Q3 2025 Southland Holdings Inc Earnings Call Transcript
Key Points
- Southland Holdings Inc (SLND) achieved substantial completion on the last of the 27 highly technical projects from the American Bridge Company acquisition, showcasing their operational expertise.
- The company reported a significant improvement in gross profit margin, increasing from negative 29.5% in the prior year to 1.5% this quarter.
- Southland Holdings Inc (SLND) added approximately $151 million in new awards and contract adjustments, boosting their total backlog to approximately $2.26 billion.
- The Civil segment performed well with a gross margin of 10.5%, despite unfavorable noncash adjustments from dispute resolutions.
- The company is exploring data center opportunities, which present attractive margin potential and align with their core capabilities, indicating potential future growth.
- Southland Holdings Inc (SLND) reported a net loss of $75.2 million for the quarter, significantly impacted by a $57.3 million onetime noncash tax expense.
- Revenue for the quarter was lower than anticipated due to the timing of new project starts, impacts from dispute resolutions, and project delays.
- The Transportation segment experienced a gross loss of $7.2 million, with a negative gross margin of 6.3%, although improved from the prior year's negative margin.
- Interest expense increased to $9.2 million, driven by higher interest rates on external borrowings, and is expected to average $9.5 million per quarter going forward.
- The company continues to face challenges with legacy projects, which have significantly impacted results over the past several years, although they expect these to have less impact in 2026.
Good morning. My name is Sergio and I will be your conference operator today. At this time, I would like to welcome everyone to the Southland third quarter 2025 earnings conference call. (Operator Instructions)
Alex, you may begin your conference.
Good morning, everyone. Welcome to the Southland third quarter 2025 conference call. This is Alex Murray, Vice President of Corporate Development and Investor Relations. Joining me today are Frank 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 uncertain and outside of South of control. Southland's actual results and financial condition may
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