Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $100.65M
• Dividend Yield: N/A
• Average Volume (3M): 56.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 3.73
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 8.21
• Enterprise Value/Ebitda: 34.03
• 1Y Price Target: $8.00
• Price Target Upside: 330.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $2.00 ▲(7.53% Upside)

The score is held down primarily by weak financial performance (losses, high leverage, and negative operating/free cash flow). Technicals also reflect a sustained downtrend despite oversold RSI. Earnings-call progress on margins and backlog provides some offset, but negative corporate events (legal judgment and surety funding dependence) reinforce near-term balance-sheet and liquidity risk.

Positive Factors

Large Backlog / New Awards

A backlog of ~$2.26B with $151M in recent awards gives multi-quarter revenue visibility for project execution. Large contracted backlog supports resource planning, stabilizes revenue recognition across cycles, and reduces near-term reliance on new bidding to sustain revenue.

Profitable Civil Segment

A 10.5% gross margin in the Civil segment shows a durable, higher-margin core competency. Sustained outperformance in civil work can drive consolidated margin recovery, allow focus on selective, profitable bids, and provide an earnings base resilient to weaker legacy project results.

Completion of Legacy Projects

Completing the final legacy projects removes a persistent execution and margin drag. That operational milestone reduces ongoing claims, shortens resolution timelines, and frees management and capital to concentrate on higher-margin core work and future project wins.

Negative Factors

Adverse Legal Judgment

A ~$57M adverse judgment is a material contingent liability that can crystallize into a balance-sheet hit, pressure liquidity, and trigger covenant events. The appeal and lender reviews extend uncertainty, potentially forcing costly refinancing or asset dispositions and limiting strategic flexibility.

Reliance on Surety Funding

Dependence on surety advances (and indemnity obligations) raises liquidity and bonding risk. Indemnification duties can convert contingent support into repayable obligations, constrain bonding capacity for new projects, and require lender consents or additional financing to sustain bonded work.

Weak Cash Generation & High Leverage

Negative operating and free cash flows combined with a debt-to-equity ratio near 3.9 materially reduce financial flexibility. Persistent cash burn increases refinancing and interest-rate risk, limits ability to fund working capital or invest in growth, and heightens default risk under stress.

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

Weak fundamentals overall: profitability is negative (TTM net margin -10.08% with negative EBIT margin), leverage is high (debt-to-equity 3.88 with negative ROE), and liquidity is pressured by negative operating and free cash flow.

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: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.86 is below the 20-day moving average (MA) of 2.86, below the 50-day MA of 3.19, and below the 200-day MA of 3.88, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 27.35 is Positive, neither overbought nor oversold. The STOCH value of 12.10 is Positive, 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	$1.02B	12.64	17.37%	―	12.53%	35.68%
ORN	65 Neutral	$487.59M	50.64	6.31%	―	7.02%	―
BBCP	64 Neutral	$293.94M	63.45	3.32%	―	-8.98%	-38.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	48 Neutral	$149.78M	395.18	0.64%	1.11%	16.80%	-98.32%
MTRX	47 Neutral	$402.74M	-16.70	-16.33%	―	17.16%	24.10%
SLND	42 Neutral	$100.65M	-1.06	-84.16%	―	-9.10%	21.10%

Southland Holdings Corporate Events

Southland Holdings Faces Major Adverse Legal Judgment

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 $57 million jointly and severally against American Bridge and certain sureties in favor of the Clark/Lewis Joint Venture. American Bridge has stated it strongly disagrees with the decision and plans to appeal, while parent Southland Holdings is working with its term loan lenders to assess the ruling’s impact on its credit agreement and is analyzing the accounting and financial reporting consequences, signaling potential financial and balance sheet implications for the company and its stakeholders.

The most recent analyst rating on (SLND) stock is a Sell 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 secures $15 million surety funding support

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 those projects, creating an obligation for Southland to indemnify and reimburse the surety for the amounts advanced. The company is working with its term loan agent, Callodine Commercial Finance, LLC, and other lenders to assess how the surety funding affects its existing credit agreement, while also negotiating with its sureties and lenders for additional surety funds and a longer-term financing solution, with no assurance that such additional funding or arrangements will ultimately be secured.

The most recent analyst rating on (SLND) stock is a Sell 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 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.