SLND · Southland Holdings, Inc.

Southland Holdings reported a challenging first quarter of 2026, with revenue declining 28% year-over-year to $172.4 million. The decrease was primarily driven by a $67.1 million drop, partly due to the Materials & Paving business contributing only $11.0 million in revenue. Gross profit swung to a loss of $4.8 million from a profit of $21.5 million, with gross margin falling to -2.8% from 9.0%. The Materials & Paving business negatively impacted gross profit by $13.1 million. Selling, general, and administrative expenses decreased 9.2% to $14.9 million but rose as a percentage of revenue to 8.7% from 6.9%. Net loss attributable to stockholders widened to $28.4 million ($0.52 per share) from $4.6 million ($0.08 per share). EBITDA turned negative at -$14.1 million versus $10.1 million in the prior year. Segment performance varied: Civil segment revenue was relatively flat at $103.8 million (60.2% of total) with a gross margin of 14.1%, while Transportation segment revenue fell to $68.6 million (39.8% of total) and posted a gross loss margin of -28.3%. Backlog decreased to $1.88 billion from $2.03 billion at year-end 2025. Management noted early progress on strategic initiatives, with a strengthened capital position improving operations, but consolidated results were impacted by non-cash adjustments from legacy disputes. The company ended the quarter with $20.5 million in cash and equivalents, total debt of $230.8 million, and a stockholders' deficit of $168.9 million. Operating cash flow was negative $133.9 million, partly due to a $125.1 million advancement of surety funds. The company did not provide forward guidance.