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 over one million safe work hours on multiple projects.

• 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

• Q4 2024 revenue was $267 million, down $49 million year-over-year; gross profit was $7.7 million (2.9% margin), down from $21 million.

• Q4 net loss was $4.2 million (negative $0.09 per share), improved from a $5.6 million loss last year; full-year net loss was $105.4 million (negative $2.19 per share), compared to a $19.3 million loss in 2023.

• Q4 EBITDA was negative $2.7 million, down from $9.1 million last year; full-year Adjusted EBITDA was negative $100.4 million versus $2 million last year.

• SG&A expenses for Q4 were $16 million (5.9% of revenue), down $4.2 million year-over-year; full-year SG&A was $63 million (6.5% of revenue).

• Cash and restricted cash at year-end totaled $87.6 million, up from $63.8 million.

Outlook and guidance

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

• Anticipate a return to positive EBITDA by year-end 2025, driven by new core projects and reduced legacy exposure.

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

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

• Sustained demand for infrastructure services is expected to support long-term success.