New contract with recurring customer represents largest single order to date; reflects Company’s track record of quick, sustainable, and cost-efficient production
Project to commence immediately and expected to be completed during the first half of 2024
SG Echo Manufacturing Facility
MIAMI, FL, Jan. 11, 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 SG Echo, LLC, a wholly-owned subsidiary of Safe & Green Holdings Corp., today announced it has been awarded a purchase order to provide over 150 additional modular units to an existing infrastructure solutions customer. The purchase order is expected to generate revenue of approximately $11.3 million, commencing immediately and continuing over the next six months.
This order is in addition to another recent follow-on order for 40 units with the same customer, as previously announced on October 30, 2023. The Company anticipates the order will utilize a significant portion of its remaining capacity across its two operational manufacturing facilities.
Paul Galvin, Chairperson and CEO of Safe & Green Holdings, commented, "This record order from a recurring customer is a strong validation of our ability to provide high-quality units quickly, sustainably, and cost-efficiently. This contract will not only generate meaningful revenue but also provide attractive margins. Importantly, the project is slated to commence immediately, and we aim to complete the project during the first half of 2024 – an ambitious but achievable goal. We believe that our track record of executing on orders such as these and continually exceeding our clients’ expectations allows us to foster strong, enduring partnerships as well as attract new clients. We look forward to expanding our relationship with this customer and anticipate additional sizable orders in the near future.”
Tricia Kaelin, Chief Financial Officer of Safe & Green Holdings, further noted, “We are off to a strong start in 2024. Upon completion of the project in the second quarter of 2024, this one contract alone will generate more revenue than we recorded in the entire first half of 2023. Moreover, as we increase throughput at our facilities, we anticipate attractive margins and meaningful cash flow from the project.”
David Cross, Vice President of Business Development at Safe & Green Holdings stated, "Our solid prior performance has led to recurring business, culminating in this transformative project. We look forward to further expanding our relationship with this and other clients, as well as adding new clients in 2024 and beyond.”
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. 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 expected factory utilization; expected revenue generation, the timing thereof, anticipated margins, the estimated completion timeframe of the new units, expected future orders and the outlook for the business. 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, among others, the Company’s ability to deliver the units to this private client as planned, the Company’s ability to further develop its relationship with the private client, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, 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.
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