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Southland Holdings (SLND)
:SLND
US Market

Southland Holdings (SLND) AI Stock Analysis

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Southland Holdings

(NYSE MKT:SLND)

Rating:51Neutral
Price Target:
$4.50
▲(0.22%Upside)
Southland Holdings' overall score is primarily impacted by its financial performance challenges, including declining revenues and negative profitability. Technical analysis provides a brighter outlook due to positive momentum, while valuation remains constrained by negative earnings. The earnings call suggests potential future growth, driven by strategic initiatives and leadership changes.

Southland Holdings (SLND) vs. SPDR S&P 500 ETF (SPY)

Southland Holdings Business Overview & Revenue Model

Company DescriptionSouthland Holdings (SLND) is a prominent construction and infrastructure company that specializes in heavy civil construction projects, engineering services, and infrastructure development. The company operates across various sectors, including transportation, water resources, and energy. Southland Holdings is known for its expertise in constructing large-scale projects such as bridges, tunnels, and transit systems, providing innovative solutions that meet the growing demands of urbanization and infrastructure development.
How the Company Makes MoneySouthland Holdings makes money through a diversified revenue model primarily derived from its construction and engineering contracts. Key revenue streams include project-based contracts with government agencies and private sector clients, where the company is engaged in designing, building, and maintaining infrastructure projects. The company may also earn revenues through long-term service agreements and maintenance contracts that ensure ongoing support and enhancement of the infrastructure it develops. Significant factors contributing to its earnings include strategic partnerships with other construction firms and engineering companies, enabling the execution of large, complex projects efficiently. Additionally, Southland Holdings' expertise in navigating regulatory requirements and environmental standards allows it to secure high-value contracts, contributing to its financial success.

Southland Holdings Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 21.35%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Southland demonstrated strong performance in its Civil segment and maintained a robust backlog, supported by new leadership appointments. However, the company faced challenges with a decline in overall revenue, increased interest expenses, and losses in the Transportation and Materials & Paving segments.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Southland reported a revenue of $239 million with a gross profit of $21.5 million, resulting in a gross profit margin of 9%, an increase from 7% in the prior year.
Civil Segment Success
The Civil segment delivered a gross profit margin of 22%, an increase from 21% in the same period in 2024, with revenues of $103 million compared to $84 million in 2024.
New Leadership Appointments
Keith Bassano was appointed Chief Financial Officer and Don Graul as Chief Strategy Officer, strengthening the leadership team.
Record Backlog
Southland added approximately $137 million in new awards, bringing the total backlog to $2.5 billion.
American Bridge 125th Anniversary
American Bridge Company celebrated its 125th anniversary, highlighting its historical significance and contributions to iconic infrastructure.
Negative Updates
Revenue Decline
Revenue for the quarter was $239 million, down $49 million from the same period in 2024.
Increased Interest Expense
Interest expense increased by $3.2 million from the prior year, totaling $8.9 million, primarily due to higher borrowing costs.
Net Loss for the Quarter
Southland reported a net loss of $4.5 million or a loss of $0.08 per share, compared to a net loss of $400,000 in the same period last year.
Transportation Segment Challenges
Transportation segment saw a revenue decrease of $67 million from the same period in 2024, with a negative gross profit margin of 1%.
Materials & Paving Segment Loss
The Materials & Paving business line contributed a negative $9 million to gross profit, with a noncash charge of $3.5 million impacting results.
Company Guidance
During Southland's First Quarter 2025 Earnings Conference Call, significant guidance was provided regarding the company's financial performance and strategic direction. Southland reported a revenue of $239 million, a decrease of $49 million compared to the same period in 2024, yet gross profit increased to $21.5 million, with a 9% gross profit margin, up from 7% the previous year. The Civil segment showed notable strength, generating a 22% gross profit margin. The company emphasized its strong backlog of $2.5 billion, with $137 million in new awards during the quarter. Despite challenges like adverse weather and tariff risks, Southland remains optimistic, highlighting its strategic leadership appointments, risk management practices, and robust demand from government clients, who constitute approximately 80% of its client mix. The call also addressed the wind-down of legacy projects, including the Materials & Paving segment, which reported a negative $9 million gross profit, but Southland anticipates completing these projects by the end of 2025. Looking forward, Southland is poised for growth with opportunities in high-value infrastructure projects, maintaining a strong financial position with positive cash flow and effective debt management.

