# EDGAR Filing Document

**Accession Number:** 0001883814
**File Stem:** 0001104659-26-059468
**Filing Date:** 2026-5
**Character Count:** 173222
**Document Hash:** 13e5d75d5811c379055fa2d778f9cc20
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-059468.hdr.sgml**: 20260512

**ACCESSION NUMBER**: 0001104659-26-059468

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 73

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260512

**DATE AS OF CHANGE**: 20260512

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Southland Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001883814
- **STANDARD INDUSTRIAL CLASSIFICATION:** HEAVY CONSTRUCTION OTHER THAN BUILDING CONST - CONTRACTORS [1600]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41090
- **FILM NUMBER:** 26969440

**BUSINESS ADDRESS:**
- **STREET 1:** 1100 KUBOTA DRIVE
- **CITY:** GRAPEVINE
- **STATE:** TX
- **ZIP:** 76051
- **BUSINESS PHONE:** (817) 293-4263

**MAIL ADDRESS:**
- **STREET 1:** 1100 KUBOTA DRIVE
- **CITY:** GRAPEVINE
- **STATE:** TX
- **ZIP:** 76051

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LEGATO MERGER CORP. II
- **DATE OF NAME CHANGE:** 20210917

?xml version='1.0' encoding='ASCII'? Southland Holdings, Inc._March 31, 2026

[**Table of Contents**](#TOC)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE ACT OF 1934**

For the quarterly period ended: **March 31, 2026**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE ACT OF 1934**

For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Commission File Number: 001-41090

**Southland Holdings, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **87-1783910** |
| (State or other jurisdiction of<br>incorporation or organization) | (IRS Employer<br>Identification No.) |

---

**1100 Kubota Dr.**

**Grapevine, TX 76051**

(Address of principal executive offices) (Zip Code)

**(817) 293-4263**

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.0001 per share | SLND | NYSE American LLC |
| Redeemable warrants, exercisable for shares of common stock at an exercise price of $11.50 per share | SLND WS | NYSE American LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ **Yes** ☐ **No**

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ **Yes** ☐ **No**

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ **Yes** ☒ **No**

#### As of May 1, 2026, there were 54,218,882 shares of common stock, par value $0.0001 per share, issued and outstanding.
[**Table of Contents**](#TOC)

**SOUTHLAND HOLDINGS, INC.**

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [**PART I – Financial Information**](#PARTIFINANCIALINFO) |  |
| [ITEM 1. Financial Statements](#ITEM_1_FINANCIAL_STMT) | 1 |
| [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ManagementDiscussionandAnalysisofFinanci) | 23 |
| [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](#Item3QuantitativeandQualitative_322975) | 32 |
| [ITEM 4. Controls and Procedures](#Item4ControlsandProcedures_306979) | 32 |
| [**PART II – Other Information**](#PARTIIOTHERINFORMATION_368088) | 33 |
| [ITEM 1. Legal Proceedings](#Item1LegalProceedings_630334) | 33 |
| [ITEM 1A. Risk Factors](#Item1ARiskFactors_241194) | 33 |
| [ITEM 5. Other Information](#Item5OtherInformation) | 33 |
| [ITEM 6. Exhibits](#Item6Exhibits_816677) | 34 |
| [Signatures](#SIGNATURES_203452) | 35 |

---

[**Table of Contents**](#TOC)

**Unless otherwise stated in this Quarterly Report on Form 10-Q (this "Quarterly Report"), references to the "Company," "our," "us," "we," or "Southland" refer to Southland Holdings, Inc. and its subsidiaries.**

#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
**This Quarterly Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act"), as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are based on the reasonable beliefs and assumptions of our management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends" or similar expressions. Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about our ability to:**

● **Access, collect and use personal data about consumers;** 

● **Execute our business strategy, including monetization of services provided and expansions in and into existing and new lines of business;** 

● **Anticipate the uncertainties inherent in the development of new business lines and business strategies;** 

● **Retain and hire necessary employees;** 

● **Increase brand awareness;** 

● **Attract, train and retain effective officers, key employees or directors;** 

● **Upgrade and maintain information technology systems;** 

● **Potential disruptions, failures or security breaches of the information technology systems on which we rely to conduct our business;** 

● **Acquire, develop and protect intellectual property;** 

● **Meet future liquidity requirements, maintain adequate working capital, and comply with restrictive covenants related to long-term indebtedness;** 

● **Maintain adequate bonding capacity;** 

● **Effectively respond to general economic, socioeconomic and other business conditions;** 

● **Maintain the listing of our securities on the NYSE American LLC or another national securities exchange;** 

● **Obtain additional capital, including use of debt and capital markets;** 

● **Achieve or enhance future operating and financial results;** 

● **Anticipate rapid technological changes;** 

● **Comply with laws and regulations applicable to its business, including but not limited to laws and regulations related to data privacy and insurance operations;** 

● **Stay abreast of modified or new laws and regulations applying to our business;** 

● **Anticipate the impact of, and respond to, new accounting standards;** 

● **Anticipate any change in interest rates which would change our cost of capital;** 

● **Anticipate the significance and timing of contractual obligations;** 

● **Maintain key strategic relationships with customers, partners and distributors;** 

● **Respond to uncertainties associated with product and service development and market acceptance;** 

● **Anticipate the ability of the renewable sector or any other current or potential sectors to develop to the size or at the rate it expects;** 

● **Anticipate the impact of various federal, state, and local government funding initiatives;** 

● **Manage to finance operations on an economically viable basis;** 

● **Anticipate the impact of new U.S. federal income tax law, including the impact on deferred tax assets;** 

● **Successfully defend, pursue or collect claims and litigation; and** 

● **Anticipate and respond to changes in the domestic or international trade laws, including tariffs.** 

Forward-looking statements are not guarantees of performance and speak only as of the date hereof. While we believe that these forward-looking statements are reasonable, there can be no assurance that we will achieve or realize these plans, intentions, or expectations. You should understand that the following important factors, in addition to those discussed under the heading "Item 1A. Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), "Item 1A. Risk Factors" to Part II in this Quarterly Report and other reports or documents we file with the

i

[**Table of Contents**](#TOC)

Securities and Exchange Commission ("SEC"), could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements in this Quarterly Report:

● Litigation, complaints, product liability claims and/or adverse publicity;

● The impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, demographic trends and employee availability;

● Increases and decreases in utility and other energy costs, increased costs related to utility or governmental requirements; and

● Privacy and data protection laws, privacy or data breaches or the loss of data.

These and other factors that could cause actual results to differ from those implied by the forward-looking statements in this Quarterly Report are more fully described under the heading "Item 1A. Risk Factors" in the Annual Report and elsewhere in this Quarterly Report. The risks described under the heading "Item 1A. Risk Factors" in the Annual Report are not exhaustive. Other sections of this Quarterly Report may describe additional factors that could adversely affect our business, financial condition or results of operations. New risk factors emerge from time to time and it is not possible to predict all such risk factors, nor can we assess the impact of all such risk factors on the business, nor the extent to which any factor or combination of facts may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

In addition, statements of belief and similar statements reflect our reasonable beliefs and opinions on the relevant subject. These statements are based upon information available to us, as applicable, as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, involve risks and are subject to change based on various factors, including those discussed under the headings "Item 1A. Risk Factors" and "Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report.

ii

[**Table of Contents**](#TOC)

#### PART I – FINANCIAL INFORMATION
**Item 1. Financial Statements**

#### SOUTHLAND HOLDINGS, INC.
**Condensed Consolidated Balance Sheets (unaudited)**

---

| | | |
|:---|:---|:---|
| *(Amounts in thousands, except share and per share data)* | **As of** | **As of** |
| **ASSETS** | **March 31, 2026** | **December 31, 2025** |
| **Current assets** |  |  |
| Cash and cash equivalents | $20544 | $52713 |
| Restricted cash | 11408 | 14755 |
| Accounts receivable, net  | 152406 | 167786 |
| Retainage receivables | 100988 | 101779 |
| Contract assets | 366431 | 366607 |
| Other current assets | 26766 | 30326 |
| **Total current assets** | 678543 | 733966 |
| Property and equipment, net | 101276 | 107305 |
| Right-of-use assets | 9969 | 10524 |
| Investments - unconsolidated entities | 130751 | 129696 |
| Investments - limited liability companies | 2262 | 2323 |
| Investments - private equity | 2403 | 2588 |
| Deferred tax asset | 7 | 3 |
| Goodwill | 1528 | 1528 |
| Intangible assets, net | 1180 | 1180 |
| Other noncurrent assets | 159 | 167 |
| **Total noncurrent assets** | 249535 | 255314 |
| **Total assets** | $928078 | $989280 |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $128615 | $224915 |
| Retainage payable | 31603 | 36977 |
| Accrued liabilities | 77653 | 80011 |
| Current portion of long-term debt | 56094 | 53731 |
| Short-term operating lease liabilities | 6738 | 6808 |
| Contract liabilities | 226709 | 252543 |
| **Total current liabilities** | 527412 | 654985 |
| Long-term debt | 174697 | 203971 |
| Long-term operating lease liabilities | 15200 | 16403 |
| Deferred tax liabilities | 2981 | 3032 |
| Financing obligations, net | 41417 | 41440 |
| Long-term accrued liabilities | 58075 | 58075 |
| Surety payable | 228342 | 103205 |
| Other noncurrent liabilities | 40593 | 40675 |
| **Total long-term liabilities** | 561305 | 466801 |
| **Total liabilities** | 1088717 | 1121786 |
| **Commitments and contingencies (Note 6)** |  |  |
| **Stockholders' equity (deficit)** |  |  |
| Preferred stock, $0.0001 par value, authorized 50,000,000 shares, none issued and outstanding as of March 31, 2026 and December 31, 2025 |  |  |
| Common stock, $0.0001 par value, authorized 500,000,000 shares, 54,198,220 and 54,113,036 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 5 | 5 |
| Additional paid-in-capital | 293737 | 293237 |
| Accumulated deficit | (459510) | (431158) |
| Accumulated other comprehensive loss | (3174) | (3018) |
| &nbsp;&nbsp;Total stockholders' equity (deficit) | (168942) | (140934) |
| Noncontrolling interest | 8303 | 8428 |
| **Total equity (deficit)** | (160639) | (132506) |
| **Total liabilities and equity** | $928078 | $989280 |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Condensed Consolidated Statements of Operations (unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands except shares and per share data)* | **March 31, 2026** | **March 31, 2025** |
| Revenue | $172405 | $239486 |
| Cost of construction | 177161 | 218006 |
| **Gross profit (loss)** | (4756) | 21480 |
| Selling, general, and administrative expenses | 14943 | 16465 |
| **Operating income (loss)** | (19699) | 5015 |
| Gain on investments, net | 147 | 17 |
| Other income, net | 74 | 743 |
| Interest expense | (8681) | (8874) |
| **Losses before income taxes** | (28159) | (3099) |
| Income tax expense (benefit) | 19 | (313) |
| **Net loss** | (28178) | (2786) |
| Net income attributable to noncontrolling interests | 174 | 1766 |
| **Net loss attributable to Southland Stockholders** | $(28352) | $(4552) |
| **Net loss per share attributable to common stockholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.52) | $(0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.52) | $(0.08) |
| **Weighted average shares outstanding** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 54119661 | 53961744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 54119661 | 53961744 |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Condensed Consolidated Statements of Comprehensive Loss (unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| Net loss | $(28178) | $(2786) |
| Foreign currency translation adjustment, net of tax | (238) | (318) |
| Comprehensive loss, net of tax | (28416) | (3104) |
| Comprehensive income attributable to noncontrolling interest | 92 | 1777 |
| Comprehensive loss attributable to Southland Stockholders | $(28508) | $(4881) |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Condensed Consolidated Statements of Equity (unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Shares** | **Shares** |  |  |  |  |  |  |  |
|  | **Preferred** | **Common** | **Preferred** | **Common** |  | **Additional** | **Accumulated** | **Noncontrolling** | **Total** |
| *(Amounts in thousands)* | **stock** | **stock** | **Stock** | **Stock** | **AOCI** | **Paid-In Capital** | **Deficit** | **Interest** | **Equity** |
| Balance as of December 31, 2025 |  | 54113036 | $— | $5 | $(3018) | $293237 | $(431158) | $8428 | $(132506) |
| Issuance of shares - RSUs, net of tax |  | 85184 |  |  |  | (30) |  |  | (30) |
| Share based compensation |  |  |  |  |  | 530 |  |  | 530 |
| Distributions to members |  |  |  |  |  |  |  | (217) | (217) |
| Net income (loss) |  |  |  |  |  |  | (28352) | 174 | (28178) |
| Other comprehensive loss |  |  |  |  | (156) |  |  | (82) | (238) |
| Balance as of March 31, 2026 |  | 54198220 | $— | $5 | $(3174) | $293737 | $(459510) | $8303 | $(160639) |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Condensed Consolidated Statements of Equity (unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Shares** | **Shares** |  |  |  |  |  |  |  |
|  | **Preferred** | **Common** | **Preferred** | **Common** |  | **Additional** | **Accumulated**  | **Noncontrolling** | **Total** |
| *(Amounts in thousands)* | **stock** | **stock** | **Stock** | **Stock** | **AOCI** | **Paid-In Capital** | **Deficit** | **Interest** | **Equity** |
| Balance as of December 31, 2024 |  | 53936411 | $— | $5 | $(3902) | $292173 | $(124618) | $11751 | 175409 |
| Issuance of shares - RSUs, net of tax |  | 50658 |  |  |  | (111) |  |  | (111) |
| Issuance of common stock |  | 100 |  |  |  |  |  |  |  |
| Share based compensation |  |  |  |  |  | 464 |  |  | 464 |
| Net income (loss) |  |  |  |  |  |  | (4552) | 1766 | (2786) |
| Other comprehensive income (loss) |  |  |  |  | (329) |  |  | 11 | (318) |
| Balance as of March 31, 2025 |  | 53987169 | $— | $5 | $(4231) | $292526 | $(129170) | $13528 | $172658 |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Condensed Consolidated Statements of Cash Flows (unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(28178) | $(2786) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| Depreciation and amortization | 5644 | 6525 |
| Amortization of deferred financing costs | 471 |  |
| Deferred taxes | (3) | (1530) |
| Share based compensation | 530 | 464 |
| Gain on sale of assets | (534) | (1028) |
| Foreign currency remeasurement (gain) loss | 41 | (9) |
| Earnings from equity method investments | (2136) | (2688) |
| Gain on trading securities, net | (147) | (17) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts and retainage receivables | 16193 | 8565 |
| &nbsp;&nbsp;Contract assets | 262 | (10684) |
| &nbsp;&nbsp;Other current assets | 3561 | (7534) |
| &nbsp;&nbsp;Right-of-use assets | 555 | 2836 |
| &nbsp;&nbsp;Accounts payable, retainage payable and accrued liabilities | (104068) | 10352 |
| &nbsp;&nbsp;Contract liabilities | (25842) | 6888 |
| &nbsp;&nbsp;Operating lease liabilities | (756) | (2846) |
| &nbsp;&nbsp;Other | 542 | (79) |
| Net cash provided by (used in) operating activities | (133865) | 6429 |
| **Cash flows from investing activities:** |  |  |
| Purchase of property and equipment | (28) | (1796) |
| Proceeds from sale of property and equipment | 955 | 2882 |
| Distributions from other investments | 331 | 31 |
| Return of investment in limited liability company | 61 |  |
| Net cash provided by investing activities | 1319 | 1117 |
| **Cash flows from financing activities:** |  |  |
| Borrowings on notes payable |  | 19 |
| Payments on notes payable | (27378) | (13593) |
| Payments of deferred financing costs |  | (49) |
| Payments from related parties | 5 | 12 |
| Payments on finance lease and financing obligations | (530) | (267) |
| Distribution to members | (217) |  |
| Payment of taxes related to net share settlement of RSUs | (30) | (111) |
| Proceeds from advancement of surety funds | 125137 |  |
| Net cash provided by (used in) financing activities | 96987 | (13989) |
| Effect of exchange rate on cash | 43 | (2) |
| Net decrease in cash and cash equivalents and restricted cash | (35516) | (6445) |
| Beginning of period | 67468 | 87561 |
| End of period | $31952 | $81116 |
| **Supplemental cash flow information** |  |  |
| Cash paid for income taxes | $34 | $409 |
| Cash paid for interest | $8457 | $8934 |
| Non-cash investing and financing activities: |  |  |
| Lease assets obtained in exchange for new leases | $1213 | $— |
| Assets obtained in exchange for notes payable | $— | $1186 |

---

See notes to unaudited condensed consolidated financial statements

[**Table of Contents**](#TOC)

**Notes to Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

#### Note 1. Description of Business
Southland Holdings, Inc. and its consolidated subsidiaries ("Southland", the "Company", "we", "us", or "our") is a diverse leader in specialty infrastructure construction with roots dating back to 1900. We design and construct projects in the bridges, tunnels, communications, data centers, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipelines end markets.

Southland is based in Grapevine, Texas. It is the parent company of Johnson Bros. Corporation, American Bridge Holding Company ("American Bridge"), Oscar Renda Contracting, Southland Contracting, Mole Constructors, Heritage Materials and other affiliates. With the combined capabilities of these six primary subsidiaries and their affiliates, Southland has become a diversified industry leader with both public and private customers. The majority of our customers are located in the United States.

As previously announced, on May 25, 2022, Legato Merger Corp. II, a Delaware corporation ("Legato II"), entered into an Agreement and Plan of Merger (the "Merger Agreement") with Legato Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Legato II ("Merger Sub"), and Southland Holdings LLC, a Texas limited liability company ("Southland LLC").

On February 14, 2023 (the "Closing Date"), as contemplated by the Merger Agreement, Merger Sub merged with and into Southland LLC, with Southland LLC surviving the merger as a wholly owned subsidiary of Legato II (the "Merger"). The transactions contemplated by the Merger Agreement are referred to herein collectively as the "Business Combination." In connection with the Business Combination, Legato II changed its name to "Southland Holdings, Inc." The Merger was accounted for as a reverse recapitalization with Southland LLC as the accounting acquirer and Legato II as the acquired company for accounting purposes.

On the Closing Date, the Company issued 33,793,111 shares of common stock to the former members of Southland ("Southland Members") in exchange for their membership interests in Southland ("Southland Membership Interests"). Southland received net proceeds of $17.1 million. Transaction costs of $9.9 million directly related to the Merger, are included in additional paid-in capital in the unaudited condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025.

Prior to the Merger, Southland LLC declared a $50.0 million dividend to be payable to Southland Members, which is recorded in other noncurrent liabilities on the unaudited condensed consolidated balance sheets. Southland Members, in lieu of cash payment, agreed to receive a promissory note for payment in the future. The notes have a four-year term and accrue interest at 7.0%. Southland, at its discretion, may make interim interest and principal payments during the term. In December 2024, the Company exchanged $6.8 million of these promissory notes and accrued interest thereupon due to the Chief Executive Officer, Frank Renda, and Co-Chief Operating Officers, Tim Winn and Rudy Renda, in exchange for shares of common stock.

Immediately after giving effect to the Business Combination, there were 44,407,831 shares of common stock and 14,385,500 warrants, each exercisable for a share of common stock at an exercise price of $11.50 per share (including public and private placement warrants) (each a "Warrant" and together, collectively, the "Warrants"), outstanding.

#### Note 2. Basis of Presentation
*Consolidated U.S. GAAP Presentation*

These interim unaudited condensed consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles ("GAAP"). The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") contains guidance that form GAAP. New guidance is released via Accounting Standards Update ("ASU").

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The unaudited condensed consolidated financial statements have been prepared by us pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report which was filed on Form 10-K on March 26, 2026.

The accompanying consolidated balance sheet and related disclosures as of December 31, 2025, have been derived from the Form 10-K filed on March 26, 2026. The Company's financial condition as of March 31, 2026, and operating results for the three months ended March 31, 2026, are not necessarily indicative of the financial conditions and results of operations that may be expected for any future interim period or for the year ending December 31, 2026.

In accordance with ASC 205-40, Presentation of Financial Statements—Going Concern, management has evaluated whether conditions or events, considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern for a period of twelve months after the date these financial statements are issued.

As of March 31, 2026, the Company had cash and cash equivalents of $20.5 million and positive working capital of $151.1 million.

During the fourth quarter of the year ended December 31, 2025, the Company experienced certain liquidity-related challenges resulting primarily from an adverse court ruling related to the WSCC Project (defined below) that resulted in the Company being assessed a judgment of approximately $89.1 million, inclusive of principal, fees, and interest. The ruling limited the Company's enforceable right to recover amounts previously expected to be realized from claims associated with the project.

Following the adverse ruling, certain sureties of the Company purchased and assumed rights and obligations as lenders under the Company's Credit Agreement (defined in Note 5). In connection with the sureties' assumption of rights and obligations under the Credit Agreement, the Company entered into side letters with the sureties, pursuant to which the sureties waived all events of default and breaches of covenants and all principal and interest payments under the Credit Agreement until maturity.

Additionally, under existing GIAs (defined below), certain sureties advanced funds to support bonded project obligations and ongoing project performance. As of March 31, 2026 and December 31, 2025, $139.2 million and $14.1 million was advanced, respectively. These amounts are included in surety payable on our unaudited condensed consolidated balance sheets. Repayment of these amounts is not required prior to at least May 13, 2027.

On March 27, 2026, the Company entered into a settlement agreement on the WSCC Project. Certain sureties of the Company previously paid a portion of the judgement against the Company and are required to pay an additional amount under the settlement agreement. The Company and the sureties are negotiating repayment terms for the amounts paid by the sureties on behalf of the Company under a long-term financing agreement. The sureties have agreed to forbear on seeking repayment for these amounts until at least May 13, 2027. The $89.1 million judgment is included in surety payable on our unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

The unaudited condensed consolidated financial statements include the accounts of Southland Holdings, Inc., and our majority-owned and controlled subsidiaries and affiliates, as detailed below. All significant intercompany transactions are eliminated within the consolidations process. Investments in non-construction-related partnerships and less-than-majority owned subsidiaries that we do not control, but where we have significant influence, are accounted for under the equity method. Certain construction related joint ventures and partnerships that we do not control, nor do we have significant influence, are accounted for under the equity method for the balance sheet and under the proportionate consolidation method for the statement of operations.

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*Reclassifications*

Certain reclassifications have been made to the Company's prior period consolidated financial information to conform to the current year presentation. These presentation changes did not impact the Company's consolidated net loss, consolidated cash flows, total assets, total liabilities or total equity (deficit).

*Use of Estimates*

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the unaudited condensed consolidated financial statements for continued reasonableness. It is reasonably possible that changes may occur in the near term that would affect our estimates with respect to revenue recognition, the allowance for credit losses, recoverability of unapproved contract modifications, deferred tax assets, and other accounts for which estimates are required.

*Cash, Cash Equivalents, and Restricted Cash*

We consider all highly liquid instruments purchased with a maturity of three months or less as cash equivalents. We maintain our cash in accounts at certain financial institutions. The majority of our balances exceed federally insured limits.

We have not experienced any losses in these accounts, and we do not believe they are exposed to any significant credit risk.

Restricted cash and cash equivalents consist of amounts held in accounts in our name at certain financial institutions. These accounts are subject to certain control provisions in favor of various surety and insurance companies for purposes of compliance and security perfections.

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| | | |
|:---|:---|:---|
| *(Amounts in thousands)* | **March 31, 2026** | **December 31, 2025** |
| Cash and cash equivalents at beginning of period | $52713 | $72185 |
| Restricted cash at beginning of period | 14755 | 15376 |
| Total cash, cash equivalents, and restricted cash at beginning of period | $67468 | $87561 |
| Cash and cash equivalents at end of period | $20544 | $52713 |
| Restricted cash at end of period | 11408 | 14755 |
| Total cash, cash equivalents, and restricted cash at end of period | $31952 | $67468 |

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*Goodwill and Indefinite-Lived Intangibles*

*Goodwill and indefinite-lived intangibles are tested for impairment annually in the fourth quarter, or more frequently if events or circumstances indicate that goodwill or indefinite-lived intangibles may be impaired. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). We identify our reporting unit and determine the carrying value of the reporting unit by assigning the assets and liabilities, including the existing goodwill and indefinite-lived intangibles, to the reporting unit. Our reporting units are based on our organizational and reporting structure. We currently identify three reporting units. We begin with a qualitative assessment using inputs based on our business, our industry, and overall macroeconomic factors. If our qualitative assessment deems that the fair value of a reporting unit is more likely than not less than its carrying amount, we then complete a quantitative assessment to determine the fair value of the reporting unit and compare it to the carrying amount of the reporting unit. During the three months ended March 31, 2026 and 2025, based on the results of our qualitative assessments which determined that it was more likely than not that the fair value of the reporting units exceeded the carrying amounts and that the fair value of the indefinite-lived intangible assets exceeded the carrying amounts, we did not complete quantitative assessments, and we did not record any impairment of goodwill or indefinite-lived intangible assets.*

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*Valuation of Long-Lived Assets*

We review long-lived assets, including finite-lived intangible assets subject to amortization, for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the asset or group of assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or group of assets to the future net cash flows expected to be generated by the asset or group of assets. If such assets are not considered to be fully recoverable, any impairment to be recognized is measured by the amount by which the carrying amount of the asset or group of assets exceeds its respective fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the three months ended March 31, 2026 and 2025, we did not identify any triggering events that would require a quantitative assessment.

*Accounts Receivable, Net*

We provide an allowance for credit losses, which is based upon a review of outstanding receivables, historical collection information, existing economic conditions, and future expectations. Normal contract receivables are typically due 30 days after the issuance of the invoice. Retainages are due 30 days after completion of the project and acceptance by the contract owner. Warranty retainage receivables, where applicable, are typically due two years after completion of the project and acceptance by the contract owner. Receivables past due more than 120 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluations and specific circumstances of the customer.

On January 1, 2025, we had accounts receivable, net and retainage receivables of $179.3 million and $112.3 million, respectively, with changes during 2025 and 2026 primarily due to the timing of billings and collections under our customer contracts

As of March 31, 2026 and December 31, 2025, we had an allowance for credit losses of $3.0 million.

*Real Estate Transaction*

In July 2024, the Company closed a real estate purchase agreement to sell and leaseback three properties for $42.5 million (see Note 11). The transaction was accounted for as a failed sale-leaseback in accordance with ASC 842. As a result, the assets remain on the consolidated balance sheets at their historical net book values. A financing obligation liability was recognized in the amount of $42.5 million with an interest rate of 8.90%. The financing obligation has a maturity date of July 2044. The Company will not recognize rent expenses related to the leased assets. Instead, monthly rent payments under the lease agreement will be recorded as interest expense and a reduction of the outstanding liability.

As of March 31, 2026, relating to the transaction noted above, the current outstanding liability is included in accrued liabilities and the long-term outstanding liability presented as financing obligations, net on the unaudited condensed consolidated balance sheets.

*Recently Adopted Accounting Pronouncements*

In August 2023, the FASB issued ASU 2023-05, "Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement" ("ASU 2023-05"), which requires that a joint venture apply a new basis of accounting upon formation. As a result, a newly formed joint venture, upon formation, would initially measure its assets and liabilities at fair value. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. ASU 2023-05 was adopted in the first quarter of 2025. Our adoption of ASU 2023-05 did not have a material impact on our consolidated financial statements.

In November 2023, FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which requires expanded disclosure of significant segment expenses and other segment items on an annual and interim basis. ASU 2023-07 will be applied retrospectively and is first effective for our annual reporting for 2024 and for quarterly reporting beginning in 2025. The adoption of ASU 2023-07 did not have a material impact on our consolidated financial statements and related disclosures.

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On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which established new income tax disclosure requirements. Public business entities must apply the guidance to annual periods beginning after December 15, 2024. This standard was adopted as of the year ended December 31, 2025, on a prospective basis.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"). The amendments in this update provide a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under FASB Accounting Standards Codification 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collections are evaluated. ASU 2025-05 is effective for the Company beginning in the fiscal year ending December 31, 2026. This standard was adopted on a prospective basis effective January 1, 2026, but we did not elect practical expedient permitted under this ASU. Therefore, the adoption has no impact on our consolidated financial statements.

*Recently Issued Accounting Pronouncements*

In October 2023, the FASB issued ASU 2023-06 "Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative," which amends GAAP to include 14 disclosure requirements that are currently required under SEC Regulation S-X or Regulation S-K. Each amendment will be effective on the date on which the SEC removes the related disclosure requirement from SEC Regulation S-X or Registration S-K. The Company has evaluated the new standard and determined that it will have no material impact on its consolidated financial statements or disclosures since the Company is already subject to the relevant SEC disclosure requirements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires public entities to disclose, in the notes to financial statements, certain costs and expenses, such as purchases of inventory, employee compensation, and costs related to depreciation and amortization. ASU 2024-03 is effective for our Annual Report on Form 10-K for the fiscal year ended December 31, 2027, and subsequent interim periods, with early adoption permitted. We do not expect ASU 2024-03 to have an impact on our financial position, results of operations and cash flows; however, we are currently evaluating the impact on our consolidated financial statement disclosures.

*Significant Accounting Policies*

The significant accounting policies followed by the Company are set forth in Note 2 to the 10-K filed on March 26, 2026, and contained elsewhere herein, other than the policy for warrants, which is included below. For the three months ended March 31, 2026, there were no significant changes in our use of estimates or significant accounting policies.

*Warrants*

Immediately after giving effect to the Business Combination, there were 14,385,500 Warrants issued and outstanding. Each Warrant is exercisable for a share of common stock at an exercise price of $11.50 per share. The Company accounts for the Warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments' specific terms and applicable authoritative guidance in FASB ASC 480, "Distinguishing Liabilities from Equity" ("ASC 480"), and ASC 815, "Derivatives and Hedging" ("ASC 815"). The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company's own common shares and whether the instrument holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, was conducted at the time of Warrant issuance and as of each subsequent quarterly period end date while the instruments are outstanding. The Company has concluded that the public Warrants and private Warrants issued pursuant to the Warrant agreement qualify for equity accounting treatment.

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#### Note 3. Fair Value of Investments
Fair value of investments measured on a recurring basis as of March 31, 2026, and December 31, 2025, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| *(Amounts in thousands)* | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| **Investments Noncurrent** |  |  |  |  |
| Private equity | $2403 | $— | $— | $2403 |
| Total noncurrent | 2403 |  |  | 2403 |
| Overall Total | $2403 | $— | $— | $2403 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| *(Amounts in thousands)* | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| **Investments Noncurrent** |  |  |  |  |
| Private equity | $2588 | $— | $— | $2588 |
| Total noncurrent | 2588 |  |  | 2588 |
| Overall Total | $2588 | $— | $— | $2588 |

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#### Note 4. Revenue
Revenue is recognized over time using the input method in accordance with ASC 606, measured by the percentage of cost incurred to date to the estimated total cost for each contract. This method is used because we believe expended cost to be the best available measure of progress on contracts.

Our contracts are primarily in the form of firm fixed-price and fixed-price per unit. A large portion of our contracts have scope defined adequately, which allows us to estimate total contract value upon the signing of a new contract. Upon signing a new contract, we allocate the total consideration across various contractual promises to transfer a distinct good or service to a customer. These are grouped into specific performance obligations. This process requires significant management judgement. Most of our contracts have a single performance obligation. For contracts with multiple performance obligations, we allocate the total transaction price based on the estimated standalone selling price, which is the total project costs plus a budgeted margin percentage, for each of the performance obligations.

Revenue is recognized when, or as, the performance obligations are satisfied. Our contracts do not include a significant financing component. Costs to obtain contracts are generally not significant and are expensed in the period incurred.

Estimating cost to complete of long-term contracts involves a significant amount of estimation and judgement. For long-term contracts, we use the calculated transaction price, estimated cost to complete the project, and the total costs incurred on the project to date to calculate the percentage of the project that is complete. The estimated costs to complete the project and the estimated transaction price can change due to unforeseen events that can either increase or decrease the margin on a particular project.

Our contract structures typically allow for variable consideration. A significant portion of this variable consideration comes in the form of change order requests and claims. Other variable consideration can include volume discounts, performance bonuses, incentives, liquidated damages, and other terms that can either raise or lower the total transaction price. We estimate variable consideration based on the probability of being entitled to collection of specific amounts. We include amounts that we believe we have an enforceable right to collect, based on our expected probability of success with specific claims or contractual rights. Our estimates of total variable consideration rely on all available information about our customer including historical, current, and forecasted information.

Many of our contracts require contract modifications resulting from a change in contract scope or requirements. Change orders are issued to document changes to the original contract. We can have approved and unapproved change orders. Unapproved change orders are contract modifications for which we or our customers have not agreed to terms, scope and price. Contract modifications are necessary for many reasons, including but not limited to, changes to the contract specifications or design from the customer, modification to the original scope, changes to engineering drawings, or other required deviation from

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the original construction plan. Contract modifications may also be necessary for reasons including, but not limited to, other changes to the contract which may be out of our control, such as rain or other weather delays, incomplete, insufficient, inaccurate engineering drawings, different site conditions from information made available during the estimating process, or other reasons. An unapproved change order may turn into a formal claim if we cannot come to an agreement with the owner but are contractually entitled to recovery of costs and profits for work performed. Costs incurred related to contract modifications are included in the estimated costs to complete and are treated as project costs when incurred. Unless the contract modification is distinct from the other goods and services included within the project, the contract modification is accounted for as part of the existing contract. The effect of any modifications on the transaction price, and our measure of the percentage-of-completion on specific performance obligations for which the contract modification relates, is recognized as a cumulative catch-up adjustment to revenue recognized. In some cases, contract modifications may not be fully settled until after the completion of work as specified in the original contract.

We review and update our contract estimates regularly on every construction project. Any adjustments in estimated profit, via changes in estimated revenues and estimated costs, on contracts is recognized under the cumulative catch-up method. Under this method, the cumulative impact of a revenue, cost, or profit adjustment is recognized in the period the updated estimates are identified, which may include a reversal of amounts recognized in prior periods. The input of actual costs is used in the percentage-of-completion formula that takes into account current changes in estimates that are treated on a prospective basis. Adjustments in contract estimates resulted in a decrease in gross profit of $39.7 million and $11.8 million for the three months ended March 31, 2026 and 2025, respectively.

If a contract is deemed to be in a loss position, the projected loss is recognized in full, including reversal of any previously recognized margin, in the period in which the change in estimate is made. Losses are recognized as an accrued loss provision on the consolidated balance sheets in the accrued liabilities caption. For contract revenue after the date that the loss is accrued, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods, subject to future adjustments to the overall expected profit or loss as determined at such time. As of March 31, 2026 and December 31, 2025, we had $6.5 million and $7.6 million, respectively, in accrued loss provisions.

We estimate the likelihood of collection during the bidding process for new contracts. Customers with a history of late or non-payment are typically avoided in the bidding process. We consider the necessity for write-down of receivable balances in conjunction with GAAP when evaluating our estimates of transaction price and estimated costs to complete our projects.

We bill our customers in conjunction with our contract terms. Our contracts have three main categories, (i) contracts that are billed based on a specific timeline, (ii) contracts that are billed upon the completion of certain phases of work, or milestones, and (iii) contracts that are billed as services are provided. Some of our contracts are billed following the recognition of certain revenue. This creates an asset on our consolidated balance sheets captioned "contract assets." Other contracts' schedules allow us to bill customers prior to recognizing revenue. These contracts create a liability on our consolidated balance sheets captioned "contract liabilities."

We segregate our business into two reportable segments: Transportation and Civil. Our Chief Operating Decision Maker ("CODM"), the Chief Executive Officer, uses these segments in order to operate the business. Our segments offer different specialty infrastructure services. Our CODM regularly reviews our operating and financial performance based on these segments. Each of our reportable segments is composed of similar business units that specialize in specialty infrastructure projects that are unique.

Our business is managed using revenue and gross profit primarily. Our CODM regularly uses this information to review operating results, plan future bids, allocate resources, target customers, and plan future growth and capital allocations. To determine reportable segment gross profit, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs, and indirect operating expenses, were made.

Our Civil segment is comprised of Oscar Renda Contracting, Inc., Mole Constructors, Inc., Southland Contracting, Inc., Southland Holdings, LLC, Renda Pacific, LLC, Southland Renda JV, Southland RE Properties, Oscar Renda Contracting Canada, Southland Mole of Canada, and Southland Mole of Canada/Astaldi Canada Design & Construction JV ("Southland Astaldi"). This segment focuses on projects throughout North America that include the design and construction of water pipeline, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling.

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Our Transportation segment is comprised of American Bridge, Heritage Materials, LLC, and Johnson Bros. Corporation. This segment operates throughout North America and specializes in services that include the design and construction of bridges, roadways, marine, dredging, ship terminals, and piers, and specialty structures and facilities.

Total assets by segment are not presented as our CODM, as defined by ASC 280, does not review or allocate resources based on segment assets. We do not have material intersegment revenue or gross profit. Joint ventures are classified into the segment with which the projects align.

*Segment Revenue*

Revenue by segment for the three months ended March 31, 2026 and 2025, was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  |  | % of Total  |  | % of Total |
| Segment | Revenue | Revenue | Revenue | Revenue |
| Civil | $103792 | 60.2% | $102916 | 43.0% |
| Transportation | 68613 | 39.8% | 136570 | 57.0% |
| Total revenue | $172405 | 100.0% | $239486 | 100.0% |

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*Segment Cost of Construction*

Cost of construction by segment three months ended March 31, 2026 and 2025, was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  |  | % of Total |  | % of Total |
|  | Cost of | Cost of | Cost of | Cost of |
| Segment | Construction | Construction | Construction | Construction |
| Civil | $89140 | 50.3% | $80285 | 36.8% |
| Transportation | 88021 | 49.7% | 137721 | 63.2% |
| Total cost of construction | $177161 | 100.0% | $218006 | 100.0% |

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*Segment Gross Profit (Loss)*

Gross profit (loss) by segment for the three months ended March 31, 2026 and 2025, was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  |  | % of Segment  |  | % of Segment  |
| Segment | Gross Profit | Revenue | Gross Profit | Revenue |
| Civil | $14652 | 14.1% | $22631 | 22.0% |
| Transportation | (19408) | (28.3)% | (1151) | (0.8)% |
| Gross profit (loss) | $(4756) | (2.8)% | $21480 | 9.0% |

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Revenue earned outside of the United States was 11% and 15% for the three months ended March 31, 2026 and 2025, respectively.

A reconciliation of gross profit (loss) from segments to losses before income taxes is as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| Gross profit (loss) from segments | (4756) | 21480 |
| Selling, general, and administrative expenses | 14943 | 16465 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating income (loss) | (19699) | 5015 |
| Gain on investments, net | 147 | 17 |
| Other income, net | 74 | 743 |
| Interest expense | (8681) | (8874) |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses before income taxes | $(28159) | $(3099) |

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#### Note 5. Debt
Long-term debt and credit facilities consisted of the following as of March 31, 2026, and December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
| *(Amounts in thousands)* | **March 31, 2026** | **December 31, 2025** |
| Secured notes | $235024 | $262367 |
| Mortgage notes | 285 | 307 |
| Total debt | 235309 | 262674 |
| Unamortized deferred financing costs | (4518) | (4972) |
| Total debt, net | 230791 | 257702 |
| Less: Current portion | (56094) | (53731) |
| Total long-term debt | $174697 | $203971 |

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The weighted average interest rate on total debt outstanding as of March 31, 2026 and December 31, 2025, was 9.03% and 9.18%, respectively.

Secured Notes

We enter into secured notes in order to finance growth within our business. As of March 31, 2026, we had outstanding secured notes expiring between March 2027 and March 2033. Interest rates on the secured notes range between 0.00% and 12.90%. The secured notes are collateralized by certain assets of Southland's fleet of equipment.

On September 30, 2024, the Company entered into a term loan and security agreement (the "Credit Agreement") with Callodine Commercial Finance, LLC as administrative agent and lender.

The Credit Agreement provides for a four-year secured $140.0 million term loan facility (the "Credit Facility"), consisting of a $140.0 million initial draw term loan (the "Term Loan").

After giving effect to the Assignment and Assumption Agreement (defined below), the Credit Facility has a maturity date of September 30, 2028.

The Credit Agreement requires quarterly principal payments on the Term Loan, which commenced on December 31, 2024. The required principal amortization is as follows: (i) 5.0% in the first year (1.25% per quarter), (ii) 10.0% in the second year (2.50% per quarter), (iii) 15.0% in the third and fourth years (3.75% per quarter), and (iv) the remaining balance at maturity.

The interest on amounts drawn under the Credit Facility is payable monthly at a rate of 7.25% per annum plus the higher of (i) 90-day Secured Overnight Financing Rate ("SOFR") with a credit adjustment spread of 0.15% or (ii) 3%.

Any principal prepayments in the first three years, other than mandatory prepayments pursuant to the Credit Agreement, will be subject to additional fees. In the first year, any prepayments will incur fees of 3% or the make-whole premium, whichever is higher. The make-whole premium is the interest and fees that would have been earned for the full year less interest and fees paid to date during the year. In the second and third years, any prepayments will incur fees of 2% and 1%, respectively. There are no fees for prepayments made in the fourth year.

The Credit Agreement contains customary restrictive covenants and events of default, including financial covenants based on the Company's Liquidity, as defined in the Credit Agreement, and trailing twelve-month earnings before interest expense, income taxes, depreciation and amortization (the "TTM EBITDA Covenants"). The TTM EBITDA Covenants will be tested and the Company must comply with the TTM EBITDA Covenants during any period where the Company's Liquidity falls below $30.0 million until the Company's Liquidity exceeds $30.0 million for a period of at least 30 days. The Credit Agreement requires the Company to maintain Liquidity of at least $20.0 million at all times. The Credit Agreement also stipulates that the outstanding principal cannot be greater than the specified advance rates against eligible collateral.

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The obligations under the Credit Facility are unconditionally guaranteed by the Company and its subsidiaries. The obligations under the Credit Facility are secured by a first lien on all assets of the Company, subject to permitted liens and interests of other parties as described in the Credit Agreement.

On March 17, 2026, the Company entered into an assignment and assumption (the "Assignment and Assumption Agreement") with Callodine Commercial Finance, LLC (the "Resigning Agent"), solely in its capacity as "Agent" under the Credit Agreement, lenders party to the Credit Agreement (individually, an "Assignor," and collectively, the "Assignors"), the assignees parties thereto (individually, an "Assignee," and collectively, the "Assignees"), and Alana Porrazzo, in her capacity as Trustee of the Southland Collateral Trust, as successor agent. The Assignees include the surety providers of the Company, Berkshire Hathaway Specialty Insurance Company ("Berkshire"), Markel Insurance Company ("Markel"), Zurich American Insurance Company ("Zurich"), Western Surety Company, Euler Hermes North America Insurance Company, Federal Insurance Company, and Hartford Fire Insurance Company.

