The parent company of American Bridge Co. and Oscar Renda Contracting says it is now largely funded by some of its endorsements after reporting a significant loss in 2025.
Southland Holding Inc. last month reported fourth-quarter losses of $216 million on revenue of $104 million and full-year losses of $306 million on revenue of $772 million.
The biggest blow to the company was a $57 million judgment against it by a Washington state court judge in January related to American Bridge’s work as a steel erector on an addition to the $1.4 billion addition to the Washington State Convention Center in Seattle, completed several years ago. The joint venture contractor for that project, a combination of Clark Construction and Lease Crutcher Lewis, had blamed American Bridge for months of delays in completion.
The suit, filed in 2023 in state court, also named as defendants the companies that supplied the compliance bonds to American Bridge, Fidelity & Deposit/Zurich and Liberty Mutual.
American Bridge in its defense blamed the joint venture and Covid-19 for the delays.
Although Southland intended to appeal as of Dec. 31, 2025, some of its guarantors entered into negotiations with Clark-Lewis and settled the matter, Southland Holdings reported.
The sureties also agreed to pay an additional $26.5 million to Clark-Lewis to cover costs, fees and prejudgment interest.
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Under the deal announced earlier this month, Southland will begin paying guarantees for the full amount owed, about $82 million, starting next March.
The company’s guarantees have also had to intervene to finance the continuation of work on some projects.
Frank Renda, president and CEO of Southland, said the guarantees replaced the company’s senior lender and characterized it as a “significant vote of confidence in our team” that creates “financial flexibility to focus on project execution in our $2 billion portfolio.” The sureties assumed $110 million of Southland’s remaining debt.
“While I am disappointed with this quarter’s results, I take full responsibility for our results and am committed to the strategic plan we have launched to move Southland forward,” Renda told investors.
Based in Grapevine, Texas, Southland (NYSE-SLND) also owns Johnson Bros. Corp., a bridge and marine contractor, and tunnel contractors Southland Contracting and Mole Constructors.
Southland said its loss was “primarily driven” by the Washington State Convention Center charge.
In addition to that setback, Southland Holdings also reported that its Oscar Renda unit, which does water-related work, had canceled for convenience the Bull Run Filtration Plant project in Portland, Ore., reducing the company’s backlog by about $160 million.
Renda, at the investor conference, thanked the company’s staff, stakeholders and sponsors “for standing with us during this difficult period.”
The Washington State Convention Center addition project, which straddled a major thoroughfare, has been the subject of much controversy, including the termination of a prime contractor from a previous joint venture.
