Southland (SLND) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $113.3 million, down 47.4% year-over-year, primarily due to unfavorable changes in estimates and non-cash adjustments related to unresolved contract modifications and legacy dispute claims, resulting in a $102.3 million revenue reversal.

• Gross loss for Q2 2026 was $71.2 million, compared to a gross profit of $13 million in Q2 2025, with a gross margin of (62.9)% versus 6.0% last year, driven by a $93.6 million negative catch-up adjustment on claims.

• Net loss attributable to stockholders was $84.3 million, or $(1.55) per diluted share, versus a $10.3 million loss ($0.19 per share) in Q2 2025.

• EBITDA was $(73.4) million for Q2 2026, compared to $(4.2) million in Q2 2025, largely due to non-cash adjustments.

• Backlog at June 30, 2026, was $1.68 billion, with 38% expected to convert to revenue in the next 12 months.

Financial highlights

• Six-month revenue was $285.7 million, down 37.2% year-over-year.

• Six-month gross loss was $76.0 million, compared to gross profit of $33.4 million in the prior year.

• Six-month net loss attributable to stockholders was $112.6 million, or $(2.08) per share.

• SG&A expenses for Q2 2026 were $16.7 million, up 23.1% year-over-year, mainly from increased bad debt expense.

• Cash and cash equivalents at June 30, 2026, were $34.9 million, with positive working capital of $117.6 million.

Outlook and guidance

• Management expects to recognize 38% of backlog as revenue over the next 12 months, with the remainder by 2030.

• Expect increased bonding support and bidding activity following finalization of surety agreements and a major project award.

• The company believes it has sufficient liquidity to meet operational and financial obligations for at least the next 12 months, based on current cash, expected operating cash flows, and actions taken to address liquidity challenges.