Southland Holdings Financial Statement Overview

Summary
Southland Holdings is grappling with significant financial challenges, including negative profitability, declining revenues, and high leverage. The negative income and cash flow trends suggest operational inefficiencies and potential liquidity risks, with high debt levels posing substantial financial risk.
Income Statement
30
Negative
Southland Holdings exhibits significant challenges in its income statement with consistent net losses and declining revenue over the past years. The Gross Profit Margin has turned negative, indicating cost issues, while the Net Profit Margin is also negative due to sustained losses. The Revenue Growth Rate has been negative, reflecting a declining revenue trend, and EBIT and EBITDA margins are also negative, indicating operational inefficiency.
Balance Sheet
45
Neutral
The balance sheet shows a relatively high Debt-to-Equity ratio, which indicates high leverage and potential financial risk. The Return on Equity is negative due to losses, and the Equity Ratio is relatively low, suggesting a heavier reliance on debt financing. Despite these concerns, the company maintains a reasonable level of cash and equivalents, offering some liquidity buffer.
Cash Flow
25
Negative
Cash flow analysis reveals challenges, with negative Free Cash Flow in recent years and a low Operating Cash Flow to Net Income Ratio, indicating inefficiencies in converting sales into cash. The Free Cash Flow to Net Income Ratio is also unfavorable, highlighting issues in generating cash from operations despite capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue980.18M1.16B1.16B1.28B1.06B
Gross Profit-63.04M35.81M140.93M114.19M93.40M
EBITDA-99.61M22.76M128.40M103.52M88.12M
Net Income-105.36M-19.25M60.54M38.72M33.67M
Balance Sheet
Total Assets1.20B1.20B1.13B1.04B1.12B
Cash, Cash Equivalents and Short-Term Investments72.19M49.18M57.91M63.34M30.89M
Total Debt321.05M319.69M300.20M270.47M238.91M
Total Liabilities1.03B940.50M765.42M733.40M858.01M
Stockholders Equity163.66M249.62M349.44M291.29M259.02M
Cash Flow
Free Cash Flow-5.49M-21.11M-70.97M-110.21M-81.17M
Operating Cash Flow1.93M-10.26M-66.20M-91.41M-50.17M
Investing Cash Flow3.23M4.49M5.56M-8.50M195.82M
Financing Cash Flow18.78M-2.59M20.14M31.44M-47.95M

Southland Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.49
Price Trends
50DMA
3.75
Positive
100DMA
3.47
Positive
200DMA
3.41
Positive
Market Momentum
MACD
0.18
Negative
RSI
67.45
Neutral
STOCH
80.81
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 4.49 is above the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.75, and above the 200-day MA of 3.41, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.81 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 62 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$173.36M9.4141.26%1.15%4.62%81.73%
72
Outperform
$173.36M9.4141.26%1.15%4.62%81.73%
67
Neutral
£2.80B13.414.69%3.43%2.35%-24.51%
66
Neutral
$804.25M11.5915.67%28.03%80.90%
66
Neutral
$804.25M11.5915.67%28.03%80.90%
ORORN
62
Neutral
$357.57M147.472.25%15.58%
ORORN
62
Neutral
$357.57M147.472.25%15.58%
58
Neutral
$376.33M-14.26%-0.29%-6.77%
58
Neutral
$376.33M-14.26%-0.29%-6.77%
54
Neutral
$884.27M16.565.64%30.13%-7.60%
54
Neutral
$884.27M16.565.64%30.13%-7.60%
51
Neutral
$242.44M-53.62%-20.63%-611.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLND
Southland Holdings
4.42
0.43
10.78%
AMRC
Ameresco
16.07
-9.73
-37.71%
AMRC
Ameresco
16.07
-9.73
-37.71%
ESOA
Energy Services of America
10.37
3.25
45.65%
ESOA
Energy Services of America
10.37
3.25
45.65%
GLDD
Great Lakes Dredge & Dock
11.84
3.60
43.69%
GLDD
Great Lakes Dredge & Dock
11.84
3.60
43.69%
MTRX
Matrix Service Company
13.63
4.85
55.24%
MTRX
Matrix Service Company
13.63
4.85
55.24%
ORN
Orion Group Holdings
9.04
0.76
9.18%

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.

The most recent analyst rating on (SLND) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Southland Holdings stock, see the SLND Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Southland Holdings Appoints Tan Parker as Director
Positive
May 21, 2025

On May 15, 2025, Kyle Burtnett resigned from his position as a Director of Southland Holdings, Inc. to pursue other opportunities. His resignation was not due to any disagreement with the management or the Board. Subsequently, on May 19, 2025, the Board appointed Tan Parker as a Class I director to fill the vacant seat, maintaining the board’s total number of directors at seven. Tan Parker brings a wealth of experience from both public service and the private sector, including roles in legislative initiatives and executive positions in private equity and venture capital. His appointment is expected to enhance Southland’s strategic direction, leveraging his extensive background in AI, cybersecurity, capital markets, and infrastructure investment.

The most recent analyst rating on (SLND) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Southland Holdings stock, see the SLND Stock Forecast page.

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.Date of analysis: Jun 28, 2025