Star Equity Holdings Stock Earnings Reports

Key points for investors: Star Equity reported Q1 2026 revenue of $50.1M (up 57% YoY) and gross profit of $20.6M (up 25% YoY), driven largely by the August 2025 merger. Adjusted EBITDA was a loss of $1.6M (worse than prior year -$0.7M) and the company ended the quarter with $10.3M total cash (including $2.2M restricted). Management realized about $2.6M of annualized merger synergies (above the $2.0M target). Division performance was mixed: Energy Services performed strongly (Q1 revenue $3.5M, gross profit $1.5M, adjusted EBITDA $1.0M) and continued to gain share across mining, geothermal and other nontraditional drilling markets; Business Services (Hudson Talent Solutions) showed modest top-line growth (revenue +9.8%, gross profit +6.4%) but remained pressured by a challenging talent market and variable regional dynamics; Building Solutions was below expectations due to delayed contract awards and severe winter weather (Q1 revenue $11.6M, gross profit $1.6M, adjusted EBITDA loss $0.9M) with backlog at $8.0M and book-to-bill of 0.72. Cash generation included >$3M from sale-leasebacks; the company repurchased ~$700k of stock in Q1 and has $1.8M remaining on the buyback authorization. Management continues to prioritize disciplined execution, cost management, targeted growth investments (including Agentic AI in Hudson), potential accretive M&A (including interest in GEE Group), monetization of non-core real estate/private investments (~$8–$10M estimated for two properties), and expects improved activity and profitability through Q2 and the back half of the year, with management referencing Bloomberg consensus adjusted EBITDA in the low single-digit millions for H1 and mid-single-digit/low double-digit millions for the full year range.