LEGATO(LGTO) - 2025 Q4 - Annual Results

Financial Performance - Revenue for Q4 2025 was $104.0 million, a decrease of $163.3 million, or 61.1%, compared to Q4 2024 revenue of $267.3 million[6] - Gross loss for Q4 2025 was $193.4 million, compared to a gross profit of $7.7 million in Q4 2024, resulting in a gross margin decrease from 2.9% to (186.0)%[13] - Net loss attributable to stockholders for Q4 2025 was $216.4 million, or $(4.00) per share, compared to a net loss of $4.2 million, or $(0.09) per share in Q4 2024[6] - Full year 2025 revenue was $772.2 million, a decrease of $208.0 million, or 21.2%, compared to $980.2 million in 2024[17] - Full year 2025 gross loss was $155.3 million, compared to a gross loss of $63.0 million in 2024, with gross margin decreasing from (6.4)% to (20.1)%[18] - Total revenue for the three months ended December 31, 2025, was $103,957, a decrease of 61.0% compared to $267,250 for the same period in 2024[21] - The net loss attributable to Southland Stockholders for the year ended December 31, 2025, was $(306,540), compared to a net loss of $(105,365) for 2024[23] Backlog and Project Commitments - The company has a backlog of $2.03 billion, indicating ongoing project commitments[6] - The backlog as of December 31, 2025, was $2,031,080, down from $2,572,912 at the end of 2024, after accounting for new contracts and revenue recognized[24] Funding and Financial Flexibility - A $135.8 million unfavorable adjustment was recorded due to an adverse ruling related to the Washington State Convention Center project, impacting both revenue and costs[7] - The company secured approximately $116 million in funding from sureties to support ongoing projects, enhancing financial flexibility[9] Expenses and Liabilities - Selling, general, and administrative expenses for Q4 2025 were $17.0 million, an increase of $1.3 million, or 8.2%, compared to Q4 2024[14] - Current liabilities increased to $654,985 as of December 31, 2025, compared to $621,142 as of December 31, 2024[27] - The company reported a significant increase in accounts payable, which rose to $224,915 as of December 31, 2025, from $191,670 as of December 31, 2024[27] Cash Flow and Assets - Cash and cash equivalents decreased to $52,713 as of December 31, 2025, from $72,185 as of December 31, 2024[27] - Net cash provided by operating activities for the year ended December 31, 2025, was $16,581, compared to $1,927 for the same period in 2024[30] - Total assets decreased to $989,280 as of December 31, 2025, from $1,203,649 as of December 31, 2024[27] Interest and Tax Payments - Southland reported cash paid for income taxes of $1.163 billion, an increase from $1.561 million in the previous period[31] - Cash paid for interest was $35.281 million, compared to $28.047 million previously, indicating a rise in interest expenses[31] Company Overview and Future Outlook - The company is a leading provider of specialized infrastructure construction services, with a history dating back to 1900[33] - Southland emphasizes the importance of non-GAAP financial measures for understanding financial trends, including EBITDA and backlog[35] - Forward-looking statements indicate that actual results may differ materially from projections due to inherent uncertainties and risks[37] - Southland's conference call is scheduled for March 27, 2026, at 10:00 a.m. Eastern Time[32]