Southland Holdings (SLND) Q1 2025 Earnings Call May 14, 2025 10:00 AM ET Speaker0 Good morning. My name is Chloe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southland First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer there question you. Alex, you may begin your conference. Speaker1 Good morning, everyone, and we ...

Southland Holdings (SLND) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.41. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80.49%. A quarter ago, it was expected that this infrastructure construction company would post a loss of $0.57 per share when it actually produced a loss of $0.09, delivering a surprise of 84.21%.Over the last four qua ...

Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9% compared to $288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2% from $20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of $406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to $(0.01) in Q1 2024[18] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of $0.525 million for the same period in 2024[25] - Gross profit for Q1 2025 was $21.5 million, an increase of $1.1 million, or 5.2%, compared to Q1 2024[154] - EBITDA for Q1 2025 was $10.08 million, down from $10.95 million in Q1 2024[169] Assets and Liabilities - Total current assets increased slightly to $884,954,000 from $881,652,000 at the end of 2024[17] - Total liabilities rose to $1,030,271,000, up from $1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from $72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from $163,658,000 at the end of 2024[17] - Total long-term debt as of March 31, 2025, was $241,309,000, down from $255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with $46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.9 million, representing 43.0% of total revenue, compared to $84.3 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.6 million, accounting for 57.0% of total revenue, down from $203.8 million or 70.7% in the previous year[76] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.0 million, a decrease of 18.6% from $267.7 million in the same period of 2024[77] - Selling, general, and administrative expenses for Q1 2025 were $16.5 million, an increase of $2.1 million, or 14.4%, compared to Q1 2024[155] - Interest expense increased to $8,874,000 from $5,655,000 in Q1 2024[18] - Interest expense for Q1 2025 was $8.9 million, an increase of $3.2 million, or 56.9%, compared to Q1 2024[156] Cash Flow - Cash flows from operating activities generated $6.429 million in Q1 2025, a significant improvement from a cash outflow of $9.897 million in Q1 2024[25] - Net cash provided by operating activities was $6.43 million in Q1 2025, compared to a net cash used of $9.90 million in Q1 2024[176] Backlog and Performance Obligations - Total backlog as of March 31, 2025, was $2.47 billion, down from $2.57 billion at the end of 2024, after recognizing $239.49 million in contract revenue[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from $961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from $1.61 billion at the end of 2024[171] - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40% as revenue in the next twelve months[114] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 10.1%, significantly lower than 36.9% for the same period in 2024[107] - The company is in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[88] - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[189] Other Financial Metrics - The company has outstanding surety bonds as of March 31, 2025, as a condition for entering into a substantial portion of its construction contracts[104] - The company has secured notes with interest rates ranging from 0.00% to 12.90%, expiring between December 2025 and March 2033[80] - The company has an outstanding balance of 608,254 Restricted Stock Units (RSUs) as of March 31, 2025, with a weighted-average grant-date fair value of $4.41[127] Management and Governance - An employment agreement with Keith Bassano was established on May 9, 2025, with an annual base salary of $357,000 and a performance bonus targeted between 80% and 200% of the base salary[202] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company has established effective disclosure controls and procedures as of the end of the reporting period[196]

