Southland (NYSE: SLND) hit by convention center ruling, swings to deep loss
Rhea-AI Filing Summary
Southland Holdings reported steep losses for fourth quarter and full-year 2025, driven by a major legal setback on a legacy project. Q4 2025 revenue fell to $104.0 million from $267.3 million, and net loss attributable to stockholders widened to $216.4 million, or $4.00 per share, from $4.2 million, or $0.09 per share.
For 2025, revenue declined 21.2% to $772.2 million, while net loss attributable to stockholders nearly tripled to $306.5 million, or $5.67 per share, and EBITDA was a loss of $191.4 million. Results were heavily impacted by a $135.8 million unfavorable adjustment tied to an adverse trial court ruling on the Washington State Convention Center project.
The company derecognized $40.3 million of contract assets, reduced retainage receivables by $6.4 million, and recorded an $89.1 million long-term accrued liability, contributing to stockholders’ equity turning to a $140.9 million deficit as of December 31, 2025. Despite this, Southland cited a $2.0 billion year-end backlog and highlighted surety support, including forbearance on any WSCC-related settlement until at least March 27, 2027, alongside a strategic plan focused on higher-margin core markets and debt reduction.
Positive
- None.
Negative
- None.
Insights
Large legal charge and equity deficit mark a materially weaker 2025 for Southland.
Southland’s 2025 results show a sharp deterioration. Revenue dropped to $772.2M, and net loss attributable to stockholders deepened to $306.5M. EBITDA was a loss of $191.4M, indicating that operations, before interest and non-cash items, were significantly unprofitable.
The adverse ruling on the Washington State Convention Center project is central. Management recorded a total $135.8M impact, including a long-term accrued liability of $89.1M and derecognition of contract assets and retainage. This pushed stockholders’ equity from a positive $163.7M at December 31, 2024 to a deficit of $140.9M at December 31, 2025.
Sureties will fund any WSCC settlement and have agreed to forbear repayment until at least March 27, 2027, which helps liquidity near term but creates a sizable future obligation. The company still reports $2.03B of backlog and modest positive operating cash flow of $16.6M in 2025, but the balance sheet leverage and negative margins mean execution on its strategic plan and backlog conversion will be critical to stabilizing results.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
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| American LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02 Results of Operations and Financial Condition.
On March 26, 2026, Southland Holdings, Inc., a Delaware corporation (the “Company”), issued a press release announcing financial results for the quarter and year ended December 31, 2025. Additional information is included in the Company’s press release. A copy of the Company’s press release is attached hereto as Exhibit 99.1. The foregoing description of the press release is qualified in its entirety by reference to the attached exhibit.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description | |
| 99.1 | Press Release dated March 26, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document) |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: March 26, 2026 | SOUTHLAND HOLDINGS, INC. | ||
| By: | /s/ Frank S. Renda | ||
| Name: | Frank S. Renda | ||
| Title: | President and Chief Executive Officer | ||
2
Exhibit 99.1
Southland Announces Fourth Quarter & Full Year 2025 Results
GRAPEVINE, Texas, March 26, 2026 -- 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 and full year ended December 31, 2025.
Fourth Quarter 2025 Results Include:
| ● | Revenue of $104.0 million for the quarter ended December 31, 2025, compared to $267.3 million for the quarter ended December 31, 2024. |
| ● | Gross loss of $193.4 million for the quarter ended December 31, 2025, compared to $7.7 million in gross profit for the quarter ended December 31, 2024. |
| ● | Net loss attributable to stockholders of $216.4 million, or $(4.00) per share for the quarter ended December 31, 2025, compared to a net loss attributable to stockholders of $4.2 million, or $(0.09) per share for the quarter ended December 31, 2024. |
| ● | EBITDA of $(202.2) million for the quarter ended December 31, 2025, compared to $(2.7) million for the quarter ended December 31, 2024. (1) |
| ● | Backlog of $2.03 billion.(1) |
Full Year 2025 Results Include:
| ● | Revenue of $772.2 million for the year ended December 31, 2025, compared to $980.2 million for the year ended December 31, 2024. |
| ● | Gross loss of $155.3 million for the year ended December 31, 2025, compared to $63.0 million in gross loss for the year ended December 31, 2024. |
| ● | Income tax expense of $56.5 million for the year ended December 31, 2025, primarily driven by a non-cash charge related to the establishment of a valuation allowance on deferred taxes, compared to income tax benefit of $46.9 million for the year ended December 31, 2024. (2) |
| ● | Net loss attributable to stockholders of $306.5 million, or $(5.67) per share for the year ended December 31, 2025, compared to a net loss attributable to stockholders of $105.4 million, or $(2.19) per share for the year ended December 31, 2024. |
| ● | EBITDA of $(191.4) million for the year ended December 31, 2025, compared to $(100.4) million for the year ended December 31, 2024. (1) |
Frank Renda, Southland’s President & CEO said, “While I am disappointed in this quarter’s results, I am fully accountable for our results and am committed to the strategic plan we have launched to move Southland forward. The capital support provided by our sureties, including replacing our senior lender, is a significant vote of confidence in our team and provides us additional financial flexibility to focus on the project execution of our $2 billion backlog. As part of our plan, we continue to focus on core market opportunities with higher margins, as evidenced by the recently announced $118 million of project awards, led by a data center project. We are also taking decisive action to right-size our asset base and pay down debt, positioning Southland to emerge from this period as a leaner, more disciplined, and more profitable organization.”
