Southland Holdings posts $84.3 million net loss in second quarter as claim writedowns erase revenue
GRAPEVINE, Texas, Aug. 12. A $102.3 million cumulative catch-up adjustment tied to unresolved contract claims cut Southland Holdings, Inc. (NYSE American: SLND) quarterly revenue nearly in half and drove a net loss attributable to stockholders of $84.3 million, or $1.55 per share, for the three months ended June 30, 2026, according to an 8-K filed by the company.
Key takeaways
- Southland Holdings reported a second-quarter net loss attributable to stockholders of $84.3 million, or $1.55 per share, for the three months ended June 30, 2026.
- A $102.3 million cumulative catch-up adjustment tied to unresolved contract claims cut quarterly revenue to $113.3 million, down from $215.4 million a year earlier.
- The claim reassessment produced a $93.6 million hit to gross profit, resulting in a gross loss of $71.2 million and a negative 62.9% gross margin.
- Operating loss for the quarter was $87.9 million and EBITDA was negative $73.4 million, compared to positive $4.2 million in the second quarter of 2025.
- For the six months ended June 30, 2026, revenue fell 37.2% to $285.7 million with a net loss of $112.6 million, or $2.08 per share, while backlog stood at $1.68 billion.
GRAPEVINE, Texas, Aug. 12. A $102.3 million cumulative catch-up adjustment tied to unresolved contract claims cut Southland Holdings, Inc. (NYSE American: SLND) quarterly revenue nearly in half and drove a net loss attributable to stockholders of $84.3 million, or $1.55 per share, for the three months ended June 30, 2026, according to an 8-K filed by the company.
Revenue and margin collapse
Revenue for the quarter came in at $113.3 million, down from $215.4 million in the year-earlier period. The company disclosed it conducted a comprehensive reassessment of claim recoverability across several projects, including substantially completed work, after receiving updated information on the timing and potential size of recoveries. That review produced the $102.3 million negative revenue adjustment and a $93.6 million hit to gross profit.
Gross loss reached $71.2 million for the period. A year earlier, Southland reported gross profit of $13.0 million. Gross margin fell to negative 62.9% from positive 6.0%. The Materials and Paving segment contributed $11.7 million in revenue for the quarter while weighing on gross profit by $16.3 million.
Segment detail and operating loss
Transportation generated $72.3 million in revenue, or 63.8% of the quarterly total. Civil contributed $41.0 million. Both segments reported negative gross margins for the period.
Selling, general, and administrative expenses rose to $16.7 million from $13.6 million a year earlier, a 23.1% increase, pushing the ratio of those costs to revenue from 6.3% to 14.7%. Operating loss for the quarter was $87.9 million. EBITDA came to negative $73.4 million, compared to positive $4.2 million in the second quarter of 2025.
Six-month results and outlook
For the six months ended June 30, 2026, Southland reported revenue of $285.7 million, down 37.2% from $454.9 million, with a net loss attributable to stockholders of $112.6 million, or $2.08 per share.
Frank Renda, Southland's President and Chief Executive Officer, attributed the quarterly results primarily to unfavorable non-cash adjustments related to legacy disputes. Renda said the company continues to work toward a comprehensive financing agreement and credit amendment with its surety partners. He pointed to the Winnipeg North End Sewage Treatment Plant contract award, announced in July, as evidence of demand in core markets.
Backlog stood at $1.68 billion as of the filing date.