expects favorable changes from the One Big Beautiful Bill Act, which may allow for the acceleration of previously capitalized R&D expenditures[106] - The Company anticipates further spending on infrastructure projects due to economic stimulus initiatives, including the Infrastructure Investment and Jobs Act passed in 2021[136] - The company has seen an increase in demand for specialty construction projects at federal, state, and local levels, which is expected to continue[136] Stock and Compensation - The weighted average shares outstanding for basic and diluted shares were 54,113,036 for the three months ended September 30, 2025[17] - As of September 30, 2025, there were 788,151 Restricted Stock Units (RSUs) outstanding with a weighted-average grant-date fair value of $3.93 per RSU, compared to 679,371 RSUs with a value of $5.31 per RSU as of September 30, 2024[122] - The Company recognized a total compensation cost of $0.1 million and $0.8 million for the three and nine months ended September 30, 2025, respectively, compared to $0.4 million and $1.7 million for the same periods in 2024[123]

Financial Performance - Revenue for Q3 2025 was $213.3 million, an increase of $40.0 million, or 23.1%, compared to $173.3 million in Q3 2024[5] - Gross profit for Q3 2025 was $3.3 million, compared to a gross loss of $51.1 million in Q3 2024, resulting in a gross profit margin of 1.5%[5] - Net loss attributable to stockholders for Q3 2025 was $75.3 million, or $(1.39) per share, compared to a net loss of $54.7 million, or $(1.14) per share in Q3 2024[5] - EBITDA for Q3 2025 was $(3.5) million, an improvement from $(58.7) million in Q3 2024[5] - For the nine months ended September 30, 2025, revenue was $668.2 million, a decrease of $44.7 million, or 6.3%, compared to $712.9 million in the same period of 2024[13] - Gross profit for the nine months ended September 30, 2025, was $38.1 million, compared to a gross loss of $70.7 million for the same period in 2024, resulting in a gross margin of 5.7%[14] - Net loss for the nine months ended September 30, 2025, was $89,659 thousand, an improvement from a net loss of $102,959 thousand for the same period in 2024, reflecting a reduction of about 12.3%[24] Backlog and Revenue Segmentation - Backlog as of September 30, 2025, was $2.26 billion, down from $2.57 billion at the end of 2024[5][19] - The Civil segment generated $99.5 million in revenue for Q3 2025, representing 46.6% of total revenue, while the Transportation segment contributed $113.9 million, or 53.4%[16] - The company has a significant backlog, which is a key indicator of future revenue, although specific figures were not disclosed in the provided content[29] Expenses and Liabilities - Selling, general, and administrative expenses for Q3 2025 were $14.6 million, a decrease of $2.9 million, or 16.6%, compared to Q3 2024[10] - Total current liabilities increased to $671,958 thousand as of September 30, 2025, compared to $621,142 thousand as of December 31, 2024, marking an increase of about 8.2%[21] - Cash paid for interest increased to $26,781 thousand for the nine months ended September 30, 2025, compared to $18,886 thousand for the same period in 2024, reflecting an increase of about 41.7%[24] Cash Flow and Assets - Cash and cash equivalents decreased to $40,482 thousand as of September 30, 2025, down from $72,185 thousand as of December 31, 2024, indicating a decline of approximately 43.9%[21] - Total assets decreased to $1,136,068 thousand as of September 30, 2025, from $1,203,649 thousand as of December 31, 2024, representing a decline of approximately 5.6%[21] - Accounts receivable, net increased to $195,072 thousand as of September 30, 2025, from $179,320 thousand as of December 31, 2024, indicating an increase of approximately 8.8%[21] - Long-term debt decreased to $216,443 thousand as of September 30, 2025, from $255,625 thousand as of December 31, 2024, representing a decline of about 15.3%[21] Company Overview and Future Outlook - Southland reported a net income of $5.585 billion for the latest fiscal year, compared to a loss of $3.797 billion in the previous year[25] - Southland is a leading provider of specialized infrastructure construction services, with operations across various sectors including bridges, tunneling, and water treatment[27] - The company will host a conference call on November 13, 2025, to discuss its financial results and future outlook[26] - Southland emphasizes the importance of non-GAAP financial measures, such as EBITDA, to provide insights into its financial performance[29] - Forward-looking statements indicate that Southland's future performance may be subject to uncertainties and risks that could impact actual results[31] - The company has no obligation to update forward-looking statements unless new information or developments arise[32] - Southland's financial measures may not be directly comparable to those of other companies due to different calculation methods[29] - The company is headquartered in Grapevine, Texas, and has a long history dating back to 1900[27] Investor Relations - Southland's investor relations contacts include Keith Bassano, CFO, and Alex Murray, Corporate Development & Investor Relations[33]

