Southland Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $980.2 million, a decrease of 15.5% from $1.16 billion in 2023. The decline was primarily driven by a $166 million drop in revenue from the Transportation segment, largely due to the company's exit from the Materials & Paving (M&P) business line. The Civil segment also saw a decrease of $14.2 million, attributed to the completion of several projects in 2023 that did not have equivalent replacements in 2024. The company recorded a gross loss of $63 million, a stark contrast to the gross profit of $35.8 million reported in the previous year.
In terms of operational changes, Southland made a strategic decision to discontinue certain projects within its M&P business line, which has been reported under the Transportation segment. This decision involved selling assets related to large-scale concrete and asphalt production, allowing the company to focus on more profitable areas. The company also reported a backlog of $2.57 billion as of December 31, 2024, down from $2.83 billion the previous year, indicating a reduction in the total value of work remaining to be earned on awarded projects.
The company’s workforce comprised approximately 2,100 employees as of December 31, 2024, with around 14% represented by unions. Southland's operational strategy emphasizes self-performance and technical expertise, which it believes enhances cost management and project execution. However, the company faced challenges in maintaining profitability due to project delays and rising material costs, particularly in the Transportation segment, which reported a gross loss of $79.8 million.
Looking ahead, Southland Holdings anticipates continued demand for infrastructure projects, bolstered by federal and state spending initiatives, including the Infrastructure Investment and Jobs Act. Despite the current financial setbacks, the company remains optimistic about its ability to secure new contracts and improve its operational performance. Management has indicated that they will focus on leveraging their existing capabilities and exploring potential acquisitions to drive growth in the coming years.
About Southland Holdings, Inc.
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