Greenwave Technology Solutions, Inc. Projects $43-$45 Million Revenue in FY 2025 Driven by Market Expansion, Long-Term Contracts and Industry Demand

Rhea-AI Summary

Greenwave Technology Solutions (NASDAQ: GWAV), a leading metal recycler operating 13 facilities across Virginia, North Carolina, and Ohio, has projected revenue of $43-$45 million for fiscal year 2025. The company's growth is driven by significant contracts, including a $15-$35M hurricane recovery contract through March 2026 and approximately $20M in annual purchases from Sims Metal Management.

The company plans to expand its Scrap App to top 25 U.S. markets in 2025 and expects to increase domestic sales from 41% to 75%. As of September 2024, Greenwave reported $69.58M in assets and $51.27M in shareholder equity, having reduced total liabilities by $32.56M (64%) in the first nine months of 2024. Insiders purchased over 500,000 GWAV shares in December 2024.

Positive

• Secured $15-$35M hurricane recovery contract through March 2026
• $20M annual revenue stream from Sims Metal Management
• Reduced total liabilities by $32.56M (64%) in first nine months of 2024
• Strong asset base of $69.58M with $51.27M in shareholder equity
• Significant insider buying of over 500,000 shares
• Projected increase in domestic sales from 41% to 75% in 2025

Negative

• None.

Insights

Financial Analyst

The $43-45 million revenue guidance for FY2025 represents a significant milestone, backed by substantial contracts and strategic positioning. A key revenue driver is the $20 million annual contribution from Sims Metal Management and a $15-35 million hurricane recovery contract through March 2026. The company's financial health shows impressive improvement with $69.58 million in assets and a notable 64% reduction in liabilities during 2024. The shift towards domestic sales from 41% to 75% in 2025 should enhance margins through reduced transportation costs. The insider purchase of 500,000 shares in December 2024 signals management's confidence in the company's trajectory. Market conditions favor GWAV's growth strategy, particularly with U.S. steel producers targeting 97% recycled material usage.

Industry Expert

The strategic positioning of GWAV's 13 facilities near critical infrastructure like Naval Station Norfolk and the Port of Virginia creates a sustainable competitive advantage. The exclusive operational licenses, protected by grandfathered municipal codes, establish significant entry barriers in regulated markets. The planned Scrap App expansion into top 25 U.S. markets represents a digital transformation opportunity, especially considering comparable platforms generated $130.7 million in FY2024. China's recent export ban on critical materials (gallium, germanium and antimony) opens opportunities for domestic suppliers like GWAV. The company's American Pulverizer 60x85 shredder investment, valued within $30 million of industry-leading equipment, positions them to capitalize on increasing domestic demand and industry consolidation trends.

Government contracts, including agreements with the U.S. Federal Government, municipalities, and contractors, drive revenue growth

Greenwave's customers are industry giants such as Nucor Corporation, Sims Limited, Cleveland-Cliffs, Inc., and Georgia-Pacific

Expansion of Scrap App and hurricane recovery contracts position Greenwave for continued growth and leadership

Over 500,000 GWAV shares purchased by insiders in December 2024

CHESAPEAKE, Va., Dec. 30, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) ("Greenwave" or the "Company"), a leading metal recycler in Virginia, North Carolina, and Ohio, today released revenue guidance of $43-$45 million for fiscal year 2025.

Market-Leading Position and Growth Catalysts:

1. Key Customers: Sims Metal Management alone contributes approximately $20M in scrap metal purchases annually from Greenwave.
2. Hurricane Helene Recovery Efforts: Contract valued at $15-$35M through March 2026, with Core Tree Care related to a prime contract awarded by the U.S. Army Corps of Engineers.
3. Steel Industry Shift: Rising demand for high-quality recycled metal, driven by U.S. steel producers targeting 97% recycled material and consolidation across the sector to meet a 16 million tons capacity increase _(1)(2)(3).
4. Domestic Market Expansion: Domestic sales projected to rise from 41% to 75% in 2025, up from 41%, fueled by anticipated tariffs and trade policies. This greatly reduces the transportation costs of its product – significantly increasing margins and free cashflow.
5. Exclusive Licenses: Greenwave's portfolio operational licenses, often protected by grandfathered municipal codes, provide significant barriers to entry to competitors in Greenwave's tightly regulated markets.

