Southland Holdings (SLND)
:SLND
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Southland Holdings
(SLND)
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Rating:42Neutral
Price Target:
$1.00
▼(-17.36% Downside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by sharp financial deterioration (declining revenue, deeply negative margins, and negative equity) and earnings-call disclosures of severe legacy-project/legal impacts with limited forward guidance. Technicals and valuation provide only mild support, with neutral momentum but a still-weak longer-term trend and a negative P/E due to ongoing losses.
Positive Factors
Large Backlog
A backlog just above $2.0B provides multi-month revenue visibility and discrete project pipeline to absorb near-term shocks. With ~38% expected to burn in 2026, backlog supports steadier revenue conversion, helping stabilize utilization and bidding discipline during restructuring.
Negative Factors
Negative Equity / High Leverage
Negative stockholders' equity and elevated debt materially weaken solvency and capital flexibility. This restricts access to traditional financing, increases counterparty risk, and forces reliance on surety/lender negotiations or asset sales to repair the balance sheet, a structural constraint over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Large Backlog
A backlog just above $2.0B provides multi-month revenue visibility and discrete project pipeline to absorb near-term shocks. With ~38% expected to burn in 2026, backlog supports steadier revenue conversion, helping stabilize utilization and bidding discipline during restructuring.
Read all positive factors
Southland Holdings (SLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.48M
Dividend YieldN/A
Average Volume (3M)56.09K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-9.10%
EPS Growth21.10%
CountryUS
Employees2,100
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-4.00
Shares Outstanding54,113,037
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 Cap5.12
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit-2.16
Enterprise Value/Ebitda-1.73
Forecast
1Y Price Target
$3.00Price Target Upside147.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.34
Revenue Forecast (FY)$789.68M
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:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Negative
The call disclosed severe near-term financial and operational setbacks driven by legacy-project outcomes (notably the Washington State Convention Center adverse ruling) that produced large Q4 and full-year losses, revenue reversals and a valuation allowance on deferred tax assets. Offsetting positives include substantial surety support ($226M committed), debt relief measures (assumption of $110M debt and deferred repayment to 2027), a healthy >$2B backlog with $118M of new Q4 awards (including a strategic $48M data-center project), and a focused plan to monetize non-core assets and concentrate bidding on higher-margin core markets. While management has a clear remediation plan and external capital support that materially reduces liquidity risk, the magnitude of reported losses, legal exposures and earnings deterioration are dominant near-term negatives.Positive Updates
Comprehensive Surety Support and Debt Restructuring
Sureties committed $226 million in total support, including $116 million brought into the business (approximately $14M pre-year-end and $102M in Q1), assumed $110 million of the Senior Credit Facility after the Company paid down ~$14M, waived scheduled principal and monthly interest payments through maturity, and agreed that any Washington State Convention Center settlement repayment will not be required prior to March 27, 2027. Expected reduction in debt service of approximately $27 million over the next 12 months.
Negative Updates
Large Q4 Revenue Decline and Reversals
Q4 revenue was $104 million versus $267 million a year earlier, a decrease of approximately 61%, driven materially by a $92 million revenue reversal tied to legacy-dispute negotiations (including the Washington State Convention Center adjustments).
Read all updates
Q4-2025 Updates
Positive
Negative
Comprehensive Surety Support and Debt Restructuring
Sureties committed $226 million in total support, including $116 million brought into the business (approximately $14M pre-year-end and $102M in Q1), assumed $110 million of the Senior Credit Facility after the Company paid down ~$14M, waived scheduled principal and monthly interest payments through maturity, and agreed that any Washington State Convention Center settlement repayment will not be required prior to March 27, 2027. Expected reduction in debt service of approximately $27 million over the next 12 months.
