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• Southland is like Fluor Corporation (FLR), but specializing in building critical civil infrastructure such as bridges, tunnels, and water systems.
• Think of them as a specialized version of Jacobs Engineering (J), focused on major public works like bridges, tunnels, and marine projects.

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• Bridge Construction: Southland builds various types of bridges for transportation infrastructure.
• Tunnel Construction: The company specializes in the construction of tunnels for diverse purposes.
• Water Resources Projects: Southland undertakes projects related to water management, including dams, pipelines, and treatment facilities.
• Marine Projects: The company constructs infrastructure in marine environments, such as ports, docks, and coastal protections.

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Southland Holdings, Inc. (SLND) operates as an infrastructure construction company, primarily serving governmental entities and large private sector clients through project-based contracts. Due to the nature of its business, which involves bidding on and executing a diverse range of infrastructure projects, Southland Holdings does not typically have single, recurring major customers that account for a significant portion of its revenue in a way that would be publicly disclosed with specific company names and public symbols.

Instead, its major customers fall into the following categories:

• Governmental Entities: These include federal, state, and local governments across North America. Examples of such customers are state Departments of Transportation, various municipal public works departments, and federal agencies like the U.S. Army Corps of Engineers. These governmental bodies do not have public stock symbols.
• Public Agencies and Authorities: This category encompasses various public agencies responsible for specific infrastructure, such as water authorities, port authorities, airport authorities, and transit agencies. These entities do not have public stock symbols.
• Private Sector Clients: Southland Holdings also serves large private developers and industrial companies that require significant infrastructure for their projects, such as large-scale industrial facilities, energy infrastructure, or large commercial developments. The specific names of these private clients vary by project and are not typically disclosed as "major customers" with recurring revenue streams in the same manner as a consumer product company might list its retailers.

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Frank Renda President, Chief Executive Officer
As President and Chief Executive Officer of Southland, Frank Renda is responsible for identifying and establishing all necessary initiatives to achieve short-term and long-term corporate goals. Mr. Renda has nearly 30 years of experience across various disciplines within the construction industry and has spent the last 20-21 years as CEO of Southland. He has combined his operational background, industry knowledge, and M&A expertise to grow the Southland family of companies to approximately $1.3B in annual revenues, with operations throughout North America. He holds a Bachelor of Business Administration from Texas Tech University. Mr. Renda directly owns 51.5% of Southland Holdings' shares.

Keith Bassano Chief Financial Officer
Keith Bassano assumed the role of Chief Financial Officer effective March 28, 2025. He brings over 15 years of experience in the engineering and construction industry, where he has held various leadership roles overseeing finance, accounting, and human resources functions. Mr. Bassano joined Southland in September 2020 and American Bridge, a Southland subsidiary, in 2008. He holds a Bachelor of Science in Business Administration with a major in Accounting from Duquesne University and a Master of Business Administration from Robert Morris University. He is also a licensed Certified Public Accountant.

Tim Winn EVP, Chief Operating Officer
Tim Winn serves as Executive Vice President and Chief Operating Officer for Southland. Mr. Winn has approximately 30 years of experience in technical infrastructure project execution. Under his leadership, Southland and its various subsidiaries have completed some of the nation's most complex bridge, marine, underground tunneling, structural, and emergency infrastructure services for both public and private clients. Additionally, Mr. Winn has successfully integrated numerous strategic acquisitions to strengthen Southland's operational capabilities.

Rudy Renda EVP, Chief Operating Officer, Strategy & Special Projects
Rudy Renda serves as Executive Vice President and Chief Operating Officer, Strategy & Special Projects, for the Southland family of companies. Mr. Renda oversees various plant and conveyance projects for Southland and has been instrumental in the company's completion of some of the most complex projects in the US. He combines nearly 30 years of construction experience, leading various components of contract administration and compliance, resource management, partnering strategies, customer relationships, and coordination across all subsidiaries of Southland. Rudolph J. Renda joined Oscar Renda Contracting, Inc., one of the foundational companies of Southland Holdings, a few years after it was established in 1974 by his brother, Oscar Renda.

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The key risks to Southland Holdings, Inc. (SLND) are primarily centered around its financial health and profitability, ongoing operational challenges, and its reliance on public infrastructure spending.

1. Financial Health and Profitability Concerns, including Legacy Projects and Debt: Southland Holdings faces significant financial challenges, evidenced by a poor financial strength rating and weak business operations. The company has reported substantial net losses and negative EBITDA in recent periods. A major contributing factor is unfavorable adjustments stemming from legacy project disputes, which have adversely impacted revenue and profitability. The company has experienced negative revenue growth over the past three years and operates with a negative gross and operating margin, indicating persistent profitability issues. Furthermore, Southland Holdings carries a high debt-to-equity ratio and has an Altman Z-Score suggesting a potential risk of financial distress. Rising interest expenses due to increased debt and higher rates also pose a threat to its profitability and ability to service its obligations. A recent $57 million judgment against a subsidiary related to a construction project further exacerbates these financial pressures.
2. Operational Challenges and Project Execution Risks: The company consistently grapples with operational difficulties and project execution issues. Project delays and dispute resolutions are recurring sector-specific risks that have directly impacted its financial performance. Specifically, the Transportation segment has frequently reported gross losses and faced operational challenges. The company also acknowledges execution risks when undertaking new project types, such as data centers.
3. Dependence on Public Infrastructure Spending and Competitive Pressures: Southland Holdings' business outlook is heavily reliant on sustained investment in infrastructure, particularly from federal and state governments. While this currently provides a robust backlog, changes in government policy or funding initiatives could significantly impact the company's future contract awards and revenue streams. Additionally, the competitive nature of the civil infrastructure sector could affect its ability to secure new high-margin projects.

