Star Equity Holdings Stock Earnings Reports

Star Equity reported Q1 2026 results reflecting the August 2025 merger: revenue rose 57% year-over-year to $50.1M and gross profit increased 25% to $20.6M, while adjusted EBITDA was a loss of $1.6M (versus a $0.7M loss prior year). The company has realized approximately $2.6M of annualized merger synergies (above initial $2M guidance). Division performance was mixed: Energy Services delivered a strong quarter with $3.5M revenue, $1.5M gross profit and $1.0M adjusted EBITDA and continues to gain share (notably in mining and geothermal); Business Services (Hudson Talent Solutions) showed modest top-line growth but faced a challenging talent market, with regional variability (Americas and EMEA stronger, Asia Pac weaker) and continued investments in AI and digital offerings; Building Solutions missed expectations due to delayed project awards, severe winter weather and macro pressures (Q1 revenue $11.6M, gross profit $1.6M, adjusted EBITDA loss $0.9M) but backlog and recent wins (e.g., $4.2M NH multifamily project) provide optimism for recovery in Q2. Cash at quarter end was $10.3M (including $2.2M restricted), operating cash used $1.4M, $3M generated from sale-leasebacks, and ~$700k of buybacks executed with $1.8M remaining authorization. Management emphasized disciplined cost management, continued investment in growth initiatives, active share repurchases (views shares as undervalued), pursuit of accretive M&A (notably interest in GEE Group as a potential strategic fit), monetization of non-core real estate/private investments over time, and confidence that activity and adjusted EBITDA will improve through the year (management cites Bloomberg consensus for H1 adjusted EBITDA turning positive and an $8M–$10M range for full-year adjusted EBITDA consensus).