--- title: "Southland | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 172.41 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286155967.md" datetime: "2026-05-12T20:48:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286155967.md) - [en](https://longbridge.com/en/news/286155967.md) - [zh-HK](https://longbridge.com/zh-HK/news/286155967.md) --- # Southland | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 172.41 M Revenue: As of FY2026 Q1, the actual value is USD 172.41 M, beating the estimate of USD 172.23 M. EPS: As of FY2026 Q1, the actual value is USD -0.52, missing the estimate of USD -0.415. EBIT: As of FY2026 Q1, the actual value is USD -11.12 M. #### Segment Revenue - **Civil Segment Revenue:** For the three months ended March 31, 2026, revenue was $103.8 million, an increase of 0.9% compared to $102.9 million for the same period in 2025. This increase was primarily due to a $14.3 million increase from a data center project in the West, partially offset by decreases from a tunnel project (-$6.4 million) and a water facility project (-$6.2 million) in the West, both nearing completion. - **Transportation Segment Revenue:** For the three months ended March 31, 2026, revenue was $68.6 million, a decrease of 49.8% compared to $136.6 million for the same period in 2025. This decrease was mainly due to projects approaching completion, including an elevated roadway and bridge project (-$23.6 million) in the Southeast, a project in the Bahamas (-$9.0 million), a bridge project (-$5.0 million) in the Southeast, and a bridge repair project (-$4.7 million) in the West. Additionally, there was a -$13.0 million decrease from a canal widening project in the South due to unfavorable dispute resolutions and a -$7.1 million decrease from the Materials & Paving (M&P) business line. #### Operational Metrics - **Overall Revenue:** Total revenue for the three months ended March 31, 2026, was $172.4 million, a decrease of 28.0% from $239.5 million for the same period in 2025. - **Cost of Construction:** Total cost of construction for the three months ended March 31, 2026, was $177.2 million, a decrease of 18.7% from $218.0 million for the same period in 2025. - **Overall Gross Profit (Loss):** Southland Holdings, Inc. reported a gross loss of -$4.8 million for the three months ended March 31, 2026, a decrease of 122.1% from a gross profit of $21.5 million for the same period in 2025. - **Civil Segment Gross Profit:** Gross profit for the Civil segment was $14.7 million (14.1% of segment revenue) for the three months ended March 31, 2026, down from $22.6 million (22.0% of segment revenue) for the same period in 2025. The -$8.0 million decrease was primarily due to higher-than-expected project costs on specific water facility, water pipeline, and water treatment plant projects. - **Transportation Segment Gross Profit (Loss):** The Transportation segment reported a gross loss of -$19.4 million (-28.3% of segment revenue) for the three months ended March 31, 2026, compared to a gross loss of -$1.2 million (-0.8% of segment revenue) for the same period in 2025. The -$18.3 million increase in gross loss was mainly due to decreased profit contributions from a canal widening project (-$13.0 million) and an M&P project (-$6.4 million), both resulting from unfavorable dispute resolutions. - **Selling, General, and Administrative Expenses:** These expenses decreased by 9.2% to $14.9 million for the three months ended March 31, 2026, from $16.5 million in the prior year, primarily due to decreases in compensation expense, professional fees, and real estate and personal property taxes, partially offset by an increase in business transformation expenses. - **Operating Income (Loss):** Southland Holdings, Inc. reported an operating loss of -$19.7 million for the three months ended March 31, 2026, compared to an operating income of $5.0 million for the same period in 2025. - **Interest Expense:** Interest expense was -$8.7 million for the three months ended March 31, 2026, a decrease of 2.2% from -$8.9 million for the same period in 2025, primarily due to a decrease in total debt. - **Net Loss Attributable to Southland Stockholders:** The net loss attributable to Southland Stockholders was -$28.4 million for the three months ended March 31, 2026, compared to -$4.6 million for the same period in 2025. #### Cash Flow - **Net Cash Used in Operating Activities:** Net cash used in operating activities was -$133.9 million for the three months ended March 31, 2026, primarily driven by a -$104.1 million decrease in accounts payable, retainage payable, and accrued liabilities, and a -$28.2 million net loss. In contrast, the company had net cash provided by operating activities of $6.4 million for the same period in 2025. - **Net Cash Provided by Investing Activities:** Net cash provided by investing activities was $1.3 million for the three months ended March 31, 2026, primarily from $1.0 million in proceeds from the sale of property and equipment and $0.3 million in distributions from other investments, compared to $1.1 million for the same period in 2025. - **Net Cash Provided by Financing Activities:** Net cash provided by financing activities was $97.0 million for the three months ended March 31, 2026, primarily from $125.1 million in proceeds from the advancement of surety funds, offset by -$27.4 million in payments on notes payable. For the same period in 2025, net cash used in financing activities was -$14.0 million. #### Unique Metrics - **Total Debt:** As of March 31, 2026, total debt was $230.8 million, with $56.1 million due within the next twelve months. - **Surety Payable:** As of March 31, 2026, $139.2 million in funds had been advanced by sureties to support bonded project obligations and ongoing project performance, included in surety payable. Repayment of these amounts is not required prior to at least May 13, 2027. - **Total Backlog (RUPO):** As of March 31, 2026, Southland Holdings, Inc. had a total backlog of $1.9 billion. The company expects to recognize approximately 38% of its backlog as revenue during the next twelve months, with the balance by 2031. - **Civil Segment Backlog:** The Civil segment’s backlog was $703.7 million as of March 31, 2026. - **Transportation Segment Backlog:** The Transportation segment’s backlog was $1,173.9 million as of March 31, 2026. - **Unresolved Contract Modifications:** As of March 31, 2026, the company had recorded $372.2 million related to unresolved contract modifications. #### Future Outlook and Strategy Southland Holdings, Inc. anticipates further spending on infrastructure due to economic stimulus, including the Infrastructure Investment and Jobs Act of 2021, and other federal, state, or local initiatives. The company believes its experience, reputation, and technical expertise position it well to pursue complex projects with fewer competitors. Management believes that, based on current cash position, expected operating cash flows, existing backlog, and actions taken to address liquidity challenges, the company has sufficient liquidity to meet operational and financial obligations for at least the next twelve months. ### Related Stocks - [SLND.US](https://longbridge.com/en/quote/SLND.US.md) ## Related News & Research - [Southland Holdings Q1 loss widens as revenue falls, margins turn negative](https://longbridge.com/en/news/286154957.md) - [Southland Announces First Quarter 2026 Results | WS Stock News](https://longbridge.com/en/news/286153118.md) - [Yext to Announce First Quarter Fiscal Year 2027 Financial Results on June 2, 2026 | YEXT Stock News](https://longbridge.com/en/news/286970613.md) - [LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS | LOW Stock News](https://longbridge.com/en/news/287043063.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)