Financial Performance - The company reported a consolidated revenue increase of 76% in Q2 2025, driven by strong performance in the Building Solutions division and contributions from recent acquisitions [5][6] - Q2 2025 revenues reached $23.7 million, up from $13.5 million in Q2 2024, with a gross profit increase of 182.2% to $6.3 million [6][11] - The company achieved a net income of $3.5 million in Q2 2025, compared to a net loss of $3.8 million in the same period last year [11][12] Division Performance - The Building Solutions division saw revenues increase by 75.8% to $23.7 million, with a gross profit increase of 135.2% to $5.2 million [6][9] - The Energy Services division reported robust performance despite challenging macroeconomic conditions, contributing to overall revenue growth [5] - The Investments division generated $5.8 million in adjusted EBITDA, primarily from a realized gain on an investment in Servotronics [5][13] Backlog and Future Outlook - The Building Solutions backlog stood at $25.7 million at the end of Q2 2025, indicating strong demand for new projects [5][8] - The company expressed optimism for strong performance in the second half of 2025, supported by a solid sales pipeline and customer feedback [5][8] Operating Expenses and Cash Flow - Q2 2025 SG&A expenses increased by 20.2% to $6.4 million, but as a percentage of revenue, they decreased to 27.1% from 39.6% in Q2 2024 [10] - Cash flow from operations improved, with an outflow of $1.7 million in Q2 2025 compared to $1.9 million in Q2 2024, attributed to favorable operational results [15] Merger and Strategic Initiatives - The company signed a definitive merger agreement with Hudson Global, expected to enhance shareholder value through increased scale and diversification [5][12] - Shareholder meetings for the merger approval are scheduled for August 21, 2025 [5]
Star Equity Holdings, Inc. Announces 2025 Second Quarter Financial Results