Safe Green 2025 Q1 Earnings Significant Net Loss Improvement

Safe & Green (SGBX) reported its fiscal 2025 Q1 earnings on Jun 13th, 2025. The company's earnings results showed a significant narrowing in net losses compared to the previous year. Despite revenue declining by 41.5% to $566,354, the company managed to improve its net loss by 1.8% to $-2.75 million, from $-2.80 million in 2024 Q1. The guidance for the upcoming quarters suggests a potential revenue increase, targeting approximately $1 million for Q2 2025, with an EPS expectation to stabilize around -0.20.

Revenue

Safe & Green experienced a decline in total revenue, which fell by 41.5% to $566,354 in Q1 2025, compared to $968,115 in Q1 2024. The construction services segment contributed $496,079, while subscription revenue added $70,275, totaling the company's overall revenue.

Earnings/Net Income

Safe & Green narrowed its losses to $0.45 per share in Q1 2025, a significant improvement from a loss of $4.93 per share in Q1 2024, marking a 90.9% enhancement. The net loss was reduced to $-2.75 million from $-2.80 million in the same period last year, indicating a positive turn in earnings performance.

Price Action

The stock price of Safe & Green has plummeted 16.30% during the latest trading day, has plummeted 26.12% during the most recent full trading week, and has climbed 4.31% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Safe & Green shares following a quarter-over-quarter revenue drop and holding for 30 days has underperformed significantly. The compound annual growth rate (CAGR) of this approach was -70.95%, yielding an overall return of -97.49% and an excess return of -158.78%. This strategy also experienced a maximum drawdown of -99.15% and a Sharpe ratio of -0.39, highlighting its failure to deliver positive returns or effectively manage risk. Investors employing this strategy faced substantial losses, underscoring the need for revised investment approaches when dealing with revenue-declining quarters.

CEO Commentary

Seth J. Kauffman, CEO: Safe & Green experienced significant challenges in the first quarter of 2025, reporting an EPS of -0.45 and a revenue of $566,354. Despite these hurdles, we remain committed to our strategic priorities, including enhancing our operational efficiencies and expanding our market presence. We are investing in key growth drivers that align with our long-term vision, focusing on sustainable practices and innovative solutions. Our leadership outlook remains cautiously optimistic as we navigate the current landscape, believing that our investments will position us favorably for future growth and resilience.

Guidance

For the upcoming quarters, we expect to see gradual revenue improvement as we drive operational efficiencies and enhance our product offerings. We project a revenue target of approximately $1 million for Q2 2025, with an EPS expectation to stabilize around -0.20. Our commitment to disciplined capital expenditure will continue, as we aim to strategically allocate resources to support our growth initiatives and strengthen our market positioning.

Additional News

Safe & Green Holdings Corp. has signed a non-binding Letter of Intent to acquire Giant Containers Inc., a leader in modular container-based infrastructure solutions. The acquisition includes Giant's current $6.8 million in active projects, featuring clients like Tesla and Nike. This strategic move aims to enhance Safe & Green's market position by integrating Giant’s expertise in residential, commercial, industrial, and government sectors. Additionally, Safe & Green has engaged Shareholder Intelligence Services, LLC to investigate potential illegal trading activities affecting its stock. The company suspects naked short selling and market manipulation following an internal review of trading patterns. Lastly, Safe & Green has announced the acquisition of Sherman Oil Company's assets, significantly expanding its oil production holdings with 1,600 acres of oil wells and leases.