Cutting-Edge Technology and Resources:

• Tech Platform Expansion: Scrap App rollout to top 25 U.S. markets in 2025; comparable platforms generated $130.7M in FY 2024 _(4).
• Rare-Earth Minerals Extraction: Leveraging geopolitical events, including China's December 2024 export ban, to profit from domestic extraction of critical materials like gallium, germanium, and antimony _(5).
• Strategic Location Advantages: Proximity to Naval Station Norfolk, Port of Virginia, and key industrial regions ensures consistent access to high-grade scrap.

Financial Strength:

• Robust Balance Sheet: $69.58M in assets, $51.27M in shareholder equity (as of September 2024).
• De-risked Operations: Company reduced total liabilities by $32.56M, or 64%, during the first nine months of 2024.
• Scalable Business Model: An industry-leading American Pulverizer 60x85 shredder and thirteen facilities supplying high-demand recycled metals.

Positioned for Sustained Growth:

Greenwave is primed to capitalize on surging regional infrastructure investment, growing domestic market demand for a finite supply of recycled metal, and the rapid consolidation of the scrap metal industry. Its strategic initiatives, combined with over $30 million in industry-leading equipment, position the Company to rapidly grow its revenues and create shareholder value in FY 2025. 

₍₁₎ https://ionanalytics.com/insights/mergermarket/trash-to-treasure/

₍₂₎ https://assets.ctfassets.net/aax1cfbwhqog/1B2AplzfIpH2aiSws0qoNf/db895286e45c8b18e21b1f7e2496ea8d/NSLexington_Event_Fact_Sheet_4.6.22.pdf

₍₃₎ https://www.clevelandcliffs.com/sustainability/environment

₍₄₎ https://rocketreach.co/peddle-profile_b5ebd76df42e85ca

₍₅₎ https://www.reuters.com/markets/commodities/china-bans-exports-gallium-germanium-antimony-us-2024-12-03/

About Greenwave – One of the Mid Atlantic's Leading Metal Recyclers

As an operator of 13 metal recycling facilities, Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) supplies leading steel mills and industrial conglomerates with ferrous and non-ferrous metal. With steel being one of the most recycled materials worldwide, Greenwave supplies the raw metal utilized in critical infrastructure projects and U.S. warships vital to American national security interests. Headquartered in Chesapeake, VA, the Company has 167 employees with metal recycling operations across Virginia, North Carolina, and Ohio.

For detailed financials and updates, visit www.GWAV.com.

Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements about its revenue growth, opening of additional locations, margin expansion and cashflow projections. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, the Company can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control), assumptions and other factors that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for the Company's common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the SEC. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE Greenwave Technology Solutions

FAQ

What is Greenwave Technology Solutions' (GWAV) projected revenue for FY 2025?

Greenwave Technology Solutions projects revenue of $43-$45 million for fiscal year 2025.

How much is the hurricane recovery contract worth for GWAV through March 2026?

The hurricane recovery contract with Core Tree Care is valued at $15-$35 million through March 2026.

What percentage of domestic sales growth does GWAV expect in 2025?

GWAV expects to increase domestic sales from 41% to 75% in 2025.

How many GWAV shares did insiders purchase in December 2024?

Insiders purchased over 500,000 GWAV shares in December 2024.

What are Greenwave's (GWAV) current assets and shareholder equity as of September 2024?

As of September 2024, GWAV reported $69.58M in assets and $51.27M in shareholder equity.

How much did GWAV reduce its total liabilities in the first nine months of 2024?

GWAV reduced its total liabilities by $32.56M, or 64%, during the first nine months of 2024.