Star Media Group Reports Q2 2025 Profit of RM0.3mil Amidst Macro Headwinds.

Star Media Group Bhd (SMG) posted a pre-tax profit of RM0.3mil in 2Q25, a decrease from RM7.6mil in 2Q24 due to the completion of progress billings for its units sold under the Star Business Hub development. Revenue for 2Q25 decreased 31% to RM51.5mil, with the print, digital, and events segment recording a higher pre-tax profit of RM2.7mil. The radio broadcasting division saw revenue rise 2% to RM6.4mil, while the property development and investment arm recorded a significant decline in revenue due to the absence of progress billings.

Star Equity Holdings Inc. (Nasdaq: STRR; STRRP) reported its financial results for the second quarter (Q2) of 2025, highlighting significant improvements across various business divisions. The company's revenues increased by 75.8% to $23.7 million, while gross profit surged by 182.2% to $6.3 million. The company also generated an Adjusted EBITDA of $7.0 million during the quarter [1].

The Building Solutions division played a pivotal role in driving the company's growth, with revenues increasing by 51.2% to $20.384 million, primarily due to strong commercial project performance and the inclusion of revenues from the acquisitions of Timber Technologies Solutions (TT) and Alliance Drilling Tools (ADT). The Energy Services division also contributed to the positive results, with revenues reaching $3.324 million [1].

The company's net income for Q2 2025 was $3.5 million, compared to a net loss of $3.8 million in the same period last year. Non-GAAP adjusted net income was $6.0 million, up from a non-GAAP adjusted net loss of $0.9 million in the prior year. The year-to-date (YTD) 2025 financial highlights also showed significant improvements, with revenues increasing by 62.1% to $36.6 million and net income improving to $2.3 million [1].

The company's Chief Executive Officer, Rick Coleman, commented on the strong performance, stating, "In the second quarter of 2025, consolidated revenues increased by 76% due to strong Building Solutions division performance as well as the inclusion of revenues from the acquisitions of Timber Technologies Solutions and Alliance Drilling Tools." He also expressed optimism about the division's future performance, noting that the quarter-end Building Solutions backlog stands at $25.7 million [1].

Jeff Eberwein, Executive Chairman of the Board of Directors, highlighted the success of the Investments Division, which generated $5.8 million in adjusted EBITDA, primarily due to a $5.5 million realized gain on the Star Equity Fund's investment in Servotronics, which was acquired by TransDigm at the end of Q2 [1].

The company also announced a definitive merger agreement with Hudson Global, Inc. (Nasdaq: HSON), which is expected to create considerable value for shareholders due to increased scale, further diversification of revenue streams, and the elimination of redundant public company costs. The completion of the merger is subject to shareholder approval, with both meetings scheduled for August 21, 2025 [1].

In summary, Star Equity Holdings Inc. reported strong financial results for Q2 2025, driven by the performance of its Building Solutions and Energy Services divisions, as well as the success of its Investments Division. The company's future outlook remains positive, with a strong backlog and the potential benefits from the upcoming merger with Hudson Global, Inc.

References:
[1] https://www.globenewswire.com/news-release/2025/08/13/3132594/11704/en/Star-Equity-Holdings-Inc-Announces-2025-Second-Quarter-Financial-Results.html