Greystone Logistics Rides Green Wave, Eyes 10.54% Pallet Market Growth

TL;DR

**GLGI is a green logistics play with high customer concentration, making it a high-risk, high-reward bet on the plastic pallet revolution.**

AI Summary

GREYSTONE LOGISTICS, INC. (GLGI) reported a strong fiscal year ended May 31, 2025, driven by its core business of manufacturing and selling plastic pallets made from recycled materials. The company's production capacity reached approximately 225,000 pallets per month from 14 injection molding machines across its Bettendorf, IA, and Palmyra, MO facilities. A significant strategic move in April 2023 was the opening of a new facility in Jasper, IN, utilizing an extrusion process with robotics to produce unusual pallet sizes, further expanding its product offerings. GLGI continues to emphasize its environmental benefits, recycling approximately 60 million pounds of post-consumer plastic annually. A key risk highlighted is customer concentration, with three customers accounting for approximately 76% of total sales in fiscal year 2025, a slight decrease from 81% in fiscal year 2024. The strategic outlook remains positive, anticipating continued growth in the plastic pallet market, projected at a CAGR of 10.54% between 2025 and 2030, fueled by ESG trends and demand for durable, hygienic alternatives to wood pallets.

Why It Matters

Greystone Logistics' focus on recycled plastic pallets positions it strongly within the growing ESG investment landscape, appealing to investors seeking sustainable companies. The shift from wood to plastic pallets, driven by environmental concerns and automation needs, creates a significant market opportunity for GLGI, potentially impacting the broader logistics and manufacturing sectors. However, the high customer concentration, with 76% of 2025 sales from just three clients, poses a substantial risk, making GLGI vulnerable to competitive pressures or changes in customer demand. This concentration could also affect employees and suppliers if a major customer relationship is lost, highlighting the need for diversification to ensure long-term stability.

Risk Assessment

Risk Level: high — GLGI faces high risk due to significant customer concentration, with three customers representing approximately 76% of total sales in fiscal year 2025, down slightly from 81% in fiscal year 2024. The loss of any of these key customers could have a material adverse effect on Greystone, as explicitly stated in the filing. Additionally, the company's reliance on the availability and stable pricing of recycled plastic raw materials, which can fluctuate due to market demand or regulatory changes, presents another substantial risk.

Analyst Insight

Investors should closely monitor GLGI's efforts to diversify its customer base and secure long-term raw material supply contracts. While the company is well-positioned in a growing market, the current customer concentration warrants caution; consider a smaller position until diversification improves.

Key Numbers

• $12,083,372 — Aggregate market value of voting common stock held by non-affiliates (As of November 29, 2024, at $1 per share)
• 27,270,701 — Shares of common stock outstanding (As of August 29, 2025)
• 225,000 — Pallets per month production capacity (As of May 31, 2025, from 14 injection molding machines)
• 76% — Revenue from three customers (In fiscal year 2025, indicating high customer concentration)
• 81% — Revenue from three customers (In fiscal year 2024, indicating high customer concentration)
• 60 million pounds — Post-consumer plastic recycled annually (Demonstrates environmental commitment)
• 10.54% — Compound Annual Growth Rate (CAGR) (Projected for the global pallets market between 2025 and 2030)
• 190 — Full-time equivalent employees (As of May 31, 2025)
• 70 — Temporary personnel service FTEs (As of May 31, 2025)
• $8.65 billion — Global pallets market size (Expanded to during 2019-2025)

Key Players & Entities

• GREYSTONE LOGISTICS, INC. (company) — Registrant
• GSM (company) — Wholly-owned subsidiary of Greystone Logistics, Inc.
• Plastic Pallet Production, Inc. (company) — Acquired by Greystone in December 1997
• Greystone Plastics, Inc. (company) — Assets acquired by Greystone in September 2003
• Zoe Biller (person) — Industry analyst for Freedonia Group
• Dr. Marshall S. "Mark" White (person) — Emeritus professor at Virginia Tech University and director of the William H. Sardo Jr. Pallet and Container Research Laboratory
• Costco (company) — Announced shift to block pallets
• Persistence Market Research (company) — Market research firm cited for pallet market analysis
• Bob Trebilcock (person) — Modern Materials Handling Magazine
• SEC (regulator) — Securities and Exchange Commission