Exhibit 99.1 Southland Announces First Quarter 2025 Results GRAPEVINE, Texas, May 13, 2025 -- Southland Holdings, Inc. (NYSE American: SLND and SLND WS) ("Southland"), a leading provider of specialized infrastructure construction services, today announced financial results for the quarter ended March 31, 2025. "We are off to a strong start in 2025, delivering improved margins and positive operating cash flow in the first quarter," said Frank Renda, Southland's President & Chief Executive Officer. "With stro ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $267 million, down $49 million from Q4 2023, with a gross profit of $8 million, down from $21 million in the same period last year [27][30] - Full-year revenue for 2024 was $980 million, a decrease from 2023, with a gross profit of negative $63 million compared to positive $36 million in 2023 [33][39] - The company reported a net loss of $4 million or negative $0.09 per share in Q4 2024, compared to a net loss of $6 million or negative $0.12 per share in Q4 2023 [30] Business Line Data and Key Metrics Changes - The Civil segment had revenues of $104 million in Q4 2024, a decrease of $4 million from Q4 2023, with a gross profit of $8 million, down from $25 million [31] - The Transportation segment reported revenues of $163 million in Q4 2024, down from $208 million in Q4 2023, with a gross loss of $0.4 million, an improvement from a gross loss of $3 million in the previous year [31] - For the full year, the Civil segment had revenues of $323 million, down $14 million from 2023, while the Transportation segment had revenues of $657 million, a decrease of approximately $166 million [38][39] Market Data and Key Metrics Changes - The company ended Q4 2024 with a backlog of approximately $2.57 billion, with $750 million in pending alternative delivery contracts not included in backlog [15][41] - The ongoing capital infusion from the Infrastructure Investment and Jobs Act is expected to provide a favorable tailwind for the business, particularly in Texas and Florida, which are leading in infrastructure investment [19][20] Company Strategy and Development Direction - The company aims to execute core projects with precision, wind down legacy work, and strengthen its position in core markets [25][24] - The focus is on maintaining a disciplined approach to project selection and driving sustainable profitability over the long term [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on opportunities and drive long-term success, with expectations for positive EBITDA by the end of 2025 [54][55] - The demand in core markets remains robust, driven by ongoing infrastructure needs and strong public and private sector investments [21][19] Other Important Information - The company converted $20 million of certain promissory notes to common stock, reinforcing confidence in the business and improving the balance sheet [23] - The company expects to burn approximately 39% of its backlog in 2025 [41] Q&A Session Summary Question: How does the company see the book and burn work trending in 2025? - Management noted a lower than one book-to-burn ratio in Q4 but is excited about the $100 million in new awards and expects a back-weighted cadence for new awards in 2025 [48][50] Question: Will the company have positive EBITDA in 2025? - Management expects to return to positive EBITDA numbers by the end of 2025, with a stronger finish anticipated [54][55] Question: What is the expectation for cash flow in 2025? - Management expects strong cash flow from operations in 2025, with seasonality weighted towards the back half of the year [78] Question: Are there concerns about federal funding for projects? - Management remains optimistic about the pipeline and opportunities, expecting to win a fair share of projects despite potential funding concerns [84][86] Question: How is the company positioned regarding tariffs and supply chain disruptions? - The company primarily procures made-in-America materials, minimizing exposure to tariffs, and does not expect material impacts from supply chain disruptions [91][92]

Southland Holdings, Inc. (NYSE:SLND) Q4 2024 Earnings Conference Call March 5, 2025 10:00 AM ET Company Participants Alex Murray - Director of Corporate Development and Investor Relations Frank Renda - President and Chief Executive Officer Cody Gallarda - Executive Vice President, Chief Financial Officer Conference Call Participants Adam Thalhimer - Thompson Davis Julio Romero - Sidoti Company Christian Schwab - Craig-Hallum Capital Group Brent Thielman - Davidson Rea Good morning. My name is Rea, and I wil ...

