Southland Awarded RFK Bridge Rehab & Other New Projects Totaling $470 Million

Rhea-AI Summary

Southland Holdings, Inc. (NYSE American: SLND and SLND WS) has announced approximately $470 million in new awards for the fourth quarter of 2023 backlog, including projects for the Metropolitan Transportation Authority in New York, the California Department of Transportation in San Francisco, and the City of Dallas. These awards cover a range of infrastructure projects, including bridge rehabilitation, tunnel construction, and water resource installations.

Insights

Market Research Analyst

The announcement by Southland Holdings, Inc. regarding the acquisition of new contracts totaling approximately $470 million is a robust indicator of the company's competitive positioning and operational expansion. This influx of projects, particularly the high-profile Robert F. Kennedy Bridge rehab and the San Francisco – Oakland Bay Bridge main cable rehab, not only enhances Southland's backlog but also solidifies its reputation in the heavy construction and infrastructure sector.

From a market perspective, these contracts are expected to contribute positively to the company's financial performance over the medium to long term. The diversification of projects, ranging from bridge rehabilitation to water resource management, demonstrates Southland's multifaceted expertise and ability to secure varied revenue streams. This is particularly significant given the current focus on infrastructure investment in the United States, positioning Southland to potentially benefit from increased government spending in this area.

Investors typically view the expansion of a company's backlog as a positive sign for future revenue and earnings stability. However, it is essential to monitor the execution of these projects, as delays or cost overruns could impact anticipated financial outcomes. The historical significance of Southland's involvement in the original construction of these bridges may provide them with unique insights into the structures, potentially mitigating some execution risks.

Financial Analyst

The strategic impact of the new contract awards for Southland Holdings is expected to be reflected in the company's financial statements in the coming quarters. The addition of $470 million to the company's backlog is likely to improve investor confidence and could lead to an upward revision of earnings forecasts. It is important to note that the construction industry often faces thin margins; therefore, the efficiency and cost management of these projects will be closely scrutinized.

Investors should also consider the cash flow implications of these long-term projects. While they contribute to revenue, they may also require significant upfront capital expenditure, which could affect the company's liquidity position. The ability of Southland to manage its working capital efficiently in the face of these new projects will be a critical factor in maintaining financial health.

Such large-scale projects may also lead to strategic partnerships and could open doors for future contracts, contributing to sustainable growth. However, the inherent risks associated with large design-build projects, such as regulatory hurdles and environmental concerns, must be factored into any financial analysis.

Civil Engineering Expert

The technical complexity of the projects undertaken by Southland Holdings, particularly the Robert F. Kennedy Bridge and the San Francisco – Oakland Bay Bridge, requires specialized engineering expertise. The rehabilitation of these critical infrastructures involves intricate work on suspended spans, anchorages and main cables, which are vital for the structural integrity and safety of the bridges.

Southland's previous experience with these bridges may provide a competitive advantage in terms of understanding the specific engineering challenges and historical construction methods used. This expertise is crucial for ensuring the projects are completed to the highest standards, which is of paramount importance in public infrastructure projects.

The Cedar Crest Tunnel project and various water resource awards also highlight the company's capabilities in managing complex water infrastructure projects. These projects are essential for urban development and sustainability, addressing the increasing demand for water resources in growing cities like Dallas.

GRAPEVINE, Texas--(BUSINESS WIRE)-- Southland Holdings, Inc. (NYSE American: SLND and SLND WS) (“Southland”) announced today that it has been awarded approximately $470 million of the following new awards which will be included in fourth quarter 2023 backlog:

• Robert F. Kennedy Bridge rehab design-build project in New York, New York for the Metropolitan Transportation Authority (“MTA”). A Southland subsidiary, American Bridge Company, has approximately an 80% share in the joint venture awarded this contract. The scope of work includes rehabilitation of the East River suspended spans and anchorages, main cable dehumidification, replacement of the shared use path, replacement of the median barrier, miscellaneous deck repairs, and painting. American Bridge constructed the original bridge, formerly known as the Triborough Bridge, in 1936.

• San Francisco – Oakland Bay Bridge main cable and suspender ropes rehab project in San Francisco, California for the California Department of Transportation through subsidiary, American Bridge Company. An American Bridge led joint venture completed construction of the Bay Bridge in 2014.

• Cedar Crest Tunnel project in Dallas, Texas for the City of Dallas through subsidiary, Southland Contracting. The scope of work consists of installation of up to 84” of steel water pipe by tunnel.

• Various water resource awards through subsidiary, Oscar Renda Contracting.

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/20240104480879/en/

Alex Murray

Corporate Development & Investor Relations

amurray@southlandholdings.com

Source: Southland Holdings, Inc.

FAQ

What new awards has Southland Holdings, Inc. (SLND) announced?

Southland Holdings, Inc. (SLND) has announced approximately $470 million in new awards for the fourth quarter of 2023 backlog, including projects for the Metropolitan Transportation Authority in New York, the California Department of Transportation in San Francisco, and the City of Dallas.

What is the scope of work for the Robert F. Kennedy Bridge rehab design-build project in New York, New York?

The scope of work includes rehabilitation of the East River suspended spans and anchorages, main cable dehumidification, replacement of the shared use path, replacement of the median barrier, miscellaneous deck repairs, and painting.

Who has an 80% share in the joint venture awarded the Robert F. Kennedy Bridge rehab design-build project?

A Southland subsidiary, American Bridge Company, has approximately an 80% share in the joint venture awarded the Robert F. Kennedy Bridge rehab design-build project.

What is the scope of work for the San Francisco – Oakland Bay Bridge main cable and suspender ropes rehab project in San Francisco, California?

The scope of work includes rehabilitating the main cable and suspender ropes of the Bay Bridge.

Who completed construction of the Bay Bridge in 2014?

An American Bridge led joint venture completed construction of the Bay Bridge in 2014.

What is the scope of work for the Cedar Crest Tunnel project in Dallas, Texas?

The scope of work consists of installation of up to 84” of steel water pipe by tunnel.

What type of awards has Southland Holdings, Inc. received through subsidiary, Oscar Renda Contracting?

Southland Holdings, Inc. has received various water resource awards through subsidiary, Oscar Renda Contracting.