Southland (SLND) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was $239.5 million, down 16.9% year-over-year, mainly due to lower Transportation segment activity and the wind-down of Materials & Paving operations, partially offset by Civil segment growth.

• Gross profit increased to $21.5 million, with margin improving to 9.0% from 7.1% year-over-year.

• Net loss attributable to stockholders widened to $4.6 million ($0.08 per share), compared to a $0.4 million loss ($0.01 per share) in Q1 2024, driven by higher interest expense and increased SG&A costs.

• EBITDA was $10.1 million, down from $10.9 million year-over-year.

• Backlog remained strong at $2.47 billion as of March 31, 2025, with 40% expected to convert to revenue in the next twelve months.

Financial highlights

• Q1 2025 revenue was $239.5 million, down $49 million or 16.9% year-over-year.

• Gross profit rose to $21.5 million, up 5.2% year-over-year; gross margin improved to 9.0% from 7.1%.

• Net loss per share was $(0.08), compared to $(0.01) in Q1 2024.

• EBITDA was $10.1 million, down from $10.9 million year-over-year.

• Positive operating cash flow of $6.4 million in Q1, a significant improvement from a $9.9 million outflow in Q1 2024.

Outlook and guidance

• Revenues expected to pick up in the second half of 2025, with seasonality impacting Q1.

• Management expects continued strong demand in both Civil and Transportation segments, supported by federal infrastructure spending.

• Approximately 40% of the $2.47 billion backlog is expected to be recognized as revenue over the next twelve months.

• Civil segment expected to consistently deliver mid-teen gross margins, barring legacy project impacts.

• The company anticipates the M&P wind-down to be substantially completed within nine months.