Southland Announces Third Quarter 2026 Results

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GRAPEVINE, Texas--(BUSINESS WIRE)-- 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 September 30, 2026.

• Revenue of $233.8 million for the quarter ended September 30, 2026, compared to $213.3 million for the quarter ended September 30, 2025.
• Gross profit of $20.6 million for the quarter ended September 30, 2026, compared to $1.9 million in gross profit for the quarter ended September 30, 2025.
• Gross profit margin of 8.8% for the quarter ended September 30, 2026, compared to 0.9% gross profit margin for the quarter ended September 30, 2025.
• Other income, net of $32.4 million for the quarter ended September 30, 2026, compared to $2.0 million in other income, net for the quarter ended September 30, 2025. The increase was primarily driven by $28.7 million of other income related to the previously disclosed settlement with Liberty Mutual in connection with the Washington State Convention Center Project.
• Net income attributable to stockholders of $33.7 million, or $0.62 per diluted share for the quarter ended September 30, 2026, compared to a net loss attributable to stockholders of $75.3 million, or $ (1.39) per share for the quarter ended September 30, 2025.
• EBITDA of $43.2 million for the quarter ended September 30, 2026, compared to $ (3.5) million for the quarter ended September 30, 2025. ⁽¹⁾
• Backlog of $1.71 billion. ⁽¹⁾

(1)	Please refer to “Non-GAAP Financial Measures” and reconciliations for our non-GAAP financial measures, including “EBITDA” and “Backlog”

“Our third quarter results reflect continued execution of our strategic plan and an improvement in our operating performance,” said Frank Renda, Southland’s President & Chief Executive Officer. “During the quarter, we improved gross margin to 8.8%, delivered operating income of $7.0 million, and grew our backlog to $1.71 billion. This marks meaningful progress, and we remain focused on the work ahead. Demand for our services continues to be strong, and we believe Southland is well positioned to convert its share of new opportunities into profitable awards.”

2026 Third Quarter Results

Condensed Consolidated Statements of Operations (unaudited)
	Three Months Ended
(Amounts in thousands)	September 30, 2026			September 30, 2025
Revenue	$	233,775		$	213,343
Cost of construction		213,189			211,402
Gross profit		20,586			1,941
Selling, general, and administrative expenses		13,628			14,587
Operating income (loss)		6,958			(12,646)
Gain (loss) on investments, net		(5)			50
Other income, net		32,402			1,973
Interest expense		(4,109)			(9,166)
Earnings (losses) before income taxes		35,246			(19,789)
Income tax expense		543			57,194
Net income (loss)		34,703			(76,983)
Net income (loss) attributable to noncontrolling interests		990			(1,714)
Net income (loss) attributable to Southland stockholders	$	33,713		$	(75,269)
Net income (loss) per share attributable to common stockholders
Basic (1)	$	0.62		$	(1.39)
Diluted (1)	$	0.62		$	(1.39)
Weighted average shares outstanding
Basic (1)		54,473,554			54,113,036
Diluted (1)		54,490,750			54,113,036

____________________
(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, 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, 2026, was $233.8 million, an increase of $20.4 million, or 9.6%, compared to the three months ended September 30, 2025. The Materials & Paving business contributed $17.4 million to revenue in the three months ended September 30, 2026.

Gross profit for the three months ended September 30, 2026, was $20.6 million compared to gross profit of $1.9 million for the three months ended September 30, 2025. Gross margin increased from 0.9% to 8.8% for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The Materials & Paving business negatively impacted gross profit by $10.2 million in the three months ended September 30, 2026.

Selling, general, and administrative costs for the three months ended September 30, 2026, were $13.6 million, a decrease of $1.0 million, or 6.6%, compared to the three months ended September 30, 2025. Selling, general, and administrative costs as a percent of revenue were 5.8% for the three months ended September 30, 2026, compared to 6.8% for the three months ended September 30, 2025.

Condensed Consolidated Statements of Operations (unaudited)
	Nine Months Ended
(Amounts in thousands)	September 30, 2026			September 30, 2025
Revenue	$	519,486		$	668,211
Cost of construction		574,889			632,823
Gross profit (loss)		(55,403)			35,388
Selling, general, and administrative expenses		45,276			44,624
Operating loss		(100,679)			(9,236)
Gain on investments, net		209			126
Other income, net		38,923			4,294
Interest expense		(20,126)			(28,023)
Losses before income taxes		(81,673)			(32,839)
Income tax expense (benefit)		(1,050)			56,820
Net loss		(80,623)			(89,659)
Net income (loss) attributable to noncontrolling interests		(1,717)			468
Net loss attributable to Southland stockholders	$	(78,906)		$	(90,127)
Net loss per share attributable to common stockholders
Basic (1)	$	(1.45)		$	(1.67)
Diluted (1)	$	(1.45)		$	(1.67)
Weighted average shares outstanding
Basic (1)		54,281,990			54,028,363
Diluted (1)		54,281,990			54,028,363

____________________
(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, 2026, and September 30, 2025, 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, 2026, was $519.5 million, a decrease of $148.7 million, or 22.3%, compared to the nine months ended September 30, 2025. The Materials & Paving business contributed $40.1 million to revenue in the nine months ended September 30, 2026.

