Southland Holdings Reports $306 Million Net Loss for 2025 and Launches Strategic Turnaround Plan

Southland Holdings, Inc. Reports Disastrous Q4 and FY25 Results; Launches Strategic Overhaul

Key Financial Highlights and Shareholder Impact

Southland Holdings, Inc. (NYSE American: SLND) has released its financial results for the fourth quarter and full year ended December 31, 2025. The report reveals one of the most challenging periods in the company’s history, marked by a dramatic collapse in revenue, a staggering net loss, and significant adverse legal and operational developments. The company has also announced a comprehensive strategic plan, capital restructuring, and liquidity support measures aimed at stabilizing the business and returning to profitability.

Fourth Quarter 2025 Financial Results

Revenue: \$104.0 million, a fall of 61.1% from \$267.3 million in Q4 2024.
Gross Loss: \$193.4 million, compared to \$7.7 million gross profit in Q4 2024.
Net Loss Attributable to Stockholders: \$216.4 million, or \$(4.00) per share, compared to a net loss of \$4.2 million, or \$(0.09) per share, in Q4 2024.
EBITDA: \$(202.2) million, versus \$(2.7) million in Q4 2024.
Backlog: \$2.03 billion as of December 31, 2025.

Full Year 2025 Financial Results

Revenue: \$772.2 million, down 21.2% from \$980.2 million in 2024.
Gross Loss: \$155.3 million, compared to a gross loss of \$63.0 million in 2024.
Net Loss Attributable to Stockholders: \$306.5 million, or \$(5.67) per share, compared to a net loss of \$105.4 million, or \$(2.19) per share, in 2024.
EBITDA: \$(191.4) million, versus \$(100.4) million in 2024.
Income Tax Expense: \$56.5 million, primarily from a non-cash charge for a valuation allowance on deferred taxes (compared to a \$46.9 million tax benefit in 2024).

Critical Developments & Price Sensitive Information

Adverse Legal Ruling – Washington State Convention Center Project

Southland’s results were severely impacted by a \$135.8 million unfavorable adjustment due to a trial court ruling against the company concerning the Washington State Convention Center (WSCC) project, acquired via American Bridge in 2020.
The court entered a judgment of \$57.1 million (principal) against American Bridge and its sureties, with additional interest and fees to follow. As a result, Southland derecognized contract assets, recording a \$40.3 million non-cash charge to revenue and a \$89.1 million long-term liability.
The company’s sureties have agreed to forbear any repayment related to this settlement until at least March 27, 2027, providing temporary relief.

Strategic Overhaul: Capital, Liquidity, and Asset Monetization

Capital Restructuring: Southland’s sureties replaced its senior lender, assuming \$110 million in debt. All scheduled principal and interest payments are waived through maturity, reducing debt service by about \$27 million over the next year.
Liquidity Support: Secured \$116 million in new funding from sureties (\$14 million received by year-end 2025, \$102 million after), with repayment forborne until at least March 27, 2027.
Asset Monetization: Plans to sell non-core assets (idle equipment and real estate) to optimize the asset base and pay down debt.
Core Market Focus: Refocusing on water resource, bridge, marine, and tunnel projects in higher-margin geographies. Recently won \$118 million in new awards, including a \$48 million utility infrastructure contract for a Southwest data center.

Operational Metrics and Segment Analysis

Segment Revenue Q4 2025: Civil – \$58.4 million (56.2% of total), Transportation – \$45.6 million (43.8%).
Segment Gross Loss Q4 2025: Civil – \$(31.3) million; Transportation – \$(162.1) million.
Full-Year Segment Revenue: Civil – \$342.3 million (44.3%); Transportation – \$429.8 million (55.7%).
Full-Year Segment Gross Loss: Civil – \$16.3 million profit; Transportation – \$(171.6) million loss.

Balance Sheet Deterioration

Total Assets: \$989.3 million at year-end 2025, down from \$1.2 billion in 2024.
Total Liabilities: \$1.12 billion, up from \$1.03 billion in 2024.
Shareholders’ Equity: Now a deficit of \$(140.9) million versus a positive \$163.7 million at prior year-end, a huge deterioration reflecting cumulative losses and write-downs.
Cash and Equivalents: \$52.7 million, down from \$72.2 million.

Cash Flow and Liquidity

Net Cash from Operating Activities: \$16.6 million (FY25), up from \$1.9 million in FY24, mainly due to working capital changes and non-cash charges.
Net Cash Used in Financing Activities: \$(40.2) million (FY25), compared to net cash provided of \$18.8 million in FY24.
End-of-Year Cash (including restricted): \$67.5 million.

CEO Commentary

“While I am disappointed in this quarter’s results, I am fully accountable for our results and am committed to the strategic plan we have launched to move Southland forward. The capital support provided by our sureties, including replacing our senior lender, is a significant vote of confidence in our team and provides us additional financial flexibility to focus on the project execution of our \$2 billion backlog…”
– Frank Renda, President & CEO

Implications for Shareholders

This report contains highly price-sensitive information. The magnitude of losses, adverse legal outcome, asset write-downs, and negative equity are all factors likely to be viewed very negatively by the market.
The company’s survival is now dependent upon surety support, asset sales, and successful execution of a turnaround plan. Any adverse developments in these areas could further threaten shareholder value.
However, the company’s significant backlog and surety support offer a potential path to stabilization if management executes successfully.
Shareholders should be aware of the possibility of further dilution, asset sales, or strategic alternatives as part of the restructuring process.

Conference Call Information

Southland will host a conference call at 10:00 a.m. Eastern Time on Friday, March 27, 2026. The call can be accessed via the company’s website (www.southlandholdings.com).

Contact Information

Keith Bassano, Chief Financial Officer: [email protected]
Alex Murray, Corporate Development & Investor Relations: [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected.