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SLND: New Project Backlog Is Expected To Drive Future Upside

Rising Cost Pressures And Legacy Inefficiencies Will Stifle Future Bids

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SLND
AnalystLowTarget
Not Invested
Published 12 Aug 2025

Update shared on 14 Dec 2025

Fair value Increased 25%
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AnalystLowTarget's Fair Value
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1Y
-0.8%
7D
-6.9%

Narrative Update on Southland Holdings

Analysts have modestly raised their price target on Southland Holdings to approximately $5.00 from $4.00, citing a slightly higher assumed discount rate, lower long term revenue growth expectations, improved profit margin outlook, and a marginally cheaper future price to earnings multiple.

What's in the News

  • Southland Holdings, Inc. was awarded two new projects totaling approximately $130 million, expanding its contracted work pipeline.
  • The awards include a bridge rehabilitation project in the Pacific Northwest for a private client, executed through subsidiary American Bridge Company in the Transportation segment.
  • The second award is a water resource project for the City of Austin, Texas, to be delivered by subsidiary Oscar Renda Contracting in the Civil segment.
  • Both projects are expected to be added to Southland Holdings third quarter 2025 backlog, supporting future revenue visibility. (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly from approximately $4.00 to $5.00 per share, reflecting a modestly more constructive outlook.
  • The discount rate has increased marginally from about 12.13 percent to 12.50 percent, implying a slightly higher required return on equity.
  • Revenue growth has fallen significantly, with the long-term annual growth assumption reduced from roughly 9.23 percent to about 3.63 percent.
  • The net profit margin has improved moderately, moving from approximately 2.79 percent to about 3.57 percent in the updated model.
  • The future P/E multiple has been trimmed slightly from around 11.4x to about 10.3x, indicating a modestly more conservative valuation multiple.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.