Aug 14, 2026, 8:44 AM ETIndustrials

Star Equity Holdings — Second Quarter 2026 Earnings Summary

STRRSTAR EQUITY HOLDINGS INC

Financial Performance

Total revenue for the quarter ended June 30, 2026, was $54.9 million, a 54.6% increase from $35.5 million in the second quarter of 2025.
Gross profit was $22.8 million, up 22.3% from $18.6 million in the prior year quarter.
Net loss attributable to common shareholders was $2.5 million ($0.66 per diluted share), compared to a net loss of $0.7 million ($0.23 per diluted share) in the second quarter of 2025.
Adjusted net loss per diluted share (non-GAAP) was $0.15, compared to adjusted net income of $0.20 per diluted share in the prior year quarter.
Adjusted EBITDA (non-GAAP) increased to $2.2 million from $1.3 million in the second quarter of 2025.
Pro forma adjusted EBITDA for the second quarter of 2025 was $8.5 million, including a $5.5 million realized gain in the Investments division.
Total cash and restricted cash stood at $8.9 million as of June 30, 2026.
Cash flow from operations used $1.7 million in the second quarter of 2026, compared to generating $0.1 million in the prior year quarter.
Corporate costs were $1.7 million in the second quarter of 2026, up from $0.9 million in the prior year quarter, but down $0.8 million on a pro forma basis.

Management expects to enhance after-tax returns on future growth initiatives and strategic transactions utilizing a $215 million U.S. net operating loss (NOL) position as of December 31, 2025.
The company aims to navigate near-term market volatility, improve profitability, and create long-term value through disciplined execution, rigorous cost management, and returns-driven capital allocation.
Management is actively evaluating M&A opportunities across all three operating divisions.

Building Solutions: Revenue was $14.6 million with gross profit of $3.2 million and adjusted EBITDA of $0.5 million. Backlog increased to $10.6 million from $8.0 million at Q1 2026, with a trailing 12-month book-to-bill ratio of 0.77. Performance was below expectations due to market softness and contract timing, with revenue from a large project largely recognized in Q3. The division added a $4.2 million multifamily project in New Hampshire to the backlog.
Business Services: Revenue was $36.4 million, up from $35.5 million in the prior year quarter, while gross profit declined to $17.8 million from $18.6 million. Adjusted EBITDA was $1.6 million, down from $2.2 million. The division invested $1.5 million in growth-related digital offerings and new geographies. Americas gross profit grew 10%, while EMEA and Asia Pacific gross profit declined 10% and 13%, respectively.
Energy Services: Revenue was $3.9 million with gross profit of $1.9 million and adjusted EBITDA of $1.2 million. The division posted strong year-over-year gains in revenue, gross profit, and adjusted EBITDA, driven by activity increases and new client wins in the geothermal and mining industries.
Investments: The division reported a pro forma adjusted EBITDA gain of $5.5 million in the second quarter of 2025.

Residential and commercial construction markets remained challenging in the second quarter, though the company gained traction in workforce, affordable, and assisted living/senior housing sectors.
The professional talent market faced continued macroeconomic uncertainty and sustained pressure.
The company noted the realization of $3.0 million in merger synergies on an annualized basis.

Building Solutions performance was impacted by market softness and contract timing delays.
Business Services faced a mixed regional backdrop with declines in EMEA and Asia Pacific gross profit.
The company continues to face challenges in the residential and commercial construction markets.

CEO Jeff Eberwein stated the company remains focused on disciplined execution and capital allocation, noting the strengthening Energy Services platform and resilient Business Services franchise.
Jake Zabkowicz, Global CEO of Hudson Talent Solutions (HTS), highlighted the deployment of agentic AI and automation tools to enhance recruiter productivity and limit gross profit decline despite regional headwinds.
Management expressed confidence in capitalizing on improving market conditions over time due to deep client relationships and technology-enabled delivery.

The company repurchased 15,833 shares for approximately $0.2 million in the second quarter of 2026.
Approximately $1.6 million remains under the $3 million share repurchase program authorized in September 2025.
A rights agreement and charter amendment limit beneficial ownership of Star common stock to 4.99% to protect the value of the $215 million NOL carryforward.
The company completed its merger with Star Operating Companies, Inc. on August 22, 2025, changing its name to Star Equity Holdings, Inc. and trading symbols to STRR and STRRP.
Dividends on Series A Perpetual preferred stock were $0.25 per share for the quarter.