On August 12, 2024, Southland Holdings Inc (SLND, Financial) released its 8-K filing detailing the financial results for the quarter ended June 30, 2024. Southland Holdings Inc is an infrastructure construction company in North America, specializing in projects ranging from water conveyance systems and tunnels to long-span bridges and vertical structures.
Performance Overview
Southland Holdings Inc (SLND, Financial) reported revenue of $251.5 million for Q2 2024, a 2.1% decrease compared to $256.9 million in Q2 2023. This figure fell short of the analyst estimate of $293.67 million. The company also reported a net loss of $46.1 million, or $0.96 per share, significantly missing the analyst estimate of $0.02 earnings per share.
Key Financial Metrics
Southland Holdings Inc (SLND, Financial) faced several challenges this quarter, primarily due to settling contract disputes, which resulted in a $40 million non-recurring charge. Despite these setbacks, the company managed to secure $58 million in settlements expected to be collected in Q3 2024.
Southland’s President & Chief Executive Officer, Frank Renda, stated, “We continue to make strides in putting our legacy projects behind us and improving our balance sheet and liquidity profile. While we are disappointed about making the decision to settle for less than we believe we were owed in certain circumstances, it was the best decision for Southland’s long-term outlook.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $251.5 million | $256.9 million |
| Gross Loss | ($40.0 million) | ($33.8 million) |
| Operating Loss | ($55.7 million) | ($50.2 million) |
| Net Loss | ($46.1 million) | ($12.8 million) |
| Net Loss per Share | ($0.96) | ($0.27) |
Balance Sheet and Cash Flow
Southland Holdings Inc (SLND, Financial) reported a positive cash flow from operations of $27 million before considering the dispute settlements. Additionally, the company closed a real estate transaction that added approximately $25 million to the balance sheet in Q3 2024.
Segment Performance
The Civil segment reported revenue of $79.4 million, a 21.1% increase from $65.6 million in Q2 2023. However, the Transportation segment saw a decline, with revenue falling to $172.1 million from $191.4 million in the same period last year.
Future Outlook
Despite the challenges, Southland Holdings Inc (SLND, Financial) secured $375 million in new project awards in its core business during the quarter. The company remains optimistic about its long-term outlook, driven by strong demand across its core end markets.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Southland Holdings Inc for further details.