Read all positive updates
Company Guidance
Management said it will not provide formal financial guidance while legacy‑project resolutions and a capital restructuring progress, but offered directional metrics and plans: backlog is just over $2.0 billion with ~38% expected to burn in 2026; Q4 revenue was $104 million (inclusive of a $92 million revenue reversal) and Q4 net loss was $216 million (‑$4.00/share) with Q4 EBITDA of negative $202 million; full‑year revenue was $772 million (‑21% YoY), full‑year net loss $306.5 million (‑$5.67/share) and full‑year EBITDA negative $191 million; the company has secured $226 million of surety support — including $116 million to support bonded projects ($14M before 12/31/25 and $102M in Q1), a ~$14 million paydown and ~$110 million of assumed senior debt — with no repayment required on these arrangements or any Washington State Convention Center settlement prior to March 27, 2027 and an estimated ~$27 million reduction in debt service over the next 12 months; management intends to monetize non‑core equipment and real estate, use proceeds to pay down the Senior Credit Facility, complete remaining M&P backlog (~$74M) this year, finish the $48M data‑center civil award in 2026, and refocus bidding on high‑margin water‑resource, bridge, marine and tunnel work to return margins toward core Civil performance (Civil FY revenue $342.3M, 4.8% gross margin).Southland Holdings Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
24
Negative
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 772.17M | 980.18M | 1.16B | 1.16B | 1.28B |
| Gross Profit | -155.26M | -63.04M | 35.81M | 140.93M | 114.19M |
| EBITDA | -193.67M | -103.02M | -852.00K | 130.53M | 107.20M |
| Net Income | -306.54M | -105.36M | -19.25M | 60.54M | 38.72M |
Balance Sheet | |||||
| Total Assets | 989.28M | 1.20B | 1.20B | 1.13B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 52.71M | 72.19M | 49.18M | 57.91M | 63.34M |
| Total Debt | 322.35M | 321.05M | 319.69M | 300.20M | 270.47M |
| Total Liabilities | 1.12B | 1.03B | 940.50M | 765.42M | 733.40M |
| Stockholders Equity | -140.93M | 163.66M | 249.62M | 349.44M | 291.29M |
Cash Flow | |||||
| Free Cash Flow | 12.73M | -5.49M | -21.11M | -70.97M | -109.37M |
| Operating Cash Flow | 16.58M | 1.93M | -10.26M | -66.20M | -90.57M |
| Investing Cash Flow | 3.39M | 3.23M | 4.49M | 5.56M | -8.50M |
| Financing Cash Flow | -40.15M | 18.78M | -2.59M | 20.14M | 30.60M |
Southland Holdings Technical Analysis
Negative
1.21
Price Trends
1.34
Negative
2.37
Negative
3.36
Negative
Market Momentum
0.01
Negative
48.59
Neutral
41.27
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 1.21 is above the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.34, and below the 200-day MA of 3.36, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.59 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 Negative sentiment for SLND.
Southland Holdings Risk Analysis
Southland Holdings disclosed 63 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.14B | 11.94 | 14.83% | ― | 12.53% | 35.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $358.12M | -30.18 | 3.32% | ― | -8.98% | -38.23% | |
59 Neutral | $242.50M | 12.61 | 3.91% | 1.11% | 16.80% | -98.32% | |
58 Neutral | $330.23M | -92.28 | -13.58% | ― | 17.16% | 24.10% | |
55 Neutral | $443.32M | 158.32 | 1.60% | ― | 7.02% | ― | |
42 Neutral | $65.48M | -521.01 | -68.71% | ― | -9.10% | 21.10% |
* Industrials Sector Average
SLND
Southland Holdings
1.21
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Southland Holdings Corporate Events
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 ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Southland Holdings receives additional surety funding amid review
Negative
Feb 4, 2026
Southland Holdings, Inc. disclosed that surety provider Markel Insurance Company has advanced approximately $5 million under a general indemnity agreement to fund bonded construction contract obligations and maintain progress on its projects, obli...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Southland Holdings Faces Major Adverse Legal Judgment
Negative
Jan 22, 2026
On January 15, 2026, a trial court in King County, Washington, issued an adverse ruling against American Bridge Company in litigation related to its construction work on the Washington State Convention Center, entering a judgment of approximately ...
Business Operations and StrategyPrivate Placements and Financing
Southland Holdings secures $15 million surety funding support
Negative
Jan 16, 2026
Southland Holdings, Inc. disclosed that Zurich Insurance Company Ltd, one of its surety providers, has advanced approximately $15 million under a general indemnity agreement to fund bonded construction contract obligations and maintain progress on...
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.