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what it is
Southland builds water systems, bridges, tunnels, and marine works that other contractors hate.
how it gets paid
Last year Southland made $980M in revenue. Water pipeline and treatment was the main engine at $360M, or 37% of sales.
what just happened
Southland posted $668M of revenue and lost $1.67 a share.
At a glance
C+ balance sheet — struggling to keep the lights on
-$2.19 fy2024 eps est
$980M fy2024 rev est
12.9% operating margin
0.95 beta
xvary composite: 37/100 — weak
What they do
Southland builds water systems, bridges, tunnels, and marine works that other contractors hate.
You hire Southland for the ugly jobs. It has 2,100 employees and two business lines, so your city gets one contractor for water pipes, bridges, tunnels, and dredging. That breadth matters when a project needs concrete, steel, and water work in one package.
How they make money
$980M
annual revenue
Water pipeline and treatment
$360M
Bridges and roadways
$260M
Marine, dredging, and piers
$160M
Tunneling and outfall
$120M
Specialty structures and facilities
$80M
The products that matter
bridge, dam, and heavy civil work
Heavy Civil Construction
$~700M · roughly 70% of revenue
it generates roughly 70% of the company's $980M annual revenue, so if project pricing slips here, the whole income statement feels it.
core
marine and tunneling work
Specialty Infrastructure
$~280M · roughly 30% of revenue
it accounts for the remaining ~30% of revenue. that makes it meaningful, but not large enough to rescue the company if the core heavy civil book stays unprofitable.
secondary segment
Key numbers
$980M
annual revenue
This is the size of the machine. It tells you Southland can win real projects even while profits stay weak.
12.9%
operating margin
This means Southland lost money on core operations. Every $100 of sales left $12.90 short.
$275M
long-term debt
This debt load is huge next to a $43M market cap. Lenders have more leverage than shareholders.
2,100
employees
This is the workforce behind the backlog. You need people when the work is concrete, steel, and water.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $275M (87% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for SLND right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Southland posted $668M of revenue and lost $1.67 a share.
Revenue was up 213% vs. prior year, but gross margin, or profit before overhead, was only 5.7%. The top line moved fast. The bottom line did not.
$668M
revenue
-$1.67
eps
5.7%
gross margin
the number that mattered
The $668M revenue figure mattered most because it shows Southland can still land big jobs, even while profits stay thin.
source: company earnings report, 2025
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What could go wrong
your #1 risk is project-level margin failure in heavy civil construction. when a contractor with a recent -13.15% gross margin underbids or overruns, equity holders feel it fast.
high
gross margin slips back below zero
q3 gross profit was positive at $3.3M, but the recent gross margin figure is still -13.15%. if that improvement does not hold, the business goes right back to losing money before overhead.
q3 gross profit was positive at $3.3M, but the recent gross margin figure is still -13.15%. if that improvement does not hold, the business goes right back to losing money before overhead.
high
$275M of long-term debt limits room for error
long-term debt equals 87% of capital and is about 6.4x the company's ~$43M market cap. that leverage matters a lot when net margin is -10.1%.
long-term debt equals 87% of capital and is about 6.4x the company's ~$43M market cap. that leverage matters a lot when net margin is -10.1%.
med
revenue scale does not guarantee equity value
the company is estimated to do $980M in revenue this year, yet the entire equity is worth about $43M. the market is saying revenue quality matters more than revenue quantity, and it has a point.
the company is estimated to do $980M in revenue this year, yet the entire equity is worth about $43M. the market is saying revenue quality matters more than revenue quantity, and it has a point.
med
2026 cash flow improvement may not show up
management expects some positive operating cash flow in 2026. if that does not happen, the turnaround narrative starts sounding more like a quarterly talking point than a financial trend.
management expects some positive operating cash flow in 2026. if that does not happen, the turnaround narrative starts sounding more like a quarterly talking point than a financial trend.
a return to negative gross profit would pressure a business already carrying $275M of long-term debt against a ~$43M equity value.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
gross profit staying positive
q3 2025 gross profit was $3.3M. that matters more than headline revenue right now because the recent gross margin print was still -13.15%.
calendar
q4 2025 earnings report
the estimated report date is february 12, 2026. you want to see whether the q3 margin improvement was a one-quarter blip or the start of a trend.
risk check
2026 operating cash flow
management said it expects some positive cash flow from operations in 2026. if that does not show up, the leverage problem gets louder.
trend
revenue versus estimate
q3 revenue was $213.3M versus a $241.52M estimate. growth from $173.3M helped, but you need to see whether future quarters can grow without missing the bar.
Analyst rankings
price target coverage
thin
there is no target range in the current feed. for a $43M stock, that usually means you need to trust the filings more than the street.
risk read
high
analyst inputs are thin, but the operating facts are not: -10.1% net margin, -13.15% recent gross margin, and $275M of long-term debt.
source: institutional data
Institutional activity
institutional ownership data for SLND is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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