Financial Performance - Total revenue for Q2 2025 was $215,382, a decrease of 14.4% compared to $251,512 in Q2 2024[18] - Gross profit for Q2 2025 was $13,363, compared to a gross loss of $40,022 in Q2 2024, indicating a significant improvement[18] - Net loss attributable to Southland stockholders for Q2 2025 was $10,306, compared to a net loss of $46,077 in Q2 2024, reflecting a reduction in losses[18] - The company reported a comprehensive loss attributable to Southland stockholders of $8,231 for Q2 2025, compared to $46,667 in Q2 2024[21] - For the six months ended June 30, 2025, Southland Holdings reported a net loss of $12.676 million, a significant improvement compared to a net loss of $44.830 million for the same period in 2024, representing a reduction of approximately 72.7%[27] - 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 same period in 2024[160] - Net loss attributable to Southland Stockholders for the six months ended June 30, 2025, was $14.9 million, compared to a net loss of $46.5 million for the same period in 2024[159] - EBITDA for the six months ended June 30, 2025, was $14.3 million, a significant improvement from a loss of $39.0 million in the same period of 2024[181] Assets and Liabilities - Total current assets decreased to $867,183 as of June 30, 2025, from $881,652 as of December 31, 2024, a decline of 1.6%[17] - Total liabilities decreased to $1,019,800 as of June 30, 2025, down from $1,028,240 as of December 31, 2024, a reduction of 0.2%[17] - Cash and cash equivalents decreased to $46,517 as of June 30, 2025, from $72,185 as of December 31, 2024, a decline of 35.5%[17] - Total stockholders' equity decreased to $165,468 as of June 30, 2025, from $175,409 as of December 31, 2024, a decline of 5.4%[17] - As of June 30, 2025, total long-term debt was $229,728,000, a decrease from $255,625,000 as of December 31, 2024[80] - Total debt as of June 30, 2025, was $278.6 million, with $48.9 million due within the next twelve months[194] Revenue Segmentation - Civil segment revenue for the three months ended June 30, 2025, was $81.5 million, representing 37.9% of total revenue, compared to $79.4 million (31.6%) in 2024[77] - Transportation segment revenue for the three months ended June 30, 2025, was $133.9 million, accounting for 62.1% of total revenue, down from $172.1 million (68.4%) in 2024[77] - Civil segment revenue for the three months ended June 30, 2025, was $81.5 million, an increase of $2.2 million, or 2.7%, compared to the same period in 2024[168] - Transportation segment revenue for the three months ended June 30, 2025, was $133.9 million, a decrease of $38.3 million, or 22.2%, compared to the same period in 2024[170] - Total revenue for the six months ended June 30, 2025, was $454.9 million, with the Civil segment contributing $184.4 million and the Transportation segment contributing $270.4 million[172] Expenses and Costs - Selling, general, and administrative expenses for Q2 2025 were $13,572, down from $15,680 in Q2 2024, a decrease of 13.4%[18] - Interest expense for the three months ended June 30, 2025, was $10.0 million, an increase of $3.3 million, or 48.6%, compared to $6.7 million for the same period in 2024[156] - Interest expense for the six months ended June 30, 2025, was $18.9 million, an increase of $6.5 million, or 52.4%, compared to the same period in 2024[164] - Cost of construction for the three months ended June 30, 2025, was $202.0 million, a decrease of $89.5 million, or 30.7%, compared to $291.5 million for the same period in 2024[153] - Cost of construction for the six months ended June 30, 2025, was $420.0 million, a decrease of $139.2 million, or 24.9%, compared to the same period in 2024[161] Cash Flow and Financing - Cash flows from operating activities provided $996 thousand for the six months ended June 30, 2025, compared to $17.534 million in the same period of 2024, indicating a decrease in operational cash generation[27] - The company had total cash, cash equivalents, and restricted cash of $63.296 million at the end of June 30, 2025, down from $87.561 million at the beginning of the period, reflecting a decrease of approximately 27.7%[44] - Net cash provided by operating activities was $1.0 million for the six months ended June 30, 2025, a decrease from $17.5 million in the same period of 2024[191] - Net cash used in financing activities was $26.1 million for the six months ended June 30, 2025, primarily due to $25.2 million in payments on notes payable[193] - The company expects cash flow from operations and available cash to meet liquidity needs for at least the next twelve months[188] Tax and Regulatory Matters - The effective tax rate for the three months ended June 30, 2025, was 0.6%, significantly lower than the federal statutory tax rate of 21%[106] - Southland Holdings reported a net deferred tax asset position for both U.S. federal and state income tax as of June 30, 2025, with a valuation allowance of approximately $2.9 million related to certain U.S. subsidiaries[107] - The Company maintains a valuation allowance of $7.8 million related to net deferred tax assets on certain Canadian subsidiaries due to financial losses[108] - As of June 30, 2025, the valuation allowance related to United Kingdom operations was $16.6 million, reflecting historic losses[109] - The Tax Act signed into law on July 4, 2025, is expected to decrease the time required for the Company to utilize its current net deferred tax assets due to favorable changes in business interest expense limitation calculations[110] Operational Insights - The company is currently evaluating the impact of ASU 2023-09, which establishes new income tax disclosure requirements effective after December 15, 2024[54] - The company anticipates further spending on infrastructure due to economic stimulus initiatives, including the Infrastructure Investment and Jobs Act[141] - The company is evaluating the potential impacts of recent tariff actions on construction materials and their effects on operations and customer demand[143] - The company segregates its business into two reportable segments: Transportation and Civil, with no material intersegment revenue[71] - The company adopted ASU 2023-05 in Q1 2025, which did not have a material impact on consolidated financial statements[51] Shareholder Information - Weighted average shares outstanding increased to 54,008,088 in Q2 2025 from 48,030,951 in Q2 2024, an increase of 12.5%[18] - Southland Holdings completed a merger on February 14, 2023, resulting in the issuance of 33,793,111 shares of common stock and net proceeds of $17.1 million[33] - The company declared a $50 million dividend prior to the merger, which was recorded as a promissory note payable to members, accruing interest at 7.0%[34] Legal and Claims - The CityLYNX project claims damages in excess of $115 million, with ongoing mediation efforts[102]
LEGATO(LGTO) - 2025 Q2 - Quarterly Report