Michael Mathison's questions to STAR OPERATING COMPANIES (STRR) leadership • Q2 2025
Question
Michael Mathison from Sidoti & Company asked for clarification on several points: why the Energy Services division is able to raise prices amid industry pressure, the nature of recent large commercial contracts in Building Solutions, why that division is outperforming homebuilder trends, and for any directional guidance for modeling the combined company post-merger.
Answer
Executive Chairman Jeffrey Eberwein and CEO Richard Coleman explained that Energy Services' strength comes from providing mission-critical, high-demand tools. Regarding Building Solutions, they noted the backlog is a mix of projects driven by pent-up demand in their Northeast territory, where a housing shortage persists. For outlook, Jeffrey Eberwein stated that while formal guidance isn't provided, Building Solutions and Energy Services are expected to be at least flat with Q2, the incoming Hudson business is past its trough, and the merger should yield $2 million in cost synergies over a few quarters.