| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 50.06 | 57.1% |
| Total Income | 50.06 | 57.1% |
| Expenditure | 54.08 | 61.0% |
| PBT | -4.06 | 136.1% |
| Net Profit | -3.79 | 115.3% |
| OPM | -8.02% | 2.61pp |
| NPM | -7.58% | 2.07pp |
| EPS | -1.01 | 71.2% |
Star Equity Holdings Reports Q1 2026 Results: Revenue Up 57.1%
12 May 2026 · 12 May, 3:02 am
Summary
Star Equity Holdings reported a 57.1% increase in revenue to $50.1 million for the first quarter of 2026. Gross profit also increased by 25.4% to $20.6 million. However, the net loss attributable to common shareholders was $4.4 million, or $1.17 per diluted share. The company's adjusted EBITDA loss increased to $1.6 million. Management remains focused on operational and cost improvements and continued investments in growth and innovation to drive improved results.
Key Highlights
- 1
Star Equity Holdings' revenue of $50.1 million increased 57.1% from the first quarter of 2025.
- 2
Gross profit increased 25.4% to $20.6 million compared to the first quarter of 2025.
- 3
The net loss attributable to common shareholders was $4.4 million, or $1.17 per diluted share.
- 4
Adjusted EBITDA loss increased to $1.6 million versus adjusted EBITDA loss of $0.7 million in the first quarter of 2025.
- 5
The company realized merger synergies of $2.6 million on an annualized basis.
- 6
Total cash including restricted cash was $10.3 million at March 31, 2026.
- 7
Business Services revenue was $35.0 million, up from $31.9 million in the prior year quarter.
Management Comments
Jeff Eberwein
The first quarter is almost always our weakest quarter of the year and in this year's first quarter, startup delays for new projects and broader macroeconomic conditions caused our Building Solutions and Business Services divisions to perform worse than expected. Our Energy Services division, however, maintained solid momentum. We believe our focus on operational and cost improvements and continued investments in growth and innovation are strengthening our competitive position and will drive significantly improved results as the year progresses. We remain focused on disciplined execution, rigorous cost management, and prudent capital allocation, including the active evaluation of M&A opportunities across all three of our operating divisions, as we continue to advance our strategic priorities. We believe we are well positioned to navigate near-term market volatility while driving increased profitability and long-term shareholder value.
Jake Zabkowicz
Gross profit increased 6.4% at HTS year-over-year, reflecting steady improvement despite continued macroeconomic uncertainty and sustained pressure in the talent market. We have maintained a strong focus on innovation and operational efficiency, including the expanded deployment of agentic AI solutions to enhance recruiter productivity, improve candidate matching, and deliver greater value to clients. These efforts are helping our ability to navigate the current environment while positioning us to capitalize on improving market conditions in the future. As an example, new business activity and contract renewals with legacy clients accelerated meaningfully in the first quarter of 2026, exceeding levels seen in any quarter of 2025.”
Rick Coleman
Residential and commercial construction markets remained soft in the first quarter causing our Building Solutions division to perform below internal expectations, primarily due to delays in several pending contract awards and severe winter weather in both of our key geographies. However, underlying demand remains intact, as evidenced by recently secured new business, including the $4.2 million multifamily housing project in New Hampshire for our KBS business we announced on April 30, 2026. In contrast, our Energy Services division delivered a strong quarter, continuing to gain share across core markets, with particularly strong performance in mining and geothermal end markets.
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