Southland Announces Third Quarter 2025 Results
-
Revenue of
$213.3 million $173.3 million -
Gross profit of
$3.3 million $51.1 million -
Gross profit margin of
1.5% for the quarter ended September 30, 2025, compared to (29.5)% for the quarter ended September 30, 2024. -
Income tax expense of
$57.2 million $17.1 million -
Net loss attributable to stockholders of
$75.3 million $(1.39) $54.7 million $(1.14) -
EBITDA of
$(3.5) million $(58.7) million -
Backlog of
$2.26 billion
(1) |
This allowance is required under GAAP. This does not limit utilization of the respective tax assets in the future. |
(2) |
Please refer to “Non-GAAP Measures” and reconciliations for our non-GAAP financial measures, including, “EBITDA” and “Backlog”. |
“Our core business continues to perform well, evidenced by the strength in our civil segment and the continued execution of our new core work,” said Frank Renda, Southland’s President & Chief Executive Officer. “While this quarter’s results reflect a one-time non-cash tax charge and unfavorable adjustments related to certain legacy projects and dispute resolutions, these items do not impact the momentum we are seeing across our core business. We remain focused on winding down legacy backlog and capitalizing on robust demand for critical infrastructure in our core markets.”
2025 Third Quarter Results
Condensed Consolidated Statements of Operations (unaudited) |
|||||
|
|
|
|
|
|
|
Three Months Ended |
||||
(Amounts in thousands) |
September 30, 2025 |
|
September 30, 2024 |
||
Revenue |
$ |
213,343 |
|
$ |
173,320 |
Cost of construction |
|
210,068 |
|
|
224,425 |
Gross profit (loss) |
|
3,275 |
|
|
(51,105) |
Selling, general, and administrative expenses |
|
14,587 |
|
|
17,492 |
Operating loss |
|
(11,312) |
|
|
(68,597) |
Gain on investments, net |
|
50 |
|
|
5 |
Other income, net |
|
639 |
|
|
841 |
Interest expense |
|
(9,166) |
|
|
(7,520) |
Losses before income taxes |
|
(19,789) |
|
|
(75,271) |
Income tax expense (benefit) |
|
57,194 |
|
|
(17,142) |
Net loss |
|
(76,983) |
|
|
(58,129) |
Net loss attributable to noncontrolling interests |
|
(1,714) |
|
|
(3,402) |
Net loss attributable to Southland Stockholders |
$ |
(75,269) |
|
$ |
(54,727) |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
Basic (1) |
$ |
(1.39) |
|
$ |
(1.14) |
Diluted (1) |
$ |
(1.39) |
|
$ |
(1.14) |
Weighted average shares outstanding |
|
|
|
|
|
Basic (1) |
|
54,113,036 |
|
|
48,105,512 |
Diluted (1) |
|
54,113,036 |
|
|
48,105,512 |
____________________ |
|
(1) |
Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three months ended September 30, 2025, and September 30, 2024, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented. |
Revenue for the three months ended September 30, 2025, was
Gross profit for the three months ended September 30, 2025, was
Selling, general, and administrative costs for the three months ended September 30, 2025, were
Condensed Consolidated Statements of Operations (unaudited) |
|||||
|
|
|
|
|
|
|
Nine Months Ended |
||||
(Amounts in thousands) |
September 30, 2025 |
|
September 30, 2024 |
||
Revenue |
$ |
668,211 |
|
$ |
712,929 |
Cost of construction |
|
630,093 |
|
|
783,635 |
Gross profit (loss) |
|
38,118 |
|
|
(70,706) |
Selling, general, and administrative expenses |
|
44,624 |
|
|
47,566 |
Operating loss |
|
(6,506) |
|
|
(118,272) |
Gain (loss) on investments, net |
|
126 |
|
|
(18) |
Other income, net |
|
1,564 |
|
|
2,430 |
Interest expense |
|
(28,023) |
|
|
(19,895) |
Losses before income taxes |
|
(32,839) |
|
|
(135,755) |
Income tax expense (benefit) |
|
56,820 |
|
|
(32,796) |
Net loss |
|
(89,659) |
|
|
(102,959) |
Net income (loss) attributable to noncontrolling interests |
|
468 |
|
