Greenwave Technology Solutions, Inc. Expects U.S. Tariffs on Steel Imports to Drive Margin Expansion in FY 2025

Rhea-AI Summary

Greenwave Technology Solutions (Nasdaq: GWAV), a metal recycling operator in Virginia, North Carolina, and Ohio, anticipates that U.S. tariffs on steel imports will drive revenue growth and margin expansion in FY 2025. The company bases this expectation on its 20+ years of industry experience, noting significant benefits to U.S. scrap metal recyclers during the previous Trump administration when tariffs increased domestic recycled metal prices. Greenwave supplies mill-ready shred to major companies including Nucor , Cleveland-Cliffs, and Sims subsidiaries, sourcing from hundreds of corporations, municipalities, and individuals across their operating regions.

Positive

• Expected revenue growth and margin expansion in FY 2025 due to anticipated steel import tariffs
• Established supplier relationships with major steel producers
• Strategic presence in multiple states with diverse supply channels

Negative

• Revenue growth dependent on potential future political policies
• Business model vulnerable to steel tariff policy changes

Greenwave's customers include subsidiaries of Nucor Corporation, Cleveland-Cliffs, Inc., Sims Limited, and Georgia-Pacific

The Company is one of primary domestic suppliers of mill-ready shred in the mid-Atlantic region

CHESAPEAKE, Va., Nov. 27, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (Nasdaq: GWAV), an operator of metal recycling facilities in Virginia, North Carolina, and Ohio, announced today that based on its 20+ years of operating history in the U.S. scrap metal industry – including Chief Executive Officer Danny Meeks' firsthand experience from President-elect Trump's first term – that it expects tariffs on U.S. steel imports will drive the Company's revenue growth and margin expansion throughout fiscal year 2025.

During President-elect Trump's first term, U.S. scrap metal recyclers benefited significantly from the administration's trade policies – tariffs materially increased the cost of imported steel, leading to significant increases in the prices of domestic recycled metals. As Sims Limited's recent $220 million acquisition of Baltimore Steel₍₁₎ demonstrated, industry leaders place significant value in scrap metal operators with proprietary supply channels, seasoned leadership, and established operations.

Greenwave provides subsidiaries of Nucor Corporation, Cleveland-Cliffs, Inc., Sims Limited, Georgia-Pacific, amongst several other steel producers, with a reliable supply of mill-ready shred, sourced from hundreds of corporations, municipalities, and individuals in Virginia, North Carolina, and Ohio.

(1)   Sims Limited / 2024 Annual Report / Note 24 - Business Acquisitions and Disposals / (a) Baltimore Scrap Corporation / Page 124 (Link)

About Greenwave
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. ("Empire"), is an operator of 13 metal recycling facilities in Virginia, North Carolina, and Ohio. The Company's recycling facilities collect, classify, and process raw scrap metal (ferrous and nonferrous).

Steel is one of the world's most recycled products with the ability to be re-melted and re-cast numerous times. For more information, please 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

How will steel import tariffs affect Greenwave Technology Solutions (GWAV) in 2025?

Greenwave expects steel import tariffs to drive revenue growth and margin expansion throughout fiscal year 2025, based on previous experience when tariffs increased domestic recycled metal prices.

Who are the major customers of Greenwave Technology Solutions (GWAV)?

Greenwave's major customers include subsidiaries of Nucor , Cleveland-Cliffs, Inc., Sims , and Georgia-Pacific.

In which states does Greenwave Technology Solutions (GWAV) operate?

Greenwave operates metal recycling facilities in Virginia, North Carolina, and Ohio.