Financial Performance - For the year ended December 31, 2024, the company reported revenue of $980.2 million, a decrease of $180.2 million, or 15.5%, compared to $1,160.4 million in 2023[208]. - The cost of construction for 2024 was $1,043.2 million, a decrease of $81.4 million, or 7.2%, from $1,124.6 million in 2023[209]. - The gross loss for 2024 was $63.0 million, an increase of $98.9 million, or 276.0%, compared to a gross profit of $35.8 million in 2023[210]. - Selling, general, and administrative expenses for 2024 were $63.3 million, a decrease of $3.9 million, or 5.8%, from $67.2 million in 2023[211]. - Other income, net for 2024 was $3.6 million, a decrease of $19.9 million, or 84.6%, compared to $23.6 million in 2023[212]. - Interest expense for 2024 was $29.5 million, an increase of $10.0 million, or 51.6%, from $19.5 million in 2023[213]. - The income tax benefit for 2024 was $46.9 million, with an effective tax rate of 30.8%, compared to $8.5 million and an effective rate of 31.3% in 2023[214][215]. - Revenue from the Civil segment for 2024 was $323.3 million, a decrease of $14.2 million, or 4.2%, compared to $337.5 million in 2023[219]. - Revenue from the Transportation segment for 2024 was $656.9 million, a decrease of $166.0 million, or 20.2%, compared to $822.9 million in 2023[221]. Contractual and Operational Insights - Southland's contract backlog as of December 31, 2023, is $2,834,966,000, down from $2,973,885,000 at the end of 2022[43]. - New contracts and adjustments in 2023 amounted to $1,011,797,000, while contract revenue recognized in 2023 was $1,150,716,000[43]. - Fixed price contracts are expected to continue representing a majority of Southland's total backlog[42]. - The company is actively evaluating acquisitions to leverage resources and expertise in the Transportation and Civil segments[32]. - The company’s backlog is subject to unexpected adjustments and cancellations, which could adversely affect projected revenue[79]. - A substantial portion of revenue is derived from project-based work awarded through competitive bidding, making revenue unpredictable due to potential delays, cancellations, or scope changes[85]. Workforce and Labor Issues - As of December 31, 2024, the company had approximately 2,100 employees, with about 500 salaried and 1,600 hourly workers[62]. - Approximately 14% of the workforce, or about 300 employees, were represented by a union as of December 31, 2024[63]. - Labor costs continue to rise due to inflation and shortages of qualified workers, making hiring and retention a priority[47]. - Labor shortages and increased labor costs may impair the company's ability to maintain productivity and profitability, affecting growth strategies[102]. Market and Economic Conditions - The company is vulnerable to the cyclical nature of the markets it serves, with demand for services dependent on construction project approvals, which may be adversely affected by economic conditions[86]. - Economic downturns can lead to reduced demand for services, as customers may delay or cancel capital expenditures, impacting the company's revenue and profitability[87]. - Supply chain disruptions have led to increased prices for materials and labor, impacting project costs and scheduling[45]. - Supply chain disruptions may negatively affect the company's ability to complete projects, as sourcing materials from suppliers can be impacted by various factors[98]. - Weather conditions can significantly impact revenue and profitability, causing project delays and additional costs[100]. - Climate change-related events pose long-term risks to the company's operations and financial condition, potentially leading to increased project costs or cancellations[101]. Compliance and Regulatory Risks - The company is subject to various procurement regulations and laws, including the Davis-Bacon Act and the Walsh-Healy Act, which could impose additional costs and risks[59][81]. - The company is exposed to risks related to government contracts, including potential suspension or debarment due to statutory violations[81]. - Changes in laws or regulations could adversely affect business operations and result in fines or loss of contracts[113]. - Violations of anti-bribery laws could lead to severe penalties and damage the company's reputation, impacting business operations[115]. - Extensive laws and regulations govern workplace safety, and non-compliance could result in significant liabilities and adversely affect financial conditions[107]. Strategic Focus and Business Model - The company emphasizes a culture of diversity and inclusion, ensuring equal access to opportunities regardless of various protected classes[61][64]. - The company has built a competitive compensation and benefits package, including a 401(k) match plan and flexible work schedules[67][68]. - The company targets a mix of large-scale and small-scale projects to mitigate risks associated with specific customers or projects[32]. - The company’s business model emphasizes self-performance, allowing better cost management and minimizing reliance on third-party providers[32]. Financial Strategy and Market Position - The company does not intend to pay dividends for the foreseeable future, relying on stock appreciation for returns[76]. - The company is classified as an "emerging growth company" and is only required to provide two years of audited financial statements, which may affect the attractiveness of its Common Stock to investors[142]. - The company will remain an emerging growth company until it exceeds total annual gross revenue of $1.235 billion or meets other specified criteria[143]. - The trading price of the company's securities may be volatile due to various factors, including market conditions and operational performance[151]. - The company may issue additional equity securities in the future, which could dilute earnings per share and stockholders' percentage ownership[168]. Risk Management and Cybersecurity - The company employs risk management strategies based on NIST regulation standards and conducts regular vulnerability audits to manage cybersecurity risks[170]. - The company maintains cybersecurity risk insurance and conducts threat scenario exercises to enhance its cybersecurity posture[173].

