Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $178.57M
• Dividend Yield: N/A
• Average Volume (3M): 56.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -9.10%
• EPS Growth: 21.10%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -1.39
• Shares Outstanding: 54,113,037
• 10 Day Avg. Volume: 83,877
• 30 Day Avg. Volume: 56,089
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -28.46
• Enterprise Value/Market Cap: 1.16K
• Enterprise Value/Revenue: 220.88
• Enterprise Value/Gross Profit: 4.51K
• Enterprise Value/Ebitda: 18.72K
• 1Y Price Target: $8.00
• Price Target Upside: 142.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $3.00 ▼(-9.09% Downside)

The score is held down primarily by weak financial performance (losses, high leverage, and negative cash flows) and a bearish technical setup. Offsetting factors include earnings-call evidence of improving gross margins and a large backlog, but financing-related corporate developments add risk and limit upside.

Positive Factors

Strong Backlog

A strong backlog indicates sustained demand and future revenue visibility, providing a stable foundation for long-term growth and operational planning.

Civil Segment Performance

Strong performance in the Civil segment highlights operational efficiency and market demand, supporting future profitability and competitive positioning.

Positive Market Outlook

A positive market outlook for infrastructure projects suggests sustained opportunities for growth, driven by public and private sector investments.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial health.

Net Loss

Continued net losses indicate challenges in achieving profitability, which can hinder reinvestment and growth prospects over the long term.

Liquidity Challenges

Negative cash flows highlight liquidity issues, constraining the company's ability to fund operations and invest in growth opportunities.

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 generates revenue primarily through contracts for construction and engineering services. The company's revenue model is based on fixed-price and cost-plus contracts, which allows it to earn fees based on project completion and overhead costs. Key revenue streams include large-scale infrastructure projects, such as highways, bridges, and water treatment facilities, which often involve multi-year contracts with government agencies and large corporations. Additionally, SLND benefits from strategic partnerships with other construction firms and subcontractors, enhancing its bid competitiveness and project execution capabilities. The company's focus on long-term projects and repeat business with established clients contributes significantly to its earnings.

Southland Holdings Financial Statement Overview

Summary

Southland Holdings faces significant financial challenges across all verticals. The income statement shows declining profitability and revenue growth, while the balance sheet indicates high leverage and financial risk. Cash flow issues further exacerbate the situation, with negative cash flows and poor cash conversion. The company needs to address these issues to improve its financial health and stability.

Income Statement

Southland Holdings shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 4.47%, but the company is struggling with profitability as evidenced by a negative net profit margin of -10.08% and a negative EBIT margin. The gross profit margin is low at 4.89%, reflecting challenges in cost management. Historical data shows a declining trend in revenue and profitability, which is concerning.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 3.88 in the TTM period, indicating potential financial risk. The return on equity is negative, reflecting losses and poor returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing. Overall, the company's financial stability is weak, with high leverage posing a risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, indicating liquidity challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, highlighting inefficiencies in converting income to cash. The company needs to improve its cash generation capabilities to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	935.46M	980.18M	1.16B	1.16B	1.28B	1.06B
Gross Profit	45.78M	-63.04M	35.81M	140.93M	114.19M	93.40M
EBITDA	11.04M	-103.02M	-852.00K	130.53M	107.20M	87.02M
Net Income	-94.28M	-105.36M	-19.25M	60.54M	38.72M	33.67M
Balance Sheet
Total Assets	1.14B	1.20B	1.20B	1.13B	1.04B	1.12B
Cash, Cash Equivalents and Short-Term Investments	57.34M	72.19M	49.18M	57.91M	63.34M	30.89M
Total Debt	332.37M	321.05M	319.69M	300.20M	270.47M	238.91M
Total Liabilities	1.05B	1.03B	940.50M	765.42M	733.40M	858.01M
Stockholders Equity	74.98M	163.66M	249.62M	349.44M	291.29M	259.02M
Cash Flow
Free Cash Flow	-8.07M	-5.49M	-21.11M	-70.97M	-109.37M	-81.17M
Operating Cash Flow	-3.42M	1.93M	-10.26M	-66.20M	-90.57M	-50.17M
Investing Cash Flow	4.02M	3.23M	4.49M	5.56M	-8.50M	195.82M
Financing Cash Flow	-49.92M	18.78M	-2.59M	20.14M	30.60M	-47.95M

Southland Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLND, the sentiment is Negative. The current price of 3.3 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 3.65, and below the 200-day MA of 3.90, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLND.

Southland Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	81 Outperform	$890.79M	11.05	17.37%	―	12.53%	35.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ORN	59 Neutral	$409.38M	42.52	6.31%	―	7.02%	―
BBCP	58 Neutral	$364.44M	43.60	3.32%	―	-8.98%	-38.23%
ESOA	48 Neutral	$139.19M	360.09	0.64%	1.11%	16.80%	-98.32%
MTRX	47 Neutral	$340.59M	-14.12	-16.33%	―	17.16%	24.10%
SLND	41 Neutral	$178.57M	-1.88	-84.16%	―	-9.10%	21.10%

Southland Holdings Corporate Events

Southland Holdings Receives Surety Funding for Bonded Projects

On December 22, 2025 and thereafter, Southland Holdings, Inc. received approximately $14 million of up to $30 million in surety funds advanced by Berkshire Hathaway Specialty Insurance Company under a general indemnity agreement, to pay bonded construction contract obligations and support the continued progress of bonded projects. The company is obligated to indemnify and reimburse the surety for these advances and is working with its term loan agent, lenders, and sureties to assess the impact on its existing credit agreement and to potentially secure additional surety funding and a long-term financing arrangement, though there is no assurance such a resolution will be achieved.

The most recent analyst rating on (SLND) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Southland Holdings stock, see the SLND Stock Forecast page.

Southland Holdings Hires Chief Transformation Officer for Turnaround

On December 17, 2025, Southland Holdings, Inc. appointed Nick Campbell, founder and managing partner of advisory firm Meru, LLC, as Chief Transformation Officer under an engagement with Meru to help the company evaluate and execute financial and operational alternatives. Campbell will guide the review of material asset sales, executive compensation and strategic or financial options, and assist with cash management strategies, with Meru receiving hourly and incentive-based fees, a move aimed at strengthening Southland’s financial position and long-term value while maintaining oversight safeguards such as the absence of related-party or conflict-of-interest relationships beyond Campbell’s stake in Meru.

The most recent analyst rating on (SLND) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Southland Holdings stock, see the SLND Stock Forecast page.