Core Insights - Star Equity Holdings, Inc. is set to present at Sidoti's Micro-Cap Virtual Investor Conference on January 21-22, 2026, with a main presentation scheduled for January 22 at 10:45am ET [1][2] Company Overview - Star Equity Holdings, Inc. is a diversified holding company focused on building long-term shareholder value through the acquisition, management, and growth of businesses with strong fundamentals and market opportunities [3] - The company operates through four divisions: Building Solutions, Business Services, Energy Services, and Investments [3] Recent Developments - On August 22, 2025, the company completed the acquisition of Star Operating Companies, Inc., which was previously known as Star Equity Holdings, Inc. This merger resulted in the company changing its name and trading symbols on Nasdaq to STRR and STRRP effective September 5, 2025 [4] Division Summaries - **Building Solutions**: This division focuses on modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber (glulam) products [5] - **Business Services**: This division offers flexible recruitment solutions to a global clientele, catering to organizations from entry-level to C-suite positions, with a focus on mid-market and enterprise organizations [6] - **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 [7] - **Investments**: This division manages and finances the company's real estate assets and investment positions in both private and public companies [8]

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].

Financial Data and Key Metrics Changes - The company reported quarterly revenue exceeding $2 billion for the first time, with earnings per share of $6.53, a 75% increase year-over-year [6][13] - Same store revenue growth was 19%, with a quarterly EBITDA of over $300 million, marking a 50% increase from the previous year [9][14] - Net income for the quarter was $231 million, compared to $134 million in the previous year, reflecting a more than 70% improvement [13] - Free cash flow for the quarter was $220 million, with a net cash position exceeding $250 million after share repurchases and acquisitions [14][16] Business Line Data and Key Metrics Changes - The mechanical segment saw a 13% increase in revenue, while the electrical segment revenue grew by 49% [9][10] - Service revenue increased by 10%, contributing to 15% of total revenue, with strong profitability in this segment [21] - Gross profit for the second quarter was $510 million, with a gross profit margin of 23.5%, up from 20.1% a year ago [10][11] Market Data and Key Metrics Changes - Industrial customers accounted for 63% of total revenue, with technology representing 40% of revenue, up from 31% the previous year [19] - Institutional markets, including education and healthcare, contributed 24% of revenue, while the commercial sector accounted for 13% [20] - The backlog at the end of the quarter reached a record $8.1 billion, a 41% increase year-over-year [17] Company Strategy and Development Direction - The company announced the acquisition of Rightway Plumbing, expected to generate $60 million to $70 million in annual revenue [7] - There is a focus on expanding modular capabilities and improving productivity and automation in existing facilities [24] - The company aims to maintain strong margins and continue growth in both the mechanical and electrical segments [10][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand for large and complex projects despite economic uncertainties [8] - The company anticipates continued strong results in 2025 and into 2026, supported by robust project pipelines [17][39] - Management noted that the recent tax reform legislation is not expected to significantly impact operating results or cash flows [12] Other Important Information - The company increased its quarterly dividend by 5 cents to 50 cents per share [7] - There is a strong emphasis on employee dedication and collaboration across various projects, which is seen as key to long-term success [74] Q&A Session Summary Question: Modular capabilities expansion and potential third location - Management indicated a focus on incremental capacity expansion and improving productivity rather than prioritizing a third location at this time [24][26] Question: Impact of bonus depreciation on customer conversations - Management acknowledged that while bonus depreciation helps customers, it is not a significant driver of demand at this time [28] Question: Growth confidence for the remainder of 2025 - Management expressed confidence in robust future pipelines and continued growth, particularly in service revenue [34][36] Question: Competitive landscape in modular construction - Management noted that while competition exists, the goal is to excel in service quality to maintain a leadership position [87] Question: Healthcare market opportunities - Management highlighted ongoing strength in the healthcare sector, particularly in new hospital builds and expansions [89] Question: Pricing dynamics and supplier cost pressures - Management indicated that while suppliers may attempt to pass on costs, the company is effectively managing pricing and maintaining strong margins [98][103]