Core Viewpoint - Star Equity Holdings, Inc. is actively engaging with investors through presentations and meetings at the upcoming LD Micro Conference, highlighting its strategic focus on building long-term shareholder value through diversified business operations [1][2][4]. Company Overview - Star Equity Holdings, Inc. is a diversified holding company that aims to build long-term shareholder value by acquiring, managing, and growing businesses with strong fundamentals and market opportunities [4]. - The company operates through four divisions: Building Solutions, Business Services, Energy Services, and Investments [4]. Recent Developments - On August 22, 2025, the company completed the acquisition of Star Operating Companies, Inc., which was part of a merger agreement finalized on May 21, 2025. This merger resulted in the company changing its name and trading symbols on Nasdaq [5]. Division Summaries - **Building Solutions**: This division focuses on modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber manufacturing [6]. - **Business Services**: This division provides flexible recruitment solutions to a global clientele, servicing organizations from entry-level to C-suite positions, with a focus on mid-market and enterprise organizations [7]. - **Energy Services**: This division is involved in the rental, sale, and repair of downhole tools for various industries, including oil and gas, geothermal, mining, and water-well [8]. - **Investments**: This division manages and finances the company's real estate assets and investment positions in both private and public companies [9].

Core Insights - RPC, Inc. reported a 26% sequential increase in revenues for Q2 2025, totaling $420.8 million, driven by the acquisition of Pintail Completions, despite challenges in the pressure pumping service line [6][10][12] - The oilfield services market is facing challenges due to lower commodity prices and macroeconomic uncertainties, but RPC's diversified service lines and customer base provided some resilience [5][10] Financial Performance - Revenues for pressure pumping, RPC's largest service line, decreased by 18%, while other service lines, excluding Pintail's wireline, saw increases [6][10] - Net income was reported at $10.1 million, down 16% sequentially, with diluted EPS at $0.05, reflecting a net income margin decrease of 120 basis points to 2.4% [10][12] - Adjusted net income increased by 46% sequentially to $17.5 million, with adjusted diluted EPS at $0.08, and an adjusted net income margin increase of 60 basis points to 4.2% [10][13] Cost and Expenses - Cost of revenues increased by 30% to $317.7 million, primarily due to the addition of Pintail, offset by lower pressure pumping activity [7][10] - Selling, general and administrative expenses decreased to $40.8 million, down from $42.5 million, with a reduction in employment costs contributing to a decrease in SG&A as a percentage of revenues [8][10] Acquisition Impact - The acquisition of Pintail Completions, effective April 1, 2025, contributed $98.9 million in revenues, significantly impacting RPC's financial results [10][12] - Acquisition-related employment costs were approximately $6.6 million during Q2 2025, with total expected costs of $78.6 million to be recognized over 12 quarters [9][10] Industry Context - The average U.S. rig count decreased to 571 in Q2 2025, down 2.9% from Q1 2025 and 5.3% year-over-year [5][10] - Oil prices averaged $64.74 per barrel, a decline of 10% sequentially and 20.8% year-over-year, while natural gas prices fell by 22.7% sequentially to $3.20 per Mcf [5][10] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q2 2025 were $162.1 million, with net cash provided by operating activities at $92.9 million and free cash flow at $17.6 million year-to-date [14][15] - The company declared a quarterly cash dividend of $0.04 per share, payable on September 10, 2025 [15]

Proposed Merger (Nasdaq: HSON) (Nasdaq: STRR, STRRP) PARTICIPANTS IN THE SOLICITATION Hudson, Star, and their respective directors and certain of their executive officers and employees may be considered participants in the solicitation of proxies from Hudson's stockholders with respect to the proposed merger transaction under the rules of the SEC. Information about the directors and executive officers of Hudson is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was fi ...

Financial Data and Key Metrics Changes - First quarter revenues decreased by 1% to $333 million compared to the fourth quarter of 2024 [24] - EBITDA increased to $49.489 million from $46.1 million, with an EBITDA margin rising by 100 basis points sequentially to 14.7% [29] - Diluted EPS remained flat at 6¢ compared to the fourth quarter [28] Business Line Data and Key Metrics Changes - Pressure pumping revenues were essentially flat sequentially, representing 40.1% of total revenues [24][7] - Downhole tools revenues were flat, accounting for 28.2% of total revenues [24][12] - Rental tools saw a notable gain of about 7% [13] Market Data and Key Metrics Changes - The overall service lines in aggregate declined by 1% [7] - Demand and utilization for tier two diesel equipment remain challenging, with competitive pricing in the market [9] Company Strategy and Development Direction - The acquisition of Pentel for $245 million is expected to enhance operational scale and focus on high cash flow generating service lines [14][20] - The company aims to balance pricing and utilization strategies while maintaining asset quality [10] - Future capital expenditures are projected between $165 to $215 million, primarily for maintenance [29] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about macro uncertainties driven by tariffs and their impact on inflation and the economy [35] - Oil prices falling to the low $60 range may affect customer completion activities [36] - Despite uncertainties, the company maintains a strong balance sheet and secure dividends [37] Other Important Information - The company filed an S-3 registration statement with the SEC for the Rollins Family Control Group shares, viewed as good corporate housekeeping [34] - Steve Lewis was welcomed to the board of directors, while Gary Rollins and Pam Rollins retired [39] Q&A Session Summary Question: What are the current pricing conversations in the pressure pumping market? - Management noted that while discussions are similar to previous cycles, the current circumstances may impact these discussions due to lower oil prices [48][50] Question: What are the capital allocation priorities post-Pentel acquisition? - The focus is on accretive transactions, exposure to larger customers, and businesses with good free cash flow potential [52][54] Question: What is the expected revenue for Pentel? - Pentel generated over $400 million in 2024, with quarterly revenues around $100 million [56][58] Question: Is there a shift in customer activity towards lower CapEx projects? - Management indicated it is early to determine shifts but acknowledged that such changes have occurred in prior cycles [66][72] Question: Are there any signs of increased gas-directed activity? - Management believes that any uptick in gas-directed activity is likely further down the road [74][76] Question: What is the company's stance on selling older equipment? - The company monitors its equipment and aims to avoid reintroducing older assets into the market, focusing on reallocating them to other service lines [92][94] Question: What factors would lead to an acceleration in CapEx spending? - CapEx spending will depend on market conditions and the need to maintain equipment or pursue accretive opportunities [100][101] Question: Is the company focused on consolidating the Permian market or open to other basins? - Management stated they are open to opportunities in various basins, not just the Permian [108][110]