Greenwave Technology Solutions, Inc.

What they do

Greenwave collects, classifies, and processes scrap metal from appliances, construction materials, end-of-life vehicles, boats, and industrial machinery. It uses crushing, shearing, shredding, separating, and sorting to produce ferrous and nonferrous metal products, including shredded scrap, zorba, zurik, and shredded insulated wire. The company operates automotive shredders at its Kelford, North Carolina and Carrollton, Virginia locations, and sells recovered catalytic converters to processors for precious metal extraction.

Revenue drivers

• Ferrous metal sales — Primary revenue source; includes heavy melting steel, plate and structural, and shredded scrap. Ferrous revenue was $32.9 million in FY2025, up from $23.3 million in FY2024.
• Nonferrous metal sales — Processes and sells aluminum, copper, stainless steel, nickel, brass, titanium, lead, and mixed metal products. Includes zorba, zurik, and shredded insulated wire.
• Catalytic converter sales — Recovers catalytic converters from end-of-life vehicles and sells them to processors who extract platinum, palladium, and rhodium.

Recent performance

For FY2025, revenues were $46.7 million, up 40.1% from $33.3 million in FY2024. Gross profit fell 8.6% to $11.9 million from $13.0 million. Operating expenses decreased 32.9% to $31.7 million, narrowing loss from operations to $19.8 million from $34.3 million. Net loss available to common stockholders was $24.6 million versus $100.4 million in the prior year. The revenue increase was driven by sale of inventory accumulated in Q4 2024 ahead of anticipated metal tariffs.

Strategy

A key corporate priority is opening a facility with rail or deep-water port access to efficiently transport products to domestic steel mills and overseas foundries, which management believes could increase revenue and profitability. The company adjusts prices paid to suppliers in response to changes in scrap metal selling prices to manage operating income. It continues to operate two automotive shredders, with the Carrollton, Virginia shredder expected to come online in Q2 2024 (per the 10-K). The company also focuses on maximizing value through advanced separation equipment and processing of nonferrous metals.

Risks

• Scrap metal price volatility — Significant decreases in scrap metal prices could adversely impact operating results, as prices are subject to market cycles and global steel demand.
• Tariffs and trade actions — Changes in global market conditions, including sanctions, tariffs, quotas, and import restrictions, may adversely affect operating results, financial condition, and cash flows.
• Supplier concentration — The company depends on a small number of suppliers for essential materials; loss of these suppliers would materially harm the business.
• Equipment and facility risks — Equipment upgrades, failures, or facility damage could lead to production curtailments or shutdowns, impacting output and profitability.

Outlook

Management expects to benefit from higher domestic scrap metal pricing following the sale of accumulated inventory. The company is focused on expanding its buyer base through a potential port or rail-accessible facility, but notes no guarantee of success. The Carrollton shredder is expected to increase processing capacity once operational.