Wake Forest-based PowerSecure International has scored two of the biggest contracts in the energy services company’s 14-year history, propelling its shares up 12 percent Wednesday.
The 700-employee company said it has signed contracts swelling its backlog by $140 million, largely in two industrial-scale solar farms to be developed for one of the largest investor-owned utilities in the country. PowerSecure did not identify the customer or the location of the projects.
PowerSecure regularly reports its backlog – contracts anticipating future revenue – in quarterly earnings announcements because investors and analysts use the backlog to gauge the company’s financial health. For example, in May PowerSecure reported $225 million in total backlog for the first quarter.
The total backlog for the second quarter will be announced with earnings on Aug. 6, and is expected to be the biggest in years.
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The company’s stock closed Wednesday at $10.13, up $1.10.
PowerSecure’s shares took a beating in May, when the company announced disappointing first-quarter results, sending shares plummeting 62 percent from $18.60 to $7 in a day.
PowerSecure said Wednesday it will realize about $60 million in revenue in 2015 and $60 million in 2016 from the two solar farms. Each of those projects is three to four times larger than any solar farm the company has previously installed.
The two solar farms exceed the total revenue PowerSecure reported from all of its distributed generation projects in 2013, which produced $112 million in sales.
In addition, PowerSecure has added $20 million to its backlog in unrelated solar projects and emergency-backup generator projects for hospitals, data centers and retailers.
The company has operations in Wake Forest, Raleigh and Morrisville.