Southland (SLND) Q4 2024 earnings summary

Executive summary

• Delivered several high-profile infrastructure projects, including major bridges and water resource projects, while maintaining a strong safety record with multiple projects surpassing one million safe work hours without a lost-time incident.

• Celebrated the 50th anniversary of two subsidiaries, reinforcing a strong foundation for future growth.

• Revenue declined 15.5% year-over-year in both Q4 and full year 2024, with Q4 revenue at $267.3M and full year at $980.2M.

• Net loss attributable to stockholders improved in Q4 to $4.2M from $5.6M last year, but full year net loss widened to $105.4M from $19.3M.

• Backlog remains strong at $2.57B, supporting future revenue visibility.

Financial highlights

• Fourth quarter 2024 revenue was $267 million, down $49 million year-over-year; gross profit was $8 million, down from $21 million; gross margin fell to 2.9% from 6.7%.

• Full year 2024 revenue was $980 million, with a gross loss of $63 million (gross margin -6.4%), compared to a $36 million gross profit in 2023.

• Net loss for Q4 was $4.2 million (negative $0.09 per share), and for the year was $105.4 million (negative $2.19 per share).

• Adjusted net loss for the year was $105.4 million, compared to $39 million in 2023.

• Q4 EBITDA was $(2.7) million, down from $9.1 million in Q4 2023; full year Adjusted EBITDA was $(100.4) million versus $2.0 million last year.

Outlook and guidance

• Expect to burn approximately 39% of $2.6 billion backlog in 2025, with new awards anticipated to ramp up in the back half of the year.

• Anticipate a return to positive EBITDA by the end of 2025, driven by new core project contributions and reduced legacy exposure.

• Strong cash flow from operations expected in 2025, with seasonality favoring the second half.

• Management remains focused on executing new core work, winding down legacy projects, and capitalizing on strong demand in core markets.

• Majority of non-M&P legacy work expected to be completed by end of 2025, with one project possibly extending into 2026.