Star Equity Holdings, Inc. (STRR) Earnings
Star Equity Holdings, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $-0.07. STRR has beaten EPS estimates in 3 of its last 12 reported quarters (average surprise -168.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 12, 2026 | $-0.20 | $-0.99 | -395.0% | $50M | -4.8% |
| Mar 18, 2026 | $0.18 | $-0.10 | -155.6% | $57M | -2.0% |
| Nov 13, 2025 | $0.32 | $0.02 | -93.8% | $48M | -22.7% |
| Aug 8, 2025 | $0.17 | $0.12 | -29.4% | $24M | +17.1% |
| May 14, 2025 | $-0.25 | $-0.52 | -108.0% | $13M | -30.3% |
| Mar 20, 2025 | $-0.17 | $0.15 | +188.2% | $17M | +4.6% |
| Nov 19, 2024 | $-0.26 | $-0.29 | -11.5% | $14M | -12.4% |
| Aug 13, 2024 | $-0.25 | $-0.29 | -16.0% | $13M | -4.7% |
| May 20, 2024 | $-0.10 | $-0.45 | -350.0% | $9M | -11.0% |
| Mar 22, 2024 | $-0.15 | $-0.10 | +33.3% | $14M | +54.2% |
| Aug 11, 2023 | $0.25 | $-0.30 | -220.0% | $9M | -65.6% |
| May 15, 2023 | $-0.28 | $0.30 | +209.1% | $26M | -4.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 12, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Holding Company Level Results * Total consolidated revenue increased 57% year-over-year to $50.1 million, gross profit increased 25% year-over-year to $20.6 million, and the firm reported an adjusted EBITDA loss of $1.6 million, compared to a $0.7 million loss in the prior-year quarter. * Annualized merger synergies from the August 2025 merger with Star Operating Company reached $2.6 million, exceeding the initial 2 million synergy target. Ended Q1 2026 with $10.3 million in total cash, including $2.2 million in restricted cash. * The company has repurchased ~$3.3 million of stock over the last 12 months, believes its shares are meaningfully undervalued, and views share repurchases as an attractive capital allocation use. - Strategic and Operational Progress * Business services has scaled agentic AI tools to improve recruiter productivity, candidate matching, and client value; Q1 2026 new business activity exceeded all quarterly levels seen in 2025, with multiple client renewals secured via non-competitive processes. * Building solutions secured a new $4.2 million multifamily housing project in New Hampshire announced in April 2026, and underlying end-market demand remains intact despite near-term disruptions. * Energy services has diversified into high-growth adjacent segments including geothermal, carbon capture, and hydrogen drilling, expanding its market opportunity beyond traditional oil and gas drilling. * The firm continues to evaluate accretive M&A opportunities across existing divisions and potential new verticals to expand its operating model and growth footprint.
Guidance
- Management is comfortable with the street consensus of $2 million to $2.5 million in adjusted EBITDA for Q2 2026, which would offset the Q1 adjusted EBITDA loss and result in positive adjusted EBITDA for the first half of 2026. - Management is comfortable with the street consensus of $8 billion to $10 billion in full-year 2026 adjusted EBITDA, representing the firm's internal base projection based on current pipeline and market conditions. - Management expects backlog for building solutions to rebuild throughout the remainder of 2026 as delayed projects move from the pipeline to execution, and for the book-to-bill ratio to return to 2025 levels. - Capital expenditure for Energy Services is expected to remain flat relative to the Q1 2026 run rate, after a one-time incremental capex increase to support expansion into new market segments that has already been completed.
Segment performance
1. Business Services (Hudson Talent Solutions): Revenue grew 9.8% year-over-year, gross profit grew 6.4% year-over-year. Regionally, gross profit grew 21% in the Americas, 11% in EMEA, and declined 8% in Asia-Pacific. This segment underperformed expectations in a challenging talent market while the firm continues to invest for future growth. 2. Building Solutions: Revenue was $11.6 million, gross profit was $1.6 million, and adjusted EBITDA recorded a loss of $900,000. End-of-quarter backlog totaled $8.0 million, with a book-to-bill ratio of 0.72. The segment missed expectations due to delayed project awards and severe winter weather disruptions, contributing to the holding company's adjusted EBITDA loss. 3. Energy Services: Revenue was $3.5 million, gross profit was $1.5 million, and adjusted EBITDA was $1 million. This segment delivered a strong quarter, with solid market share gains across core end markets including mining and geothermal even in a declining U.S. rig count environment.
Risks & headwinds
- Broader macroeconomic conditions, delayed project timing, and elevated interest rates have slowed conversion of the building solutions active project pipeline into contracted backlog, pressuring near-term Q1 results. - Global macro uncertainty and geopolitical tensions (including the ongoing conflict in the Middle East) have caused enterprise clients to pause long-term hiring commitments, negatively impacting business services performance in EMEA and Asia-Pacific. - Challenging talent market conditions have led to business services Q1 results coming in below management expectations. - Seasonal weather disruptions (specifically severe winter weather in the Northeast U.S.) negatively impacted building solutions construction activity in Q1.
Analyst Q&A
Q: Can you provide an update on the G Group investment and the company's strategic plan for the asset? /
A: Star Equity acquired a stake in G Group because it traded below cash per share, and could create synergies with the Hudson Talent business services division. Star has a track record of cutting redundant duplicative costs when integrating microcap acquisitions, having beat its 2025 merger synergy target. The company is participating in G Group's formal sale process as an external bidder with only public information, and its bid is contingent on standard severance terms for G Group's management. Star targets a 5% to 10% stake: if it wins the bidding it can integrate the asset, and if it is outbid it will earn a profit on its existing position, with either outcome being positive.
Q: Can you update the status of non-core real estate and private investment monetization, including the idle Oxford, Maine plant? /
A: Star estimates it holds ~$20 million in non-core assets that do not generate meaningful EBITDA, which will be converted to cash over time. It has already completed monetization via sale-leaseback transactions for assets from the Alliance Drilling Tools acquisition. The two remaining large real estate assets (the idle Maine plant and timber acquisition real estate) have an estimated combined value of $8 million to $10 million, and can be monetized via either sale or sale-leaseback. The Catalyst MedTech private investment has rebounded to its original 2023 valuation after a temporary markdown, and will be converted to cash when the majority PE owner exits the position.
Q: For building solutions, what geographic strength is visible in Q2, and will the book-to-bill ratio return to 2025 levels? /
A: The strongest active pipeline visibility is for large modular projects at KBS in Maine. Underlying demand remains solid, but elevated interest rates and macro uncertainty have slowed conversion of the active pipeline to contracted projects, with management expecting significant improvement in Q2. Management confirms that the book-to-bill ratio will return to 2025 levels as revenue increases with the accelerated conversion of the pipeline.
Q: How have macro conditions impacted hiring trends across business services' three regions? /
A: Hiring trends are mixed across regions: APAC has strong overall hiring volume, but most activity is internal mobility which carries lower fee structures than external hiring; EMEA, particularly the Middle East, has seen widespread client pauses on hiring investment, so Star recalibrated its Middle East footprint to align with current market conditions while retaining a regional presence; the Americas, specifically Latin America, are seeing consistent strength, though new client contracts are more often short-term project-based hiring rather than the long-term multi-year contracts the segment has historically secured.