Southland Holdings Q2 revenue falls, net loss widens
SLND•Q2 results
- US infrastructure builder's Q2 revenue fell 47% yr/yr, impacted by project claim adjustments
- Company's Q2 net loss widened to $84.3 mln
- Gross margin for Q2 dropped to -62.9% from 6.0% a year earlier
What drove the decline
- Claim adjustments — Co said results were primarily impacted by unfavorable non-cash adjustments related to legacy project disputes
- Claim reassessment — Co performed a comprehensive reassessment of expected recoverability of claims, leading to reduced estimated value of certain claims and a cumulative catch-up adjustment that negatively impacted revenue and gross profit
- Materials & Paving impact — Materials & Paving business negatively impacted gross profit by $16.3 mln in the quarter
Outlook and market context
- Company did not provide specific financial guidance for the current quarter or full year in press release
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