Star Equity (STRR) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 21.1% year-over-year to $17.1M, with full-year revenue up 16.5% to $53.4M, driven by acquisitions of Timber Technologies and Big Lake Lumber; Q4 2025 revenue grew 69% to $56.8M, with FY 2025 revenue up 23% to $172.2M.

• Gross profit in Q4 2024 increased 55.9% to $4.4M, but full-year gross profit declined 7.3% due to one-time adjustments; Q4 2025 gross profit rose 38% to $24.2M, with FY 2025 gross profit up 14% to $79.9M.

• Adjusted EBITDA improved from a loss of $(0.1)M in Q4 2023 to $1.1M in Q4 2024, and rose 156% in Q4 2025; pro forma adjusted net income for FY 2025 was $5.0M versus $(2.9)M in FY 2024.

• Net loss from continuing operations in Q4 2024 was $2.5M, with adjusted net income of $0.5M; Q4 2025 net loss attributable to common shareholders was $(2.4)M, but adjusted net loss improved for the full year.

• Acquisition of Alliance Drilling Tools (ADT) in March 2025 established the Energy Services division, diversifying operations and adding a high-margin, cash-generative business.

Financial highlights

• Q4 2024 consolidated gross profit was $4.4M, up 55.9% year-over-year; Q4 2025 gross profit was $24.2M, up 38% year-over-year.

• Q4 2024 SG&A rose 31.7% to $1M, or 24.7% of revenue; Q4 2025 SG&A expenses rose to $4.2M, or 24.7% of revenue.

• Cash and equivalents at year-end 2025 were $10.3M, down from $17.0M at year-end 2024; year-end 2024 cash balance was $5.6M, down from $18.9M.

• Working capital increased to $62.5M from $40.1M year-over-year.

• Share repurchases totaled $279K in 2024, with $721K remaining authorized.

Outlook and guidance

• Strong backlog and sales pipeline support expectations for robust growth in 2025, with continued momentum into Q1 2025; Building Solutions backlog declined through 2025 but is expected to recover in 2026.

• Management anticipates continued organic growth, acquisitions, and share repurchases to drive shareholder value.

• Management remains optimistic about long-term structural tailwinds in factory-built construction and the growth potential of the new Energy Services division.