Southland Holdings, Inc. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a substantial decline in revenue, with total revenue for the third quarter falling to $173.3 million, a decrease of 44.5% from $312.5 million in the same period of 2023. For the nine-month period, revenue decreased by 15.6% to $712.9 million from $844.2 million year-over-year. The decline was primarily attributed to reduced contributions from the Materials & Paving segment and several large projects, including a notable decrease in revenue from a tunnel project in Canada and a bridge project on the east coast.

The company's profitability was severely impacted, reporting a gross loss of $51.1 million for the third quarter, compared to a gross profit of $29.5 million in the prior year. For the nine months, the gross loss reached $70.7 million, a stark contrast to a gross profit of $14.7 million in 2023. Operating losses also widened, with a loss of $68.6 million for the third quarter compared to an operating income of $14.3 million in the previous year. The net loss attributable to Southland stockholders for the third quarter was $54.7 million, compared to a net income of $3.8 million in the same period last year.

In terms of strategic developments, Southland Holdings has made operational adjustments, including the discontinuation of certain projects in its Materials & Paving business line, which contributed to a gross loss of $75.4 million for the nine months ended September 30, 2024. The company also underwent a merger in February 2023, which was accounted for as a reverse recapitalization, and has since focused on reallocating resources towards more profitable segments.

Financially, Southland Holdings reported total current assets of $883.9 million, down from $942.5 million in the previous period, while total liabilities increased to $1.03 billion from $940.5 million. The company’s total stockholders' equity decreased significantly to $149.1 million from $249.6 million. Cash and cash equivalents improved to $91.4 million from $49.2 million, reflecting a net increase in cash and cash equivalents of $42.9 million for the nine months ended September 30, 2024.

The company also reported an increase in total debt to $324.9 million, with a weighted average interest rate rising to 9.22%. Southland Holdings remains in compliance with its financial covenants and has taken steps to manage its liquidity, including a new $160 million term loan facility established in September 2024.