MIAMI - Safe & Green Holdings Corp. (NASDAQ: SGBX), a prominent developer and fabricator of modular structures, has announced an increase to an existing military contract by approximately $1 million, earmarking over $900,000 of this for the construction of 11 new modular office containers. This change order, effective as of May 9, 2024, builds on the company's original contract to refurbish 19 modular units.
Paul Galvin, Chairperson and CEO of Safe and Green Holdings, expressed enthusiasm over the expansion of their contract with a principal government contractor, highlighting the new construction of 11 modular office containers.
Galvin emphasized the stackable, non-combustible nature of these units and their adaptability for use in areas with limited office space. He also remarked on the ongoing partnership with the contractor as a testament to the company's product quality and expertise in modular construction.
Safe & Green Holdings operates with a focus on providing safe and environmentally friendly modular solutions across various industries. The company's subsidiary, Safe and Green Development Corporation, specializes in real estate development using prefabricated modules for faster construction and higher value buildings. The firm's other subsidiary, SG Echo, operates factories producing these modules.
This contract extension reinforces Safe & Green Holdings' position in the modular construction market and its role in supporting military infrastructure with its non-combustible, space-efficient units.
The company's announcement is based on a press release statement.
InvestingPro Insights
As Safe & Green Holdings Corp. (NASDAQ: SGBX) secures an expanded military contract, the financial health and market performance of the company provide a broader context for investors. According to recent data from InvestingPro, SGBX has a market capitalization of $10.46 million, reflecting its size within the industry. Despite the positive news on contract expansion, the company's financial metrics indicate challenges, with a negative P/E ratio of -0.49 for the last twelve months as of Q4 2023, suggesting that the company is not currently profitable.
The firm's revenue has also seen a significant decline, with a decrease of 32.27% over the last twelve months as of Q4 2023. This is further compounded by a gross profit margin of -15.47%, indicating that the company is spending more to produce its goods than it makes from sales. These figures highlight the financial difficulties SGBX faces, with a pressing need to improve its bottom line.
InvestingPro Tips reveal that Safe & Green Holdings operates with a significant debt burden and may have trouble making interest payments on its debt. These concerns are exacerbated by the company's rapid cash burn and weak gross profit margins. Additionally, the stock has experienced a large drop over the past week and has been characterized by high price volatility. For a comprehensive list of financial health indicators and stock performance metrics, investors can explore more InvestingPro Tips on the company's profile at Investing.com/pro/SGBX. There are 15 additional InvestingPro Tips available, which can provide deeper insights into SGBX's financial stability and market outlook.
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