Pursuant to the Assignment and Assumption Agreement, the Company paid the Resigning Agent, for the benefit of the Resigning Agent and the Assignors, approximately $15.4 million with respect to the loans of which approximately $14.4 million consisted of principal and approximately $1.0 million consisted of accrued interest and fees. Also, each Assignor sold and assigned to the Assignees, and each Assignee purchased and assumed from the Assignors, all of each such Assignor's (i) right, title and interest to loans under the Credit Agreement, and (ii) rights and obligations, solely as a lender, under the Credit Agreement and related loan documents (including the Assignor's right, title and interest in any collateral securing obligations under the Credit Agreement) (the "Assigned Interest"). The aggregate principal amount of loans comprising the Assigned Interest is approximately $110.0 million, and the Assignees agreed to pay an aggregate purchase price of approximately $110.0 million to the Resigning Agent for the ratable benefit of the Assignors.

Concurrently with the assignment of the Assigned Interests, the delayed draw term loan commitment under the Credit Agreement was terminated and is of no further force or effect.

Additionally, pursuant to side letters executed after the Assignment and Assumption Agreement, the Assignees have agreed to waive quarterly principal and monthly interest payments for all periods until maturity. In addition, the Assignees have agreed to waive any and all defaults and potential defaults and covenant violations under the Credit Agreement, including any violations that existed as of March 31, 2026 or December 31, 2025. As consideration for the foregoing, the Company has agreed to dispose of idle equipment and other assets and pursue claim collections to use the proceeds from the aforementioned transactions to make payments towards the principal balance of the loan prior to maturity.

As of March 31, 2026, the Company was in compliance with all applicable covenants under the Credit Agreement, as amended, and after giving effect to the waiver granted by the sureties.

Mortgage Notes

We enter into mortgage notes in order to finance growth within our business. As of March 31, 2026, we had a mortgage note expiring in February 2029. The interest rate on the mortgage note was 5.99%. The mortgage note is collateralized by certain real estate owned by Southland.

#### Note 6. Commitments and Contingencies
*Litigation*

In the ordinary course of business, we and our affiliates are involved in various legal proceedings alleging, among other things, liability issues or breach of contract or tortious conduct in connection with the performance of services and/or materials provided, the outcomes of which cannot be predicted with certainty. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcomes of which cannot be predicted with certainty.

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Some of the matters in which we or our joint ventures and affiliates are involved may involve compensatory, punitive, or other claims or sanctions that, if granted, could require us to pay damages or make other expenditures in amounts that are not currently probable to be incurred or cannot currently be reasonably estimated. In addition, in some circumstances, our government contracts could be terminated, we could be suspended or incur other administrative penalties or sanctions, or payment of our costs could be disallowed. While any of our pending legal proceedings may be subject to early resolution as a result of our ongoing efforts to resolve the proceeding, whether or when any legal proceeding will be resolved is neither predictable nor guaranteed.

Accordingly, it is possible that future developments in such proceedings and inquiries could require us to (i) adjust existing accruals, or (ii) record new accruals that we did not originally believe to be probable or that could not be reasonably estimated. Such changes could be material to our financial condition, results of operations, and/or cash flows in any particular reporting period. In addition to matters that are considered probable for which the loss can be reasonably estimated, disclosure is also provided when it is reasonably possible and estimable that a loss will be incurred, when it is reasonably possible that the amount of a loss will exceed the amount recorded, or a loss is probable but the loss cannot be estimated.

Liabilities relating to legal proceedings and government inquiries, to the extent that we have concluded such liabilities are probable and the amounts of such liabilities are reasonably estimable, are recorded on the consolidated balance sheets. A certain number of the claims are insured but subject to varying deductibles, and a certain number of the claims are uninsured. The aggregate range of possible loss related to (i) matters considered reasonably possible, and (ii) reasonably possible amounts in excess of accrued losses recorded for probable loss contingencies was immaterial, as of March 31, 2026, and December 31, 2025. Our estimates of such matters could change in future periods.

*Washington State Convention Center Project*

On March 7, 2018, Clark/Lewis, A Joint Venture ("CLJV"), awarded the Company a subcontract valued at approximately $81.4 million to supply and erect structural steel for the Washington State Convention Center project ("WSCC Project"). Over the course of the WSCC Project, the Company executed change orders and had claims against CLJV due to CLJV's management of the project, the impacts of COVID-19, and cumulative inefficiencies, which American Bridge believed were caused by CLJV's site management of multiple subcontractors, an unrealistic project schedule, and the failure to issue time-related overhead compensation associated with change orders. The amount sought by American Bridge was approximately $80 million in total. At the time the claim was recorded, management concluded that the criteria for inclusion in the transaction price were met and that the claim represented a valid contract asset because the collectability of the amount of consideration was probable. The Company deemed the amount collectable to be $40.3 million. Additionally, there was $6.4 million in retainage that CLJV did not release to the Company.

CLJV and the Washington State Convention Center ("WSCC") submitted a counterclaim totaling approximately $58 million, alleging that American Bridge delayed completion of the project by failing to meet the CLJV schedule, which in turn caused delays to CLJV and other subcontractors.

On December 1, 2025, we received an adverse ruling in the case of American Bridge Company v. Clark/Lewis Joint Venture, et al. In this litigation, the Superior Court of the State of Washington for King County, by order dated January 15, 2026, ruled in favor of CLJV and entered a judgment against American Bridge and certain of its sureties, jointly and severally, in the principal amount of $57.1 million. Interest and fees were assessed by the court at a later date. The order of the court constituted a change in facts and circumstances that significantly impacted American Bridge's enforceable right to consideration. Because the adverse ruling made the likelihood of recovering the claimed amount and collectability of the related consideration no longer probable, the Company derecognized contract assets as of December 31, 2025 on our consolidated balance sheet, resulting in a $40.3 million non-cash charge to revenue on our consolidated statement of operations for the year ended December 31, 2025.

In connection with the adverse ruling, the judge entered a sanctions order totaling $4.8 million on December 12, 2025.

While the Company intended to appeal the adverse ruling and the sanctions order, certain of its sureties subsequently entered into negotiations with CLJV on behalf of the Company in accordance with certain rights available to the sureties under certain General Indemnity Agreements ("GIAs"). On March 27, 2026, the Company entered into a settlement agreement on the WSCC Project. The Company and the sureties are negotiating repayment terms for amounts paid by the sureties on behalf of the

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Company under a long-term financing agreement. The sureties have agreed to forbear on seeking repayment for these amounts until at least May 13, 2027. The $89.1 million is included in surety payable on our unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

*CityLYNX Project*

On November 28, 2016, the City of Charlotte ("City") awarded Contract Number 2017000790 to Johnson Bros. Corporation, a Southland subsidiary ("JBC") for the project known as CityLYNX Gold Line Phase 2 – Streetcar Project which extended the previously constructed 1.5-mile streetcar system by 2.5 miles to the east and west and included construction through numerous segments in the heart of downtown Charlotte, North Carolina, as well as the reconstruction of the Hawthorne Lane Bridge (the "Project").

During the course of the Project, JBC alleges numerous and continuous changes and interferences by the City and the City's representatives which the City has refused to recognize as a contractual change.

After multiple failed attempts at negotiated settlement, JBC timely filed its original complaint in the General Court of Justice, Superior Court Division in Mecklenburg County, State of North Carolina (the "Court") on February 20, 2023. JBC filed its First Amended Complaint on April 12, 2023. In the First Amended Complaint, JBC asserted ten claims against the City, including claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and subcontractor pass-through claims (the "Contract Claims").

On June 1, 2023, the City filed its Motions to Dismiss, Answer to First Amended Verified Complaint and Counterclaim, seeking, in part, the dismissal of all of JBC's claims (the "Motion to Dismiss"). The Court issued its Order and Opinion on the Motion to Dismiss on February 27, 2024. Among its rulings in the Order, the Court concluded that JBC's Contract Claims were time-barred in part and dismissed those claims with prejudice "to the extent those claims [arose] from conduct occurring before 31 January 2021."

JBC then filed Motions on April 17, 2024, seeking reconsideration of the Court's partial dismissal of the Contract Claims with prejudice and, alternatively, leave to file a second amended complaint (the "Motion for Reconsideration"). After full briefing, the Court convened a hearing on the Motion for Reconsideration on May 30, 2024.

On June 7, 2024, the Court granted JBC's Motion for Reconsideration in part by amending its previous Order and converting the dismissal to a "without prejudice" dismissal and granting JBC's motion to file its proposed Second Amended Complaint.

On June 11, 2024, JBC filed its Second Amended Complaint which reiterates the Contract Claims resulting in damages "in an amount in excess of $115,000,000, plus pre-judgement and post-judgement interest."

The Company continues to pursue all legal options and the parties continue to exchange information and engage in meetings.

*Surety Bonds*

We, as a condition for entering into a substantial portion of our construction contracts, had outstanding surety bonds as of March 31, 2026, and December 31, 2025. We have agreed to indemnify our sureties if they experience a loss on the bonds of any of our affiliates. Collectively, Berkshire, Zurich and Markel have advanced an aggregate of approximately $139.2 million and $14.1 million as of March 31, 2026 and December 31, 2025, respectively, to support bonded project obligations and ongoing project performance. These amounts are included in surety payable on our unaudited condensed consolidated balance sheets. Repayment of these amounts is not required prior to at least May 13, 2027.

*Self-Insurance*

We are self-insured up to certain limits with respect to workers' compensation, general liability and auto liability matters, and health insurance. We maintain accruals for self-insurance retentions based upon third-party data and claims history.

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**Note 7. Income Taxes**

The federal statutory tax rate is 21%. Southland's effective tax rate was (0.1%) and 10.1% for the three months ended March 31, 2026 and 2025, respectively. The primary differences between the statutory rate and the effective rate for the three months ended March 31, 2026, were adjustments to valuation allowances recorded. The primary differences between the statutory rate and the effective rate for the three months ended March 31, 2025, were state income taxes, adjustments to valuation allowances recorded against domestic subsidiaries' net deferred tax assets, and income earned in a foreign jurisdiction with different income tax rates from the domestic rate.

The Company is in a net deferred tax asset position for both U.S. federal and state income tax as of March 31, 2026. The Company assesses available positive and negative evidence to estimate whether sufficient taxable income will be generated to permit use of existing deferred income tax assets. The Company has incurred three years of cumulative losses in various jurisdictions including the U.S. Such objective evidence and recent changes in forecasts resulted in the Company establishing a valuation allowance against the net deferred tax assets related to U.S. federal and state income tax as of September 30, 2025, with the exception of the net deferred tax assets related to separate state filings for certain subsidiaries. As of March 31, 2026, the Company has recorded a valuation allowance of approximately $123.8 million related to its US federal and state net deferred tax assets, inclusive of current year activity, as they are determined to be more-likely-than-not to not be utilized.

As a result of financial losses incurred within the Canadian operations at certain subsidiaries, the Company maintains a valuation allowance against the net deferred tax assets as they are determined to not be more-likely-than-not to be utilized. As of March 31, 2026, the Company has a valuation allowance in the amount of $8.3 million related to the net deferred tax assets on certain Canadian subsidiaries.

The Company maintains a valuation allowance related to the net deferred tax assets recorded from United Kingdom operations from historic losses incurred that are determined to not be more-likely-than-not to be utilized. As of March 31, 2026, the valuation allowance related to United Kingdom operations is $16.0 million.

#### Note 8. Remaining Unsatisfied Performance Obligations
Remaining Unsatisfied Performance Obligations ("RUPO") consists of two components: (1) unearned revenue and (2) contracts that are awarded but not started. Unearned revenue includes the revenue we expect to record in the future on in-progress contracts, including 100% of our consolidated joint venture contracts and our proportionate share of unconsolidated joint venture contracts. Contracts that are awarded, but not yet started, are included in RUPO once a contract has been fully executed and/or we have received a formal "Notice to Proceed" from the project owner.

Although RUPO reflects business that we consider to be firm, deferrals, cancellations and/or scope adjustments may occur. RUPO is adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate.

Fixed price contracts, particularly with federal, state and local government customers, are expected to continue to represent a majority of our total RUPO.

As of March 31, 2026, Southland had $1.9 billion of RUPO. The Company expects to recognize approximately 38% of its RUPO as revenue during the next twelve months, and the balance by 2031. Unforeseen events and circumstances such as schedule delays, regulatory requirements, project specific issues, or other reasons can alter the timing of satisfaction of our RUPO.

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#### Note 9. Cost and Estimated Earnings on Uncompleted Contracts
Contract assets as of March 31, 2026, and December 31, 2025, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
| *(Amounts in thousands)* | **March 31, 2026** | **December 31, 2025** |
| Costs in excess of billings | $344381 | $343605 |
| Costs to fulfill contracts, net | 22050 | 23002 |
| Contract assets | $366431 | $366607 |

---

Costs and estimated earnings on uncompleted contracts were as follows as of March 31, 2026, and December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
| *(Amounts in thousands)* | **March 31, 2026** | **December 31, 2025** |
| Costs incurred on uncompleted contracts | $8270989 | $8078898 |
| Estimated earnings | 52969 | 50182 |
| Costs incurred and estimated earnings | 8323958 | 8129080 |
| Less: billings to date | (8206286) | (8038018) |
| Costs to fulfill contracts, net | 22050 | 23002 |
| Net contract position | $139722 | $114064 |

---

Our net contract position is included on the unaudited condensed consolidated balance sheets under the following captions:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
| *(Amounts in thousands)* | **March 31, 2026** | **December 31, 2025** |
| Contract assets | $366431 | $366607 |
| Contract liabilities | (226709) | (252543) |
| Net contract position | $139722 | $114064 |

---

We periodically evaluate our project forecasts and the amounts recognized with respect to our claims and unapproved change orders, and other potential modifications under review (referred to collectively as "Unresolved Contract Modifications"). On certain projects we have assessed Unresolved Contract Modifications to recover additional costs and profits which we believe we are entitled under the terms of our contracts. This includes Unresolved Contract Modifications on completed projects and projects that are not yet complete. Until an Unresolved Contract Modification is finalized it is likely that additional costs will be incurred in future periods. Our customers, or other third parties, may disagree with some or all of our assessed Unresolved Contract Modifications. As of March 31, 2026 and December 31, 2025, we have recorded $372.2 million and $382.3 million, respectively, related to Unresolved Contract Modifications.

On January 1, 2026, we had contract liabilities of $252.5 million, of which $142.5 million was recognized as revenue during the three months ended March 31, 2026.

