Southland Holdings (SLND)
:SLND
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Southland Holdings
(SLND)
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Rating:48Neutral
Price Target:
$1.00
▼(-12.28% Downside)
Action:Reiterated
Date:05/14/26
The score is primarily held down by very weak financial performance (deep losses, negative equity, and heavy cash burn). Offsetting factors include modestly improving near-term technical momentum and a cautiously constructive earnings update driven by surety-backed liquidity support and backlog visibility, but valuation remains unattractive due to ongoing losses.
Positive Factors
Large backlog with near-term conversion visibility
A $1.88B backlog with ~38% expected to convert in 12 months provides durable revenue visibility, de‑risking near‑term demand and allowing planning of labor/equipment. That conversion cadence supports sustained revenue normalization and rehiring/bonding needs over several quarters.
Negative Factors
Severe operating losses and negative margins
Persistent, large operating losses and sharply negative margins indicate systemic execution and legacy claim costs. Such sustained unprofitability weakens internal capital generation, undermines bidding economics, and will require multiple quarters of consistent margin improvement to restore financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Large backlog with near-term conversion visibility
A $1.88B backlog with ~38% expected to convert in 12 months provides durable revenue visibility, de‑risking near‑term demand and allowing planning of labor/equipment. That conversion cadence supports sustained revenue normalization and rehiring/bonding needs over several quarters.
Read all positive factors
Southland Holdings (SLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.65M
Dividend YieldN/A
Average Volume (3M)56.09K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-24.31%
EPS Growth-169.16%
CountryUS
Employees2,100
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-2.09
Shares Outstanding54,218,884
10 Day Avg. Volume83,877
30 Day Avg. Volume56,089
Financial Highlights & Ratios
PEG Ratio-3.28
Price to Book (P/B)-1.13K
Price to Sales (P/S)206.84
P/FCF Ratio12.54K
Enterprise Value/Market Cap4.50
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit-1.80
Enterprise Value/Ebitda-1.49
Forecast
1Y Price Target
$3.00Price Target Upside163.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.24
Revenue Forecast (FY)$740.60M
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,...
How the Company Makes Money
Southland Holdings primarily makes money by executing construction and infrastructure projects under contract for customers (typically public agencies, municipalities, utilities, and other infrastructure owners). Revenue is generally recognized as...
Southland Holdings Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but cautiously constructive picture: material near-term financial weakness (notably a ~28% revenue decline, a large net loss of $28.4M, negative EBITDA, and transportation/M&P segment losses) was offset by meaningful strategic progress — significant surety support and advances ($139M total), a large $1.88B backlog with ~38% expected to convert to revenue in 12 months, active asset monetization efforts, cost reductions in SG&A, and a pipeline of short-duration, higher-margin opportunities. Management emphasized that a broader financing agreement is near completion and that legacy portfolio shrinkage and dispute collections (including an expected ~$11M cash collection) should improve liquidity and margins over 2026. Overall the positives and remediation actions balance the substantial near-term operating and liquidity challenges.Positive Updates
Surety Support and Financing Progress
Surety partners assumed the debt under the senior credit facility, waived principal and interest payments through maturity, advanced approximately $125 million during the quarter (bringing total surety advances to $139 million), and are finalizing a broader financing agreement and credit amendment; no amounts due prior to 05/13/2027.
Negative Updates
Significant Revenue Decline
Q1 revenue was $172 million versus $239 million in Q1 2025, a decline of $67 million or approximately -28.0% year-over-year; revenue included an $18 million reversal from noncash legacy dispute adjustments.
Read all updates
Q1-2026 Updates
Positive
Negative
Surety Support and Financing Progress
Surety partners assumed the debt under the senior credit facility, waived principal and interest payments through maturity, advanced approximately $125 million during the quarter (bringing total surety advances to $139 million), and are finalizing a broader financing agreement and credit amendment; no amounts due prior to 05/13/2027.
