Overview

• US infrastructure builder's Q1 revenue fell 28% yr/yr

• Company posted bigger Q1 net loss, with gross margin turning negative

• Results impacted by legacy disputes and Materials & Paving business losses

Outlook

• Southland says it remains focused on optimizing its asset base and bidding discipline

Result Drivers

• LEGACY DISPUTES - Co said consolidated results were affected by non-cash adjustments from certain legacy disputes

• MATERIALS & PAVING LOSSES - Co said Materials & Paving business negatively impacted gross profit by $13.1 mln in Q1

• CIVIL SEGMENT MARGIN - Civil segment posted 14% gross margin in Q1, which management highlighted as evidence of operational improvement

Company press release: ID:nBw7ZBB0La

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$172.4 mln	$172.23 mln (2 Analysts)
Q1 Net Income attributable		-$28.4 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Southland Holdings Inc is $3.00, about 138.1% above its May 11 closing price of $1.26

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