| (1) | Please refer to “Non-GAAP Measures” and reconciliations for our non-GAAP financial measures, including, “EBITDA” and “Backlog” | |
| (2) | This allowance is required under GAAP. This does not limit utilization of the respective tax assets in the future. |
Business Update:
Washington State Convention Center Adverse Ruling
The fourth quarter and full year 2025 financial results were impacted by a $135.8 million unfavorable adjustment related to an adverse trial court ruling involving the construction of the Washington State Convention Center (“WSCC”). This was a legacy project that Southland acquired through the 2020 acquisition of American Bridge. The unfavorable adjustment reflects the reversal of Southland’s expected recovery of American Bridge’s initial claims for damages and the recognition of a long-term liability as a result of the counterclaim by the counterparty awarded to the counterparty in the trial court ruling. On January 15, 2026, the trial court entered a judgment against American Bridge and certain of its sureties, jointly and severally, in the principal amount of $57.1 million. Interest and fees were assessed by the court at a later date. Because the adverse ruling makes the likelihood of recovering the claimed amount and collectability no longer probable, the Company derecognized contract assets as of December 31, 2025, on its consolidated balance sheet, resulting in a $40.3 million non-cash charge to revenue on its consolidated statement of operations for the quarter and year ended December 31, 2025.
While the Company intended to appeal as of December 31, 2025, certain of its sureties entered into negotiations with the counterparty on behalf of the Company subsequent to December 31, 2025, in accordance with certain rights available to the sureties included in certain General Indemnity Agreements (“GIAs”). Any settlement that is agreed upon will be paid by certain of Southland’s sureties under the respective GIAs with the sureties. The sureties agreed to forbear on seeking repayment of any settlement related to the WSCC adverse ruling until at least March 27, 2027. Based on these negotiations and due to the events occurring prior to December 31, 2025, that led to the adverse ruling, the Company recorded a long-term accrued liability of $89.1 million and a reduction to retainage receivables of $6.4 million on the consolidated balance sheet related to the principal judgment, fees, sanctions and interest as of December 31, 2025. This resulted in a decrease in revenue of $6.4 million and an increase of $89.1 million in cost of construction on the Company’s consolidated statements of operations for the quarter and year ended December 31, 2025. The total impact to the consolidated statements of operations for the fourth quarter and full year 2025 is $135.8 million, of which $46.7 million is recorded as a reduction of revenue and $89.1 million is recorded in cost of construction. The total impact to the consolidated balance sheets is a $40.3 million reduction in contract assets, a $6.4 million reduction in retainage receivables, and a $89.1 million increase in other noncurrent liabilities.