Financial Performance - Revenue for Q4 2024 was $267.3 million, a decrease of $48.9 million, or 15.5%, compared to Q4 2023 revenue of $316.2 million[9] - Gross profit for Q4 2024 was $7.7 million, down from $21.1 million in Q4 2023, resulting in a gross margin decrease from 6.7% to 2.9%[10] - Net loss attributable to stockholders for Q4 2024 was $4.2 million, or $(0.09) per share, compared to a net loss of $5.6 million, or $(0.12) per share in Q4 2023[5] - Full year 2024 revenue was $980.2 million, a decrease of $180.2 million, or 15.5%, from $1.2 billion in 2023[14] - Full year 2024 gross loss was $63.0 million, compared to a gross profit of $35.8 million in 2023, with gross margin decreasing from 3.1% to (6.4)%[15] - Net loss attributable to stockholders for the full year 2024 was $105.4 million, or $(2.19) per share, compared to a net loss of $19.3 million, or $(0.41) per share in 2023[5] - Adjusted EBITDA for Q4 2024 was $(2.7) million, compared to $9.1 million in Q4 2023[20] - Adjusted net loss attributable to common stockholders for Q4 2024 was $4,155,000, compared to $5,563,000 in Q4 2023, showing a 25.2% improvement[22] - The net loss for the year ended December 31, 2024, was $105,528,000, compared to $18,715,000 in 2023, indicating a significant increase in losses[29] Backlog and Business Segments - The backlog as of December 31, 2024, was $2.57 billion, down from $2.83 billion at the end of 2023[21] - The Materials & Paving business contributed $35.6 million to revenue in Q4 2024 and $100.6 million for the full year 2024[14] Expenses and Liabilities - Selling, general, and administrative expenses for Q4 2024 were $15.7 million, a decrease of $4.2 million, or 21.2%, compared to Q4 2023[11] - Total liabilities rose from $940,504,000 in 2023 to $1,028,240,000 in 2024, an increase of 9.3%[26] Assets and Cash Flow - Total current assets decreased from $942,536,000 in 2023 to $881,652,000 in 2024, a decline of 6.5%[26] - Cash and cash equivalents increased from $49,176,000 in 2023 to $72,185,000 in 2024, representing a growth of 46.8%[26] - Net cash provided by operating activities for 2024 was $1,927,000, a recovery from a cash outflow of $10,264,000 in 2023[29] - The company reported a cash inflow of $18,781,000 from financing activities in 2024, compared to an outflow of $2,590,000 in 2023[29] Stockholders' Equity and Shares - Total stockholders' equity decreased from $260,564,000 in 2023 to $175,409,000 in 2024, a decline of 32.7%[26] - The diluted loss per share attributable to common stock for the year ended December 31, 2024, was $2.19, compared to $0.41 for the year ended December 31, 2023[22] - The weighted average shares outstanding for diluted earnings per share increased from 47,088,813 in 2023 to 48,073,973 in 2024[22] Tax and Interest Payments - Cash paid for income taxes was $1.561 billion, compared to $7.587 billion in the previous period[30] - Cash paid for interest was $28.047 million, an increase from $18.277 million[30] Lease and Note Payable Transactions - Assets obtained in exchange for new leases totaled $18.718 million, up from $13.875 million[30] - Assets obtained in exchange for notes payable amounted to $27.365 million, compared to $10.884 million previously[30] - Related party payable exchanged for notes payable was $3.797 million, with no previous amount reported[30] - Conversion of promissory notes payable to equity was $20,000, with no previous amount reported[30] - The issuance of post-merger earnouts shares was $35 million[30] - Dividend financed with notes payable was $50 million, with no previous amount reported[30] Company Overview - Southland is a leading provider of specialized infrastructure construction services, with a history dating back to 1900[33] - The company serves various end markets including bridges, tunneling, and water treatment[33]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $173 million, down from $312 million in the same period in 2023, primarily due to legacy headwinds and impacts from hurricanes [26][28] - Gross loss for the quarter was $51 million, compared to a gross profit of $30 million in Q3 2023, resulting in a gross profit margin of negative 30% [28][31] - Net loss reported was $55 million or negative $1.14 per share, compared to net income of $4 million or $0.08 per share in the same period last year [31] - EBITDA for the quarter was negative $59 million, compared to positive $22 million in Q3 2023 [31] Business Line Data and Key Metrics Changes - Civil segment revenues were $56 million, a decrease of $35 million from the same period in 