Southland — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $233.8 million, an increase of 9.6% compared to $213.3 million in the same period in 2025.
• Gross profit for the quarter was $20.6 million, compared to $1.9 million in the prior year period; gross margin improved to 8.8% from 0.9%.
• Net income attributable to stockholders was $33.7 million ($0.62 per diluted share), compared to a net loss of $75.3 million ($(1.39) per share) in the prior year.
• EBITDA for the quarter was $43.2 million, compared to a loss of $3.5 million in the prior year.
• Operating income for the quarter was $7.0 million, compared to an operating loss of $12.6 million in the prior year.
• Selling, general, and administrative (SG&A) expenses were $13.6 million, a decrease of 6.6% from $14.6 million in the prior year; SG&A as a percentage of revenue was 5.8% compared to 6.8%.
• Other income, net, was $32.4 million for the quarter, compared to $2.0 million in the prior year, primarily driven by a $28.7 million settlement with Liberty Mutual.
• Interest expense was $4.1 million for the quarter, compared to $9.2 million in the prior year.
• For the nine months ended September 30, 2026, revenue was $519.5 million, a decrease of 22.3% from $668.2 million in the prior year.
• Gross loss for the nine months ended September 30, 2026, was $55.4 million, compared to a gross profit of $35.4 million in the prior year; gross margin was (10.7)% compared to 5.3%.
• Net loss attributable to stockholders for the nine months ended September 30, 2026, was $78.9 million ($(1.45) per share), compared to a net loss of $90.1 million ($(1.67) per share) in the prior year.
• EBITDA for the nine months ended September 30, 2026, was a loss of $44.3 million, compared to a profit of $10.8 million in the prior year.
• Cash and cash equivalents were $35.9 million as of September 30, 2026, down from $52.7 million as of December 31, 2025.
• Total debt (current and long-term) was $426.1 million as of September 30, 2026, compared to $257.7 million as of December 31, 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $183.7 million, compared to net cash provided of $6.9 million in the prior year.

Business Segments and Product Lines:

• The Civil segment generated $107.3 million in revenue for the quarter (45.9% of total), compared to $99.5 million (46.6%) in the prior year, with a gross margin of 13.3% compared to 10.5%.
• The Transportation segment generated $126.4 million in revenue for the quarter (54.1% of total), compared to $113.9 million (53.4%) in the prior year, with a gross margin of 5.0% compared to a loss of 7.4%.
• The Materials & Paving business contributed $17.4 million to revenue in the quarter and negatively impacted gross profit by $10.2 million.
• For the nine months, the Civil segment generated $252.1 million in revenue (48.5% of total) with a gross margin of 0.7%, compared to $283.9 million (42.5%) with a 16.6% margin in the prior year.
• For the nine months, the Transportation segment generated $267.4 million in revenue (51.5% of total) with a gross loss of 21.4%, compared to $384.3 million (57.5%) with a gross loss of 3.1% in the prior year.
• The Materials & Paving business contributed $40.1 million to revenue for the nine months and negatively impacted gross profit by $39.6 million.

Other Key Points:

• Backlog stood at $1.71 billion as of September 30, 2026, down from $2.03 billion as of December 31, 2025.
• The company recognized a $28.7 million gain on the extinguishment of surety payable related to the Liberty Mutual settlement.
• Net cash provided by financing activities for the nine months was $151.0 million, primarily driven by $220.7 million in advancements of surety funds.
• The company reported a net decrease in cash and cash equivalents and restricted cash of $20.7 million for the nine months ended September 30, 2026.
• Total stockholders' equity (deficit) was $(219.6) million as of September 30, 2026, compared to $(140.9) million as of December 31, 2025.
• The company will host a conference call on November 13, 2026, at 10:00 a.m. Eastern Time.