Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $239.18M
• Dividend Yield: N/A
• Average Volume (3M): 96.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -23.35%
• EPS Growth: -49.27%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.19
• Shares Outstanding: 54,113,037
• 10 Day Avg. Volume: 61,768
• 30 Day Avg. Volume: 96,345
• 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: 2.14
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: -59.65
• Enterprise Value/Ebitda: -10.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $4.50 ▲(0.67% Upside)

Southland Holdings' overall stock score is primarily impacted by its poor financial performance, characterized by negative profit margins and cash flow issues. While technical indicators show some positive momentum, the company's valuation remains unattractive due to unprofitability. The earnings call provided some optimism with improved margins and a strong backlog, but financial challenges persist.

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 is experiencing significant financial challenges, with declining revenues, negative profit margins, and high leverage. The company's cash flow situation is concerning, with negative operating and free cash flows. These factors indicate financial instability and potential risks, requiring strategic improvements to enhance profitability and financial health.

Income Statement

Southland Holdings has faced declining revenues and negative profit margins over the past periods. The TTM data shows a gross profit margin of -0.96% and a net profit margin of -8.24%, indicating significant challenges in maintaining profitability. Revenue growth has been negative, with a TTM decline of 3.88%. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.95 in the TTM, indicating significant leverage. Return on equity is negative at -47.35%, reflecting poor returns for shareholders. The equity ratio is relatively low, suggesting a reliance on debt financing. These factors highlight financial instability and potential risks.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows in the TTM, with a free cash flow growth rate of -269.94%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow management remains weak.

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: Positive
• Last Price: 4.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.47 is below the 20-day moving average (MA) of 4.49, above the 50-day MA of 4.37, and above the 200-day MA of 3.82, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLND.

Southland Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	―	$771.75M	10.78	15.93%	―	24.40%	61.44%
ORN	―	$429.73M	44.63	6.31%	―	7.02%	―
MTRX	―	$421.59M	-14.15	-19.20%	―	5.64%	-16.41%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	―	$182.49M	63.98	5.24%	0.55%	9.52%	-88.22%
BBCP	―	$328.92M	39.35	3.32%	―	-8.98%	-38.23%
SLND	―	$239.18M	―	-41.62%	―	-23.35%	-49.27%

Southland Holdings Corporate Events

Southland Holdings’ Earnings Call: Mixed Results and Optimistic Outlook

Southland Holdings, Inc. recently held its earnings call, revealing a mixed bag of results for the second quarter of 2025. The company showcased a significant improvement in gross profit margins and strong performance in its Civil segment, yet faced hurdles such as a decline in overall revenue, increased interest expenses, and a net loss. While the backlog and new awards provide an optimistic outlook, the financial challenges indicate a need for caution moving forward.

Southland Holdings Faces Investor Concerns Over Lack of Insider Trading Arrangements

Southland Holdings, Inc. faces a potential business risk due to the lack of adoption or termination of any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement by its directors or officers during the last fiscal quarter. This inaction could indicate a lack of strategic financial planning or flexibility in managing insider trading activities, potentially impacting investor confidence. The absence of such arrangements might also suggest a missed opportunity to mitigate risks associated with market volatility and insider trading regulations. Consequently, stakeholders may view this as a sign of insufficient proactive measures in corporate governance, which could affect the company’s market perception and financial stability.

Southland Holdings Reports Mixed Q2 2025 Results

Southland Holdings, Inc., headquartered in Grapevine, Texas, is a prominent provider of specialized infrastructure construction services, operating across various sectors including transportation, water, and wastewater treatment. The company recently reported its financial results for the second quarter of 2025, highlighting a mixed performance.