Southland Holdings (SLND) Q2 2025 Earnings Call August 13, 2025 10:00 AM ET Speaker0Good morning. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southland Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.You. Alex, you may begin your conference.Speaker1Good morning, everyone, and welcome t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41090 Southland Holdings, Inc. (Exact name of registrant as specified in its charter) (817) 293-4263 (Registrant ...

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. "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 & ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Quanta Services (PWR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.Quanta Services is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges ...

Company Performance - Gibraltar Industries (ROCK) has gained approximately 0.3% year-to-date, outperforming the average loss of 2.4% in the Construction sector [4] - The Zacks Consensus Estimate for Gibraltar Industries' full-year earnings has increased by 0.2% over the past quarter, indicating improved analyst sentiment [4] - Gibraltar Industries is currently ranked 2 (Buy) in the Zacks Rank system, suggesting a positive outlook for the stock [3] Industry Context - Gibraltar Industries is part of the Building Products - Miscellaneous industry, which consists of 30 companies and currently ranks 61 in the Zacks Industry Rank [6] - The average performance of the Building Products - Miscellaneous industry has seen a decline of 9% year-to-date, highlighting Gibraltar Industries' relative strength [6] - Another notable stock in the Construction sector, Southland Holdings (SLND), has increased by 14.5% year-to-date and also holds a Zacks Rank of 2 (Buy) [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $239 million, down $49 million from the same period in 2024 [17] - Gross profit was $21.5 million, an increase of $1.1 million from the same period in 2024, with a gross profit margin of 9%, up from 7.1% in the prior year [18][19] - The company reported a net loss of $4.5 million or a loss of $0.08 per share, compared to a net loss of $400,000 or a loss of $0.01 per share in the same period last year [19] - EBITDA for the quarter was $10.1 million, compared to $10.9 million for the same period in 2024 [20] Business Line Data and Key Metrics Changes - The Civil segment had revenues of $103 million, up from $84 million in the same period in 2024, with a gross profit of $23 million, an increase of $5 million [20] - The Transportation segment had revenues of $137 million, a decrease of $67 million from the same period in 2024, with a gross loss of $1 million compared to a gross profit of $3 million in the prior year [21] - The materials and paving business line contributed $18 million to revenue but had a negative gross profit of $9 million due to increased project costs [21][22] Market Data and Key Metrics Changes - The company added approximately $137 million in new awards during the quarter, bringing the total backlog to approximately $2.5 billion [12][22] - The historical client mix consists of approximately 80% government agencies and 20% private clients, providing insulation from broader economic uncertainty [12] Company Strategy and Development Direction - The company is focused on strengthening its leadership team and enhancing performance, with recent appointments including a new CFO and Chief Strategy Officer [6][7] - The company aims to maintain a disciplined bidding approach and improve execution to drive strong margins [14] - Upcoming opportunities include significant projects in the Civil segment and transportation projects in various regions [13] Management's Comments on Operating Environment and Future Outlook - Management does not expect current tariffs to materially affect the business, citing minimal direct exposure to cross-border material procurement [10] - Demand for infrastructure projects remains strong, particularly from federal and state clients, with expectations for continued robust demand [11] - The company anticipates substantial completion of legacy projects by the end of 2025, with a focus on generating positive operating cash flow [50] Other Important Information - The company celebrated the 125th anniversary of its American Bridge subsidiary, highlighting its commitment to safety and engineering innovation [8] - The company has made significant progress in improving its balance sheet, with unrestricted cash position more than double compared to the end of Q1 last year [53] Q&A Session Summary Question: Outlook for Civil segment revenue - Management is optimistic about the Civil business, expecting strong double-digit margins and a potential shift towards civil projects as the paving business winds down [29][30] Question: Profit impact from Materials and Paving - The gross profit impact from Materials and Paving was $9 million, with a non-cash charge of $3.5 million related to a contract closeout [31] Question: Transportation booking outlook - Management is excited about the transportation market, with several projects in the pipeline and an expected uptick in bidding in the second half of the year [35] Question: Updates on alternative delivery projects - Progress is being made on the Winnipeg and Burnside Bridge projects, with expectations to develop them into construction contracts [42] Question: Bonding capacity status - The company maintains a strong relationship with surety partners and is targeting strategic projects in civil and transportation segments [44] Question: Margin profile expectations for the summer - Management anticipates a reduction in legacy impacts as new core projects ramp up, contributing positively to margins [50][52] Question: Free cash flow outlook - Positive operating cash flow was generated in Q1, with expectations for stronger cash flow in the latter half of the year [68]

Southland Holdings (SLND) Q1 2025 Earnings Call May 14, 2025 10:00 AM ET Speaker0 Good morning. My name is Chloe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southland First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer there question you. Alex, you may begin your conference. Speaker1 Good morning, everyone, and we ...

