Southland Holdings, Inc.

Lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. Alex, you may begin your conference.

Good morning, everyone, and welcome to the Southland second quarter 2025 conference call. This is Alex Murray, Vice President of Corporate Development and Investor Relations. Joining me today are Frank Renda, President and Chief Executive Officer, and Keith Bassano, Chief Financial Officer. Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements are uncertain and outside of Southland's control. Southland's actual results and financial condition may differ materially from those projected in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements and we do not undertake any duty to update these statements. For discussion of some of the risks that could affect results, please see the risk factor section of Form 10-K for the year-end December 31st, 2024, that was filed with the SEC on March 5th, 2025, and discussion on Form 10-Q for the quarter-ended June 30th, 2025, that was filed with the SEC last night. We will also refer to non-GAAP financial measures, and you will find reconciliation in the press release relating to this conference call, which can be found on the investor relations page of our website. With that, I will now turn the call over to Frank.

Thank you, Alex. Good morning, and thank you for joining Southwind's second quarter 2025 conference call. I want to take a moment to acknowledge some recent operational accomplishments across North America. In Florida, we celebrated a significant milestone with the opening of the US-1 Jupiter Federal Bridge, a project that will improve transportation for the region. We also successfully started driving the first 60-inch piles for the Shands Bridge project, a critical step forward on the new bridge over the St. Johns River. In Toronto, our team successfully flooded the Ashbridge's Bay Outfall Tunnel, a major achievement that marks the nearing completion of this multi-year, large-scale project. Finally, our work with the Army Corps of Engineers continues to progress. our teams have now installed the first gates on the center hill and wolf creek dam gate replacement projects in tennessee and kentucky these achievements are a testament to the hard work and dedication of our employees who are the driving force of our company thank you to all our teams for their unwavering commitment to safety and operational excellence now to discuss our quarterly results We reported second quarter revenue of $215 million and gross profit of $13.4 million. Consolidated gross profit margin was 6.2%, an increase from negative 15.9% in the prior year period. The improvement was driven by strong performance in our new core work and less impacts from legacy projects in this quarter versus the same quarter last year. Our teams performed well this quarter despite unfavorable conditions, including adverse weather. It is encouraging to see the strong, consistent results in our core business as evidenced by our civil segment, which delivered a gross profit margin of 18%. This is a direct result of our disciplined bidding strategy and our team's expertise in executing complex, high-value projects. Revenue for the quarter was lower than anticipated due to impacts from weather and timing on new project starts. We had two water resource projects in the West totaling over $340 million in combined contract value that experienced delayed starts that were outside of our control. Both projects have now started, and we expect them to ramp as we progress through the end of the year. During the quarter, we added approximately $67 million in new awards. This was led by the McNeil Tunnel Project in Austin, Texas, bringing our total backlog to approximately $2.32 billion. We are excited about the success we are having in converting high margin, short duration projects to backlog. We continue to be excited about the opportunities bidding in both segments in the back half of this year. So far in the third quarter, we have executed a $77 million contract in our transportation segment for a bridge rehab project for a private client in the Pacific Northwest. We also have been awarded or are the low bidder on an additional $65 million of new projects that we are finalizing contracts on, which we expect to convert to backlog in the third quarter. Our outlook on the market remains unchanged. We're confident that sustained investment and robust demand for infrastructure, especially from federal and state governments, will serve as a powerful tailwind for our business for years to come. The IIJA is in full swing and continues to be a major catalyst for our industry. We're seeing robust demand driven by this federal funding. The current federal infrastructure cycle will expire in 2026. But we believe this funding will provide a strong tailwind for our business for several more years as it takes time for projects to work through design, permitting, and ultimately construction. We're also optimistic that there will be bipartisan support to reauthorize spending to address the nation's critical infrastructure needs. State and local spending is strong in our key markets across the Sunbelt. We're also seeing state and local governments developing long-term plans to meet the demand caused by population shifts and aging infrastructure. In May, the Texas Senate passed House Joint Resolution 7, which if passed in November by voters, will unleash $20 billion for water infrastructure development projects across the state over the next two decades. This is a significant investment in one of our core markets. We are well positioned to help rebuild and expand Texas's water resources. This is just one of the many examples of the strong demand for our services, which we expect to continue for the foreseeable future. With a strong pipeline of opportunities from private and public clients, we have excellent visibility into future demands. We continue to be selective in our approach, focusing on improving profitability over top line growth. We are excited about upcoming opportunities and have pending proposals, including the Pier 31 extension at the Naval Submarine Base in Groton, Connecticut for the Naval Facilities Engineering Command. We also expect to propose on the Eleuthera Glass Window Bridge in the Bahamas and phase three of the Winnipeg North End sewage treatment plant. We are currently constructing phase one of the program and are in the pre-construction phase of phase two of the program. We also expect to propose on the Alkasan-Ohio River Tunnel and numerous water resource projects across the Sun Belt. In closing, our teams performed well in the quarter despite some challenging conditions. We continue to make good progress winding down legacy work and are excited about the opportunities in all our end markets. While we are operating in an environment of strong market tailwinds, we are also aware of the challenges in our business. Our strategy is clear, focus on high quality, high margin work, proactively manage our cost structure, and maintain strong financial discipline. Our improved margins this year are a clear sign that this strategy is working. We are confident in our ability to continue to convert our new core backlog into profitable results and create long-term value for our stakeholders. We remain excited about our future and the strong market position we have built. With that, I'll now turn the call over to Keith for a financial update.