The following is a summary of the Southland Holdings, Inc. (SLND) Q1 2024 Earnings Call Transcript:
Financial Performance:
Southland Holdings reported a Q1 2024 revenue of $288 million, representing a 5% increase from the same quarter last year.
The gross profit for the quarter was $20 million, a marginal increase from the $19 million in the same quarter of the previous year.
The consolidated gross profit margin for the quarter was 7.1%, slightly higher than 6.9% in the previous year.
Despite the Transportation segment facing challenges, the Civil segment yielded a gross profit margin of 21%, up from 12% in the same period previous year.
The company concluded the quarter with a backlog worth $2.64 billion.
Business Progress:
Southland Holdings secured around $100 million new contracts during the quarter, and an early start to Q2 bagged them another $350 million in new awards, which are not yet part of the backlog.
The backlog is expected to see an increase from Q1 to Q2 due to the robust start in awards.
The company is experiencing high demand for its services from public, government agencies, and private clients, facilitating business growth.
The primary focus remains on capitalizing on opportunities within the U.S. market.
Southland Holdings is also monitoring trends and long-term potential stemming from high demand for manufacturing facilities and data centers in the U.S.
The company predicts improvements in cash flow from operations through to the end of 2024, maintaining the trend established in '21, '22, and '23.
Southland Holdings is poised to confirm $350 million worth of new awards for Q2 and anticipates a growth in backlog with impending proposals, with a strategic plan to pursue growth in a controlled manner to sustain profit margins.
More details: Southland Holdings IR
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