Safe & Green Holdings Announces Expanded Agreement to Produce Modular Electrical Distribution Centers as Part of Multi-Unit Order for Big Box End User
Safe & Green Holdings Corp. (NASDAQ: SGBX), a leader in modular structure development, announced an expanded agreement to produce seven additional container-based electrical distribution centers. These are part of a multi-unit order for a big box retailer, supplementing the four units already in production. Modular electrical distribution centers offer versatile, reliable, and efficient solutions for distributing electricity. Paul Galvin, CEO, highlighted the ongoing partnership and the consistent demand for their innovative solutions. David Cross, Business Development Director, emphasized the repeat orders as a testament to their quality and the benefits of modular construction.
- Safe & Green Holdings received an order for seven additional electrical distribution centers.
- The company is now producing a total of eleven units for a big box retailer.
- Repeat orders indicate the quality and demand for Safe & Green's modular solutions.
- Safe & Green has a history of producing over a hundred modular electrical distribution units.
- None.
Safe & Green Holdings' announcement about expanding their agreement to produce modular electrical distribution centers can offer valuable insights into the company's market positioning and future potential. The expanded agreement, which now includes producing seven additional units for a big box retailer, showcases customer trust and continued demand for Safe & Green’s solutions.
Given the trend towards modular construction due to its efficiency and flexibility, this development demonstrates Safe & Green Holdings is capitalizing on a growing market. The big box retail sector benefits from cost-effective and scalable solutions and the company's consistent ability to secure repeat orders underscores its competitive advantage. This move reinforces the company's market share in a niche but expanding sector.
For investors, this expansion might indicate revenue growth potential in the short to mid-term, as continued partnerships with major clients could lead to more steady income streams. However, it's important to keep an eye on the broader market trends and competitive landscape. The sustainability of such growth hinges on the company's ability to innovate and maintain product quality, important in a market driven by adaptability and technological advancements.
From a financial perspective, the announced expansion provides several noteworthy insights. Firstly, repeat orders and expansion indicate reliable revenue streams from existing clients, which can contribute positively to earnings stability and predictability. Safe & Green Holdings is now producing a total of eleven units, suggesting a steady production pipeline. This could imply stronger cash flow management and potentially better financial health in upcoming quarters.
It’s important to note the potential economies of scale that could be realized with such orders. Increased production often leads to reduced per-unit costs, which can improve profit margins. Investors should watch for any updates on cost reductions or improvements in gross margins directly attributed to these larger orders.
However, investors should also be aware of potential risks. Expansion projects can sometimes lead to capital expenditure increases and pressure on working capital. Monitoring the company’s balance sheet for any significant shifts in debt levels or liquidity will be important in assessing any financial strain from this expansion.
Intermodal Electrical Distribution Unit
MIAMI, FL, June 25, 2024 (GLOBE NEWSWIRE) -- Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures, announced today that Safe & Green Holdings has received an expansion of an agreement to manufacture seven additional container based electrical distribution centers as part of a multi-unit order for a client serving the big box retailer market. These units are in addition to the four units which the Company has already begun production.
A modular electrical distribution center offers a flexible and customizable solution for distributing electricity from a single source to multiple destinations. The unit excels in versatility and dependability, efficiently managing and distributing electrical power, and is easily adaptable to evolving technologies and escalating power requirements.
Paul Galvin, Chairperson and CEO of Safe and Green Holdings, stated, “We are delighted that Safe & Green Holdings has secured orders for seven additional GreenSteel™ Containers. These containers, which serve as electrical distribution centers, are part of our ongoing partnership with a large, big box retailers’ store initiatives. Now in its 15th year, this program has consistently provided these innovative container-based solutions in mainstream construction."
David Cross, Director of Business Development, commented, “With these new orders, we are currently producing a total of eleven units. Repeat orders such as these are a testament to the quality modular construction of the units. Over the years, we have produced over a hundred modular electrical distribution center units, and we are thrilled to resume production, reaffirming the flexibility and essential benefits of modular construction for on-demand electrical distribution.”
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third-party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. The Company’s subsidiary, Safe and Green Development Corporation, is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel, sourced from one of SG Holdings’ factories and operated by the SG Echo subsidiary. For more information, visit https://www.safeandgreenholdings.com/ and follow us at @SGHcorp on Twitter.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding an agreement to manufacture four container based electrical distribution centers as part of a multi-unit order for a client serving the big box retailer market. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, but are not limited to, the Company’s ability to manufacture and deliver the four container based electrical distribution centers as part of a multi-unit order for a client serving the big box retailer market as planned, and the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Investor Relations:
Crescendo Communications, LLC
212-671-1020
SGBX@crescendo-ir.com
Attachment
FAQ
What recent order did Safe & Green Holdings (SGBX) receive?
How many electrical distribution centers is Safe & Green Holdings currently producing?
Who is the end user for the recent Safe & Green Holdings (SGBX) order?
What does Safe & Green Holdings' recent order expansion signify?
How many modular electrical distribution centers has Safe & Green Holdings produced historically?