Strategic Plan
Southland has launched a strategic plan focused on the following:
| ● | Capital Restructuring: The Company executed a comprehensive restructuring of its senior credit facility. Southland’s sureties have replaced the previous senior lender, assuming the remaining $110 million in debt. The sureties have agreed to waive all scheduled quarterly principal and monthly interest payments through maturity, which is expected to reduce debt service requirements by approximately $27 million over the next twelve months. The Company and the sureties are working on an amendment to the credit agreement. |
| ● | Liquidity & Support: The Company has secured approximately $116 million in funding from its sureties to support ongoing bonded construction projects. This included approximately $14 million as of December 31, 2025, and $102 million subsequent to year end. This partnership should provide Southland with enhanced financial flexibility to successfully close out legacy contracts while executing on the remainder of its $2 billion backlog. Repayment terms are currently being negotiated in a long-term financing agreement and the sureties have agreed to forbear any repayment until at least March 27, 2027. |
| ● | Asset Monetization: To further strengthen the balance sheet, the Company expects to monetize non-core assets, including idle equipment and certain real estate holdings. This initiative should optimize the asset base and aligns the fleet with Southland’s core project footprint. Proceeds from these asset sales, alongside the resolution of certain claims, are expected to pay down the senior credit facility prior to maturity. |
| ● | Core Market Focus: Moving forward, the Company continues to concentrate its bidding activity on water resource, bridge, marine, and tunnel projects in geographies where its teams have historically delivered the highest margins. This disciplined approach is yielding results, as evidenced by $118 million of recently announced awards, including a $48 million contract for critical utility infrastructure at a Southwest data center. |
2
2025 Fourth Quarter & Full Year Results
Condensed Consolidated Statements of Operations
| Three Months Ended | ||||||||
| (Amounts in thousands) | December 31, 2025 |
December 31, 2024 |
||||||
| Revenue | $ | 103,957 | $ | 267,250 | ||||
| Cost of construction | 297,334 | 259,584 | ||||||
| Gross profit (loss) | (193,377 | ) | 7,666 | |||||
| Selling, general, and administrative expenses | 16,999 | 15,708 | ||||||
| Operating loss | (210,376 | ) | (8,042 | ) | ||||
| Gain (loss) on investments, net | 165 | (207 | ) | |||||
| Other income, net | 180 | 1,201 | ||||||
| Interest expense | (8,996 | ) | (9,617 | ) | ||||
| Losses before income taxes | (219,027 | ) | (16,665 | ) | ||||
| Income tax benefit | (323 | ) | (14,096 | ) | ||||
| Net loss | (218,704 | ) | (2,569 | ) | ||||
| Net income (loss) attributable to noncontrolling interests | (2,291 | ) | 1,586 | |||||
| Net loss attributable to Southland Stockholders | $ | (216,413 | ) | $ | (4,155 | ) | ||
| Net loss per share attributable to common stockholders | ||||||||
| Basic (1) | $ | (4.00 | ) | $ | (0.09 | ) | ||
| Diluted (1) | $ | (4.00 | ) | $ | (0.09 | ) | ||
| Weighted average shares outstanding | ||||||||
| Basic (1) | 54,113,036 | 47,877,558 | ||||||
| Diluted (1) | 54,113,036 | 47,877,558 | ||||||
| (1) | Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three months ended December 31, 2025, and December 31, 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 December 31, 2025, was $104.0 million, a decrease of $163.3 million, or 61.1%, compared to the three months ended December 31, 2024. Materials & Paving business had a reversal of $10.6 million to revenue in the three months ended December 31, 2025.
Gross loss for the three months ended December 31, 2025, was $193.4 million compared to gross profit of $7.7 million for the three months ended December 31, 2024. Gross margin decreased from 2.9% to (186.0)% for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. Materials & Paving business negatively impacted gross loss by $26.9 million in the three months ended December 31, 2025.
Selling, general, and administrative costs for the three months ended December 31, 2025, were $17.0 million, an increase of $1.3 million, or 8.2%, compared to the three months ended December 31, 2024. Selling, general, and administrative costs as a percent of revenue were 16.4% for the three months ended December 31, 2025, compared to 5.9% for the three months ended December 31, 2024.
3
Condensed Consolidated Statements of Operations
| Year Ended | ||||||||
| (Amounts in thousands) | December 31, 2025 |
December 31, 2024 |
||||||
| Revenue | $ | 772,168 | $ | 980,179 | ||||
| Cost of construction | 927,427 | 1,043,219 | ||||||
| Gross loss | (155,259 | ) | (63,040 | ) | ||||
| Selling, general, and administrative expenses | 61,623 | 63,274 | ||||||
| Operating loss | (216,882 | ) | (126,314 | ) | ||||
| Gain (loss) on investments, net | 291 | (225 | ) | |||||
| Other income, net | 1,744 | 3,631 | ||||||
| Interest expense | (37,019 | ) | (29,512 | ) | ||||
| Losses before income taxes | (251,866 | ) | (152,420 | ) | ||||
| Income tax expense (benefit) | 56,497 | (46,892 | ) | |||||
| Net loss | (308,363 | ) | (105,528 | ) | ||||
| Net loss attributable to noncontrolling interests | (1,823 | ) | (163 | ) | ||||
| Net loss attributable to Southland Stockholders | $ | (306,540 | ) | $ | (105,365 | ) | ||
| Net loss per share attributable to common stockholders | ||||||||
| Basic (1) | $ | (5.67 | ) | $ | (2.19 | ) | ||
| Diluted (1) | $ | (5.67 | ) | $ | (2.19 | ) | ||
| Weighted average shares outstanding | ||||||||
| Basic (1) | 54,049,705 | 48,073,973 | ||||||
| Diluted (1) | 54,049,705 | 48,073,973 | ||||||
| (1) | Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the year ended December 31, 2025, and December 31, 2024, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented. |
Revenue for the year ended December 31, 2025, was $772.2 million, a decrease of $208.0 million, or 21.2%, compared to the year ended December 31, 2024. Materials & Paving business contributed $52.1 million to revenue in the year ended December 31, 2025.
