Southland (SLND) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 declined 28% year-over-year to $172.4 million, driven by a sharp drop in Transportation segment revenue and legacy dispute impacts, partially offset by new Civil segment projects.

• Net loss attributable to stockholders was $28.4 million, or $0.52 per diluted share, compared to a net loss of $4.6 million, or $0.08 per share, in Q1 2025.

• Gross margin turned negative at –2.8%, with a $4.8 million gross loss, mainly due to unfavorable dispute resolutions and underperformance in Materials & Paving.

• EBITDA was –$14.1 million, down from $10.1 million in Q1 2025.

• Backlog remains strong at $1.88 billion, with 38% expected to be recognized as revenue over the next twelve months.

Financial highlights

• Revenue: $172.4 million in Q1 2026, down from $239.5 million in Q1 2025.

• Gross loss: $4.8 million, compared to $21.5 million gross profit last year, with Materials & Paving negatively impacting by $13.1 million.

• Net loss: $28.4 million, compared to $4.6 million in Q1 2025.

• Cash and cash equivalents at quarter end were $20.5 million; total cash including restricted cash was $32 million.

• Selling, general, and administrative expenses were $14.9 million, down year-over-year, but rose as a percentage of revenue to 8.7%.

Outlook and guidance

• Management expects to collect $11 million from a resolved legacy dispute in the coming weeks, with proceeds to reduce senior term loan.

• 38% of the $1.88 billion backlog is expected to be recognized as revenue over the next twelve months, with the remainder by 2031.

• Civil segment gross margin of 14% is seen as a baseline for the year, in line with long-term targets.

• Liquidity is expected to be sufficient for at least the next twelve months, supported by cash, operating cash flows, and financing sources.