Gross loss for the nine months ended September 30, 2026, was $55.4 million compared to gross profit of $35.4 million for the nine months ended September 30, 2025. Gross margin decreased from 5.3% to (10.7)% for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The Materials & Paving business negatively impacted gross profit by $39.6 million in the nine months ended September 30, 2026.

Selling, general, and administrative costs for the nine months ended September 30, 2026, were $45.3 million, an increase of $0.7 million, or 1.5%, compared to the nine months ended September 30, 2025. Selling, general, and administrative costs as a percent of revenue were 8.7% for the nine months ended September 30, 2026, compared to 6.7% for the nine months ended September 30, 2025.

Segment Revenue

		Three Months Ended
(Amounts in thousands)		September 30, 2026					September 30, 2025
					% of Total					% of Total
Segment		Revenue			Revenue		Revenue			Revenue
Civil		$	107,342		45.9	%	$	99,481		46.6	%
Transportation			126,433		54.1	%		113,862		53.4	%
Total revenue		$	233,775		100.0	%	$	213,343		100.0	%

		Nine Months Ended
(Amounts in thousands)		September 30, 2026					September 30, 2025
					% of Total					% of Total
Segment		Revenue			Revenue		Revenue			Revenue
Civil		$	252,121		48.5	%	$	283,927		42.5	%
Transportation			267,365		51.5	%		384,284		57.5	%
Total revenue		$	519,486		100.0	%	$	668,211		100.0	%

Segment Gross Profit (Loss)

		Three Months Ended
(Amounts in thousands)		September 30, 2026					September 30, 2025
					% of Segment					% of Segment
Segment		Gross Profit			Revenue		Gross Profit			Revenue
Civil		$	14,308		13.3	%	$	10,398		10.5	%
Transportation			6,278		5.0	%		(8,457)		(7.4)	%
Gross profit		$	20,586		8.8	%	$	1,941		0.9	%

		Nine Months Ended
(Amounts in thousands)		September 30, 2026					September 30, 2025
					% of Segment					% of Segment
Segment		Gross Profit			Revenue		Gross Profit			Revenue
Civil		$	1,886		0.7	%	$	47,164		16.6	%
Transportation			(57,289)		(21.4)	%		(11,776)		(3.1)	%
Gross profit (loss)		$	(55,403)		(10.7)	%	$	35,388		5.3	%

EBITDA Reconciliation

		Three Months Ended						Nine Months Ended
(Amounts in thousands)		September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Net income (loss) attributable to Southland stockholders		$	33,713		$	(75,269)		$	(78,906)		$	(90,127)
Depreciation and amortization			5,000			5,629			16,081			17,530
Income tax expense (benefit)			543			57,194			(1,050)			56,820
Interest expense			4,109			9,166			20,126			28,023
Interest income			(174)			(221)			(542)			(1,473)
EBITDA			43,191			(3,501)			(44,291)			10,773

Backlog

(Amounts in thousands)
Balance December 31, 2025	$	2,031,080
New contracts, change orders, and adjustments		202,745
Less: contract revenue recognized in 2026		(519,486)
Balance September 30, 2026	$	1,714,339

Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands, except share and per share data)	As of
ASSETS	September 30, 2026			December 31, 2025
Current assets
Cash and cash equivalents	$	35,936		$	52,713
Restricted cash		10,875			14,755
Accounts receivable, net		122,569			145,031
Retainage receivables		97,630			101,779
Contract assets		257,191			389,362
Other current assets		26,297			30,326
Total current assets		550,498			733,966
Property and equipment, net		87,644			107,305
Right-of-use assets		8,570			10,524
Investments - unconsolidated entities		124,067			129,696
Investments - limited liability companies		2,262			2,323
Investments - private equity		2,387			2,588
Deferred tax asset		20			3
Goodwill		1,528			1,528
Intangible assets, net		1,180			1,180
Other noncurrent assets		—			167
Total noncurrent assets		227,658			255,314
Total assets	$	778,156		$	989,280
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	85,998		$	224,915
Retainage payable		27,629			36,977
Accrued liabilities		53,510			80,011
Current portion of long-term debt		39,618			53,731
Short-term operating lease liabilities		6,717			6,808
Contract liabilities		181,730			252,543
Total current liabilities		395,202			654,985
Long-term debt		386,479			203,971
Long-term operating lease liabilities		12,853			16,403
Deferred tax liabilities		1,509			3,032
Financing obligations, net		41,352			41,440
Long-term accrued liabilities		58,075			58,075
Surety payable		55,366			103,205
Other noncurrent liabilities		40,599			40,675
Total long-term liabilities		596,233			466,801
Total liabilities		991,435			1,121,786
Stockholders' equity (deficit)
Preferred stock, $0.0001 par value, authorized 50,000,000 shares, none issued and outstanding as of September 30, 2026 and December 31, 2025		—			—
Common stock, $0.0001 par value, authorized 500,000,000 shares, 54,508,944 and 54,113,036 issued and outstanding as of September 30, 2026 and December 31, 2025, respectively		5			5
Additional paid-in-capital		294,092			293,237
Accumulated deficit		(510,064)			(431,158)
Accumulated other comprehensive loss		(3,662)			(3,018)
Total stockholders' equity (deficit)		(219,629)			(140,934)
Noncontrolling interest		6,350			8,428
Total equity (deficit)		(213,279)			(132,506)
Total liabilities and equity	$	778,156		$	989,280

Condensed Consolidated Statement of Cash Flows (unaudited)
	Nine Months Ended
(Amounts in thousands)	September 30, 2026			September 30, 2025
Cash flows from operating activities:
Net loss	$	(80,623)		$	(89,659)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		16,081			17,530
Amortization of deferred financing costs		1,412			1,387
Gain on extinguishment of surety payable		(28,703)			—
Deferred taxes		(1,450)			57,218
Share based compensation		885			820
Gain on sale of assets		(10,099)			(2,743)
Foreign currency remeasurement (gain) loss		82			(53)
Loss (earnings) from equity method investments		2,835			(8,131)
Gain on trading securities, net		(209)			(126)
Changes in assets and liabilities:
Accounts and retainage receivables		49,278			2,861
Contract assets		109,425			(11,055)
Other current assets		4,030			(8,851)
Right-of-use assets		1,954			4,997
Accounts payable, retainage payable and accrued liabilities		(174,598)			28,174
Contract liabilities		(70,825)			18,498
Operating lease liabilities		(2,078)			(4,976)
Other noncurrent liabilities		(5,000)			—
Other		3,920			1,002
Net cash provided by (used in) operating activities		(183,683)			6,893
Cash flows from investing activities:
Purchase of property and equipment		(1,509)			(3,446)
Proceeds from sale of property and equipment		13,096			6,264
Distributions from other investments		410			271
Distributions from investees		—			184
Capital contribution to unconsolidated investments		—			(184)
Return of investment in limited liability company		61			—
Net cash provided by investing activities		12,058			3,089
Cash flows from financing activities:
Advancement of surety funds		220,740			—
Payments on notes payable		(67,867)			(39,010)
Payments of deferred financing costs		—			(297)
Payments to related parties		(4)			(3)
Payments on finance lease and financing obligations		(1,643)			(832)
Distribution to members		(217)			—
Payment of taxes related to net share settlement of RSUs		(30)			(121)
Net cash provided by (used in) financing activities		150,979			(40,263)
Effect of exchange rate on cash		(11)			64
Net decrease in cash and cash equivalents and restricted cash		(20,657)			(30,217)
Beginning of period		67,468			87,561
End of period	$	46,811		$	57,344
Supplemental cash flow information
Cash paid for income taxes	$	775		$	734
Cash paid for interest	$	15,154		$	26,781
Non-cash investing and financing activities:
Lease assets obtained in exchange for new leases	$	2,184		$	9,311
Assets obtained in exchange for notes payable	$	—		$	5,585

Conference Call

Southland will host a conference call at 10:00 a.m. Eastern Time on Friday, November 13, 2026. 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 North America, with experience throughout the world. The company serves the bridges, tunneling, communications, data centers, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets. Southland is headquartered in Grapevine, Texas.

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 Southland stockholders.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Southland’s current beliefs, expectations and assumptions regarding the future of Southland’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Southland’s control. Southland’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

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/20261112398941/en/

Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com

Alex Murray
Vice President, Corporate Development & Investor Relations
amurray@southlandholdings.com

Source: Southland Holdings, Inc.

Key Terms

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

anti-dilutive financial

A claim, security feature, or action described as anti-dilutive prevents or does not cause a reduction in existing shareholders’ per-share values when additional shares could be issued. For example, certain convertible securities or corporate actions are treated as anti-dilutive for earnings-per-share calculations if including them would raise EPS rather than lower it; investors watch this because it affects reported per-share metrics, ownership percentages, and valuation comparisons, like keeping pie slices the same size instead of making them smaller.