Greystone Logistics, Inc. reported a decrease in revenue for the fiscal year ending May 31, 2025, with total sales amounting to $57.9 million, down from $61.8 million in the previous fiscal year. This decline of approximately 6% was primarily attributed to a 24% drop in demand from one of its major customers, although this was partially offset by increased demand from another significant client due to a newly designed plastic pallet tailored to their specifications. The company's cost of sales also saw an increase, totaling $48.4 million, which represented 84% of sales, compared to 81% in the prior year, reflecting the impact of reduced production levels.
In terms of profitability, Greystone's net income fell to $2.4 million, a decrease of $2.7 million from the previous year's net income of $5.0 million. The net income attributable to common stockholders was reported at $1.9 million, or $0.07 per share, down from $4.4 million, or $0.16 per share, in fiscal 2024. The company also recorded a gain of $741,821 from an involuntary conversion related to a fire incident in February 2024, which affected one of its storage warehouses.
Operationally, Greystone maintained a workforce of approximately 190 full-time employees, supplemented by temporary personnel as needed. The company has an in-house production capacity of around 225,000 pallets per month, with production facilities located in Bettendorf, Iowa, and Palmyra, Missouri. In April 2023, Greystone expanded its operations by opening a new facility in Jasper, Indiana, which utilizes an extrusion process to manufacture plastic pallets, further diversifying its product offerings.
The company continues to rely heavily on a small number of customers, with three major clients accounting for 76% of total sales in fiscal 2025, down from 81% in fiscal 2024. This concentration poses a risk, as the loss of any significant customer could adversely affect Greystone's financial performance. To mitigate this risk, Greystone is actively working to broaden its customer base and enhance product acceptance through marketing efforts and participation in industry trade shows.
Looking ahead, Greystone's management remains optimistic about the future, citing ongoing trends favoring the use of plastic pallets due to their environmental benefits and durability. The company plans to continue investing in product development and operational efficiencies while navigating the challenges posed by market conditions and customer demand fluctuations. Greystone's stock is traded on the OTCQB under the symbol "GLGI," and the company has initiated a stock repurchase program to enhance shareholder value, with $393,267 remaining for future repurchases as of May 31, 2025.
About GREYSTONE LOGISTICS, INC.
Greystone Logistics, Inc. manufactures and sells recycled plastic pallets for freight transportation and storage. Its core business involves designing, producing, and marketing durable, environmentally friendly pallets primarily in the U.S. The company serves industries like beverage and pharmaceuticals, leveraging proprietary designs and a focus on sustainability. It operates manufacturing facilities, distributes through independent contractors, and emphasizes cost savings and eco-conscious solutions.
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