VivoPower VVPR Stock News

VivoPower International PLC (NASDAQ: VVPR) is up more than 55% as we head toward mid-day in the market today. The gains come after the company provided a corporate update, outlining work toward a portfolio sale and contract wins. Here’s what’s going on:

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VVPR Stock Rockets On Corporate Update

In a press release issued early this morning, VivoPower provided an exciting update with regard to the sale of its Untied Stats solar portfolio as well as recent contract wins. In the release, the company said that the sale of its US solar portfolio has progressed with new international parties now engaged in discussions.

VVPR also said that it has entered into a new power purchase agreement surrounding one of its projects. Moreover, the company is currently in talks with large corporations with an ultimate goal of entering into more power purchase agreements.

As a result of the power purchase agreements that it is working to secure, the company said that it could see a significant increase in the average value per watt across its entire portfolio.

Moving on, VVPR also said that its Australian power services businesses, Kenshaw Electrical Pty Limited and J.A. Martin Electrical Pty Limited, are seeing strong sales growth. In fact, the release outlined new contracts centered around solar farms and data centers that are worth around $22.6 million.

As a result of the new contracts, VivoPower said that its forward order book for power services has climbed to $51.5 million. This order book spans multiple sectors, including data centers, solar, agriculture, transport, mining, and utility sectors.

In particular, VVPR said that Kenshaw was awarded $18.9 million in contracts for the supply and installation of power generators to a leading data center group in Australia. Moreover, J.A. Martin was awarded a $3.7 million contract as part of the construction of a new solar project in Australia, marking the second significant contract win for J.A. Martin in less than a year.

In a statement, Art Russell, Interim CEO at VVPR, had the following to offer:

In relation to our US solar portfolio sale, it has become clear that if we are able to secure corporate PPAs for projects, this could potentially drive a significant increase in value per watt. We are also pleased with the continued momentum for our power services business in Australia.

Our Kenshaw and J.A. Martin teams have demonstrated an unwavering commitment to building long-term relationships with customers through excellence in engineering, design, manufacturing, construction and service, delivering projects as promised, establishing themselves as trusted partners to a diverse range of commercial, industrial, and public sector customers.

Why This News Sent The Stock Up More Than 50%

The truth of the matter is that the news that was issued this morning proved to be overwhelmingly positive. Think about it, in the past seven months, the order book at VivoPower has grown by 53%. Today, the book sits at an all-time high.

With these contracts expected to be fulfilled within the next year, revenue over this period will likely climb to more than $50 million. This will represent record revenue growth and likely push the company toward profitability. Considering the fact that investors make their moves in hopes of growth, this is exactly what the investing community wanted to see!

Final Thoughts

When we talk about VivoPower, we’re talking about a company that has seen exponential growth in customer uptake over the past several months. This, combined with the value that will likely come from the sale of its United States solar portfolio suggests that there plenty of room for growth ahead should the company reach its goal of fulfillment within the net 12 months.

It’s also worth mentioning that today’s news shows that not only are new sales coming in, the pace at which sales are coming in is growing exponentially. This only adds to the value proposition posed by the stock.

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What Do You Think?

Where do you think VVPR stock is headed moving forward? Join the discussion in the comments below!

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