10-Q · May 12, 2026
Southland Holdings reported disappointing Q4 results for the fiscal year ended March 31, 2026, with revenue of $172.4 million, down 28.0% year-over-year, driven by substantial declines in the Transportation segment. The…
Earnings analysis · 10-Q
SLND earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Southland reported a sharply weaker Q2, with revenue of $113.3 million and diluted EPS of $(1.55), missing consensus estimates of $174.41 million and $(0.45). A $102.3 million negative revenue impact from claim…
Read full summary
Southland reported a sharply weaker Q2, with revenue of $113.3 million and diluted EPS of $(1.55), missing consensus estimates of $174.41 million and $(0.45). A $102.3 million negative revenue impact from claim recoverability adjustments drove a $71.2 million gross loss and (62.9)% gross margin. The company provided no numeric guidance and remains focused on financing and a credit amendment with surety partners, keeping liquidity and execution risks elevated.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.55
- Gross margin
- -62.9%
What stood out
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Severe Revenue Miss
Q2 revenue was $113.3 million, down from $172 million in 2026 Q1 and $215 million in 2025 Q2. Revenue missed the $174.41 million consensus estimate by $61.1 million.
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EPS Loss Worsened
Diluted EPS was $(1.55), versus $(0.52) in 2026 Q1 and $(0.19) in 2025 Q2, missing the $(0.45) consensus estimate by $1.10.
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Gross Margin Collapsed
Gross loss was $71.2 million, producing a (62.9)% gross margin versus a 6.2% gross margin in 2025 Q2, a 69.1-percentage-point year-over-year deterioration.
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Legacy Claims Adjustment
Claim recoverability adjustments reduced revenue by $102.3 million, indicating that legacy claims and contract recoverability were the primary drivers of the quarter's reported deterioration.
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Capital Restructuring Milestones
The amended CFO agreement provides for up to $1.05 million of additional cash incentive payments tied to capital restructuring, non-core asset monetization and backlog-completion milestones.
What to watch
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Severe Margin and Claims Risk
The $102.3 million negative revenue impact from claim recoverability adjustments drove a $71.2 million gross loss and a (62.9)% gross margin, demonstrating substantial exposure to further claims reassessments.
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Liquidity and Surety Exposure
Management is working to finalize a financing agreement and credit amendment with surety partners; the filing provides no quantitative liquidity outlook, leaving financing and surety access unresolved.
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Restructuring Execution Risk
The CFO's amended agreement includes up to $1.05 million in milestone payments tied to capital restructuring, non-core asset monetization and backlog completion, highlighting execution dependence on these actions.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated it is working to finalize a financing agreement and a credit amendment with surety partners.
Earlier filings 4
10-K · March 26, 2026
Southland’s 10-K describes a two-segment Civil and Transportation contractor with a strategy focused on self-performance, ownership of a large equipment fleet, selective bidding and controlled expansion. Backlog remains…
10-Q · November 12, 2025
Southland reported Q3 revenue of $213,343,000 (three months ended September 30, 2025) versus $173,320,000 in Q3 2024, with gross profit of $3,275,000 and a continuing operating loss of $11,312,000. The quarter produced…
10-Q · August 12, 2025
Southland reported Q2 revenue of $215,382,000, down $36,130,000 (−14.4%) versus Q2 2024, but delivered materially better margin and earnings performance: gross profit swung to $13,363,000 from a loss of $(40,022,000)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.