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EarningsQ2 2026 Earnings Report
SLND Q2 2026 EPS Results
Actual EPS-$1.55
Consensus EPS-$0.42
Beat/MissMissed by -$1.13
One Year Ago EPS-$0.19
SLND Q2 2026 Revenue Results
Actual Revenue$113.31M
Expected Revenue$175.51M
Beat/MissMissed by -$62.21M
YoY Revenue Growth-47.39%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeAfter Close
Conference CallWednesday, August 12, 2026
SLND Upcoming Earnings
Southland Holdings's next earnings date is estimated for November 17, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
SLND Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Negative
The call contained material positive developments on liquidity and capital structure—formalized surety support, credit amendment providing cash interest relief and suspension of principal payments, expected issuance of preferred shares, asset monetization gains, and an active pipeline highlighted by a $190 million Winnipeg award. However, these positives were overshadowed by severe current-quarter operating results driven by a large, noncash legacy dispute reassessment: steep revenue decline (~47%), a $71 million gross loss, net loss widening to $84.3 million, negative EBITDA, and a ~17% decline in backlog. Management frames the legacy adjustments as largely one-time and is focused on closing out legacy work and ramping bidding, but significant uncertainty remains around claim recoveries and the impact on future financials.Company Guidance
Surety Financial Assistance Agreement and Term Loan Amendment
Formalized agreements with sureties and a second amendment to the senior credit facility provide runway to complete bonded work. Senior facility interest fixed at 4% (capitalized), scheduled principal payments and early termination premium suspended, and removal of ongoing financial covenants. Management estimates ~ $27 million of cash debt service relief over the next 12 months from these changes.
Substantial Surety Support and Advances
Sureties advanced approximately $70.6–$71 million during the quarter to support active bonded projects, bringing total surety advances to roughly $209.8–$210 million (excluding the Washington State Convention Center). Total surety payables including WSC were $298.9 million at quarter end; repayment not required prior to at least August 13, 2027.
Nonbonding Financing Conversion to Preferred Shares
Expected issuance of approximately $151 million of senior nonvoting perpetual preferred shares (stated value $1,000 per share) to reflect conversion of nonbonding financing; preferreds rank senior to other equity, are non-convertible, and will be issued no later than September 30, 2026, with final amounts adjusted to 50% of actual loss at project completion.
Backlog and Near-Term Revenue Visibility
Backlog finished Q2 at $1.68 billion (management expects ~38% of backlog to convert to revenue over the next 12 months). New award: Phase 3 Winnipeg North End Sewage Treatment Plant JV award includes approximately $190 million in contract value for Southland (expected in Q3 awards; project concluding in 2030).
Asset Monetization and Other Income
Other income of $6.4 million in the quarter (vs. $0.6 million prior year) driven by gains on asset sales as part of the strategic plan to monetize noncore assets and reduce debt.
Lower Interest Expense and Reduced Cash Interest
Interest expense for the quarter totaled $7.3 million, down $2.7 million or 26.5% year-over-year, primarily due to lower debt outstanding. Cash interest in the quarter was $4.0 million (down from $8.5 million in Q1) as a result of suspended interest service on the senior term loan.
Legacy Portfolio Shrinking
Legacy backlog materially reduced: $46 million of material & paving backlog and $35 million of non-M&P legacy backlog remaining. Contract assets declined to $272.3 million from $389.4 million at year-end (a decline of approximately 30.1%).
Market Demand and Bid Pipeline
Management cites a strong market backdrop across water, bridge, marine and tunnel work; expects bonding support and bidding activity to increase now that agreements are in place and anticipates bidding to ramp up in the back half of the year.
SLND Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed