urban-gro Touts Over $50M In Design-Build Contracts in Q3, What's Next

urban-gro, Inc. (NASDAQ: UGRO) provided on Tuesday an update on the success of its design-build division and reiterated its guidance for the third quarter of 2022.

What Happened

After the acquisition of Emerald Construction Management in the second quarter, urban-gro launched its full turnkey design-build solution where the Company provides a single point of responsibility, and manages architecture, engineering, cultivation design, construction, as well as equipment procurement and integration.

urban-gro’s leading, in-house professional services team provides design-build solutions for cultivation facilities, retail dispensaries, and various building-types within the industrial and healthcare sectors.

Why It Matters

These incremental design-build contracts represent more than $50 million of signed projects in the third quarter, and are from a diverse set of clients including cannabis CEA clients, as well as leading global consumer packaged goods enterprises.

Design-build contracts are typically recognized over a timeline of 6 to 24 months and are separate from any associated professional services or equipment system orders.

What’s Next

“While we are reiterating our third quarter guidance, the momentum we have established entering the fourth quarter gives me great confidence that the investments we are making in the business are positioning urban-gro for sustainable and consistent global growth over the long-term,” Bradley Nattrass, the company’s chairman and CEO, said.

UGRO Price Action

urban-gro's shares traded 5.3468% higher at $3.645 per share at the time of writing on Tuesday morning.

Photo: Courtesy of Kindel Media by Pexels