Q1 2025 Southland Holdings Inc Earnings Call Transcript
Key Points
- Southland Holdings Inc (SLND) reported a strong start to 2025 with revenue of $239 million and a gross profit of $21.5 million, marking an improvement in gross profit margin to 9% from 7% in the prior year.
- The Civil segment delivered a robust performance with a gross profit margin of 22%, driven by strong execution and strategic project selection.
- The company added approximately $137 million in new awards during the quarter, increasing its total backlog to approximately $2.5 billion, indicating strong demand and future revenue potential.
- Leadership additions, including a new Chief Financial Officer and Chief Strategy Officer, are expected to strengthen the company's strategic efforts and long-term performance.
- Southland Holdings Inc (SLND) maintains strong risk management practices, including the ability to lock in major material contracts early, which helps protect against cost escalations and economic uncertainties.
- Revenue for the quarter decreased by $49 million compared to the same period in 2024, indicating a decline in top-line performance.
- The Transportation segment experienced a significant decline, with revenues dropping by $67 million and a shift from a gross profit to a gross loss of $1 million.
- The Materials & Paving business line contributed negatively to gross profit, with a $9 million loss, including a noncash charge of $3.5 million related to a paving project.
- Interest expense increased by $3.2 million from the prior year, driven by higher borrowing costs and additional interest expenses from a real estate transaction.
- The company reported a net loss of $4.5 million or a loss of $0.08 per share, compared to a smaller net loss of $400,000 or $0.01 per share in the same period last year.
Good morning. My name is Chloe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southland first quarter 2025 earnings conference call. (Operator Instructions)
Alex, you may begin your conference.
Good morning, everyone, and welcome to the Southland First Quarter 2025 Conference Call. This is Alex Murray, Vice President of Corporate Development and Investor Relations. Joining me today are Frankie Renda, President and Chief Executive Officer; and Keith Bassano, Chief Financial Officer.
Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance.
Forward-looking statements are
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