Core Insights - Southland Holdings, Inc. will release its third quarter 2025 results on November 12, 2025, after market close [1] - A conference call is scheduled for November 13, 2025, at 10:00 a.m. Eastern Time to discuss the results [2] - Southland is a leading provider of specialized infrastructure construction services with a history dating back to 1900 [3] Financial Performance - For the second quarter of 2025, Southland reported revenue of $215.4 million, a decrease from $251.5 million in the same quarter of 2024 [7] - The gross profit for the second quarter of 2025 was $13.4 million, compared to a gross loss of $40.0 million in the previous year [7] Recent Projects - Southland has been awarded two projects totaling approximately $130 million, including a bridge rehabilitation project in the Pacific Northwest and a water resource project in Austin, Texas [6]

Core Insights - Southland Holdings Inc. has been awarded two new infrastructure projects with a total value of approximately $130 million, which will be included in its Q3 2025 backlog [1][2]. Group 1: Project Details - The first project involves bridge rehabilitation for a private client in the Pacific Northwest, awarded through the Transportation segment subsidiary, American Bridge Company [2]. - The second project is a water resource initiative located in Austin, Texas, secured through the Civil segment subsidiary, Oscar Renda Contracting [2]. Group 2: Company Overview - Southland Holdings Inc. operates in the specialty infrastructure construction business in North America, divided into two segments: Civil and Transportation [3].

Core Insights - Premarket trading is showing notable activity with early price movements indicating potential opportunities before the market opens [1] Premarket Gainers - Galaxy Payroll Group Limited (GLXG) increased by 39% to $5.34 - Lithium Americas Corp. (LAC) rose by 31% to $7.52 - Senmiao Technology Limited (AIHS) gained 22% to $2.45 - The AES Corporation (AES) saw a 10% increase to $14.53 - Strive, Inc. (ASST) also increased by 10% to $2.77 - Shoulder Innovations, Inc. (SI) rose by 9% to $13.78 - Top KingWin Ltd (WAI) increased by 8% to $3.80 - Southland Holdings, Inc. (SLND) saw a 7% increase to $4.61 - CaliberCos Inc. (CWD) rose by 6% to $4.75 - Mannatech, Incorporated (MTEX) increased by 5% to $10.53 [3] Premarket Losers - Real Messenger Corporation (RMSG) decreased by 16% to $2.01 - Etoiles Capital Group Co., Ltd (EFTY) fell by 14% to $14.45 - Enanta Pharmaceuticals, Inc. (ENTA) dropped by 13% to $10.41 - CollPlant Biotechnologies Ltd. (CLGN) saw an 11% decrease to $2.39 - Fortress Biotech, Inc. (FBIO) declined by 10% to $3.30 - Uni-Fuels Holdings Limited (UFG) fell by 9% to $7.52 - Alset Inc. (AEI) decreased by 9% to $2.30 - JFB Construction Holdings (JFB) saw a 5% decline to $12.20 - SHF Holdings, Inc. (SHFS) dropped by 5% to $6.80 - Phio Pharmaceuticals Corp. (PHIO) decreased by 5% to $2.34 [4]

Core Viewpoint - Southland Holdings, Inc. has been awarded two projects totaling approximately $130 million, indicating strong business growth and opportunities in the infrastructure sector [1] Project Details - The first project is a bridge rehabilitation for a private client located in the Pacific Northwest, executed through its subsidiary, American Bridge Company [1] - The second project involves a water resource initiative in the City of Austin, Texas, managed by its subsidiary, Oscar Renda Contracting [1]