Southland maintains a substantial backlog of $1.88 billion, providing visibility into future revenue, though execution challenges have eroded profitability. Recent performance deterioration stems from unfavorable dispute resolutions and higher-than-expected project costs. The company is navigating financial distress, with an equity deficit and elevated debt levels limiting strategic flexibility.
Cyborg Score Rationale
Q1 2026 revenue declined 28% year-over-year to $172.4 million with a net loss of $28.4 million and negative EBITDA of -$14.1 million. Total debt stands at $235.3 million with an equity deficit of $160.6 million. Gross margins turned sharply negative, signaling deep project execution and pricing challenges.
Top Insights
(May 2026) Q1 2026 results showed severe margin compression with Transportation segment recording -28.3% gross margin
(May 2026) Operating cash flow turned sharply negative at -$133.9 million in Q1 2026, driven by project cost overruns and working capital pressure
(May 2026) Equity deficit of $160.6 million and surety payable of $228.3 million (including $89.1 million Washington State Convention Center judgment) create solvency risk
Civil segment remains operationally sound with 14.1% gross margin; turnaround depends on resolving Transportation segment profitability crisis
Named Competitors
Kiewit Infrastructure — Heavy civil, energy, and infrastructure construction
Granite Construction — Civil infrastructure and transportation construction
Zachry Holdings — Industrial construction, engineering, and heavy civil infrastructure
Fluor Corporation — Engineering, procurement, construction, and maintenance services for infrastructure and industrial projects
Boral Limited — Construction materials and construction services including civil infrastructure
Orion Group Holdings — Specialty civil infrastructure and marine construction services
Recent Developments
(May 2026) Announced Q1 2026 results with 28% revenue decline, gross loss of $4.8 million, and net loss of $28.4 million
(Q1 2026) Backlog remained stable at $1.88 billion despite operational challenges
(2026) Major projects include $48 million data center chilled-water installation (completion 2026) and $40 million pump station expansion (completion 2027)
Open the full interactive Southland Holdings, Inc. report
Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.