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The addressable markets for Southland Holdings, Inc.'s main products and services in North America are substantial, driven by ongoing infrastructure needs and investments.

Bridges

The North American bridge construction market was valued at approximately USD 40.32 billion in 2024 and is projected to reach USD 62.16 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 7.48% during this period. Within this, the U.S. bridge and elevated highway construction market alone was approximately USD 16.1 billion in 2024 and is expected to grow to USD 24.3 billion by 2032, with a CAGR of 5.4%. Federal initiatives, such as the Infrastructure Investment and Jobs Act (IIJA), are providing significant funding for bridge projects across the U.S.

Tunnels

The U.S. tunnel construction market size was approximately USD 1.7 billion in 2024. Looking broader, the North American tunnel projects pipeline was estimated at around US$90 billion as of the first quarter of 2024. The North America road tunnel construction market specifically was valued at about USD 7.8 billion in 2024. North America holds a significant share of the global tunnels design and construction market, accounting for approximately 26.8% in 2025. Major projects planned in the U.S. tunneling market are expected to exceed $50 billion.

Water Resources

The U.S. water infrastructure and management market was valued at USD 120.2 billion in 2024 and is projected to reach USD 179.6 billion by 2032, growing at a CAGR of 5.3%. The North America water and wastewater treatment market was estimated at USD 111.32 billion in 2025 and is predicted to grow to USD 210.35 billion by 2035, with a CAGR of 6.57%. Another estimate places the North America water and wastewater treatment market size at USD 142.25 billion in 2025. The need to upgrade aging infrastructure is a primary driver for growth in this sector.

Marine Projects

The U.S. marine construction market was approximately USD 11.51 billion in 2024 and is projected to increase to USD 15.24 billion by 2030, at a CAGR of 4.8%. For the broader North America and Pacific region, the marine construction market size was estimated at USD 12.69 billion in 2025 and is projected to reach USD 18.80 billion by 2033, growing at a CAGR of 5.2%. North America dominated this combined market with a 97.2% revenue share in 2025. This growth is fueled by investments in port infrastructure, offshore wind energy, and coastal protection initiatives.

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Expected Drivers of Future Revenue Growth for Southland Holdings, Inc. (SLND)

• Strong and Growing Project Backlog: Southland Holdings consistently maintains a substantial project backlog, which provides clear visibility for future revenue recognition over the next 2-3 years. For example, the company reported a backlog of approximately $2.26 billion in Q3 2025.

• Strategic Shift to High-Margin, Short-Duration Projects and New Core Work: Management has emphasized a strategic pivot towards acquiring and executing high-margin, short-duration projects and focusing on new core work. This approach is expected to enhance overall profitability and accelerate the recognition of revenue, particularly as legacy projects are completed.

• Robust Demand in Infrastructure and Water Resources: There is robust demand in public and private infrastructure markets, which Southland Holdings is well-positioned to capitalize on. Specific areas of optimism include significant investments in Texas water infrastructure, such as the potential $20 billion from Proposition 4, and opportunities within the data center market.

• Continued Strong Performance in the Civil Segment: The Civil segment has demonstrated strong and consistent performance, frequently reporting double-digit gross margins (e.g., 10.5% in Q3 2025 and 22% in Q1 2025). This segment is identified as a key contributor to revenue and margin expansion and is expected to continue driving growth.

• Winding Down of Legacy Projects and Resolution of Disputes: While not a direct new revenue generator, the completion and resolution of lower-margin legacy projects and associated disputes are crucial. This frees up operational resources and capital, enabling the company to concentrate fully on and pursue more profitable new opportunities, thereby indirectly supporting and improving the quality of future revenue growth.

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Share Issuance

• On February 14, 2023, Legato II issued 33,793,111 shares of Common Stock to the former members of Southland LLC in exchange for their membership interests as part of a business combination that resulted in Legato II changing its name to Southland Holdings, Inc..
• Between December 31, 2024, and September 30, 2025, the number of issued and outstanding shares increased from 53,936,411 to 54,113,036.

Inbound Investments

• In December 2025, Berkshire Hathaway Specialty Insurance Company advanced approximately $14 million of a potential $30 million in surety funds to Southland Holdings, Inc. for project bonds.
• As of February 4, 2026, Southland Holdings, Inc. received approximately $59 million in aggregate surety funds from Markel ($5 million), Berkshire Hathaway ($21 million), and Zurich ($33 million) for construction project obligations.
• The company is actively working with Callodine Commercial Finance, LLC and other lenders to determine the impact of these surety advancements on their credit agreement and to negotiate additional financing arrangements.

Capital Expenditures

• Southland Holdings Inc. invested $561,000 in capital expenditures in Q3 2025, a decrease of 48.5% from the prior quarter.
• In Q3 2025, capital expenditures consumed a significant portion of the company's operating cash flow, leading to negative free cash flow, reflecting substantial investment in long-term assets and infrastructure.
• Annual capital expenditures for Southland Holdings were $8 million in 2024 and $10 million in 2023.