Gross loss for the year ended December 31, 2025, was $155.3 million compared to gross loss of $63.0 million for year ended December 31, 2024. Gross margin decreased from (6.4)% to (20.1)% for the year ended December 31, 2025, compared to the year ended December 31, 2024. Materials & Paving business negatively impacted gross loss by $42.8 million in the year ended December 31, 2025.
Selling, general, and administrative costs for the year ended December 31, 2025, were $61.6 million, a decrease of $1.7 million, or 2.6%, compared to the year ended December 31, 2024. Selling, general, and administrative costs as a percent of revenue were 8.0% for the year ended December 31, 2025, compared to 6.5% for the year ended December 31, 2024.
4
Segment Revenue
| Three Months Ended | ||||||||||||||||
| (Amounts in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||||
| % of Total |
% of Total |
|||||||||||||||
| Segment | Revenue | Revenue | Revenue | Revenue | ||||||||||||
| Civil | $ | 58,403 | 56.2 | % | $ | 103,798 | 38.8 | % | ||||||||
| Transportation | 45,554 | 43.8 | % | 163,452 | 61.2 | % | ||||||||||
| Total revenue | $ | 103,957 | 100.0 | % | $ | 267,250 | 100.0 | % | ||||||||
| Year Ended | ||||||||||||||||
| (Amounts in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||||
| % of Total |
% of Total |
|||||||||||||||
| Segment | Revenue | Revenue | Revenue | Revenue | ||||||||||||
| Civil | $ | 342,330 | 44.3 | % | $ | 323,288 | 33.0 | % | ||||||||
| Transportation | 429,838 | 55.7 | % | 656,891 | 67.0 | % | ||||||||||
| Total revenue | $ | 772,168 | 100.0 | % | $ | 980,179 | 100.0 | % | ||||||||
Segment Gross Profit (Loss)
| Three Months Ended | ||||||||||||||||
| (Amounts in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||||
| % of Segment |
% of Segment |
|||||||||||||||
| Segment | Gross Loss | Revenue | Gross Profit | Revenue | ||||||||||||
| Civil | $ | (31,319 | ) | (53.6 | )% | $ | 8,031 | 7.7 | % | |||||||
| Transportation | (162,058 | ) | (355.7 | )% | (365 | ) | (0.2 | )% | ||||||||
| Gross profit | $ | (193,377 | ) | (186.0 | )% | $ | 7,666 | 2.9 | % | |||||||
| Year Ended | ||||||||||||||||
| (Amounts in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||||
| % of Segment |
% of Segment |
|||||||||||||||
| Segment | Gross Profit | Revenue | Gross Profit | Revenue | ||||||||||||
| Civil | $ | 16,344 | 4.8 | % | $ | 16,725 | 5.2 | % | ||||||||
| Transportation | (171,603 | ) | (39.9 | )% | (79,765 | ) | (12.1 | )% | ||||||||
| Gross profit (loss) | $ | (155,259 | ) | (20.1 | )% | $ | (63,040 | ) | (6.4 | )% | ||||||
EBITDA Reconciliation
| Three Months Ended Year ended | ||||||||||||||||
| (Amounts in thousands) | December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
||||||||||||
| Net loss attributable to Southland Stockholders | $ | (216,413 | ) | $ | (4,155 | ) | $ | (306,540 | ) | $ | (105,365 | ) | ||||
| Depreciation and amortization | 5,683 | 6,373 | 23,213 | 23,298 | ||||||||||||
| Income tax expense (benefit) | (323 | ) | (14,096 | ) | 56,497 | (46,892 | ) | |||||||||
| Interest expense | 8,996 | 9,617 | 37,019 | 29,512 | ||||||||||||
| Interest income | (137 | ) | (464 | ) | (1,610 | ) | (991 | ) | ||||||||
| EBITDA | $ | (202,194 | ) | $ | (2,725 | ) | $ | (191,421 | ) | $ | (100,438 | ) | ||||
Backlog
| (Amounts in thousands) | Backlog | |||
| Balance: December 31, 2024 | $ | 2,572,912 | ||
| New contracts, change orders, and adjustments | 230,336 | |||
| Less: contract revenue recognized in 2025 | (772,168 | ) | ||
| Balance December 31, 2025 | $ | 2,031,080 | ||
5
Condensed Consolidated Balance Sheets
| As of | ||||||||