On January 1, 2025, we had contract liabilities of $249.7 million, of which $120.6 million was recognized as revenue during the three months ended March 31, 2025.

#### Note 10. Noncontrolling Interests Holders
Southland has several controlling interests including both joint ventures and partnerships. We have controlling interests and allocate earnings and losses in those entities to the noncontrolling interest holders based on our ownership percentages.

We own an 84.7% interest in Oscar Renda Contracting, Inc. ("Oscar Renda"), as of March 31, 2026, and March 31, 2025.

We own a 70.0% interest in the Southland Astaldi joint venture as of March 31, 2026, and March 31, 2025.

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American Bridge entered into a joint venture with Commodore Maintenance Corporation, forming American Bridge/Commodore Joint Venture. According to the joint venture agreement, each of the parties is paid in accordance with its respective work performed and has no responsibility for losses incurred by the other party in performance of its work. At March 31, 2026, American Bridge was responsible for approximately 82% of the total contracted work.

We consolidated each of Oscar Renda Contracting of Canada, Southland Astaldi joint venture, and American Bridge/Commodore joint venture as a result of our control over the joint venture operations. We have fully consolidated revenue, cost of construction, and other costs on our unaudited condensed consolidated statements of operations and balances on the unaudited condensed consolidated balance sheets.

**Note 11. Related Party Transactions**

Southland occasionally enters into subcontracts with a subcontractor in which certain employees hold a minority ownership. Cost of construction related to this subcontractor was $0.0 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively. Accounts payable balance due to this subcontractor was $3.7 million as of March 31, 2026 and December 31, 2025. Southland enters into agreements with this related party through a competitive bidding process and have substantially the same as terms the Company would enter into with a similar, unrelated party.

In July 2024, the Company closed a real estate purchase agreement to sell and leaseback three properties for $42.5 million. The Company's Chief Executive Officer, Frank Renda, and co-Chief Operating Officer, Rudy Renda, hold a combined 25% indirect minority interest in the entity that purchased the real estate. For the three months ended March 31, 2026 and 2025, the Company paid $1.2 million and $1.4 million, respectively, to this related party in accordance with the real estate purchase agreement.

In the first quarter of 2026, the Company's Chief Executive Officer, Frank Renda, Co-Chief Operating Officer Tim Winn, and Co-Chief Operating Officer, Rudy Renda, agreed to collateralize bonds issued in favor of the Company in the form of a cash deposit in the amount of $1.5 million.

#### Note 12. Share Based Compensation
On May 24, 2022, the Board of Directors of Legato Merger Corp. II, a Delaware corporation, adopted the Southland Holdings, Inc. 2022 Equity Incentive Plan ("2022 Plan"). A total of 2,220,392 shares of our common stock were reserved for issuance under the 2022 Plan of which 1,037,722 remained available as of March 31, 2026.

Restricted Stock Units ("RSUs"): RSUs are issued for compensatory purposes. RSU stock compensation cost is measured at our common stock's fair value based on the market price at the date of grant. We recognize stock compensation cost only for RSUs that we estimate will ultimately vest. We estimate the number of shares that will ultimately vest at each grant date based on our historical experience and adjust stock compensation cost based on changes in those estimates over time.

A summary of the changes in our RSUs during the three months ended March 31, 2026 and 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  | **RSUs** | **Weighted-Average Grant-Date Fair Value per RSU** | **RSUs** | **Weighted-Average Grant-Date Fair Value per RSU** |
| Outstanding, beginning balance | 786286 | $3.93 | 599547 | $5.31 |
| Granted |  |  | 139720 | 2.99 |
| Vested | (85184) | 1.32 | (50658) | 3.09 |
| Forfeited | (23433) | 3.30 | (44346) | 4.58 |
| Canceled | (26324) | 1.32 | (36009) | 3.09 |
| Outstanding, ending balance | 651345 | $4.11 | 608254 | $4.41 |

---

Performance Stock Units ("PSUs"): PSUs provide for the issuance of shares upon vesting, which occurs following the end of the performance period based on achievement of certain metrics as established by the Board of Directors. The Company recognizes expense for PSUs based on the forecasted achievement of Company performance metrics, multiplied by the fair value of the total number of shares of common stock that the Company anticipates will be issued based on such achievement.

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A summary of the changes in our PSUs during the three months ended March 31, 2026 and 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  | **PSUs** | **Weighted-Average Grant-Date Fair Value per PSU** | **PSUs** | **Weighted-Average Grant-Date Fair Value per PSU** |
| Outstanding, beginning balance | 173690 | $4.58 | 304880 | $4.58 |
| Granted |  |  |  |  |
| Forfeited | (86845) | 4.58 | (131190) | 4.58 |
| Outstanding, ending balance | 86845 | $4.58 | 173690 | $4.58 |

---

Compensation cost was $0.5 million for each of the three months ended March 31, 2026 and 2025, which is included in selling, general and administrative expenses on the unaudited condensed consolidated statements of operations.

As of March 31, 2026, there was a total of $2.0 million in unrecognized compensation cost which will be recognized over a remaining weighted-average period of 1.1 years.

**Note 13. Loss per Share**

Basic and diluted net loss per share for the three months ended March 31, 2026 and 2025 consisted of the following (*in thousands, except shares and per share amounts*):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **March 31, 2026** | **March 31, 2025** |
| Numerator: |  |  |
| &nbsp;&nbsp;Net loss | $(28178) | $(2786) |
| &nbsp;&nbsp;Less net income attributable to noncontrolling interests | 174 | 1766 |
| Net loss attributable to common stockholders, basic and diluted | (28352) | (4552) |
| Denominator: |  |  |
| Weighted average common shares outstanding — basic | 54119661 | 53961744 |
| Weighted average common shares outstanding — diluted | 54119661 | 53961744 |
| Net loss per share — basic | $(0.52) | $(0.08) |
| Net loss per share — diluted | $(0.52) | $(0.08) |

---

As the average market price of common stock for the three months ended March 31, 2026 did not exceed the exercise price of the Warrants, the potential dilution from the Warrants converting into 14,385,500 shares of common stock for both periods have been excluded from the number of shares used in calculating diluted net loss per share as their inclusion would have been antidilutive. For the three months ended March 31, 2026 and 2025, the potential dilution from unvested RSUs converting into 651,345 shares and 559,992 shares of common stock, respectively, has been excluded from the number of shares used in calculating diluted net loss per share as their inclusion would have been antidilutive.

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#### Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis contains forward-looking statements relating to future events or our future financial performance, which involve risk and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements. Please see the discussion regarding forward-looking statements included under the "Cautionary Note Regarding Forward-Looking Statements" section for a discussion of some of the uncertainties, risks, and assumptions associated with these statements.

The following discussion and analysis present information that we believe is relevant to an assessment and understanding of our unaudited condensed consolidated balance sheets, statements of cash flows, and results of operations. This information should be read in conjunction with the unaudited condensed consolidated financial statements and the notes related thereto.

#### Overview
Southland Holdings, Inc. ("Southland") is a diverse leader in specialty infrastructure construction with roots dating back to 1900. The end markets for which we provide services cover a broad spectrum of specialty services within infrastructure construction. We design and construct projects in the bridges, tunnels, communications, data centers, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipelines end markets.

Southland is based in Grapevine, Texas. It is the parent company of Johnson Bros. Corporation, American Bridge Company, Oscar Renda Contracting, Southland Contracting, Mole Constructors, and Heritage Materials. With the combined capabilities of these six primary subsidiaries, Southland has become a diversified industry leader with projects spanning North America in various end markets.

**Key Factors Affecting Results of Operations**

Business Environment

We segregate our business into two reportable segments: Transportation and Civil. Our Civil segment primarily operates throughout North America and specializes in services that include the design and construction of water pipeline, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling.

Our Transportation segment primarily operates throughout North America and specializes in services that include the design and construction of bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities. Our Transportation segment is responsible for the construction of bridges and structures including many of the most recognizable bridges, convention centers, sports stadiums, marine facilities, and Ferris wheels in the world.

Both our Civil and Transportation segments continue to identify new opportunities to grow our business, and the future outlook of the end markets we serve remains positive. Although risk and uncertainty exist, including, but not limited to, the items addressed within our forward-looking statements and risk factors, we believe that we are well positioned to compete on new infrastructure projects in both the public and private sectors.

Market Trends and Uncertainties

In both our Transportation and Civil segments, we have competitors within the individual markets and geographic areas in which we operate, ranging from small, local companies to larger regional, national, and international companies. Although the construction business is highly competitive, there are few, if any, companies which compete in all of our market areas, both geographically and from an end market perspective. The degree and type of competition is influenced by the type and scope of construction projects within individual markets. Equipment ownership and ability to self-perform across numerous disciplines are two of our significant competitive advantages. We believe that the primary factors influencing competition in our industry are price, reputation for quality, safety, schedule certainty, relevant experience, availability of field supervision and skilled labor, machinery and equipment, financial strength, as well as knowledge of local markets and conditions.

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Many of our competitors have the ability to perform work in either the private or public sectors. When opportunities for work in one sector are reduced, competitors tend to look for opportunities in the other sector. This migration has the potential to reduce revenue growth and/or increase pressure on gross profit margins.

We have seen an increase in demand for specialty construction projects in recent years at the federal, state, and local level. We anticipate further spending on infrastructure related to economic stimulus spending including the Infrastructure Investment and Jobs Act that was passed in 2021, and other federal, state, or local initiatives.

We believe that the combination of our experience, reputation, and technical expertise are unmatched among companies of our size. This combination of skills has allowed us to pursue complex projects with fewer competitors.

During the first half of 2025, the U.S. government announced a variety of tariff actions in response to which many countries have announced retaliatory trade actions, including tariffs on U.S. exports. The tariffs and retaliatory trade actions have increased the cost of importing certain construction materials into the U.S. and have caused disruption and uncertainty to both international trade, supply chains and financial markets. It is unclear to what extent, when and for how long announced trade actions will be in place. To date, these trade actions have had no meaningful impact on the results of our operations or the projects currently underway as the construction materials and equipment used for our current projects have generally been sourced and/or secured upon project inception. However, we are evaluating the potential impacts of these proposed tariffs, including potential impacts to our customers, as well as our ability to mitigate their related impacts. In addition, economic experts and policy makers have expressed concerns that increased tariffs and retaliatory trade actions could increase inflation or the risk of a recession, which could also affect our customers' use of capital and demand for our services.

Seasonality, Cyclicality, and Variability

**The results of our operations are subject to quarterly variations. Much of the variation is the result of weather, particularly rain, ice, snow, heat, wind, and named storms, which can impact our ability to perform construction activities. These weather impacts can affect revenue and profitability in either of our business segments. Any quarter can be affected either negatively or positively by atypical weather patterns in any part of North America, or other areas in which we operate. Traditionally, our first quarter is the most weather-affected; however, this may or may not necessarily be true in future periods.**

**Our business may also be affected by overall economic market conditions, including but not limited to declines in spending by project owners, delays in new projects, changes in client schedules, or for other reasons.**

#### Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with the United States Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses earned and incurred, respectively, during the reporting period. Critical accounting estimates are fundamental to the portrayal of both our financial condition and results of operations and often require difficult, subjective, and complex estimates and judgments by management. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. The following discussion addresses the items we have identified as our critical accounting estimates. There have been no material developments or changes from the policies and estimates discussed in our annual disclosures.

More information about our accounting policies can be found in Note 2 of our audited consolidated financial statements, and Management's Discussion and Analysis, for the year ended December 31, 2025 on our Annual Report on Form 10-K, as filed with the SEC on March 26, 2026.

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**Materials and Paving**

In the second quarter of 2023, Southland decided to discontinue certain types of projects in its Materials & Paving business line ("M&P") and sold assets related to producing large scale concrete and asphalt. M&P is reported in the Transportation segment. In an effort to wind down this component of its Transportation segment and reallocate resources towards core operations, the Company sold various materials production assets. The Company has concluded this action with M&P does not qualify for Discontinued Operations treatment and presentation under ASC 205-20 as it does not represent a strategic shift in the Company's business.

For the three months ended March 31, 2026, M&P contributed $11.0 million to revenue and $13.1 million to gross loss. There is additional information on the M&P gross loss in the Transportation portion of the Segment Results section of this Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. This compares to $18.1 million to revenue and $9.1 million to gross loss for the three months ended March 31, 2025. As of March 31, 2026, approximately 3.8% of Southland's backlog was in M&P and Southland estimates most of this work to be substantially completed in 2026.

**Results of Operations**

The following table sets forth summary financial information for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  |
| <br>*(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| Revenue | $172405 | $239486 |
| Cost of construction | 177161 | 218006 |
| **Gross profit (loss)** | (4756) | 21480 |
| Selling, general, and administrative expenses | 14943 | 16465 |
| **Operating income (loss)** | (19699) | 5015 |
| Gain on investments, net | 147 | 17 |
| Other income, net | 74 | 743 |
| Interest expense | (8681) | (8874) |
| **Losses before income taxes** | (28159) | (3099) |
| Income tax expense (benefit) | 19 | (313) |
| **Net loss** | (28178) | (2786) |
| Net income attributable to noncontrolling interests | 174 | 1766 |
| **Net loss attributable to Southland Stockholders** | $(28352) | $(4552) |

---

Revenue

Revenue for the three months ended March 31, 2026, was $172.4 million, a decrease of $67.1 million, or 28.0%, compared to the three months ended March 31, 2025. The decrease was attributable to a $68.0 million decrease in revenue in our Transportation segment primarily due to projects approaching completion, offset by a $0.9 million increase in revenue in our Civil segment primarily due to a new project substantially started after March 31, 2025.

Cost of construction

Cost of construction for the three months ended March 31, 2026, was $177.2 million, a decrease of $40.8 million, or 18.7%, compared to the three months ended March 31, 2025. The decrease was attributable to a $49.7 million decrease in our Transportation segment primarily due to projects approaching completion, offset by an $8.9 million increase in our Civil segment primarily due to new projects substantially started after March 31, 2025.

Gross profit (loss)

Gross loss for the three months ended March 31, 2026, was $4.8 million, a decrease in gross profit of $26.2 million, or 122.1%, compared to the three months ended March 31, 2025. The decrease was attributable to an $18.2 million increase in gross loss in our Transportation segment primarily due to unfavorable adjustments related to unfavorable dispute resolutions and an $8.0 million decrease in gross profit in our Civil segment primarily due to higher-than-expected project costs.