|
(1,749) |
Net loss attributable to Southland Stockholders |
$ |
(90,127) |
|
$ |
(101,210) |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
Basic (1) |
$ |
(1.67) |
|
|
(2.11) |
Diluted (1) |
$ |
(1.67) |
|
|
(2.11) |
Weighted average shares outstanding |
|
|
|
|
|
Basic (1) |
|
54,028,363 |
|
|
48,020,822 |
Diluted (1) |
|
54,028,363 |
|
|
48,020,822 |
____________________ |
|
(1) |
Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the nine months ended September 30, 2025, and September 30, 2024, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented. |
Revenue for the nine months ended September 30, 2025, was
Gross profit for the nine months ended September 30, 2025, was
Selling, general, and administrative costs for the nine months ended September 30, 2025, were
Segment Revenue |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||||||
(Amounts in thousands) |
|
September 30, 2025 |
|
September 30, 2024 |
|
||||||
|
|
|
|
|
% of Total |
|
|
|
|
% of Total |
|
Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
||
Civil |
|
$ |
99,481 |
|
46.6 |
% |
$ |
55,849 |
|
32.2 |
% |
Transportation |
|
|
113,862 |
|
53.4 |
% |
|
117,471 |
|
67.8 |
% |
Total revenue |
|
$ |
213,343 |
|
100.0 |
% |
$ |
173,320 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
||||||||
(Amounts in thousands) |
|
September 30, 2025 |
|
September 30, 2024 |
|
||||||
|
|
|
|
|
% of Total |
|
|
|
|
% of Total |
|
Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
||
Civil |
|
$ |
283,927 |
|
42.5 |
% |
$ |
219,490 |
|
30.8 |
% |
Transportation |
|
|
384,284 |
|
57.5 |
% |
|
493,439 |
|
69.2 |
% |
Total revenue |
|
$ |
668,211 |
|
100.0 |
% |
$ |
712,929 |
|
100.0 |
% |
Segment Gross Profit (Loss) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||||||
(Amounts in thousands) |
|
September 30, 2025 |
|
September 30, 2024 |
|
||||||
|
|
|
|
% of Segment |
|
|
|
% of Segment |
|
||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Loss |
|
Revenue |
|
||
Civil |
|
$ |
10,427 |
|
10.5 |
% |
$ |
(18,336) |
|
(32.8) |
% |
Transportation |
|
|
(7,152) |
|
(6.3) |
% |
|
(32,769) |
|
(27.9) |
% |
Gross profit (loss) |
|
$ |
3,275 |
|
1.5 |
% |
$ |
(51,105) |
|
(29.5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
||||||||
(Amounts in thousands) |
|
September 30, 2025 |
|
September 30, 2024 |
|
||||||
|
|
|
|
% of Segment |
|
|
|
|
% of Segment |
|
|
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
||
Civil |
|
$ |
47,663 |
|
16.8 |
% |
$ |
8,694 |
|
4.0 |
% |
Transportation |
|
|
(9,545) |
|
(2.5) |
% |
|
(79,400) |
|
(16.1) |
% |
Gross profit (loss) |
|
$ |
38,118 |
|
5.7 |
% |
$ |
(70,706) |
|
(9.9) |
% |
EBITDA Reconciliation |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
(Amounts in thousands) |
|
September 30, 2025 |
|
September 30, 2024 |
|
September 30, 2025 |
|
September 30, 2024 |
||||
Net loss attributable to Southland Stockholders |
|
$ |
(75,269) |
|
$ |
(54,727) |
|
$ |
(90,127) |
|
$ |
(101,210) |
Depreciation and amortization |
|
|
5,629 |
|
|
5,776 |
|
|
17,530 |
|
|
16,925 |
Income tax expense (benefit) |
|
|
57,194 |
|
|
(17,142) |
|
|
56,820 |
|
|
(32,796) |
Interest expense |
|
|
9,166 |
|
|
7,520 |
|
|
28,023 |
|
|
19,895 |
Interest income |
|
|
(221) |
|
|
(167) |
|
|
(1,473) |
|
|
(527) |
EBITDA |
|
|
(3,501) |
|
|
(58,740) |
|
|
10,773 |
|
|
(97,713) |
Backlog |
||||
|
|
|
||
(Amounts in thousands) |
|
|||
Balance December 31, 2024 |
$ |
2,572,912 |
||
New contracts, change orders, and adjustments |
|
354,351 |
||
Less: contract revenue recognized in 2025 |
|
(668,211) |
||
Balance September 30, 2025 |
$ |
2,259,052 |
||
Condensed Consolidated Balance Sheets (unaudited) |
|||||
|
|
|
|
|
|
