Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $221.86M
• Dividend Yield: N/A
• Average Volume (3M): 47.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -23.35%
• EPS Growth: -49.27%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): -0.19
• Shares Outstanding: 54,113,037
• 10 Day Avg. Volume: 64,479
• 30 Day Avg. Volume: 47,901
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: -59.65
• Enterprise Value/Ebitda: -10.14
• 1Y Price Target: $8.00
• Price Target Upside: 98.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $4.00 ▼(-0.74% Downside)

Southland Holdings faces significant financial challenges, with declining revenues and negative profit margins being the most impactful factors. The technical analysis suggests a bearish trend, and the valuation is unattractive due to the negative P/E ratio. While the earnings call provided some positive insights, the overall financial instability remains a concern. The recent corporate event adds a slight positive outlook, but it is not enough to offset the broader financial issues.

Southland Holdings Business Overview & Revenue Model

Company Description

Southland Holdings, Inc. engages in specialty infrastructure construction business in North America and internationally. The company operates through two segments, Civil and Transportation. The Civil segment designs and constructs water pipelines, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling. The Transportation segment designs and constructs bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities. Southland Holdings, Inc. was founded in 1900 and is headquartered in Grapevine, Texas.

How the Company Makes Money

Southland Holdings makes money through a diversified revenue model primarily derived from its construction and engineering contracts. Key revenue streams include project-based contracts with government agencies and private sector clients, where the company is engaged in designing, building, and maintaining infrastructure projects. The company may also earn revenues through long-term service agreements and maintenance contracts that ensure ongoing support and enhancement of the infrastructure it develops. Significant factors contributing to its earnings include strategic partnerships with other construction firms and engineering companies, enabling the execution of large, complex projects efficiently. Additionally, Southland Holdings' expertise in navigating regulatory requirements and environmental standards allows it to secure high-value contracts, contributing to its financial success.

Southland Holdings Financial Statement Overview

Summary

Southland Holdings faces significant financial challenges with declining revenues, negative profitability margins, and concerns over cash flow sustainability. While there is some improvement in free cash flow, the company struggles with cost management and operational efficiency, impacting its overall financial health.

Income Statement

Southland Holdings has experienced a significant decline in revenue over the years, with a negative revenue growth rate of -9.97% in the TTM period compared to the previous year. The gross profit margin is negative at -6.65%, indicating cost management issues. The net profit margin has also deteriorated to -11.76%, and EBIT and EBITDA margins are both negative, reflecting ongoing operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.92, indicating a balanced use of leverage. However, the equity ratio has decreased to 13.22%, suggesting reduced financial stability. Return on equity is negative, reflecting profitability challenges.

Cash Flow

Free cash flow has improved in the TTM period, turning positive with a free cash flow growth rate of 321.65%. However, the operating cash flow to net income ratio is low at 0.17, and the free cash flow to net income ratio is 0.11, indicating cash flow generation issues relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	895.44M	980.18M	1.16B	1.16B	1.28B	1.06B
Gross Profit	-8.60M	-63.04M	35.81M	140.93M	114.19M	93.40M
EBITDA	-50.56M	-99.61M	22.76M	128.40M	103.52M	88.12M
Net Income	-73.74M	-105.36M	-19.25M	60.54M	38.72M	33.67M
Balance Sheet
Total Assets	1.19B	1.20B	1.20B	1.13B	1.04B	1.12B
Cash, Cash Equivalents and Short-Term Investments	46.52M	72.19M	49.18M	57.91M	63.34M	30.89M
Total Debt	294.46M	321.05M	319.69M	300.20M	270.47M	238.91M
Total Liabilities	1.02B	1.03B	940.50M	765.42M	733.40M	858.01M
Stockholders Equity	151.12M	163.66M	249.62M	349.44M	291.29M	259.02M
Cash Flow
Free Cash Flow	-20.68M	-5.49M	-21.11M	-70.97M	-110.21M	-81.17M
Operating Cash Flow	-14.61M	1.93M	-10.26M	-66.20M	-91.41M	-50.17M
Investing Cash Flow	1.00M	3.23M	4.49M	5.56M	-8.50M	195.82M
Financing Cash Flow	7.78M	18.78M	-2.59M	20.14M	30.60M	-47.95M

Southland Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLND, the sentiment is Neutral. The current price of 4.03 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 4.29, and above the 200-day MA of 3.56, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLND.

Southland Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	73 Outperform	$813.22M	11.29	15.93%	―	24.40%	61.44%
ESOA	70 Outperform	$173.67M	60.89	5.24%	0.58%	9.52%	-88.22%
AMRC	68 Neutral	$1.32B	21.08	6.36%	―	22.85%	8.26%
ORN	65 Neutral	$285.70M	25.51	7.90%	―	15.85%	―
MTRX	64 Neutral	$420.51M	―	-14.26%	―	-0.29%	-6.77%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
SLND	43 Neutral	$221.86M	―	-41.62%	―	-23.35%	-49.27%

Southland Holdings Corporate Events

Southland Holdings Approves Board Declassification and Elections

On June 13, 2025, Southland Holdings, Inc. held its annual meeting of stockholders, where 87.1% of shares entitled to vote were represented. All proposals were approved, including the declassification of the Board of Directors, the election of two Class II directors, and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Southland Holdings Appoints Tan Parker as Director

On May 15, 2025, Kyle Burtnett resigned from his position as a Director of Southland Holdings, Inc. to pursue other opportunities. His resignation was not due to any disagreement with the management or the Board. Subsequently, on May 19, 2025, the Board appointed Tan Parker as a Class I director to fill the vacant seat, maintaining the board’s total number of directors at seven. Tan Parker brings a wealth of experience from both public service and the private sector, including roles in legislative initiatives and executive positions in private equity and venture capital. His appointment is expected to enhance Southland’s strategic direction, leveraging his extensive background in AI, cybersecurity, capital markets, and infrastructure investment.