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Selling, general, and administrative expenses

Selling, general, and administrative expenses for the three months ended March 31, 2026, were $14.9 million, a decrease of $1.5 million, or 9.2%, compared to the three months ended March 31, 2025. The decrease was primarily due to a $2.4 million decrease in compensation expense, a $0.6 million decrease in professional fees and a $0.5 million decrease in real estate and personal property taxes, offset by a $2.1 million increase in business transformation expenses, compared to the same period in 2025.

Interest expense

Interest expense for the three months ended March 31, 2026, was $8.7 million, a decrease of $0.2 million, or 2.2%, compared to the three months ended March 31, 2025. The decrease was primarily driven by the decrease of total debt compared to the same period in 2025.

Income tax expense (benefit)

The Company is in a net deferred tax asset position for both U.S. federal and state income tax as of March 31, 2026. The Company assesses available positive and negative evidence to estimate whether sufficient taxable income will be generated to permit use of existing deferred income tax assets. The Company has incurred three years of cumulative losses in various jurisdictions including the U.S. Such objective evidence and recent changes in forecasts resulted in the Company establishing a valuation allowance against the net deferred tax assets related to U.S. federal and state income tax as of September 30, 2025, with the exception of the net deferred tax assets related to separate state filings for certain subsidiaries. As of March 31, 2026, the Company has recorded a valuation allowance of approximately $123.8 million, inclusive of current year, related to its US federal and state net deferred tax assets, inclusive of current year activity, as they are determined to be more-likely-than-not to not be utilized

Income tax expense for the three months ended March 31, 2026, had an effective rate of (0.1%). The primary differences between the federal statutory tax rate of 21% and the effective rate were valuation allowance adjustments against subsidiaries' net deferred tax assets and state income taxes.

Income tax benefit for the three months ended March 31, 2025, had an effective rate of 10.1%. The primary differences between the federal statutory tax rate of 21% and the effective rate were state income taxes, the recording of a valuation allowance against certain subsidiaries' net deferred tax assets, federal tax credits, the income earned in foreign jurisdictions with a zero tax rate; however, that foreign income is included within U.S. taxable income through global intangible low taxed income ("GILTI"), and the impact of worldwide forecast on the interim calculations under ASC 740.

**Segment Results**

The following table sets forth segment information for the three months ended March 31, 2026 and 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  |  | % of Total |  | % of Total |
| Segment | Revenue | Revenue | Revenue | Revenue |
| Civil | $103792 | 60.2% | $102916 | 43.0% |
| Transportation | 68613 | 39.8% | 136570 | 57.0% |
| Total revenue | $172405 | 100.0% | $239486 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| *(Amounts in thousands)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  |  | % of Segment |  | % of Segment |
| Segment | Gross Profit | Revenue | Gross Profit | Revenue |
| Civil | $14652 | 14.1% | $22631 | 22.0% |
| Transportation | (19408) | (28.3)% | (1151) | (0.8)% |
| Gross profit (loss) | $(4756) | (2.8)% | $21480 | 9.0% |

---

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Civil

Revenue for the three months ended March 31, 2026, was $103.8 million, an increase of $0.9 million, or 0.9%, compared to the three months ended March 31, 2025. The increase was primarily attributable to increased revenues of $14.3 million from a data center project in the West due to the project being substantially started after March 31, 2025, offset by a $6.4 million decrease from a tunnel project in the West due to the project approaching completion and a $6.2 million decrease from a water facility project in the Northwest due to the project approaching completion.

Gross profit for the three months ended March 31, 2026, was $14.7 million, or 14.1% of segment revenue, compared to gross profit of $22.6 million, or 22.0%, of segment revenue, for the three months ended March 31, 2025. The primary driver to the decrease in gross profit of $8.0 million for the three months ended March 31, 2026 versus the same period in 2025 was primarily due to decreases in gross profit contributions of $3.1 million from a water facility project in the Northwest, $2.9 million from a water pipeline project in the Southwest and $2.7 million from a water treatment plant project in the Southwest, all of which decreased due to higher-than-expected project costs.

Transportation

Revenue for the three months ended March 31, 2026, was $68.6 million, a decrease of $68.0 million, or 49.8%, compared to the three months ended March 31, 2025. The decrease was primarily attributable to decreased revenues of $23.6 million from an elevated roadway and bridge project in the Southeast, $9.0 million from a project in the Bahamas, $5.0 million from a Bridge project in the Southeast and $4.7 million from a bridge repair project in the West, all of which decreased due to the projects approaching completion. The decrease was also primarily related to decreased revenues of $13.0 million from a canal widening project in the South due to an unfavorable adjustment related to dispute resolutions and $7.1 million from the M&P business line.

Gross loss for the three months ended March 31, 2026, was $19.4 million, or (28.3)% of segment revenue, compared to gross loss of $1.2 million, or (0.8)% of segment revenue, for the three months ended March 31, 2025. The primary driver to the increase in gross loss of $18.3 million was primarily due to decreases in profit contributions of $13.0 million from a canal widening project in the South and $6.4 million from a M&P project in the Southeast, both due to unfavorable adjustments related to dispute resolutions.

**Key Business Metrics**

*Non-GAAP Financial Measures* 

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operational performance. We use the following non-GAAP measures to evaluate our ongoing operations and for internal planning, forecasting and compensation purposes. We believe that the non-GAAP financial information may be helpful in assessing our operating performance and facilitates an alternative comparison between fiscal periods. The non-GAAP financial measures are not, and should not be viewed as, a substitute for GAAP reporting measures.

*EBITDA*

In our industry, it is customary to manage our business using earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"). EBITDA assists management and the Board of Directors and may be useful to investors in comparing our operating performance consistently over time as it removes the impact of our capital structure and expenses that do not relate to our core operations.

Non-GAAP financial measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial measures on a supplemental basis. The reconciliation of net loss to non-GAAP financial measures below should be reviewed, and no single financial measure should be relied upon to evaluate our business. Below is a reconciliation of net loss to these non-GAAP financial measures.

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| | | |
|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  |
| <br>*(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| Net loss attributable to Southland Stockholders | $(28352) | $(4552) |
| Depreciation and amortization | 5644 | 6525 |
| Income tax expense (benefit) | 19 | (313) |
| Interest expense | 8681 | 8874 |
| Interest income | (98) | (450) |
| EBITDA | (14106) | 10084 |

---

*Backlog*

We define contract backlog ("Backlog") as a measure of the total amount of revenue remaining to be earned on projects that have been awarded. Backlog consists of two components: (1) unearned revenue and (2) contracts awarded but not started. Unearned revenue includes the revenue we expect to record in the future on in-progress contracts, including 100% of our consolidated joint venture contracts and our proportionate share of unconsolidated joint venture contracts. Contracts that are awarded, but not yet started, are included in Backlog once a contract has been fully executed and/or we have received a formal "Notice to Proceed" from the project owner.

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| | |
|:---|:---|
| *(Amounts in thousands)* |  |
| **Balance December 31, 2025** | $**2031080** |
| New contracts, change orders, and adjustments | 18887 |
| Less: contract revenue recognized in 2026 | (172405) |
| **Balance March 31, 2026** | $**1877562** |

---

Backlog should not be considered a comprehensive indicator of future revenue as many of our contracts can be terminated by our customers on relatively short notice, and Backlog does not include future work for which we may be awarded or new awards for which we are awaiting an executed contract or an authorized "Notice to Proceed." In the event of a termination, we are typically reimbursed for all of our costs through a specific contractual date, our costs to demobilize from the project site, and in certain cases overhead costs and profit associated with the contract through the termination date. Costs may include preconstruction and engineering services as well as that of our subcontractors. Our contracts do not typically grant us rights to revenue reflected in Backlog. Projects may remain in the Backlog for extended periods of time as a result of schedule delays, regulatory requirements, project specific issues, or other reasons. Contract amounts from contracts where a transaction price cannot be reasonably estimated are not included within our Backlog amount.

The following tables set forth our Backlog by segment:

*Civil*

---

| | |
|:---|:---|
| *(Amounts in thousands)* |  |
| **Balance December 31, 2025** | $**798818** |
| New contracts, change orders, and adjustments | 8060 |
| Less: contract revenue recognized in 2026 | (103170) |
| **Balance March 31, 2026** | $**703708** |

---

*Transportation*

---

| | |
|:---|:---|
| *(Amounts in thousands)* |  |
| **Balance December 31, 2025** | $**1232262** |
| New contracts, change orders, and adjustments | 10827 |
| Less: contract revenue recognized in 2026 | (69235) |
| **Balance March 31, 2026** | $**1173854** |

---

#### Liquidity, Capital Commitments and Resources
Our principal sources of liquidity are cash generated from operations, funds from borrowings, including amounts funded to support projects under certain GIAs, and existing cash on hand. Our principal uses of cash typically include the funding of working capital obligations, debt service, and investment in machinery and equipment for our projects.

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We will receive the proceeds from the exercise of Warrants for cash. We believe the likelihood that Warrant holders will exercise their Warrants, and therefore the amount of cash proceeds that we would receive, is dependent upon the trading price of our common stock. On May 1, 2026, the closing price of our common stock was $1.18 per share. To the extent the market price of our common stock remains below the exercise price of $11.50 per share, we believe that Warrant holders will be unlikely to exercise their Warrants for cash, resulting in little or no cash proceeds to us for any such exercise. To the extent we receive any cash proceeds, we expect to use such proceeds for general corporate and working capital purposes, which would increase our liquidity. However, we do not expect to rely materially on the cash exercise of Warrants to fund our operations.

Based on historical and anticipated future operating results, we believe cash flow from operations, available cash, and other financing sources will be adequate to meet our liquidity needs for at least the next twelve months, including any anticipated requirements for working capital, capital expenditures, and scheduled debt service.

Our current and future liquidity is greatly dependent upon our operating results, which are largely determined by overall economic conditions, our current contracts and Backlog. Our liquidity could be adversely affected by a disruption in the availability of credit. If such an event were to occur, we may be required to seek additional financing. In addition, we may be required to seek additional financing to refinance all or a significant portion of our existing debt on or prior to maturity. We may also seek to access the public or private equity markets to support our liquidity whenever required or conditions are favorable to us. We have filed a shelf registration statement on Form S-3 with the SEC that was declared effective by the SEC on April 8, 2024 (File No. 333-278008), which allows us to offer and sell up to an aggregate amount of $150.0 million of any combination of common stock, preferred stock, debt securities, warrants to purchase common stock, preferred stock or debt securities, or units of these securities from time to time subject to Instruction I.B.6 to Form S-3 which limits the aggregate market value of securities we may sell during any 12 consecutive months to one-third of our public float for so long as our public float is less than $75.0 million. There can be no assurance that we will be able to raise additional capital or obtain additional financing when needed or on terms that are favorable to us.

We are exposed to market risks relating to fluctuations in interest rates and currency exchange risks. Significant changes in market conditions could cause interest rates to increase and have a material impact on the financing needed to operate our business.

During the fourth quarter of the year ended December 31, 2025, the Company experienced certain liquidity-related challenges resulting primarily from an adverse court ruling related to the WSCC Project (defined below) that resulted in the Company being assessed a judgment of approximately $89.1 million, inclusive of principal, fees, and interest. The ruling limited the Company's enforceable right to recover amounts previously expected to be realized from claims associated with the project.

Following the adverse ruling, certain sureties of the Company purchased and assumed rights and obligations as lenders under the Company's Credit Agreement. In connection with the sureties' assumption of rights and obligations under the Credit Agreement, the Company entered into side letters with the sureties, pursuant to which the sureties waived all events of default and breaches of covenants and all principal and interest payments under the Credit Agreement until maturity.

Additionally, under existing GIAs, certain sureties advanced funds to support bonded project obligations and ongoing project performance. As of March 31, 2026 and December 31, 2025, the sureties had advanced $139.2 million and $14.1 million, respectively. These amounts are included in surety payable on our unaudited condensed consolidated balance sheets. Repayment of these amounts is not required prior to at least May 13, 2027.

On March 27, 2026, the Company entered into a settlement agreement on the WSCC Project. Certain sureties of the Company previously paid a portion of the judgement against the Company and are required to pay an additional amount under the settlement agreement. The Company and the sureties are negotiating repayment terms for the amounts paid by the sureties on behalf of the Company under a long-term financing agreement. The sureties have agreed to forbear on seeking repayment for these amounts until at least May 13, 2027. The $89.1 million judgment is included in surety payable on our unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

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Based on the Company's current cash position, expected operating cash flows, existing backlog, and the actions taken by management to address recent liquidity challenges, management believes that the Company has sufficient liquidity to meet its operational and financial obligations as they come due for at least the next twelve months.

The following table sets forth summary change in cash, cash equivalent and restricted cash for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  |
| <br>*(Amounts in thousands)* | **March 31, 2026** | **March 31, 2025** |
| Net cash provided by (used in) operating activities | $(133865) | $6429 |
| Net cash provided by investing activities | 1319 | 1117 |
| Net cash provided by (used in) financing activities | 96987 | (13989) |
| Effect of exchange rate changes | 43 | (2) |
| Net change in cash, cash equivalents, and restricted cash | $(35516) | $(6445) |

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Net cash used in operating activities was $133.9 million during the three months ended March 31, 2026. During the three months ended March 31, 2026, the primary drivers in cash used in operating activities were a decrease of $104.1 million in accounts payable, retainage payable and accrued liabilities and $28.2 million in net loss. Net cash provided by operating activities was $6.4 million during the three months ended March 31, 2025. During the three months ended March 31, 2025, the primary drivers in cash provided by operating activities were an increase of $10.4 million in accounts payable and accrued liabilities, a decrease of $8.6 million in accounts receivable, and an increase of $6.9 million in contract liabilities, offset by an increase of $10.7 million in contract assets and an increase of $7.5 million in other current assets.

Net cash provided by investing activities was $1.3 million during the three months ended March 31, 2026. During the three months ended March 31, 2026, the primary drivers in cash provided by investing activities were $1.0 million in proceeds from sale of property and equipment and by $0.3 million in distributions from other investments. Net cash provided by investing activities was $1.1 million during the three months ended March 31, 2025. During the three months ended March 31, 2025, the primary drivers in cash provided by investing activities were $2.9 million in proceeds from sale of property and equipment offset by $1.8 million in purchases of property and equipment.

