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] - 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 $102.96 million, compared to a net loss of $89.66 million for the same period in 2025, indicating a worsening financial performance year-over-year[25] - The company reported a net loss of $89.7 million for the nine months ended September 30, 2025[192] Revenue Breakdown - 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] - Revenue for the nine months ended September 30, 2025, was $668.2 million, a decrease of $44.7 million, or 6.3%, compared to the same period in 2024[160] - 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] Profitability Metrics - Gross profit for the nine months ended September 30, 2025, was $38,118,000, compared to a gross loss of $70,706,000 for the same period in 2024[17] - The gross profit for the three months ended September 30, 2025, was $3.3 million, compared to a gross loss of $51.1 million in the same period of 2024[75] - Gross profit for the nine months ended September 30, 2025, was $38.1 million, an increase of $108.8 million, or 153.9%, compared to the same period in 2024[162] Expenses and Costs - Selling, general, and administrative expenses for the nine months ended September 30, 2025, were $44,624,000, down from $47,566,000 for the same period in 2024[17] - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $14.6 million, a decrease of $2.9 million, or 16.6%, compared to the same period in 2024[154] - 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] - Interest expense for the nine months ended September 30, 2025, was $28.0 million, an increase of $8.1 million, or 40.9%, compared to the same period in 2024[164] Asset and Liability Management - 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] - Total stockholders' equity decreased to $87,440,000 as of September 30, 2025, from $175,409,000 as of December 31, 2024[16] - The company had total long-term debt of $216.4 million as of September 30, 2025, down from $255.6 million as of December 31, 2024[77] - Total debt as of September 30, 2025, was $267.8 million, with $51.4 million due within the next twelve months[195] Cash Flow Analysis - Cash flows from operating activities provided $12.24 million in 2024, while in 2025, the cash flows decreased to $6.89 million, highlighting a decline in operational efficiency[25] - Net cash provided by operating activities was $6.9 million for the nine months ended September 30, 2025, compared to $12.2 million for the same period in 2024, reflecting a decrease of 43%[192] - Net cash used in financing activities was $40.3 million for the nine months ended September 30, 2025, compared to a net cash provided of $28.4 million for the same period in 2024[194] 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] - The Company maintains a valuation allowance of $8.3 million related to net deferred tax assets on certain Canadian subsidiaries as of September 30, 2025[104] Market and Operational Outlook - The Civil and Transportation segments continue to identify new opportunities, with a positive outlook for the end markets served, despite existing risks and uncertainties[133] - 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]
LEGATO(LGTO) - 2025 Q3 - Quarterly Report