Star Equity Holdings, Inc. ( STRR ) stock is trading higher on Tuesday after the company announced that its subsidiary, KBS Builders, Inc., received a $3.2 million contract.

What To Know: The contract requests that KBS manufacture 40 modules in order to construct five four-unit townhouse condominiums in Lincoln County, Maine. These modules are prefabricated sections of the buildings constructed off-site.

“This project marks another multifamily housing win for us in Maine and further solidifies KBS’ strong reputation and market position in New England. We are pleased with the recent pace at which we have been converting large commercial projects from our sales pipeline into booked backlog,” said CEO of Star Rick Coleman.

“We believe our location and expertise uniquely position us to address the shortage of housing in New England and allow us to provide best-in-class construction solutions for our customers.”

The project is expected to commence during January and delivery is expected during the 2025 second-quarter. The project is the second of the two “future potential contracts” mentioned in the company’s 2024 fiscal-year third-quarter earnings report.

The first contract, valued at $2.1 million, is for the manufacturing of 16 modules to be used for the construction of three four-unit apartment buildings in Randolph, Vermont. Production of the modules is expected to begin in February and is scheduled for delivery during the 2025 second-quarter.

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STTR Price Action: At the time of publication, Star stock is trading 4.98% higher at $2.32, according to data from Benzinga Pro.

Image: 1081412 from Pixabay.