| (Amounts in thousands, except shares and per share data) | December 31, 2025 |
December 31, 2024 |
||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 52,713 | $ | 72,185 | ||||
| Restricted cash | 14,755 | 15,376 | ||||||
| Accounts receivable, net | 167,786 | 179,320 | ||||||
| Retainage receivables | 101,779 | 112,264 | ||||||
| Contract assets | 366,607 | 483,181 | ||||||
| Other current assets | 30,326 | 19,326 | ||||||
| Total current assets | 733,966 | 881,652 | ||||||
| Property and equipment, net | 107,305 | 116,328 | ||||||
| Right-of-use assets | 10,524 | 14,897 | ||||||
| Investments - unconsolidated entities | 129,696 | 126,705 | ||||||
| Investments - limited liability companies | 2,323 | 2,590 | ||||||
| Investments - private equity | 2,588 | 2,699 | ||||||
| Deferred tax asset | 3 | 54,531 | ||||||
| Goodwill | 1,528 | 1,528 | ||||||
| Intangible assets, net | 1,180 | 1,180 | ||||||
| Other noncurrent assets | 167 | 1,539 | ||||||
| Total noncurrent assets | 255,314 | 321,997 | ||||||
| Total assets | 989,280 | 1,203,649 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 224,915 | $ | 191,670 | ||||
| Retainage payable | 36,977 | 33,622 | ||||||
| Accrued liabilities | 80,011 | 91,515 | ||||||
| Current portion of long-term debt | 53,731 | 44,525 | ||||||
| Short-term lease liabilities | 6,808 | 10,104 | ||||||
| Contract liabilities | 252,543 | 249,706 | ||||||
| Total current liabilities | 654,985 | 621,142 | ||||||
| Long-term debt | 203,971 | 255,625 | ||||||
| Long-term lease liabilities | 16,403 | 10,791 | ||||||
| Deferred tax liabilities | 3,032 | 292 | ||||||
| Financing obligations, net | 41,440 | 41,468 | ||||||
| Long-term accrued liabilities | 58,075 | 58,075 | ||||||
| Other noncurrent liabilities | 143,880 | 40,847 | ||||||
| Total long-term liabilities | 466,801 | 407,098 | ||||||
| Total liabilities | 1,121,786 | 1,028,240 | ||||||
| Commitments and contingencies (see Note 17) | ||||||||
| Stockholders’ equity (deficit) | ||||||||
| Preferred stock, $0.0001 par value, authorized 50,000,000 shares, none issued and outstanding as of December 31, 2025 and December 31, 2024 | - | - | ||||||
| Common stock, $0.0001 par value, authorized 500,000,000 shares, 54,113,036 and 53,936,411 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively | 5 | 5 | ||||||
| Additional paid-in-capital | 293,237 | 292,173 | ||||||
| Accumulated deficit | (431,158 | ) | (124,618 | ) | ||||
| Accumulated other comprehensive loss | (3,018 | ) | (3,902 | ) | ||||
| Total stockholders’ equity (deficit) | (140,934 | ) | 163,658 | |||||
| Noncontrolling interest | 8,428 | 11,751 | ||||||
| Total equity (deficit) | (132,506 | ) | 175,409 | |||||
| Total liabilities and equity | $ | 989,280 | $ | 1,203,649 | ||||
6
Condensed Consolidated Statement of Cash Flows
| Year Ended | ||||||||
| (Amounts in thousands) | December 31, 2025 |
December 31, 2024 |
||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (308,363 | ) | $ | (105,528 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 23,213 | 23,298 | ||||||
| Amortization of deferred financing costs | 1,858 | - | ||||||
| Loss on extinguishment of debt | - | 246 | ||||||
| Deferred taxes | 57,258 | (44,751 | ) | |||||
| Share-based compensation | 1,184 | 2,049 | ||||||
| Gain on sale of assets | (2,273 | ) | (3,439 | ) | ||||
| Foreign currency remeasurement gain | (49 | ) | (12 | ) | ||||
| Loss from equity method investments | 1,291 | 415 | ||||||
| TZC investment present value accretion | - | (3,367 | ) | |||||
| Loss (gain) on trading securities, net | (292 | ) | 224 | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 23,070 | 9,924 | ||||||
| Contract assets | 116,841 | 70,713 | ||||||
