Will the company provide guidance for the remainder of 2025, and what assumptions underlie that guidance?

Guidance – Yes or No?

In the press release Southland Holdings only disclosed its Q2‑2025 results (revenue $215.4 MM vs. $251.5 MM a year ago, gross profit $13.4 MM versus a $40 MM gross loss in Q2‑2024). The filing contains no forward‑looking statement or earnings guidance for the balance of 2025. The company has therefore not offered a public outlook for the second half of the year.

Typical assumptions if guidance were issued

When a firm in Southland’s sector does provide a 2025 outlook, it is usually built on a handful of core premises:

1. Continued infrastructure demand – The assumption that federal and state spending on transportation, energy‑transition projects and water‑management will stay on or above the current fiscal‑year trajectory, sustaining a steady pipeline of contracts.
   
2. Pricing stability – That the company can maintain or modestly increase contract rates despite inflationary pressure on materials and labor, offsetting cost‑inflation impacts.
   
3. Cost‑control and productivity gains – That labor‑productivity initiatives, better equipment utilization and disciplined subcontractor management will keep cost‑of‑goods‑sold growth in line with revenue growth.
   
4. Macro‑environment – A stable macro backdrop (interest‑rate environment, credit availability, and no major supply‑chain disruptions) that allows the firm to fund working‑capital needs and execute new projects without material delays.

Trading implications

Because no guidance is provided, the market is pricing the stock on a “wait‑and‑see” basis. The sharp swing in gross profit—from a $40 MM loss to a $13 MM profit—has already introduced volatility. Until Southland releases a forward‑looking outlook, traders should:

• Focus on the price‑action and volume around the earnings release; a breakout above the Q2‑2025 high (≈$X) could signal optimism that the company will soon articulate a positive 2025 view.
  
• Watch for follow‑up communications (e.g., a conference call or a Q3 filing) where guidance may finally appear. A credible guidance rollout, anchored to the assumptions above, would likely trigger a short‑term rally.
  
• Maintain a defensive stance if the price remains below the Q2‑2025 trend line, as the lack of guidance leaves upside potential unconfirmed and downside risk tied to continued margin compression.

In short, Southland has not provided 2025 guidance yet; any future outlook will likely hinge on sustained infrastructure demand, pricing discipline, cost‑control, and a stable macro environment. Until such a statement is released, the prudent trading play is to monitor technical momentum and be ready to act on the first hint of forward‑looking guidance.