Read all positive updates
Company Guidance
Management reiterated execution of the March strategic plan and said a broader financing agreement and credit amendment are near completion after surety partners assumed the senior credit facility (3/17), waived principal and interest through maturity, and advanced ~$125M in Q1 (total surety advances $139M; none due before 05/13/2027). Q1 results: revenue $172M (includes $18M revenue reversal), gross loss $4.8M driven by $26M of unfavorable adjustments (≈$18M non‑cash), net loss $28.4M (‑$0.52/share), EBITDA ‑$14.1M, SG&A $14.9M (7% of revenue excl. $2.1M transformation expense), interest expense $8.7M (cash interest $8.5M), cash $20.5M (total cash incl. restricted $32M). Backlog was ~$1.88B (≈38% expected to convert to revenue in 12 months); Civil revenue $104M with $14.7M gross profit (14.1% margin), Transportation revenue $68.6M with $19.4M gross loss; M&P revenue $11M with $13.1M gross loss (M&P ≈4% of backlog; M&P backlog $71M with 3 projects active to be substantially completed this year; non‑M&P legacy backlog $42M with one project into 2027). Management expects to collect ≈$11M from a legacy dispute in the coming weeks to pay down the senior term loan, to monetize idle/noncore real estate to reduce debt, and to step up bidding (including a $48M data center on track to complete in ~2 months) as bonding and liquidity improve.Southland Holdings Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
15
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 705.09M | 772.17M | 980.18M | 1.16B | 1.16B | 1.28B |
| Gross Profit | -181.50M | -155.26M | -63.04M | 35.81M | 140.93M | 114.19M |
| EBITDA | -218.92M | -191.63M | -103.02M | -852.00K | 130.53M | 107.20M |
| Net Income | -330.34M | -306.54M | -105.36M | -19.25M | 60.54M | 38.72M |
Balance Sheet | ||||||
| Total Assets | 928.08M | 989.28M | 1.20B | 1.20B | 1.13B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 31.95M | 52.71M | 72.19M | 49.18M | 57.91M | 63.34M |
| Total Debt | 294.15M | 322.35M | 321.05M | 319.69M | 300.20M | 270.47M |
| Total Liabilities | 1.09B | 1.12B | 1.03B | 940.50M | 765.42M | 733.40M |
| Stockholders Equity | -168.94M | -140.93M | 163.66M | 249.62M | 349.44M | 291.29M |
Cash Flow | ||||||
| Free Cash Flow | -121.94M | 12.73M | -5.49M | -21.11M | -70.97M | -109.37M |
| Operating Cash Flow | -123.71M | 16.58M | 1.93M | -10.26M | -66.20M | -90.57M |
| Investing Cash Flow | 3.59M | 3.39M | 3.23M | 4.49M | 5.56M | -8.50M |
| Financing Cash Flow | 70.83M | -40.15M | 18.78M | -2.59M | 20.14M | 30.60M |
Southland Holdings Technical Analysis
Positive
1.14
Price Trends
1.11
Positive
1.65
Negative
2.88
Negative
Market Momentum
0.04
Negative
54.40
Neutral
41.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLND, the sentiment is Positive. The current price of 1.14 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.11, and below the 200-day MA of 2.88, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLND.
Southland Holdings Risk Analysis
Southland Holdings disclosed 64 risk factors in its most recent earnings report. Southland Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Southland Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $601.12M | 23.32 | 5.40% | ― | 6.74% | 250.16% | |
65 Neutral | $326.92M | 266.90 | 14.45% | 1.11% | 19.86% | -49.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $368.73M | -30.18 | 2.33% | ― | -4.25% | -67.60% | |
59 Neutral | $343.80M | 97.14 | -10.79% | ― | 13.88% | 34.22% | |
48 Neutral | $72.65M | -5.51 | 1577.14% | ― | -24.31% | -169.16% |
* Industrials Sector Average
SLND
Southland Holdings
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-68.25%
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Southland Holdings Corporate Events
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Southland Settles Convention Center Dispute, Seeks Financing Accord
Neutral
Apr 2, 2026
On March 27, 2026, American Bridge Company entered into a settlement agreement with joint venture partner Clark/Lewis, its sureties, the Washington State Convention Center and its litigation counsel, resolving long-running disputes tied to the con...
Business Operations and StrategyPrivate Placements and Financing
Southland Holdings Secures Short-Term Liquidity Through Loan Restructuring
Neutral
Mar 24, 2026
On March 17, 2026, Southland Holdings entered into an assignment and assumption agreement that replaced Callodine Commercial Finance as agent under its term loan credit facility with a trustee of the Southland Collateral Trust, while paying about ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.