2023, with a gross loss of $18 million [32] - Transportation segment revenues were $117 million, down $104 million from the same period in 2023, with a gross loss of $33 million [33][34] - Unfavorable charges of $27 million from legacy civil projects and $44 million from materials and paving and legacy projects significantly impacted both segments [32][34] Market Data and Key Metrics Changes - The company ended the quarter with a total backlog of $2.74 billion, essentially flat from the previous quarter and up from $2.54 billion at the end of Q3 2023 [15] - Approximately $180 million of remaining M&P backlog and $105 million of non-M&P legacy backlog are expected to be substantially complete by the end of 2025 [10][12] Company Strategy and Development Direction - The company is focusing on securing smaller dollar, shorter duration projects that yield quick cash flow, targeting projects in the $30 million to $150 million range [17][66] - The strategic plan includes a shift away from the M&P business to focus on core markets, with a backlog of $2.5 billion in new core projects [12][66] - The company is experiencing sustained demand across core markets, with infrastructure construction services demand outpacing the supply of qualified contractors [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance of new core projects, which are expected to return the company to profitability in 2025 [12][22] - The company anticipates significant cash inflows from the resolution of disputes and change orders related to legacy projects, contributing to future cash generation [35][41] - Management acknowledged the challenges faced in Q3 but emphasized the robust pipeline of opportunities and the expectation of a recovery in Q4 and into 2025 [54][60] Other Important Information - The company closed a $160 million senior secured term loan facility, extending debt maturities to 2028 and strengthening the balance sheet [14][35] - The company achieved several operational milestones, including significant safety achievements on projects [23] Q&A Session Summary Question: What is the time frame for the $105 million of non-M&P legacy backlog to burn off? - Management expects it to be substantially complete by the end of 2025, with one project extending into 2026 [37] Question: What was the revenue impact from the non-cash unfavorable adjustments in the quarter? - Approximately $71 million was a decrease in recognized revenue due to cumulative catch-up impacts of percentage completion accounting [38] Question: How does the company plan to allocate resources between smaller quick-turn projects and larger projects? - Management aims for a balance, maximizing resources to ensure the highest returns possible [39][40] Question: What is the expected timing of additional claims settlements? - Significant cash flows are expected from settlements as owners are running out of abilities to delay payments [41] Question: Can you provide history on the non-M&P legacy business? - The majority of the work performed well, but legacy projects overshadowed results due to cumulative catch-up effects [44] Question: What is the capacity to add more business given the current backlog? - The company is extremely selective, focusing on projects that maximize returns, with a strong cash position to support this [46][48] Question: How should backlog conversion be expected in Q4? - A recovery in volume is anticipated in Q4, with expectations of a sequential recovery in top line numbers [60][61] Question: How should the cadence of the $180 million M&P revenue be modeled? - A straight line model is not recommended; there will be variability in project completions [62] Question: What risk mitigation processes are being implemented for shorter duration projects? - The company has overhauled its procurement process to cover risk points effectively [68][69]

Financial Performance - Revenue for the three months ended September 30, 2024, was $173,320, a decrease of 44.6% compared to $312,472 for the same period in 2023[11] - Gross loss for the three months ended September 30, 2024, was $(51,105), compared to a gross profit of $29,529 for the same period in 2023[11] - Operating loss for the three months ended September 30, 2024, was $(68,597), compared to an operating income of $14,282 for the same period in 2023[11] - Net loss attributable to Southland Stockholders for the three months ended September 30, 2024, was $(54,727), compared to a net income of $3,800 for the same period in 2023[11] - Comprehensive loss attributable to Southland Stockholders for the three months ended