| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 54.94 | 9.8% | 54.6% |
| Total Income | 54.94 | 9.8% | 54.6% |
| Expenditure | 56.31 | 4.1% | 57.5% |
| PBT | -1.58 | 61.1% | 364.7% |
| Net Profit | -1.85 | 51.2% | 168.1% |
| OPM | -2.49% | 5.53pp | 1.90pp |
| NPM | -3.36% | 4.21pp | 1.43pp |
| EPS | -0.50 | 50.5% | 117.4% |
Star Equity Holdings Reports Q2 2026 Results
14 Aug 2026 · 14 Aug, 6:18 pm
Summary
Star Equity Holdings announced its financial results for the second quarter ended June 30, 2026, with revenue reaching $54.9 million, a significant 54.6% increase year-over-year. Gross profit also saw a healthy rise of 22.3% to $22.8 million. The company reported a net loss attributable to common shareholders of $2.5 million, or $0.66 per diluted share. Adjusted EBITDA showed improvement, increasing to $2.2 million from $1.3 million in the prior year quarter, with management highlighting strong performance in Energy Services and continued focus on disciplined execution and cost management.
Key Highlights
- 1
Star Equity Holdings reported revenue of $54.9 million for the second quarter of 2026, an increase of 54.6% compared to the second quarter of 2025.
- 2
Gross profit for the second quarter of 2026 was $22.8 million, an increase of 22.3% from the prior year quarter.
- 3
The company reported a net loss attributable to common shareholders of $2.5 million, or $0.66 per diluted share, for Q2 2026.
- 4
Adjusted EBITDA increased to $2.2 million in the second quarter of 2026, up from $1.3 million in the second quarter of 2025.
- 5
Building Solutions division's backlog was $10.6 million at the end of Q2 2026, up from $8.0 million at Q1 2026.
- 6
The company realized merger synergies of $3.0 million on an annualized basis.
Management Comments
Jeff Eberwein
In the second quarter, Business Services delivered modest revenue growth, with gross profit down slightly year-over-year, while Energy Services posted strong year-over-year gains in revenue, gross profit, and adjusted EBITDA, reflecting activity increases and new client wins in the geothermal and mining industries. Building Solutions remained below our expectations due to market softness and contract timing including revenue from one large project largely constructed in Q2 that will now be recognized mainly in Q3. While residential and commercial construction markets remained challenging in the second quarter, we have gained traction in the areas of workforce, affordable, and assisted living/senior housing. We continued to add attractive work to the backlog, including the previously announced $4.2 million multifamily project in New Hampshire to serve the senior community. We remain focused on disciplined execution, rigorous cost management, and returns‑driven capital allocation, including the active evaluation of M&A opportunities across all three operating divisions. Our $215 million U.S. NOL position as of December 31, 2025 represents a meaningful tax asset that we expect to enhance after‑tax returns on future growth initiatives and strategic transactions. With the realization of synergies from the Star merger completed in August 2025, a strengthening Energy Services platform, and a resilient Business Services franchise, we believe we are well positioned to navigate near‑term market volatility, improve profitability, and create long‑term value for our stockholders.
Jake Zabkowicz
HTS's revenues were up modestly year-over-year, despite continued macroeconomic uncertainty and sustained pressure in the professional talent market. We have maintained a strong focus on innovation and operational efficiency, including the expanded deployment of agentic AI and automation tools to enhance recruiter productivity, improve candidate matching, and deliver greater value to clients. These initiatives helped limit the year-over-year gross profit decline to 4% despite a mixed regional backdrop, with growth in the Americas offsetting softer conditions in Asia Pacific and EMEA. We believe our deep client relationships and continued focus on technology‑enabled delivery positions Hudson Talent Solutions to capitalize on improving market conditions over time.
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