Company Performance - Southland Holdings (SLND) reported a quarterly loss of $0.08 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.41, representing an earnings surprise of 80.49% [1] - The company posted revenues of $239.49 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.99%, although this is a decline from year-ago revenues of $288.1 million [2] - Over the last four quarters, Southland has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Movement and Outlook - Southland shares have increased by approximately 10.5% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at -$0.28 for the coming quarter and -$1.01 for the current fiscal year [4][7] Industry Context - The Building Products - Miscellaneous industry, to which Southland belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Southland's stock performance [5]

Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9% compared to $288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2% from $20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of $406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to $(0.01) in Q1 2024[18] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of $0.525 million for the same period in 2024[25] - Gross profit for Q1 2025 was $21.5 million, an increase of $1.1 million, or 5.2%, compared to Q1 2024[154] - EBITDA for Q1 2025 was $10.08 million, down from $10.95 million in Q1 2024[169] Assets and Liabilities - Total current assets increased slightly to $884,954,000 from $881,652,000 at the end of 2024[17] - Total liabilities rose to $1,030,271,000, up from $1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from $72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from $163,658,000 at the end of 2024[17] - Total long-term debt as of March 31, 2025, was $241,309,000, down from $255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with $46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.9 million, representing 43.0% of total revenue, compared to $84.3 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.6 million, accounting for 57.0% of total revenue, down from $203.8 million or 70.7% in the previous year[76] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.0 million, a decrease of 18.6% from $267.7 million in the same period of 2024[77] - Selling, general, and administrative expenses for Q1 2025 were $16.5 million, an increase of $2.1 million, or 14.4%, compared to Q1 2024[155] - Interest expense increased to $8,874,000 from $5,655,000 in Q1 2024[18] - Interest expense for Q1 2025 was $8.9 million, an increase of $3.2 million, or 56.9%, compared to Q1 2024[156] Cash Flow - Cash flows from operating activities generated $6.429 million in Q1 2025, a significant improvement from a cash outflow of $9.897 million in Q1 2024[25] - Net cash provided by operating activities was $6.43 million in Q1 2025, compared to a net cash used of $9.90 million in Q1 2024[176] Backlog and Performance Obligations - Total backlog as of March 31, 2025, was $2.47 billion, down from $2.57 billion at the end of 2024, after recognizing $239.49 million in contract revenue[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from $961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from $1.61 billion at the end of 2024[171] - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40% as revenue in the next twelve months[114] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 10.1%, significantly lower than 36.9% for the same period in 2024[107] - The company is in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[88] - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[189] Other Financial Metrics - The company has outstanding surety bonds as of March 31, 2025, as a condition for entering into a substantial portion of its construction contracts[104] - The company has secured notes with interest rates ranging from 0.00% to 12.90%, expiring between December 2025 and March 2033[80] - The company has an outstanding balance of 608,254 Restricted Stock Units (RSUs) as of March 31, 2025, with a weighted-average grant-date fair value of $4.41[127] Management and Governance - An employment agreement with Keith Bassano was established on May 9, 2025, with an annual base salary of $357,000 and a performance bonus targeted between 80% and 200% of the base salary[202] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company has established effective disclosure controls and procedures as of the end of the reporting period[196]