September 30, 2024, was $(54,581), compared to a comprehensive income of $2,173 for the same period in 2023[13] - The company reported a net loss of $(58,129) for the three months ended September 30, 2024, compared to a net income of $4,791 for the same period in 2023[12] - For the nine months ended September 30, 2024, the net loss was $102,959,000 compared to a net loss of $11,376,000 for the same period in 2023[20] - Revenue for the nine months ended September 30, 2024, was $712.9 million, a decrease of $131.3 million, or 15.6%, compared to the same period in 2023[155] - Gross loss for the nine months ended September 30, 2024, was $70.7 million, an increase of $85.4 million, or 581.7%, compared to the same period in 2023[157] - The basic and diluted net loss per share for the three months ended September 30, 2024, was $(1.14), compared to $0.08 for the same period in 2023[129] Cash Flow and Liquidity - Cash flows from operating activities provided $12,242,000 in the nine months ended September 30, 2024, a significant improvement from cash used of $36,588,000 in the prior year[20] - The company’s cash and cash equivalents at the end of the period totaled $106,748,000, an increase from $46,752,000 at the end of September 30, 2023[20] - Cash provided by financing activities was $28,437,000 for the nine months ended September 30, 2024, compared to $11,730,000 in the same period of 2023[20] - The company had a net change in cash, cash equivalents, and restricted cash of $42.9 million for the nine months ended September 30, 2024, compared to a decrease of $25.2 million in the same period of 2023[193] - The company expects to maintain liquidity of at least $20.0 million at all times as per the Credit Agreement[204] Debt and Interest - Total equity as of September 30, 2024, was $158,034, a decrease from $260,564 as of December 31, 2023[15] - Interest expense for the three months ended September 30, 2024, was $(7,520), compared to $(6,231) for the same period in 2023[11] - Interest expense for the nine months ended September 30, 2024, was $19.9 million, an increase of $6.1 million, or 44.3%, compared to the same period in 2023[161] - As of September 30, 2024, total long-term debt was $275.2 million, an increase from $251.9 million as of December 31, 2023[75] - The weighted average interest rate on total debt outstanding increased to 9.22% as of September 30, 2024, from 6.12% as of December 31, 2023[75] - The company entered into a $160.0 million term loan facility on September 30, 2024, which replaced the previous revolving credit facility[77] Operational Changes and Strategy - The company decided to discontinue certain types of projects in its Materials & Paving business line to focus on more profitable areas[24] - The merger with Legato Merger Corp. II was completed on February 14, 2023, with Southland LLC surviving as a wholly owned subsidiary[26] - The company continues to identify new opportunities for growth in both the Civil and Transportation segments, with a positive outlook for future infrastructure projects[136] Segment Performance - The Civil segment generated revenue of $55.8 million, accounting for 32.2% of total revenue, while the Transportation segment contributed $117.5 million, representing 67.8%[73] - Revenue for the Civil segment for the three months ended September 30, 2024, was $55.8 million, a decrease of $34.9 million, or 38.4%, compared to the same period in 2023[164] - Revenue for the Transportation segment for the three months ended September 30, 2024, was $117.5 million, a decrease of $104.3 million, or 47.0%, compared to the same period in 2023[168] Assets and Liabilities - As of September 30, 2024, the company had $20.2 million in accrued loss provisions, up from $17.3 million as of December 31, 2023[64] - As of September 30, 2024, contract assets totaled $456.2 million, down from $554.2 million as of December 31, 2023, representing a decrease of 17.7%[109] - The net contract position as of September 30, 2024, was $212.7 million, down from $360.9 million as of December 31, 2023, indicating a reduction of 41.0%[111] - The company recorded claims assets of $253.0 million as of September 30, 2024, compared to $306.4 million as of December 31, 2023, a decrease of 17.5%[113] Future Outlook - The company plans to adopt ASU 2023-05 in the first quarter of 2025, which is expected to have no material impact on consolidated financial statements[43] - The company anticipates that future operating results and available cash will be adequate to meet liquidity needs for at least the next twelve months[190]