Southland (SLND) investor relations material

Executive summary

• Q3 2025 revenue increased 23.1% year-over-year to $213.3 million, driven by strong Civil segment growth and contributions from Materials & Paving.

• Gross profit for Q3 2025 was $3.3 million, a significant improvement from a $51.1 million loss in Q3 2024, with gross margin rising to 1.5% from negative 29.5%.

• Net loss attributable to stockholders for Q3 2025 was $75.3 million, or $(1.39) per share, primarily due to a $57.2 million non-cash deferred tax asset valuation allowance.

• EBITDA loss narrowed to $(3.5) million from $(58.7) million year-over-year.

• Backlog stood at $2.26 billion at quarter-end, with 39% expected to be recognized in the next twelve months.

Financial highlights

• Q3 2025 revenue: $213.3 million (+23.1% YoY); nine months: $668.2 million (–6.3% YoY).

• Q3 2025 gross profit: $3.3 million (vs. $51.1 million loss YoY); nine months: $38.1 million (vs. $70.7 million loss YoY).

• Q3 2025 net loss attributable to stockholders: $75.3 million (vs. $54.7 million loss YoY); nine months: $90.1 million loss (vs. $101.2 million loss YoY).

• Q3 2025 EBITDA: $(3.5) million (improved from $(58.7) million YoY); nine months: $10.8 million (vs. $(97.7) million YoY).

• Cash and cash equivalents at September 30, 2025, were $40.5 million; total debt was $267.8 million.

Outlook and guidance

• Management expects continued strong demand for infrastructure, especially in water resources and data centers.

• Backlog as of September 30, 2025, was $2.26 billion, with 39% expected to be recognized as revenue in the next twelve months.

• Core business momentum is expected to continue, despite one-time non-cash tax charges and legacy project adjustments.

• Q4 expected to be similar to Q3, with a possible slight uptick.

• Positive cash flow from operations expected overall in 2026, despite possible decreases in Q4 and Q1 2026.