(Amounts in thousands, except share and per share data) |
As of |
||||
ASSETS |
September 30, 2025 |
|
December 31, 2024 |
||
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
40,482 |
|
$ |
72,185 |
Restricted cash |
|
16,862 |
|
|
15,376 |
Accounts receivable, net |
|
195,072 |
|
|
179,320 |
Retainage receivables |
|
120,535 |
|
|
112,264 |
Contract assets |
|
468,551 |
|
|
483,181 |
Other current assets |
|
28,177 |
|
|
19,326 |
Total current assets |
|
869,679 |
|
|
881,652 |
|
|
|
|
|
|
Property and equipment, net |
|
112,188 |
|
|
116,328 |
Right-of-use assets |
|
9,900 |
|
|
14,897 |
Investments - unconsolidated entities |
|
134,608 |
|
|
126,705 |
Investments - limited liability companies |
|
2,590 |
|
|
2,590 |
Investments - private equity |
|
2,554 |
|
|
2,699 |
Deferred tax asset |
|
143 |
|
|
54,531 |
Goodwill |
|
1,528 |
|
|
1,528 |
Intangible assets, net |
|
1,180 |
|
|
1,180 |
Other noncurrent assets |
|
1,698 |
|
|
1,539 |
Total noncurrent assets |
|
266,389 |
|
|
321,997 |
Total assets |
$ |
1,136,068 |
|
$ |
1,203,649 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
233,895 |
|
$ |
191,670 |
Retainage payable |
|
35,413 |
|
|
33,622 |
Accrued liabilities |
|
76,812 |
|
|
91,515 |
Current portion of long-term debt |
|
51,356 |
|
|
44,525 |
Short-term operating lease liabilities |
|
6,272 |
|
|
10,104 |
Contract liabilities |
|
268,210 |
|
|
249,706 |
Total current liabilities |
|
671,958 |
|
|
621,142 |
|
|
|
|
|
|
Long-term debt |
|
216,443 |
|
|
255,625 |
Long-term operating lease liabilities |
|
16,838 |
|
|
10,791 |
Deferred tax liabilities |
|
3,071 |
|
|
292 |
Financing obligations, net |
|
41,462 |
|
|
41,468 |
Long-term accrued liabilities |
|
58,075 |
|
|
58,075 |
Other noncurrent liabilities |
|
40,781 |
|
|
40,847 |
Total long-term liabilities |
|
376,670 |
|
|
407,098 |
Total liabilities |
|
1,048,628 |
|
|
1,028,240 |
|
|
|
|
|
|
Commitment and contingencies (Note 6) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
5 |
|
|
5 |
Additional paid-in-capital |
|
292,872 |
|
|
292,173 |
Accumulated deficit |
|
(214,745) |
|
|
(124,618) |
Accumulated other comprehensive loss |
|
(3,155) |
|
|
(3,902) |
Total stockholders' equity |
|
74,977 |
|
|
163,658 |
Noncontrolling interest |
|
12,463 |
|
|
11,751 |
Total equity |
|
87,440 |
|
|
175,409 |
Total liabilities and equity |
$ |
1,136,068 |
|
$ |
1,203,649 |
Condensed Consolidated Statement of Cash Flows (unaudited) |
|||||
|
|
|
|
|
|
|
Nine Months Ended |
||||
(Amounts in thousands) |
September 30, 2025 |
|
September 30, 2024 |
||
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
$ |
(89,659) |
|
$ |
(102,959) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
Depreciation and amortization |
|
17,530 |
|
|
16,925 |
Amortization of deferred financing costs |
|
1,387 |
|
|
— |
Loss on extinguishment of debt |
|
— |
|
|
246 |
Deferred taxes |
|
57,218 |
|
|
(28,379) |
Share based compensation |
|
820 |
|
|
1,674 |
Gain on sale of assets |
|
(2,743) |
|
|
(3,279) |
Foreign currency remeasurement gain |
|
(53) |
|
|
(53) |
Loss (earnings) from equity method investments |
|
(8,131) |
|
|
2,453 |
TZC investment present value accretion |
|
— |
|
|
(3,367) |
Loss (gain) on trading securities, net |
|
(126) |
|
|
18 |
Changes in assets and liabilities: |
|
|
|
|
|
Accounts and retainage receivables |
|
(23,055) |
|
|
2,196 |
Contract assets |
|
14,861 |
|
|
97,801 |
Other current assets |
|
(8,851) |
|
|
859 |
Right-of-use assets |
|
4,997 |
|
|
(1,096) |
Accounts payable, retainage payable and accrued liabilities |
|
28,174 |
|
|
(22,659) |
Contract liabilities |
|
18,498 |
|
|
50,115 |
Operating lease liabilities |
|
(4,976) |
|
|
1,227 |
Other |
|
1,002 |
|
|
520 |
Net cash provided by operating activities |
|
6,893 |
|
|
12,242 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property and equipment |
|
(3,446) |
|
|
(6,210) |
Proceeds from sale of property and equipment |
|
6,264 |
|
|
4,453 |
Contributions to other investments |
|
— |
|
|
(59) |
Distributions from other investments |
|
271 |
|
|
181 |
Distributions from investees |
|
184 |
|
|
4,183 |
Capital contribution to unconsolidated investments |
|
(184) |
|
|
(250) |
Net cash provided by investing activities |
|
3,089 |
|
|
2,298 |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Borrowings on revolving credit facility |
|
— |
|
|
5,000 |
Payments on revolving credit facility |
|
— |
|
|
(95,000) |
Borrowings on notes payable |
|
— |
|
|
167,784 |
Payments on notes payable |
|
(39,010) |
|
|
(80,613) |
Proceeds from financing obligations |
|
— |
|
|
42,500 |
Payments of deferred financing costs |
|
(297) |
|
|
(5,468) |
Pre-payment premium |
|
— |
|
|
(246) |
Payments to related parties |
|
(3) |
|
|
— |
Payments on finance lease and financing obligations |
|
(832) |
|
|
(5,314) |
Payment of taxes related to net share settlement of RSUs |
|
(121) |
|
|
(206) |
Net cash provided by (used in) financing activities |
|
(40,263) |
|
|
28,437 |
|
|
|
|
|
|
Effect of exchange rate on cash |
|
64 |
|
|
(49) |
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
(30,217) |
|
|
42,928 |
Beginning of period |
|
87,561 |
|
|
63,820 |
End of period |
$ |
57,344 |
|
$ |
106,748 |
|
|
|
|
|
|
Supplemental cash flow information |
|
|
|
|
|
Cash paid for income taxes |
$ |
734 |
|
$ |
1,079 |
Cash paid for interest |
$ |
26,781 |
|
$ |
18,886 |
Non-cash investing and financing activities: |
|
|
|
|
|
Lease assets obtained in exchange for new leases |
$ |
9,311 |
|
$ |
9,881 |
Assets obtained in exchange for notes payable |
$ |
5,585 |
|
$ |
23,286 |
Related party payable exchanged for note payable |
$ |
— |
|
$ |
3,797 |
Conference
Southland will host a conference call at 10:00 a.m. Eastern Time on Thursday, November 13, 2025. The call may be accessed here, or at www.southlandholdings.com. Following the conference call, a replay will be available on Southland’s website.
About Southland
Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in
For more information, please visit Southland’s website at southlandholdings.com.
Non-GAAP Financial Measures
This press release includes certain unaudited financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including but not limited to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), backlog, and certain ratios and other metrics derived therefrom. Note that other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Further, these non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. Southland believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Southland’s financial condition and results of operations. Southland also believes that these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which items of expense and income are excluded or included in determining these non-GAAP financial measures.
Please see the accompanying table for reconciliations of the following non-GAAP financial measures for Southland’s current and historical results: EBITDA (non-GAAP financial measures) to net income (loss) attributable to common stock.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Any forward-looking statement made by Southland in this press release is based only on information currently available to Southland and speaks only as of the date on which it is made. Southland undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251112298460/en/
Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
Source: Southland Holdings, Inc.
