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Southland Holdings
(SLND)
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Rating:43Neutral
Price Target:
$0.57
▼(-20.97% Downside)
Action:Reiterated
Date:08/17/26
Overall score reflects significant fundamental deterioration (large losses, negative equity, and negative TTM cash flow) as the primary driver, reinforced by a weak technical setup (price below key moving averages, negative MACD). Liquidity and capital structure actions discussed on the earnings call provide some stabilization and runway, but are offset by severe current-quarter results and backlog contraction, while valuation is difficult to support due to ongoing losses and no dividend.
Positive Factors
Liquidity Runway
Surety support and amended lending terms reduce near-term cash strain, allowing Southland to complete bonded projects and preserve operating capacity while management works to stabilize execution and rebuild its financial position.
Negative Factors
Negative Equity and Leverage
Negative equity indicates that accumulated losses have eroded the capital base, while meaningful debt limits flexibility. This weak balance sheet can constrain bonding capacity, increase dependence on financing partners and amplify downside from further project losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity Runway
Surety support and amended lending terms reduce near-term cash strain, allowing Southland to complete bonded projects and preserve operating capacity while management works to stabilize execution and rebuild its financial position.
Read all positive factors
Southland Holdings (SLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.20M
Dividend YieldN/A
Average Volume (3M)56.09K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-32.66%
EPS Growth-397.97%
CountryUS
Employees1,800
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-3.45
Shares Outstanding54,435,257
10 Day Avg. Volume83,877
30 Day Avg. Volume56,089
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-1.27
Price to Sales (P/S)0.23
P/FCF Ratio14.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.4
Revenue Forecast (FY)$704.30M
Southland Holdings Business Overview & Revenue Model
Company Description
Southland Holdings, Inc. engages in specialty infrastructure construction business in North America. The company operates through Civil and Transportation segments. The Civil segment designs and constructs water pipelines, pump stations, lift stat...
How the Company Makes Money
Southland Holdings primarily makes money by performing construction and specialty infrastructure services under customer contracts, recognizing revenue as it satisfies performance obligations on projects. Its core revenue stream is contract revenu...
Southland Holdings Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Negative
The call contained material positive developments on liquidity and capital structure—formalized surety support, credit amendment providing cash interest relief and suspension of principal payments, expected issuance of preferred shares, asset monetization gains, and an active pipeline highlighted by a $190 million Winnipeg award. However, these positives were overshadowed by severe current-quarter operating results driven by a large, noncash legacy dispute reassessment: steep revenue decline (~47%), a $71 million gross loss, net loss widening to $84.3 million, negative EBITDA, and a ~17% decline in backlog. Management frames the legacy adjustments as largely one-time and is focused on closing out legacy work and ramping bidding, but significant uncertainty remains around claim recoveries and the impact on future financials.Positive Updates
Surety Financial Assistance Agreement and Term Loan Amendment
Formalized agreements with sureties and a second amendment to the senior credit facility provide runway to complete bonded work. Senior facility interest fixed at 4% (capitalized), scheduled principal payments and early termination premium suspended, and removal of ongoing financial covenants. Management estimates ~ $27 million of cash debt service relief over the next 12 months from these changes.
Negative Updates
Large Revenue Decline
Reported revenue for Q2 2026 was $113.3 million compared to $215.4 million in Q2 2025, a decline of approximately 47.4%. Reported revenue was materially impacted by a noncash revenue reversal of roughly $102.3 million related to legacy dispute adjustments.
Read all updates
Q2-2026 Updates
Positive
Negative
Surety Financial Assistance Agreement and Term Loan Amendment
Formalized agreements with sureties and a second amendment to the senior credit facility provide runway to complete bonded work. Senior facility interest fixed at 4% (capitalized), scheduled principal payments and early termination premium suspended, and removal of ongoing financial covenants. Management estimates ~ $27 million of cash debt service relief over the next 12 months from these changes.
