Southland swings to $28M loss as dispute settlements, cost overruns hit margins

Filed May 12, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Q1 2026 revenue fell 28% to $172M while gross profit swung from $21.5M profit to $4.8M loss, driven by $13M canal project and $6.4M M&P project dispute settlement losses plus $8M in Civil segment cost overruns across three water infrastructure projects.

  MD&A: Revenue and Gross Profit verify on EDGAR →
• high

  $89M adverse court judgment on WSCC Project triggered liquidity crisis; sureties purchased $110M of debt, waived all payments until 2028 maturity, and advanced $139M under indemnity agreements with forbearance until May 2027.

  MD&A: Liquidity and Capital Resources verify on EDGAR →
• high

  Operating cash flow swung from +$6.4M to -$134M as company paid down $104M in payables faster than collecting receivables; backlog declined 24% to $1.88B with new contract wins dropping from $137M to $19M.

  MD&A: Cash Flows and Backlog verify on EDGAR →