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Southland Holdings (SLND)
:SLND
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Southland Holdings
(NYSE MKT:SLND)
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Rating:41Neutral
Price Target:
$4.00
▼(-13.23% Downside)
The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative profit margins. Technical indicators suggest a bearish trend, and valuation metrics reflect unprofitability. While the earnings call provided some positive insights, the financial instability remains a major concern.
Southland Holdings (SLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$249.46M
Dividend YieldN/A
Average Volume (3M)51.51K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-23.35%
EPS Growth-49.27%
CountryUS
Employees2,100
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.19
Shares Outstanding54,113,037
10 Day Avg. Volume45,714
30 Day Avg. Volume51,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.06
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit-59.65
Enterprise Value/Ebitda-10.14
Forecast
1Y Price Target
$8.00Price Target Upside73.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Southland Holdings Business Overview & Revenue Model
Company DescriptionSouthland Holdings (SLND) is a diversified construction and engineering firm that specializes in heavy civil infrastructure projects. Operating across various sectors, including transportation, water resources, and environmental services, SLND provides a wide range of services such as project management, construction, and design-build solutions. The company focuses on delivering high-quality infrastructure development and maintenance, catering to both public and private sector clients.
How the Company Makes MoneySouthland 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 Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While there was a significant improvement in gross profit margins and strong performance in the Civil segment, the company faced challenges such as a decline in overall revenue, increased interest expenses, and a net loss. The backlog and new awards provide an optimistic outlook, but the financial challenges indicate a need for caution.Q2-2025 Updates
Positive Updates
Improved Gross Profit Margin
Consolidated gross profit margin was 6.2%, significantly improved from negative 15.9% in the prior year period.
Civil Segment Performance
The Civil segment delivered a gross profit margin of 18%, a direct result of disciplined bidding strategy and expertise in executing complex projects.
Backlog and New Awards
The company added $67 million in new awards, bringing total backlog to approximately $2.32 billion.
Strong Demand for Infrastructure
Sustained investment and robust demand for infrastructure, especially from federal and state governments, are expected to serve as a powerful tailwind for the business.
Upcoming Opportunities
Pending proposals include projects such as the Pier 31 extension at the Naval Submarine Base and the Eleuthera Glass Window Bridge in the Bahamas.
Negative Updates
Revenue Decline
Revenue for the quarter was $215 million, down $36 million from the same period in 2024.
Interest Expense Increase
Interest expense for the quarter totaled $10 million, up $3.3 million from the prior year, driven by increased interest rates and deferred financing costs.
Net Loss
Reported a net loss of $10.3 million, or $0.19 per share, compared to a net loss of $46 million or $0.96 per share in the same period last year.
Materials & Paving Business Line Loss
The Materials & Paving business line contributed $21.7 million to revenue but had a $3.8 million gross loss in the second quarter.
Transportation Segment Challenges
The Transportation segment had a gross loss of $1.2 million, with a negative gross profit margin of 0.9%.
Company Guidance
In the Southland Second Quarter 2025 Earnings Conference Call, the company provided financial guidance highlighting several key metrics. The company reported second-quarter revenue of $215 million, a decrease of $36 million from the previous year, with a gross profit of $13.4 million, up $53 million year-over-year. The gross profit margin improved to 6.2%, a significant increase from negative 15.9% in the prior year period. The Civil segment showed strong performance with a gross profit margin of 18%. Although revenue was impacted by weather and timing of new project starts, the company secured approximately $67 million in new awards, increasing its total backlog to $2.32 billion. Southland anticipates a continued positive impact from federal infrastructure funding, particularly from the Infrastructure Investment and Jobs Act (IIJA), and maintains a focus on high-margin, short-duration projects. The company aims to convert its backlog into profitable results while executing new opportunities, particularly in the civil and transportation segments, with a long-term strategy of improving profitability over top-line growth.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.35
Negative
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.45
Neutral
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.30
Negative
| 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
Positive
4.61
Price Trends
4.30
Positive
4.04
Positive
3.65
Positive
Market Momentum
0.05
Negative
65.88
Neutral
85.93
Negative
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 4.61 is above the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.30, and above the 200-day MA of 3.65, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, 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 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | 813.90M | 11.66 | 14.88% | ― | 24.40% | 61.44% | |
68 Neutral | 1.53B | 26.86 | 5.62% | ― | 22.85% | 8.26% | |
66 Neutral | 165.34M | 57.97 | 42.77% | 0.59% | 9.52% | -88.22% | |
64 Neutral | 356.75M | -12.25 | 0.00% | ― | 5.64% | -16.41% | |
64 Neutral | 312.72M | 28.81 | 6.82% | ― | 15.85% | 0.00% | |
41 Neutral | $249.46M | ― | -41.62% | ― | -23.35% | -49.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
SLND
Southland Holdings
4.71
1.14
31.93%
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GLDD
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12.27
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17.42%
MTRX
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13.00
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ORN
Orion Group Holdings
8.12
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Southland Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Southland Holdings Approves Board Declassification and Elections
Neutral
Jun 20, 2025
On June 13, 2025, Southland Holdings, Inc. held its annual meeting of stockholders, where 87.1% of shares entitled to vote were represented. All proposals were approved, including the declassification of the Board of Directors, the election of two Class II directors, and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
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.