Southland Holdings (SLND) investor relations material

Executive summary

• Q2 2025 revenue was $215.4M, down 14.4% year-over-year, mainly due to lower Transportation activity, but gross profit improved to $13.4M from a $40M loss, and net loss narrowed to $10.3M from $46.1M.

• EBITDA was $4.2M, up from negative $49.9M in Q2 2024, reflecting improved operational execution and disciplined bidding.

• Backlog stood at $2.32B at quarter-end, with 41% expected to convert to revenue in the next 12 months.

• Management remains optimistic for the second half of 2025, citing robust government infrastructure spending and a strong pipeline of public and private opportunities.

• Continued to wind down legacy projects, improving profitability and margin profile.

Financial highlights

• Six-month revenue was $454.9M, down 15.7% year-over-year, with Transportation revenue down $105.5M and Civil up $20.8M.

• Six-month gross profit was $34.8M, up from a $19.6M loss; gross margin rose to 7.7% from (3.6)% year-over-year.

• SG&A expenses for Q2 were $13.6M, down 13.4% year-over-year, mainly due to lower preconstruction expenses.

• Net cash provided by operating activities for the first half was $1.0M, down from $17.5M in the prior year.

• Total debt as of June 30, 2025, was $278.6M, with $48.9M due within 12 months.

Outlook and guidance

• Revenue is expected to normalize and pick up in the second half of the year as delayed projects ramp up.

• Civil segment margins anticipated to remain in the mid-teens, with Transportation margins in the low teens as legacy work winds down.

• Operating cash flow expected to improve and potentially turn positive in Q3 and Q4.

• Management expects continued margin improvement and is well-positioned to benefit from ongoing government infrastructure initiatives.

• The company believes cash flow from operations, available cash, and financing sources will be adequate for at least the next 12 months.