[Southland First Quarter 2025 Results](index=1&type=section&id=Southland%20Announces%20First%20Quarter%202025%20Results) Southland announces its first quarter 2025 results, highlighting mixed performance with improved margins and positive cash flow [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Southland began 2025 with mixed results, achieving improved gross profit margins and positive operating cash flow despite a revenue decrease, reporting a net loss but maintaining a strong $2.47 billion backlog - CEO Frank Renda highlighted a strong start to 2025, with improved margins and positive operating cash flow, expressing confidence in driving long-term value due to strong market demand and a robust project pipeline[3](index=3&type=chunk) Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $239.5 million | $288.1 million | | Gross Profit | $21.5 million | $20.4 million | | Gross Profit Margin | 9.0% | 7.1% | | Net Loss Attributable to Stockholders | $(4.6) million | $(0.4) million | | EBITDA | $10.1 million | $10.9 million | | Backlog | $2.47 billion | N/A | [2025 First Quarter Financial Results](index=2&type=section&id=2025%20First%20Quarter%20Results) Q1 2025 saw revenue decline to $239.5 million, but gross profit improved to $21.5 million, while increased expenses led to a $4.6 million net loss, offset by positive operating cash flow [Condensed Consolidated Statements of Operations](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue decreased by 16.9% to $239.5 million, while gross profit increased to $21.5 million with a 9.0% margin, but higher SG&A and interest expenses led to a $4.6 million net loss Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $239,486 | $288,097 | | Gross profit | $21,480 | $20,421 | | Operating income | $5,015 | $6,027 | | Net loss attributable to Southland Stockholders | $(4,552) | $(406) | | Net loss per share (Basic & Diluted) | $(0.08) | $(0.01) | - Revenue for Q1 2025 decreased by **$48.6 million**, or **16.9%**, compared to Q1 2024[6](index=6&type=chunk) - Gross margin increased to **9.0%** in Q1 2025 from **7.1%** in Q1 2024. The Materials & Paving business had a negative impact of **$9.1 million** on gross profit[7](index=7&type=chunk) - Selling, general, and administrative (SG&A) costs increased by **14.4%** to **$16.5 million**, representing **6.9%** of revenue compared to **5.0%** in the prior year[8](index=8&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1.203 billion, total liabilities $1.030 billion, and equity $172.7 million, with cash decreasing to $65.1 million Balance Sheet Summary (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,202,929** | **$1,203,649** | | Cash and cash equivalents | $65,052 | $72,185 | | Total current assets | $884,954 | $881,652 | | **Total Liabilities** | **$1,030,271** | **$1,028,240** | | Total current liabilities | $638,288 | $621,142 | | Long-term debt | $241,309 | $255,625 | | **Total Equity** | **$172,658** | **$175,409** | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Q1 2025 saw $6.4 million cash generated from operations, a significant improvement, while investing provided $1.1 million and financing used $14.0 million, leading to a $6.4 million net cash decrease Cash Flow Summary (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $6,429 | $(9,897) | | Net cash provided by (used in) investing activities | $1,117 | $(432) | | Net cash used in financing activities | $(13,989) | $(6,943) | | **Net decrease in cash** | **$(6,445)** | **$(17,303)** | [Segment Performance and Backlog](index=3&type=section&id=Segment%20Performance%20and%20Backlog) Q1 2025 Civil segment revenue rose to $102.9 million with a 22.0% margin, while Transportation revenue fell to $136.6 million with a $1.2 million gross loss, maintaining a strong $2.47 billion total backlog Segment Revenue (in thousands) | Segment | Q1 2025 Revenue | % of Total | Q1 2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | Civil | $102,916 | 43.0% | $84,273 | 29.3% | | Transportation | $136,570 | 57.0% | $203,824 | 70.7% | | **Total** | **$239,486** | **100.0%** | **$288,097** | **100.0%** | Segment Gross Profit (Loss) (in thousands) | Segment | Q1 2025 Gross Profit (Loss) | % of Segment Revenue | Q1 2024 Gross Profit | % of Segment Revenue | | :--- | :--- | :--- | :--- | :--- | | Civil | $22,631 | 22.0% | $17,870 | 21.2% | | Transportation | $(1,151) | (0.8)% | $2,551 | 1.3% | | **Total** | **$21,480** | **9.0%** | **$20,421** | **7.1%** | Backlog Reconciliation (in thousands) | | Amount | | :--- | :--- | | 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** | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like EBITDA, which was $10.1 million in Q1 2025, and Backlog to provide additional performance insight, with reconciliation provided EBITDA Reconciliation (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended 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** | - The company states that non-GAAP measures like EBITDA and Backlog are used to provide useful information to investors but should not be considered in isolation or as an alternative to GAAP measures[21](index=21&type=chunk) [Other Information](index=7&type=section&id=Other%20Information) Southland, a leading North American infrastructure construction company, will host a conference call on May 14, 2025, to discuss results, with forward-looking statements subject to risks - A conference call to discuss the results will be held at **10:00 a.m. Eastern Time** on **Wednesday, May 14, 2025**[18](index=18&type=chunk) - Southland is a leading provider of specialized infrastructure construction services, with experience in bridges, tunneling, transportation, marine, and water/wastewater treatment[19](index=19&type=chunk) - The press release contains forward-looking statements that are based on current beliefs and are subject to inherent risks and uncertainties[23](index=23&type=chunk)