Read all positive updates
Company Guidance
The company said the agreements with its sureties and the second amendment to the senior credit facility provide the runway to complete bonded work, improve capital structure and drive increased bonding and bidding activity going forward, with key metrics including: bonding surety financing of ~$59M and nonbonding financing of ~$151M as of June 30, 2026 (with ~ $151M of preferred shares expected to be issued by September 30, 2026, at $1,000 stated value and limited to 50% of actual loss), a fixed 4% interest rate on bonding surety financing and the amended senior facility (with interest capitalized), roughly $27M of cash debt service relief over the next 12 months, Q2 surety advances of ~$70.6M (total advances ~$209.8M excl. WSCC; total surety payables $298.9M incl. WSCC) with no repayment required prior to at least August 13, 2027, backlog of $1.68B (down from $2.03B) with ~38% expected to convert to revenue in the next 12 months, and the recently announced Winnipeg Phase 3 award representing ~ $190M of contract value for Southland (expected to conclude in 2030).Southland Holdings Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 603.01M | 772.17M | 980.18M | 1.16B | 1.16B | 1.28B |
| Gross Profit | -266.09M | -155.26M | -63.04M | 35.81M | 140.93M | 114.19M |
| EBITDA | -299.16M | -191.63M | -99.61M | 22.76M | 130.53M | 107.20M |
| Net Income | -404.30M | -306.54M | -105.36M | -19.25M | 60.54M | 38.72M |
Balance Sheet | ||||||
| Total Assets | 784.73M | 989.28M | 1.20B | 1.20B | 1.13B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 34.88M | 52.71M | 72.19M | 49.18M | 57.91M | 63.34M |
| Total Debt | 226.60M | 322.35M | 321.05M | 319.69M | 300.20M | 270.47M |
| Total Liabilities | 1.03B | 1.12B | 1.03B | 940.50M | 765.42M | 733.40M |
| Stockholders Equity | -253.53M | -140.93M | 163.66M | 249.62M | 349.44M | 291.29M |
Cash Flow | ||||||
| Free Cash Flow | -157.65M | 12.73M | -5.49M | -21.11M | -70.97M | -109.37M |
| Operating Cash Flow | -156.31M | 16.58M | 1.93M | -10.26M | -66.20M | -90.57M |
| Investing Cash Flow | 10.26M | 3.39M | 3.23M | 4.49M | 5.56M | -8.50M |
| Financing Cash Flow | 128.48M | -40.15M | 18.78M | -2.59M | 20.14M | 30.60M |
Southland Holdings Technical Analysis
Positive
0.72
Price Trends
0.70
Positive
0.92
Negative
1.68
Negative
Market Momentum
>-0.01
Negative
52.89
Neutral
70.94
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 0.72 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.70, and below the 200-day MA of 1.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 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 65 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $477.73M | 66.74 | 3.17% | ― | 2.07% | -38.08% | |
60 Neutral | $303.00M | -20.18 | -10.79% | ― | 13.88% | 34.22% | |
51 Neutral | $377.82M | 99.26 | 2.22% | ― | 7.05% | -67.59% | |
48 Neutral | $214.95M | 19.08 | 14.64% | 0.82% | 21.21% | 252.85% | |
43 Neutral | $38.20M | -0.10 | 331.10% | ― | -32.66% | -397.97% |
* Industrials Sector Average
SLND
Southland Holdings
0.72
-3.31
-82.13%
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12.15%
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Southland Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Southland Holdings Secures Surety Financing and Amends Term Loan
Positive
Aug 13, 2026
On August 13, 2026, Southland Holdings, Inc. executed a Financial Assistance Agreement with certain surety partners, retroactive to October 1, 2025, formalizing approximately $209.8 million of surety-backed financing for its bonded construction pr...
Executive/Board ChangesShareholder Meetings
Southland Holdings Shareholders Back Board and Auditor Choices
Positive
Jun 16, 2026
On June 10, 2026, Southland Holdings, Inc. held its 2026 annual meeting of stockholders, with 88% of the 54,218,882 shares entitled to vote represented in person or by proxy. Shareholders elected all nominated directors to terms expiring at the 20...
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.