Star Equity Holdings, Inc. Announces 2025 First Quarter Financial Results

Core Insights - The company reported a significant increase in consolidated revenues for Q1 2025, rising by 41.7% to $12.9 million compared to $9.1 million in Q1 2024, primarily driven by acquisitions and improved performance in its Building Solutions division [4][7][3] - The acquisition of Alliance Drilling Tools marks the company's entry into the Energy Services sector, complementing its existing operations [3] - The Building Solutions backlog reached a record $27.9 million at the end of the quarter, indicating strong future demand [3][4] Financial Performance - Q1 2025 revenues increased to $12.9 million from $9.1 million in Q1 2024, reflecting a 41.7% growth [4][7] - Building Solutions revenue grew by 32.9% year-over-year, attributed to the inclusion of Timber Technologies Solutions and improved results at KBS [5][6] - Gross profit for Q1 2025 was $3.1 million, a 99.2% increase from $1.6 million in Q1 2024, with a gross margin improvement to 24.3% from 17.3% [6][8] Operational Highlights - The integration of Alliance Drilling Tools is progressing smoothly, with a focus on future growth and potential acquisitions in both Building Solutions and Energy Services divisions [3] - The company experienced a net loss of $1.2 million in Q1 2025, an improvement from a net loss of $2.2 million in the same period last year [10][11] - Cash flow from operations improved significantly, with an inflow of $563 thousand compared to an outflow of $2.4 million in Q1 2024, driven by better operational results and strong accounts receivable collections [12] Backlog and Future Outlook - The Building Solutions division's backlog increased to $27.9 million, indicating strong demand for new projects despite some delays in commercial projects [3][5] - The company anticipates strong performance in the second quarter and full-year 2025 based on current backlog and sales pipeline [3][4] Dividends and Stock Information - The board declared a cash dividend of $0.25 per share for Series A Preferred Stock, totaling approximately $0.5 million [14] - As of March 31, 2025, the company had remaining authorization to repurchase up to $721 thousand of its common stock under its stock repurchase program [17]