| Other current assets | (11,001 | ) | 757 | |||||
| Right-of-use assets | 4,374 | (2,410 | ) | |||||
| Accounts payable and accrued liabilities | 23,617 | (3,652 | ) | |||||
| Contract liabilities | 2,828 | 56,426 | ||||||
| Operating lease liabilities | (4,369 | ) | 2,538 | |||||
| Other noncurrent liabilities | 89,069 | - | ||||||
| Other | (1,675 | ) | (1,504 | ) | ||||
| Net cash provided by operating activities | 16,581 | 1,927 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (3,846 | ) | (7,416 | ) | ||||
| Proceeds from sale of property and equipment | 6,549 | 6,513 | ||||||
| Purchase of trading securities | - | (89 | ) | |||||
| Proceeds from the sale of trading securities | 403 | 401 | ||||||
| Distributions received from investees | 934 | 4,069 | ||||||
| Capital contribution to unconsolidated investments | (915 | ) | (250 | ) | ||||
| Return of investment in limited liability company | 267 | - | ||||||
| Net cash provided by investing activities | 3,392 | 3,228 | ||||||
| Cash flows from financing activities: | ||||||||
| Borrowings on revolving credit facility | - | 5,000 | ||||||
| Payments on revolving credit facility | - | (95,000 | ) | |||||
| Borrowings on notes payable | - | 168,127 | ||||||
| Payments on notes payable | (50,708 | ) | (89,781 | ) | ||||
| Proceeds from financing obligations | - | 42,500 | ||||||
| Payments of deferred financing costs | (297 | ) | (7,982 | ) | ||||
| Pre-payment premium | - | (246 | ) | |||||
| Advances from (to) related parties | (3 | ) | 12 | |||||
| Payments on finance lease and financing obligations | (1,350 | ) | (5,481 | ) | ||||
| Capital contributions from noncontrolling members | - | 1,838 | ||||||
| Distribution to members | (1,808 | ) | - | |||||
| Payment of taxes related to net share settlement of RSUs | (120 | ) | (206 | ) | ||||
| Proceeds from advancement of surety funds | 14,135 | - | ||||||
| Net cash provided by (used in) financing activities | (40,151 | ) | 18,781 | |||||
| Effect of exchange rate on cash | 85 | (195 | ) | |||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (20,093 | ) | 23,741 | |||||
| Beginning of period | 87,561 | 63,820 | ||||||
| End of period | $ | 67,468 | $ | 87,561 | ||||
| Supplemental cash flow information | ||||||||
| Cash paid for income taxes | $ | 1,163 | $ | 1,561 | ||||
| Cash paid for interest | $ | 35,281 | $ | 28,047 | ||||
| Non-cash investing and financing activities: | ||||||||
| Lease assets obtained in exchange for new leases | $ | 12,088 | $ | 18,718 | ||||
| Assets obtained in exchange for notes payable | $ | 6,723 | $ | 27,365 | ||||
| Related party payable exchanged for note payable | $ | - | $ | 3,797 | ||||
| Conversion of promissory notes payable to equity | $ | - | $ | 20,000 | ||||
| Distribution to joint venture partner | $ | - | $ | 276 | ||||
7
Conference Call
Southland will host a conference call at 10:00 a.m. Eastern Time on Friday, March 27, 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, tunnelling, communications, 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 common stock.
8
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.
Southland Contacts:
Keith Bassano
Chief Financial Officer
kbassano@southlandholdings.com
Alex Murray
Corporate Development & Investor Relations
amurray@southlandholdings.com
9
FAQ
How did Southland Holdings (SLND) perform in Q4 2025?
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How did the Washington State Convention Center ruling affect SLND’s 2025 results?
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Filing Exhibits & Attachments
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