Net cash provided by financing activities was $97.0 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, the primary drivers in cash provided by financing activities were $125.1 million in proceeds from advancement of surety funds, offset by $27.4 million in payments on notes payable. Net cash used in financing activities was $14.0 million for the three months ended March 31, 2025. During the three months ended March 31, 2025, the primary drivers in cash used in financing activities were $13.6 million in payments on notes payable and $0.3 million in payments of finance lease and financing obligations.

As of March 31, 2026, we had total debt of $230.8 million, of which $56.1 million is due within the next twelve months.

Secured Notes

We enter into secured notes in order to finance growth within our business. As of March 31, 2026, we had outstanding secured notes expiring between March 2027 and March 2033. Interest rates on the secured notes range between 0.00% and 12.90%. The secured notes are collateralized by certain assets of Southland's fleet of equipment.

On September 30, 2024, the Company entered into a term loan and security agreement (the "Credit Agreement") with Callodine Commercial Finance, LLC as administrative agent and lender. The Credit Agreement provides for a four-year secured $160.0 million term loan facility (the "Credit Facility"), consisting of a $140.0 million initial draw term loan (the "Term Loan").

The Credit Facility replaced the revolving credit facility with Frost Bank that was originally entered into in July 2021 (as subsequently amended, the "Revolving Credit Facility"). A portion of the proceeds from the Term Loan was used to pay in full all outstanding amounts under the Revolving Credit Facility, and the Revolving Credit Facility was terminated.

After giving effect to the Assignment and Assumption Agreement (defined below), the Credit Facility has a maturity date of September 30, 2028.

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The Credit Agreement requires quarterly principal payments on the Term Loan, which commenced on December 31, 2024. The required principal amortization is as follows: (i) 5.0% in the first year (1.25% per quarter), (ii) 10.0% in the second year (2.50% per quarter), (iii) 15.0% in the third and fourth years (3.75% per quarter), and (iv) the remaining balance at maturity.

The interest on amounts drawn under the Credit Facility is payable monthly at a rate of 7.25% per annum plus the higher of (i) 90-day Secured Overnight Financing Rate ("SOFR") with a credit adjustment spread of 0.15% or (ii) 3%.

Any principal prepayments in the first three years, other than mandatory prepayments pursuant to the Credit Agreement, will be subject to additional fees. In the first year, any prepayments will incur fees of 3% or the make-whole premium, whichever is higher. The make-whole premium is the interest and fees that would have been earned for the full year less interest and fees paid to date during the year. In the second and third years, any prepayments will incur fees of 2% and 1%, respectively. There are no fees for prepayments made in the fourth year.

The Credit Agreement contains customary restrictive covenants and events of default, including financial covenants based on the Company's Liquidity, as defined in the Credit Agreement, and trailing twelve-month earnings before interest expense, income taxes, depreciation and amortization (the "TTM EBITDA Covenants"). The TTM EBITDA Covenants will be tested and the Company must comply with the TTM EBITDA Covenants during any period where the Company's Liquidity falls below $30.0 million until the Company's Liquidity exceeds $30.0 million for a period of at least 30 days. The Credit Agreement requires the Company to maintain Liquidity of at least $20.0 million at all times. The Credit Agreement also stipulates that the outstanding principal cannot be greater than the specified advance rates against eligible collateral.

The obligations under the Credit Facility are unconditionally guaranteed by the Company and its subsidiaries. The obligations under the Credit Facility are secured by a first lien on all assets of the Company, subject to permitted liens and interests of other parties as described in the Credit Agreement.

On March 17, 2026, the Company entered into an assignment and assumption (the "Assignment and Assumption Agreement") with Callodine Commercial Finance, LLC (the "Resigning Agent"), solely in its capacity as "Agent" under the Credit Agreement, lenders party to the Credit Agreement (individually, an "Assignor," and collectively, the "Assignors"), the assignees parties thereto (individually, an "Assignee," and collectively, the "Assignees"), and Alana Porrazzo, in her capacity as Trustee of the Southland Collateral Trust, as successor agent. The Assignees include the surety providers of the Company, Berkshire Hathaway Specialty Insurance Company ("Berkshire"), Markel Insurance Company ("Markel") and Zurich American Insurance Company ("Zurich"), Western Surety Company, Euler Hermes North America Insurance Company, Federal Insurance Company, and Hartford Fire Insurance Company.

Pursuant to the Assignment and Assumption Agreement, the Company paid the Resigning Agent, for the benefit of the Resigning Agent and the Assignors, approximately $15.4 million with respect to the loans of which approximately $14.4 million consisted of principal and approximately $1.0 million consisted of accrued interest and fees. Also, each Assignor sold and assigned to the Assignees, and each Assignee purchased and assumed from the Assignors, all of each such Assignor's (i) right, title and interest to loans under the Credit Agreement, and (ii) rights and obligations, solely as a lender, under the Credit Agreement and related loan documents (including the Assignor's right, title and interest in any collateral securing obligations under the Credit Agreement) (the "Assigned Interest"). The aggregate principal amount of loans comprising the Assigned Interest is approximately $110.0 million, and the Assignees agreed to pay an aggregate purchase price of approximately $110.0 million to the Resigning Agent for the ratable benefit of the Assignors.

Concurrently with the assignment of the Assigned Interests, the delayed draw term loan commitment under the Credit Agreement was terminated and is of no further force or effect.

Additionally, pursuant to side letters executed after the Assignment and Assumption Agreement, the Assignees have agreed to waive quarterly principal and monthly interest payments for all periods until maturity. In addition, the Assignees have agreed to waive any and all defaults and potential defaults and covenant violations under the Credit Agreement, including any violations that existed as of March 31, 2026 or December 31, 2025. As consideration for the foregoing, the Company has agreed to dispose of idle equipment and other assets and pursue claim collections to use the proceeds from the aforementioned transactions to make payments towards the principal balance of the loan prior to maturity.

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As of March 31, 2026, the Company was in compliance with all applicable covenants under the Credit Agreement, as amended, and after giving effect to the waiver granted by the sureties.

Mortgage Notes

We enter into mortgage notes in order to finance growth within our business. As of March 31, 2026, we had a mortgage note expiring in February 2029. The interest rate on the mortgage note was 5.99%. The mortgage note is collateralized by certain real estate owned by Southland.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk** 

Not applicable.

**Item 4. Controls and Procedures** 

Evaluation of Disclosure Controls and Procedures

It is management's responsibility to establish and maintain adequate disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Disclosure controls and procedures are controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the company's principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and our Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report. Following this review and evaluation, our management determined that as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2026 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II — OTHER INFORMATION** 

**Item 1. Legal Proceedings** 

See Note 6 – "Commitments and Contingencies", included in the notes to our unaudited condensed consolidated financial statements included under Part I of this Quarterly Report.

**Item 1A. Risk Factors** 

There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed under "Item 1A. Risk Factors" to Part I of our Annual Report on Form 10-K as of the fiscal year ended December 31, 2025.

**Item 5. Other Information** 

During the last fiscal quarter, none of our directors or officers adopted or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Regulation S-K, Item 408.

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**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Description** |
| 2.1 | [Agreement and Plan of Merger, dated as of May 25, 2022, by and among the Company, Legato Merger Sub, Inc. and Southland Holdings, LLC (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the SEC on May 25, 2022).](http://www.sec.gov/Archives/edgar/data/1883814/000182912622011866/legatomerger2_ex2-1.htm) |
| 3.1 | [Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on February 14, 2023).](https://www.sec.gov/Archives/edgar/data/1883814/000182912623001536/legato2_ex3-1.htm) |
| 3.2 | [Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the SEC on February 14, 2023).](https://www.sec.gov/Archives/edgar/data/1883814/000182912623001536/legato2_ex3-2.htm) |
| 3.3 | [Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 12, 2025).](https://www.sec.gov/Archives/edgar/data/1883814/000155837025011241/slnd-20250630xex3d3.htm) |
| 3.4 | [Amendment No. 1 to Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 12, 2025).](https://www.sec.gov/Archives/edgar/data/1883814/000155837025011241/slnd-20250630xex3d4.htm) |
| 4.1 | [Specimen Warrant Certificate (incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-1 (File No. 333-260816) filed with the SEC on November 5, 2021).](https://www.sec.gov/Archives/edgar/data/1883814/000182912621013749/legatomergercorp2_ex4-3.htm) |
| 4.2 | [Warrant Agreement between American Stock Transfer & Trust Company and the Company (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on November 23, 2021).](https://www.sec.gov/Archives/edgar/data/1883814/000182912621014771/legatomerger2_ex4-1.htm) |
| 4.3 | [Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-1 (File No. 333-260816) filed with the SEC on November 5, 2021).](https://www.sec.gov/Archives/edgar/data/1883814/000182912621013749/legatomergercorp2_ex4-2.htm) |
| 10.1\* | [Settlement Agreement and Release of Claims dated as of March 27, 2026, by and among Clark/Lewis, a Joint Venture; American Bridge Company; the sureties issuing Payment and Performance Bond Nos. 9196529/387007832 on behalf of American Bridge, Zurich American Insurance Company, Fidelity and Deposit Company of Maryland, and Liberty Mutual Insurance Company; the Washington State Convention Center; and Smith Currie Oles LLP.](slnd-20260331xex10d1.htm) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 Sarbanes Oxley Act of 2002.](slnd-20260331xex31d1.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 Sarbanes Oxley Act of 2002.](slnd-20260331xex31d2.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.](slnd-20260331xex32d1.htm) |
| 32.2\*\* | [Certification of Principal Financial Officer pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.](slnd-20260331xex32d2.htm) |
| 101\* | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets (Unaudited); (ii) Condensed Consolidated Statements of Operations (unaudited); (iii) Condensed Consolidated Statements of Comprehensive Income (unaudited); (iv) Condensed Consolidated Statements of Equity (unaudited); (v) Condensed Consolidated Statements of Cash Flows (unaudited); and (vi) Notes to Condensed Consolidated Financial Statements (unaudited), tagged as blocks of text and including detailed tags. |
| 104\* | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |

---

\*Filed herewith.

\*\*Furnished herewith.

[**Table of Contents**](#TOC)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, duly authorized.

Date: May 12, 2026

---

| | |
|:---|:---|
| **SOUTHLAND HOLDINGS, INC.** | **SOUTHLAND HOLDINGS, INC.** |
| By: | /s/ Frank Renda |
| Name: | Frank Renda |
| Title: | President, Chief Executive Officer |
|  | (Principal Executive Officer) |
| By: | /s/ Keith Bassano |
| Name: | Keith Bassano |
| Title: | Chief Financial Officer and Treasurer |
|  | (Principal Financial and Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

#### SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and Release of Claims (this "Agreement") is entered into and effective as of March 27, 2026 (the "Effective Date"), by and among Clark/Lewis, a Joint Venture ("Clark/Lewis"); American Bridge Company ("AB"); the sureties issuing Payment and Performance Bond Nos. 9196529/387007832 on behalf of AB, Zurich American Insurance Company, Fidelity and Deposit Company of Maryland, and Liberty Mutual Insurance Company (together, the "AB Sureties"); the Washington State Convention Center ("WSCC"); and Smith Currie Oles LLP ("SCO"). The parties are individually referred to as a "Party" and together as the "Parties."

<u>Recitals</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.On or about April 21, 2017, Clark/Lewis entered into a General Contractor / Construction Manager Agreement ("GC/CM Agreement") with the WSCC, a King County public facilities district, for the construction of the Washington State Convention Center expansion project in Seattle (the "Project").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Clark/Lewis engaged AB to provide and furnish labor, materials, equipment, and other services for the Project (the "Work") and Clark/Lewis and AB executed a subcontract for the Work on or about March 7, 2018 (the "Subcontract").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.The AB Sureties issued Payment and Performance Bond Nos. 9196529/387007832, each in the penal sum of $81,399,250.00, on behalf of AB as principal, and Clark/Lewis as obligee (each, respectively, the "Payment Bond" and the "Performance Bond" and, collectively, the "Bonds"). Subsequent riders to the Bonds increased their respective penal sums to $119,238,976.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Clark/Lewis and AB each filed complaints against one another in King County Superior Court. The Court consolidated these actions into King County Superior Court Cause No. 22-2-19603-3 SEA (the "Litigation"). On or about January 12, 2023, Clark/Lewis amended its complaint in the Litigation and added the AB Sureties as defendants. On or about April 21, 2023, Clark/Lewis added WSCC as third-party defendants related to AB's claims in the Litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.On or about December 19, 2024, trial commenced in the Litigation. On or about December 1, 2025, the Court issued Findings of Fact and Conclusions of Law in the Litigation (the "FOF/COL"). The FOF/COL identified that AB owed Clark/Lewis $57,051,804.75 in damages based on the issues presented at trial and that the AB Sureties were jointly and severally liable with AB for such damages under the Performance Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.On or about December 19, 2025, the Parties filed a stipulated motion identifying a briefing schedule for (1) AB's motion for reconsideration of the FOF/COL; (2) Clark/Lewis's motion for prejudgment interest; and (3) Clark/Lewis's and WSCC's motions for attorneys' fees and costs. AB's motion for reconsideration was noted for consideration on January 12, 2026. The Court granted in part and denied in part AB's motion for reconsideration on January 15, 2026. Clark/Lewis's motion for prejudgment interest was initially noted for consideration on February 17, 2026, but Clark/Lewis submitted amended hearing notices and it is now noted for consideration on March 27, 2026.

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**SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.On or about January 15, 2026, the Court entered Judgment against AB and the AB Sureties, jointly and severally, in the total principal amount of $57,051,804.75 (the "Merits Judgment"). On or about January 26, 2026, both AB and the AB Sureties filed Notices of Appeal of the Merits Judgment (collectively, the "Merits Appeals"). On or about February 23, 2026, the AB Sureties paid Clark/Lewis $57,783,318.93 to satisfy the Merits Judgment along with the post-judgment interest accrued through the date of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.On or about December 12, 2025, the Court entered an Order Regarding Sanctions that issued a monetary sanction of $4,811,640.00 against AB (the "Paragraph 97 Sum") and reserved Clark/Lewis's and WSCC's rights to pursue costs and fees related to the Court's Order. On or about January 6, 2026, the Court entered a subsequent Order directing AB to deposit the Paragraph 97 Sum into the Court's registry within thirty days (the "Sanctions Order"). On or about February 5, 2026, AB filed a Notice of Appeal of the Sanctions Order (the "Sanctions Appeal") and filed a Notice of Supersedeas and bond issued by Colonial American Casualty and Surety Company in the amount of $6,250,000.00 (the "Sanctions Order Appeal Bond").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.To resolve the various outstanding issues and expedite final resolution of the Litigation and the Merits Appeals, while preserving rights and defenses related to the Sanctions Appeal, including rights, if any, related to the Sanctions Order Appeal Bond, the Parties believe it is in their best interests and desire to enter into this Agreement as set forth below.

