Steel Products

Greenwave Posts Loss, Foresees ‘Aggressive Consolidation’ in Industry

August 15, 2023

Despite reporting the third highest quarterly revenues in its history, Greenwave Technology Solutions still posted a loss for the quarter ended June 30.

The Virginia-based metal recycling company had a net loss of $2.3 million on sales of $9.4 million in the quarter. The loss was an improvement from its loss of $14.1 million in the year-ago quarter on sales of $10.7 million.

Greenwave Technology Solutions

Quarter ended June 30	2023	2022	% Change
Net sales	$9.4	$10.7	-12%
Net earnings (loss)	($2.3)	($14.1)	84%
Per diluted share	($0.20)	($4.23)	95%
Six months ended June 30
Net sales	$18.5	$20.6	-10%
Net earnings (loss)	($6.3)	($19.3)	67%
Per diluted share	($0.56)	($5.78)	90%

(in millions of dollars except per share)

“Greenwave is continuing to position itself as one of the most robust metal recycling companies on the East Coast, supplying steel and other recycled metals to some of the nation’s leading steel mills and foundries,” commented chairman and CEO Danny Meeks.

Greenwave, through its wholly owned subsidiary Empire Services, operates 13 ferrous and nonferrous metal recycling facilities in Virginia, North Carolina, and Cleveland, Ohio. The Cleveland facility was opened in April.

The company plans to “aggressively expand [its] footprint of locations by rolling up independent, profitable scrap yards,” according to its website.

“We believe there will continue to be aggressive consolidation in this industry, as demonstrated by yesterday’s buyout offer of U.S. Steel,” Meeks noted in an Aug. 15 press release.

“We continue to execute on our strategic business objective – expanding our operations, increasing volumes, and growing our revenues – and believe Greenwave is one of the most unique and compelling companies in the metal recycling industry,” he added.

During the quarter ended June 30, a downstream processing system began operating at Greenwave’s facility in Kelford, N.C.

A second automotive shredder, expected to come online in the current quarter, will double the company’s ferrous metal processing capacity, it said.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.