Revenue has eroded significantly with a 28% year-over-year decline in 2026Q1, while gross margins remain volatile, highlighted by a catastrophic -186% margin reported in 2025Q4.
| Sales/Revenue | 705.09M | 772.17M | 980.18M | 1.16B | 1.16B | 1.28B | 1.06B |
| Revenue Growth % | -24.31% | -21.22% | -15.53% | -0.09% | -9.21% | 20.91% | - |
| Cost of Goods Sold | 886.58M | 927.43M | 1.04B | 1.12B | 1.02B | 1.16B | 964.54M |
| COGS % of Revenue | - | 120.11% | 106.43% | 96.91% | 87.87% | 91.07% | 91.17% |
| Gross Profit | -181.5M | -155.26M | -63.04M | 35.81M | 140.93M | 114.19M | 93.4M |
| Gross Margin % | -25.74% | -20.11% | -6.43% | 3.09% | 12.13% | 8.93% | 8.83% |
| Gross Profit Growth % | - | -146.29% | -276.02% | -74.59% | 23.42% | 22.26% | - |
| Operating Expenses | 60.1M | 61.62M | 63.27M | 67.19M | 58.23M | 58.14M | 49.65M |
| OpEx % of Revenue | - | 7.98% | 6.46% | 5.79% | 5.01% | 4.54% | 4.69% |
| Selling, General & Admin | 46.53M | 61.62M | 0 | 0 | 58.23M | 58.14M | 49.65M |
| SG&A % of Revenue | - | 7.98% | - | - | 5.01% | 4.54% | 4.69% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 63.27M | 67.19M | 0 | 0 | 0 |
| Operating Income | -241.6M | -216.88M | -126.31M | -31.38M | 82.7M | 56.05M | 43.75M |
| Operating Margin % | -34.26% | -28.09% | -12.89% | -2.7% | 7.12% | 4.38% | 4.14% |
| Operating Income Growth % | - | -71.7% | -302.52% | -137.94% | 47.55% | 28.13% | - |
| EBITDA | -219.26M | -193.67M | -103.02M | -852K | 128.4M | 103.52M | 83.12M |
| EBITDA Margin % | -31.1% | -25.08% | -10.51% | -0.07% | 11.06% | 8.09% | 7.86% |
| EBITDA Growth % | -112.71% | -88% | -11991.08% | -100.66% | 24.03% | 24.55% | - |
| D&A (Non-Cash Add-back) | 22.33M | 23.21M | 23.3M | 30.53M | 45.7M | 47.47M | 39.37M |
| EBIT | -241.25M | -214.85M | -126.31M | -31.38M | 84.83M | 59.73M | 47.65M |
| Net Interest Income | -36.83M | -37.02M | -29.51M | -19.47M | -8.89M | -7.25M | -8.1M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 36.83M | 37.02M | 29.51M | 19.47M | 8.89M | 7.25M | 8.1M |
| Other Income/Expense | -35.33M | -34.98M | -26.11M | 4.14M | -6.76M | -3.58M | -4.19M |
| Pretax Income | -276.93M | -251.87M | -152.42M | -27.24M | 75.94M | 52.48M | 39.56M |
| Pretax Margin % | -39.28% | -32.62% | -15.55% | -2.35% | 6.54% | 4.1% | 3.74% |
| Income Tax | 56.83M | 56.5M | -46.89M | -8.53M | 13.29M | 10.95M | 9.41M |
| Effective Tax Rate % | -20.52% | -22.43% | 30.76% | 31.3% | 17.5% | 20.86% | 23.78% |
| Net Income | -330.34M | -306.54M | -105.36M | -19.25M | 60.54M | 38.72M | 33.67M |
| Net Margin % | -46.85% | -39.7% | -10.75% | -1.66% | 5.21% | 3.03% | 3.18% |
| Net Income Growth % | -201.65% | -190.93% | -447.27% | -131.8% | 56.36% | 15.01% | - |
| Net Income (Continuing) | -333.75M | -308.36M | -105.53M | -18.71M | 62.65M | 41.53M | 30.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 8.3M | 8.43M | 11.75M | 10.94M | 10.45M | 11.06M | 3.62M |
| EPS (Diluted) | -0.69 | -5.67 | -2.19 | -0.41 | 1.69 | 0.87 | 0.76 |
| EPS Growth % | 8.03% | -158.9% | -434.15% | -124.26% | 94.25% | 14.47% | - |
| EPS (Basic) | - | -5.67 | -2.19 | -0.41 | 1.69 | 0.87 | 0.76 |
| Diluted Shares Outstanding | 481.06M | 48.11B | 48.07M | 47.09M | 35.91M | 35.91M | 44.41B |
| Basic Shares Outstanding | 481.06M | 48.11B | 48.07M | 47.09M | 35.91M | 35.91M | 44.41B |
| Dividend Payout Ratio | - | - | - | - | 4.06% | 6.77% | 18.32% |
Project cost overrun insolvency
As indicated by the most recent quarterly financial data, Southland's revenue has experienced a significant 28% year-over-year decline, reflecting a broader pattern of top-line erosion that has persisted across multiple reporting periods as the company struggles to replace its legacy project backlog with new, profitable work.
The consistent downward trajectory in revenue suggests that the company is either intentionally shrinking its operational footprint to mitigate losses or failing to secure new contracts in a competitive infrastructure market. This contraction appears to be a structural response to the exhaustion of older, lower-margin projects rather than a temporary lull in demand.
Based on reported income statements, Southland has struggled with extreme margin volatility, including a catastrophic gross margin of -186% in 2025Q4, which highlights the company's inability to insulate its fixed-price contracts from inflationary pressures and unforeseen project execution costs in its heavy civil segment.
The recurring negative gross margins suggest that the company's cost-to-complete estimates are consistently failing to account for the realities of complex tunneling and marine infrastructure work. Investors should interpret these figures as a sign that the firm's pricing power is currently non-existent, leaving it fully exposed to input cost volatility.
According to the provided financial filings, Southland's operating income has remained consistently negative, with the company failing to achieve the necessary scale to cover its SG&A expenses, which reached $14.9 million in the most recent quarter despite a significantly reduced revenue base.
The inability to scale operating income alongside revenue suggests that the company's overhead structure is misaligned with its current project volume. This lack of operating leverage implies that any potential recovery will require a substantial and difficult restructuring of both project-level costs and corporate-level administrative expenses.
While management may point to the long-term nature of infrastructure projects, the data suggests that Southland's backlog may be fundamentally impaired, as evidenced by the persistent inability to generate positive gross profit even after several quarters of operational adjustments and potential project write-downs.
Short-sellers would likely focus on the high probability that the company's unbilled receivables contain significant amounts of disputed claims or unapproved change orders that may never materialize into cash. The disconnect between the company's technical expertise and its financial performance warrants extreme caution regarding the true value of its remaining contract assets.
Quick answers to the most common questions about buying SLND stock.
For fiscal year 2025, Southland Holdings, Inc. (SLND) reported total revenue of $772.2M. This represents a 27.0% decline compared to $1.06B in 2020.
Southland Holdings, Inc. (SLND) reported a net loss of $306.5M for the fiscal year ending 2025.
Southland Holdings, Inc. (SLND) reported an operating income of $-216.9M, resulting in an operating profit margin of -28.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Southland Holdings, Inc. (SLND) generated $-155.3M in gross profit for the year, representing a gross profit margin of -20.1%. This demonstrates the company's core pricing power and production efficiency.