Southland Awarded $132 million Water Treatment Plant Project for the Bureau of Reclamation

Rhea-AI Summary

Southland Holdings (NYSE American: SLND) has announced that its subsidiary, Oscar Renda Contracting, has been awarded a $132 million contract by the Bureau of Reclamation. The project involves constructing a new water treatment plant, including a storage facility and site improvements. The scope also includes demolition of existing structures. Southland secured this contract based on offering the best value to their long-standing client. This significant award will be included in the company's third quarter 2024 backlog.

Positive

• Secured a large $132 million contract, boosting revenue
• Contract awarded based on best value, indicating competitive advantage
• Project to be included in Q3 2024 backlog, enhancing future financial outlook
• Demonstrates strong relationship with long-standing client (Bureau of Reclamation)

Negative

• None.

Insights

Financial Analyst

This $132 million contract award is a significant development for Southland Holdings, representing approximately 73% of its current market cap. The project's scale suggests a substantial boost to the company's backlog and future revenue streams. The award, based on "best value," indicates Southland's competitive edge in the water infrastructure sector. Importantly, this contract with a government agency (Bureau of Reclamation) provides revenue stability and potentially enhances the company's reputation for securing large-scale public projects. The inclusion in Q3 2024 backlog implies a positive impact on near-term financial outlooks and investor sentiment. However, investors should consider project execution risks and potential margin pressures in large infrastructure projects. Overall, this contract significantly strengthens Southland's position in the water treatment infrastructure market.

Civil Engineering Expert

The scope of this water treatment plant project is comprehensive, encompassing new construction, storage facilities and demolition work. This diversity of tasks showcases Southland's broad capabilities in water infrastructure. The project's complexity, involving both new builds and demolition, requires significant technical expertise and project management skills. The Bureau of Reclamation's choice of Southland for this critical infrastructure project speaks to the company's reputation and track record in the field. From an engineering perspective, such projects often involve cutting-edge water treatment technologies and stringent environmental standards, potentially positioning Southland at the forefront of industry advancements. The long-term nature of these projects can provide stable, multi-year revenue streams, but also carries risks related to cost overruns and timeline extensions typical in large-scale infrastructure work.

GRAPEVINE, Texas--(BUSINESS WIRE)-- Southland Holdings, Inc. (NYSE American: SLND and SLND WS) (“Southland”) announced today that a subsidiary in its Civil segment, Oscar Renda Contracting, has been awarded a $132 million contract to construct a new water treatment plant for the Bureau of Reclamation.

The scope of work includes constructing a new water treatment plant building, a storage facility, site improvements and demolition of the existing storage building and water treatment plant. Southland was awarded this contract based on best value for this long-standing client. This award will be included in third quarter 2024 backlog.

About Southland

Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in North America, with experience throughout the world. The company serves the bridges, tunneling, communications, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets. Southland is headquartered in Grapevine, Texas. For more information, please visit Southland’s website at www.southlandholdings.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Southland’s current beliefs, expectations and assumptions regarding the future of Southland’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Southland’s control. Southland’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by Southland in this press release is based only on information currently available to Southland and speaks only as of the date on which it is made. Southland undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240925994154/en/

Alex Murray

Corporate Development & Investor Relations

amurray@southlandholdings.com

Source: Southland Holdings, Inc.

FAQ

What is the value of the water treatment plant contract awarded to Southland Holdings (SLND)?

Southland Holdings (SLND) was awarded a $132 million contract for the water treatment plant project by the Bureau of Reclamation.

Which Southland Holdings (SLND) subsidiary will be executing the water treatment plant project?

Oscar Renda Contracting, a subsidiary in Southland Holdings' Civil segment, will be executing the $132 million water treatment plant project.

When will the $132 million contract be included in Southland Holdings' (SLND) backlog?

The $132 million water treatment plant contract will be included in Southland Holdings' (SLND) third quarter 2024 backlog.

What is the scope of work for Southland Holdings' (SLND) $132 million water treatment plant project?

The scope includes constructing a new water treatment plant building, a storage facility, site improvements, and demolition of the existing storage building and water treatment plant.