<u>Agreement</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.By this Agreement, and in consideration of the respective agreement of the Parties, the Parties intend to resolve the Litigation and achieve a full and complete settlement and compromise of all unresolved claims, issues, disputes, and controversies between them with respect to the Project and the Litigation, except as otherwise provided in this Agreement including with respect to the Sanctions Appeal and Sanctions Order Appeal Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Sanctions Settlement Amount**. The Parties agree the sum of One Million Two Hundred Seventy-Five Thousand Dollars ($1,275,000.00) is a negotiated and agreed amount for Clark/Lewis's costs and fees related to the Sanctions Order (the "C/L Sanctions Settlement Amount") and that Two Hundred Twenty-Five Thousand Dollars ($225,000.00) is a negotiated and agreed amount for WSCC's costs and fees related to the Sanctions Order (the "WSCC Sanctions Settlement Amount"). Per Paragraph 85 of the Order Regarding Sanctions, AB's outside counsel, SCO, is responsible for and shall pay twenty-five percent (25%) of both the C/L Sanctions Settlement Amount and the WSCC Sanctions Settlement Amount, and AB is responsible for and shall pay seventy-five percent (75%) of both the C/L Sanctions Settlement Amount and the WSCC Sanctions Settlement Amount. SCO shall pay its portion of the C/L Sanctions Settlement Amount (Three Hundred Eighteen Thousand Seven Hundred and Fifty dollars ($318,750.00)), and its portion of the WSCC Sanctions Settlement Amount (Fifty-Six Thousand Two Hundred Fifty Dollars ($56,250.00)), within thirty (30) calendar days of the Effective Date. The AB Sureties shall pay AB's portion of the C/L Sanctions Settlement Amount (Nine Hundred Fifty-Six Thousand Two Hundred Fifty Dollars ($956,250.00)) within thirty (30) calendar days of the Effective Date. WSCC shall recover the AB portion of the WSCC Sanctions Settlement Amount (One Hundred Sixty-Eight Thousand Seven Hundred Fifty Dollars ($168,750.00)) from the Owner-Held AB Retention as described in Paragraph 4.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**Clark/Lewis Prejudgment Interest, Costs, and Fees Settlement Amount**. The Parties agree the sum of Twenty-Five Million Five Hundred Eighteen Thousand One Hundred Eighty-Two Dollars and Ninety-Five Cents ($25,518,182.95) is a negotiated and agreed amount for (i) Clark/Lewis's costs and fees, less the C/L Sanctions Settlement Amount ($22,793,182.95 -

$1,275,000.00 = $21,518,182.95) and (ii) prejudgment interest owed to Clark/Lewis ($4,000,000.00) (the "Prejudgment Interest, Costs, and Fees Settlement Amount"). The AB Sureties will pay the Prejudgment Interest, Costs, and Fees Settlement Amount to Clark/Lewis within thirty (30) calendar days of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**Owner-Held AB Retention**. The Parties agree that WSCC is holding certain funds related to Work AB completed during the Project including retainage (the "Owner-Held AB Retention") but that the Court's FOF/COL and Merits Judgment did not expressly address the Owner-Held AB Retention. AB and the AB Sureties agree that WSCC will keep the Owner-Held AB Retention, and WSCC agrees that it will not separately pursue a claim for interest, costs, fees or any other damages against Clark/Lewis, AB, or the AB Sureties. WSCC shall file a Satisfaction of Judgment related to the December 23, 2024 Judgment against AB, and WSCC will join a Stipulation and Order to Dismiss all claims, issues, disputes, and controversies related to the Litigation with prejudice, except (i) to the extent of the Parties' reservation of rights related to the Sanctions Appeal and (ii) for the Ongoing Obligations identified in Paragraph 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**Dismissals With Prejudice**. Within three (3) calendar days of receipt of payment of both the C/L Sanctions Settlement Amount and the Prejudgment Interest, Costs, and Fees Settlement Amount (which commences upon the later date of receipt of the C/L Sanctions Settlement Amount or the Prejudgment Interest, Costs, and Fees Settlement Amount), Clark/Lewis will file a Satisfaction of the Merits Judgment as to the AB Sureties only. Clark/Lewis will also execute an assignment of the Merits Judgment to the AB Sureties, which will include a provision that the AB Sureties will defend, indemnify, and hold harmless Clark/Lewis and the Clark/Lewis-affiliated parties included in the General Release in Paragraph 6 from any and all claims related to the enforcement of the Merits Judgment. Within three (3) days of Clark/Lewis filing the Satisfaction of Judgment, (a) AB and the AB Sureties will file Dismissals With Prejudice of the Merits Appeals; (b) Clark/Lewis will prepare and file a Stipulation and Order to Dismiss all claims, issues, disputes, and controversies related to the Project and the Litigation with prejudice as to the AB Sureties, except (i) to the extent of the Parties' reservation of rights related to the Sanctions Appeal, (ii) for the Ongoing Obligations identified in Paragraph 7, and (iii) subject to Clark/Lewis's assignment of the Merits Judgment to the AB Sureties; and (c) Clark/Lewis will file a Stipulation and Order to Dismiss, Exonerate, and Discharge Supersedeas Bond No. 10011231523 dated January 30, 2026, issued by American Contractors Indemnity Company in the amount of

$71,250,000.00 ("Merits Judgment Appeal Bond").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**Mutual General Releases**. The Parties and their attorneys, officers, directors, shareholders, members, partners, boards, lenders, employees, consultants, representatives, agents, predecessors, successors, insurers, insureds, sureties, subcontractors, suppliers, assigns, subsidiaries, parent corporations, divisions, joint ventures and affiliated entities, both public and private, agree to mutual general releases and to forever discharge each other and each other's attorneys, officers, directors, shareholders, members, partners, boards, lenders, employees, consultants, representatives, agents, predecessors, successors, insurers, insureds, sureties, subcontractors, suppliers, assigns, subsidiaries, parent corporations, divisions, joint ventures and

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**SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS**

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affiliated entities, both public and private, from any and all claims, demands, actions, rights, causes of action, obligations, costs, losses, damages, and liabilities of every kind and of any nature whatsoever, whether known or unknown on the Effective Date, arising out of or in any way related to the Litigation, the Performance Bond, the Merits Judgment Appeal Bond, and/or the actions and circumstances giving rise to the underlying dispute, except related to the Sanctions Appeal and subject to the Parties Ongoing Obligations identified in Paragraph 7. For the avoidance of doubt, the release of AB and the AB Sureties extends to Clark/Lewis's members (Clark Construction Group and Lease Crutcher Lewis Construction) and WSCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.The AB Sureties enter into this Agreement solely in their capacity as sureties on the Performance Bond and, as to the AB Sureties, this Agreement does not apply to any other claims that they may possess or defend on any other bonds or policies of insurance not related to the Project or the Litigation. This Agreement does not modify or expand the AB Sureties' obligations under the Performance Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**Ongoing Obligations**. Without conceding or waiving any positions or defenses, the Parties specifically reserve and do not release the following, including any defenses related thereto, which shall be excluded from the scope of the mutual release provided in the preceding paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. As to AB only, claims for latent defects in the Work that are unknown to Clark/Lewis or WSCC as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. As to AB only, claims for contribution or indemnity relating to or arising out of claims for personal injury or property damage to third parties. Clark/Lewis and WSCC represent that they are not aware of any such claims as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Valid and timely claims against the Payment Bond. AB and the AB Sureties acknowledge and agree that WSCC can resolve the claim asserted by Steel Encounters, Inc. from the Owner-Held AB Retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. As to AB only, Claims and defenses related to the Sanctions Appeal, including any right to interest and costs and fees incurred during the pendency of the Sanctions Appeal, including the right, if any, to collect from the Sanctions Order Appeal Bond. This Agreement is without waiver or modification of any defenses that may be available under the Sanctions Order Appeal Bond, all of which are reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Claims for breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Claims, rights and defenses of the AB Sureties arising under any indemnity agreements, collateral agreements, security agreements, and/or other agreements executed by AB and certain indemnitors in favor of the AB Sureties (collectively "AOI"), which AOI shall not merge into or otherwise become included within or limited by this Agreement. AB Sureties and AB agree that the AOI shall remain in full force and effect after the complete execution of this Agreement and shall not merge into or otherwise become included within or limited by this Agreement. AB acknowledges and agrees that the AB Sureties have reserved all rights, remedies and defenses available to them pursuant to the AOI and applicable law as to AB

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**SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS**

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and any indemnitors signatory to any AOI. For the avoidance of doubt, AB agrees that the AB Sureties are obligated to pay the amounts due under this Agreement to Clark/Lewis pursuant to the Performance Bond and reaffirms its obligations to the AB Sureties under any AOI, including but not limited to the obligation to indemnify the AB Sureties for any amounts paid by the AB Sureties in satisfaction of the Merits Judgment, under this Agreement, as well as any attorney fees, costs, and expenses incurred in connection with the Litigation. AB and the AB Sureties agree that the AOI does not diminish Clark/Lewis's or WSCC's rights in the Litigation or under this Agreement, and AB and the AB Sureties release Clark/Lewis and WSCC from any and all claims, demands, actions, rights, causes of action, obligations, costs, losses, damages, and liabilities of every kind and of any nature related to the AOI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. As between WSCC and Clark/Lewis, WSCC and Clark/Lewis agree that this Agreement neither diminishes nor enlarges WSCC's and Clark/Lewis's rights and obligations under the GC/CM Agreement except as it relates to claims asserted by or against AB in the Litigation and costs and attorneys' fees, and that no other rights or obligations are being released, waived, or extinguished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**Costs and Attorneys' Fees**. Other than Clark/Lewis's costs and fees within the Prejudgment Interest, Costs, and Fees Settlement Amount or that may be recoverable against AB related to the Sanctions Appeal, the costs and fees incurred by the Parties through the date of this Agreement shall be borne by the Party incurring them. In the event of any controversy or dispute between the Parties pertaining to this Agreement, including enforcement of its terms or interpretation thereof, the Parties shall bear their own attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**Execution of Additional Documents**. The Parties agree to execute and exchange such additional documentation as may be necessary to accomplish and fulfill their respective obligations and agreements as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**Representations and Warranties**. Each of the Parties warrants and represents to the other that, as of the time it executed this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Each party has the right and authority to execute this Agreement; it has not sold, assigned, transferred, conveyed or otherwise disposed of any claim, cause of action or demand relating to any right surrendered by virtue of this Agreement; and it knows of no liens, legal or equitable interests, or other encumbrances upon any right surrendered by virtue of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The person executing this Agreement for each of the Parties is authorized to do so by and on behalf of the Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Each of the Parties hereby represents and warrants to the other that it knows and understands the contents and effect of this Agreement; that it has not relied on any statement not set out in this Agreement; that, if desired, it obtained the advice of legal counsel of its own choosing before executing this Agreement; and that it entered into this Agreement voluntarily.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Each Party represents that it has received independent advice from legal counsel of its own choice with respect to the advisability of entering into this Agreement. All Parties shall be deemed to have participated in drafting this Agreement and any ambiguity in or dispute about the meaning of any part of this Agreement shall not be presumptively construed against any of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.**Entire Agreement**. Except as set forth in Section 7(f) as between AB and the AB Sureties, this Agreement represents and contains the entire agreement and understanding between the Parties and supersedes any and all prior agreements, representations, and understandings with respect to the matters contained herein and may only be subsequently modified in writing signed by each Party. Each Party agrees that it has not relied upon any representation, warranty, condition, understanding, or agreement of any kind in entering into this Agreement other than those actually set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**Severability**. If any provision of this Agreement or if the application of this Agreement to any person, entity, or circumstance shall be held by a court to be invalid or unenforceable, the remainder of this Agreement or the application of such provision to persons, entities, or circumstances other than those as to which it is held invalid or unenforceable shall not be affected, and each provision of this Agreement shall be enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.**No Waiver**. No waiver of any provisions of the Agreement shall be effective unless agreed to in writing by the Parties against whom such waiver is sought to be enforced. The waiver of any breach of this Agreement shall not constitute a waiver of any other or subsequent breach, whether similar or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.**Successors**. Each of the Parties warrants that it is entering into this Agreement on behalf of, and that this Agreement is binding on, itself and its predecessors, successors, insurers, insureds, lenders, sureties, assigns, subsidiaries, parent corporations, divisions, partners, joint venturers and affiliated entities, both public and private.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.**Governing Law**. This Agreement is governed and controlled in all respects by Washington law and shall be enforceable in King County Superior Court. In the event of a dispute relating to this Agreement, venue for resolution of any such dispute shall be in King County Superior Court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.**Counterparts**. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile signatures and signatures transmitted by electronic means shall be effective as originals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.**Effect of Headings**. Captions of the sections of this Agreement are for convenience and reference only, and the words contained in the captions shall in no way be employed to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provision of this Agreement.

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**SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS**

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#### Clark/Lewis, a Joint Venture
By: Its:

#### American Bridge Company
By: Its:

#### Zurich American Insurance Company
By: Its:

#### Fidelity and Deposit Company of Maryland
By: Its:

#### Liberty Mutual Insurance Company
By: Its:

#### Washington State Convention Center
By: Its:

#### Smith Currie Oles LLP\*
By: Its:

\*signing with respect to the agreements identified in Paragraph 2

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**SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS**

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER<br>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Frank S. Renda certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Southland Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Frank S. Renda | /s/ Frank S. Renda |
|  |  | Name: | Frank S. Renda |
|  |  | Title: | President and Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER<br>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Keith Bassano, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Southland Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Keith Bassano | /s/ Keith Bassano |
|  |  | Name: | Keith Bassano |
|  |  | Title: | Chief Financial Officer and Treasurer |
|  |  |  | (Principal Financial and Accounting Officer) |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accompanying Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended March 31, 2026 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Frank S. Renda | /s/ Frank S. Renda |
|  |  | Name: | Frank S. Renda |
|  |  | Title: | President and Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accompanying Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended March 31, 2026 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Keith Bassano | /s/ Keith Bassano |
|  |  | Name: | Keith Bassano |
|  |  | Title: | Chief Financial Officer and Treasurer |
|  |  |  | (Principal Financial and Accounting Officer) |

---

------