Star Equity Holdings, Inc. reported a revenue increase of 16.5% for the fiscal year ended December 31, 2024, totaling $53.4 million, compared to $45.8 million in 2023. This growth was primarily attributed to the inclusion of revenues from Timber Technologies Solutions, Inc. (TT) and Big Lake Lumber (BLL), which were acquired in 2024 and late 2023, respectively. However, the company also experienced a net loss attributable to common stockholders of $12.5 million, a significant decline from a net income of $23.2 million in the previous year. The loss was driven by increased operating expenses and impairment charges related to investments.
The company's operating expenses rose by 20% to $19.5 million, influenced by the integration of BLL and TT's operations. Gross profit decreased by 7.3% to $11.1 million, reflecting challenges in maintaining margins amid fixed costs and a purchase price adjustment related to TT's inventory. The gross margin fell from 26% in 2023 to 20.7% in 2024, indicating pressure on profitability despite higher revenues.
Strategically, Star Equity has undergone significant changes, including the divestiture of its healthcare division, Digirad Health, in May 2023, which allowed the company to focus on its Building Solutions and Investments divisions. The acquisitions of BLL and TT are expected to enhance market share and operational capabilities in the construction sector. The company is also exploring further growth opportunities through organic expansion and potential acquisitions, aiming to leverage its existing infrastructure and market presence.
Operationally, Star Equity reported a total employee count of 194 as of December 31, 2024, with a focus on enhancing its workforce to support growth initiatives. The company is optimistic about future performance, citing a strong sales pipeline and anticipated demand for modular construction solutions. However, it acknowledged the potential impact of economic conditions, including inflation and interest rates, on its operations and financial results moving forward. The management remains committed to improving profitability and shareholder value through strategic investments and operational efficiencies.
About STAR EQUITY HOLDINGS, INC.
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