SLND News & Events

Southland Holdings down 28% in pre-market after Q4 results last night

Reports Q4 revenue $104.0M, two estimates $212.1M. Frank Renda, Southland's President & CEO said, "While I am disappointed in this quarter's results, I am fully accountable for our results and am committed to the strategic plan we have launched to move Southland forward. The capital support provided by our sureties, including replacing our senior lender, is a significant vote of confidence in our team and provides us additional financial flexibility to focus on the project execution of our $2 billion backlog. As part of our plan, we continue to focus on core market opportunities with higher margins, as evidenced by the recently announced $118 million of project awards, led by a data center project. We are also taking decisive action to right-size our asset base and pay down debt, positioning Southland to emerge from this period as a leaner, more disciplined, and more profitable organization."

Southland Holdings announced it received notice to proceed on three projects totaling approximately $118M through a subsidiary in its Civil segment, Oscar Renda Contracting. The following projects will be included in fourth quarter 2025 backlog: $48M Data Center project for a private client in the Southwest. This mission-critical project involves the installation of chilled water pipelines and related site developments, designed to provide cooling support to the data center facilities. The project is expected to be completed in 2026. $40M Capers Ridge Pump Station expansion for Coastal Water Authority in Cleveland, Texas. Under a Construction Manager at Risk delivery method, the scope of work includes the installation of four new pumps, discharge lines, large-diameter valves with electro-hydraulic actuators, and other facility improvements. This is expected to double the facility's raw water pumping capacity from 240 million gallons per day to 500 MGD. This infrastructure expansion is expected to increase long-term regional water supply reliability. Oscar Renda Contracting constructed the original Capers Ridge Pump Station for the Coastal Water Authority. The project is expected to be completed in 2027. $30M NE Reservoir Pump Station & Transmission Main for the City of Cape Coral, Florida. The scope of work includes the construction of a raw water transmission main, pump station, and associated site work to bring raw water from the Southwest Aggregate Mine to Gator Slough Canal. The project is designed to provide drought resilience to the City of Cape Coral. The project is expected to be completed in 2027.

Reports Q3 revenue $213.3M, consensus $241.52M. "Our core business continues to perform well, evidenced by the strength in our civil segment and the continued execution of our new core work," said Frank Renda, Southland's President & Chief Executive Officer. "While this quarter's results reflect a one-time non-cash tax charge and unfavorable adjustments related to certain legacy projects and dispute resolutions, these items do not impact the momentum we are seeing across our core business. We remain focused on winding down legacy backlog and capitalizing on robust demand for critical infrastructure in our core markets."