Star Equity Holdings, Inc. Q1 FY2025 earnings call

• Revenue in Q1 2025 increased 41.7% over Q1 2024, driven by acquisitions of Timber Technologies and Alliance Drilling Tools. - Gross margin improved to 24.3% from 17.3% in Q1 2024. - Building Solutions division backlog at record $27.9M provides confidence in full year 2025 outlook. - Energy Services division: Integration of Alliance Drilling Tools is proceeding smoothly, with focus on organic growth and exploring additional acquisitions. - SG&A increased but as a percentage of revenue decreased to 40.7% from 44.9% in Q1 2024.

Building Solutions: Revenue increased 32.9% compared to Q1 2024, with backlog at quarter end reaching a record $27.9 million (up from $14.8 million in Q1 2024). Energy Services: Established in March 2025 with the acquisition of Alliance Drilling Tools, and integration is proceeding smoothly. Investments: Holdings and public equity securities at the end of the quarter amounted to $3.1 million, down from $3.4 million at year end 2024; rollover equity investment and seller note receivable from the 2023 sale were valued at $1.3 million and $8.4 million respectively.

• Building Solutions division has high confidence in full year 2025 outlook based on record backlog. - Star Equity Board and Management Team are focused on creating shareholder value through targeted business development initiatives and identifying additional accretive opportunities at all divisions.

• Weather-related delays affecting project timelines for some divisions. - Monitoring inputs like lumber and OSB prices. - Tariff impact on projects, though no signs of projects being put on hold yet.

Q: Theodore O'Neill asked about delays in EdgeBuilder and Building Solutions despite tariffs.

A: Jeff Eberwein stated EdgeBuilder had a project pause due to specific reasons and weather, shifting revenue to Q2; Richard Coleman said projects are moving forward with strong backlog.

Q: Tate Sullivan asked about Alliance Drilling's gross profit margin and rental terms.

A: David Noble said margin was quarter-specific; Jeffrey Eberwein explained rental terms are project-based, equipment is used and refurbished, similar to a razor blade business.