Southland Awarded $60 million Wastewater Treatment Plant Project

Rhea-AI Summary

Southland Holdings subsidiary Oscar Renda Contracting has secured a $60 million contract for the construction of a new wastewater treatment plant in the Southwest. The project encompasses comprehensive infrastructure development, including new headworks, influent pump station, extended aeration basin, administration building, utility water station, and crew building renovation. The contract will be added to the company's fourth quarter 2024 backlog.

Positive

• $60 million new contract secured for wastewater treatment plant construction
• Project adds to Q4 2024 backlog, strengthening future revenue visibility

Negative

• None.

Insights

Construction Industry Analyst

The $60 million wastewater treatment plant contract represents a significant win for Southland Holdings, strengthening their Civil segment portfolio. The comprehensive scope, including critical infrastructure components like headworks and pump stations, showcases the company's capabilities in handling complex municipal projects. With the project being added to Q4 2024 backlog, it provides solid revenue visibility and demonstrates the company's continued success in securing substantial infrastructure contracts.

For a company with a market cap of approximately $150 million, this single contract value represents about 40% of their current market capitalization, making it a material win. The project's nature also aligns with increasing nationwide infrastructure spending and growing demand for water treatment facilities, positioning Southland well in this essential services sector.

Financial Analyst

This contract award is financially significant for Southland Holdings. The $60 million project will provide strong backlog support and revenue stream visibility into 2024 and beyond. The timing of the backlog addition in Q4 2024 suggests a multi-year execution timeline, which helps in long-term revenue planning and resource allocation. The project's size relative to Southland's market capitalization indicates its materiality to the company's financial outlook and potential positive impact on future earnings.

The award also demonstrates Southland's competitive positioning in securing large-scale municipal infrastructure projects, which typically offer stable margins and lower risk profiles due to government backing. This could positively influence investor sentiment regarding the company's execution capabilities and growth trajectory.

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 $60 million contract to construct a new wastewater treatment plant in the Southwest.

The scope of work includes construction of new headworks, influent pump station, extended aeration basin, administration building, utility water station, and renovation of the crew building. This award will be included in fourth 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/20241204779469/en/

Alex Murray

Corporate Development & Investor Relations

amurray@southlandholdings.com

Source: Southland Holdings, Inc.

FAQ

What is the value of Southland Holdings' (SLND) new wastewater treatment plant contract?

Southland Holdings' subsidiary secured a $60 million contract for the construction of a new wastewater treatment plant in the Southwest.

What infrastructure components are included in Southland's (SLND) new wastewater treatment project?

The project includes construction of new headworks, influent pump station, extended aeration basin, administration building, utility water station, and renovation of the crew building.

When will Southland Holdings (SLND) include the new wastewater treatment plant contract in its backlog?

The $60 million contract will be included in Southland Holdings' fourth quarter 2024 backlog.