FAQ

Key Financial Figures

• $0.0001 — ection 12(g) of the Act: Common Stock, $0.0001 par value (Title of class) Indicate
• $1 — h date, was approximately $ 12,083,372 ($1 per share). As of August 29, 2025, the
• $8.65 billion — ets market expanded to a market size of $8.65 billion. During the forecast period – that is b

Filing Documents

• glgi20250531_10k.htm (10-K) — 1188KB
• ex_843520.htm (EX-21.1) — 2KB
• ex_843521.htm (EX-31.1) — 12KB
• ex_843522.htm (EX-32.1) — 6KB
• 0001437749-25-028050.txt ( ) — 5958KB
• glgi-20250531.xsd (EX-101.SCH) — 58KB
• glgi-20250531_def.xml (EX-101.DEF) — 389KB
• glgi-20250531_lab.xml (EX-101.LAB) — 334KB
• glgi-20250531_pre.xml (EX-101.PRE) — 425KB
• glgi-20250531_cal.xml (EX-101.CAL) — 58KB
• glgi20250531_10k_htm.xml (XML) — 766KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 13 Item 1C. Cybersecurity 13 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 14 Item 4. Mine Safety Disclosures 14 PART II Item 5. Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 Item 6.

Selected Financial Data

Selected Financial Data 15 Item 7. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 15 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 19 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 19 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 19 Item 9A.

Controls and Procedures

Controls and Procedures 19 Item 9B. Other Information 20 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 20 PART III Item 10. Directors, Executive Officers and Corporate Governance 21 Item 11.

Executive Compensation

Executive Compensation 25 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 26 Item 13. Certain Relationships and Related Transactions, and Director Independence 27 Item 14. Principal Accountant Fees and Services 28 PART IV Item 15. Exhibits and Financial Statement Schedules 28 Item 16. Form 10-K Summary 30

Signatures

Signatures 31 3 Table of Contents PART I Item 1. Business. Organization Greystone Logistics, Inc. ("Greystone" or the "Company") was incorporated in Delaware on February 24, 1969, under the name Permaspray Manufacturing Corporation. It subsequently changed its name to Browning Enterprises Inc. in April 1982, to Cabec Energy Corp. in June 1993, to PalWeb Corporation in April 1999 and to Greystone Logistics, Inc. in March 2005, as further described below. In December 1997, Greystone acquired all of the issued and outstanding stock of Plastic Pallet Production, Inc., a Texas corporation ("PPP"), and since that time, Greystone has primarily been engaged in the business of manufacturing and selling plastic pallets. Effective September 8, 2003, Greystone acquired substantially all of the assets of Greystone Plastics, Inc., an Iowa corporation, through the purchase of such assets by Greystone's newly formed, wholly-owned subsidiary, Greystone Manufacturing, L.L.C., an Oklahoma limited liability company ("GSM"). Greystone Plastics, Inc. was a manufacturer of plastic pallets used in the beverage industry. Effective March 18, 2005, the Company caused its newly formed, wholly owned subsidiary, Greystone Logistics, Inc., an Oklahoma corporation, to be merged with and into the Company. In connection with such merger and as of the effective time of the merger, the Company amended its certificate of incorporation by changing its name from PalWeb Corporation to Greystone Logistics, Inc., pursuant to the terms of the certificate of ownership and merger filed by Greystone with the Secretary of State of Oklahoma. Current Business Products Greystone's primary business is the manufacturing of plastic pallets utilizing recycled plastic and selling the pallets through its wholly owned subsidiary, GSM. Greystone sells its pallets through a network of independent contractor distributors and direct sales by its President and sales department. As of May 31, 2025, Greysto

Risk Factors

Item 1A. Risk Factors. Our business could be affected by changes in the availability of raw materials. Greystone uses a proprietary mix of raw materials to produce its plastic pallets. Such raw materials are generally readily available, and some may be obtained from a broad range of recycled plastic suppliers and unprocessed waste plastic. At the present time, these materials are being purchased from local and national suppliers. If available, these materials may also be purchased from international suppliers. The availability of Greystone's raw materials could change at any time for various reasons. For example, the market demand for Greystone's raw materials could suddenly increase, or the rate at which plastic materials are recycled could decrease, affecting both availability and price. Additionally, the laws and regulations governing the production of plastics and the recycling of plastic containers could change and, as a result, affect the supply of Greystone's raw materials. Any interruption in the supply of raw materials or components could have a material adverse effect on Greystone. Furthermore, certain potential alternative suppliers may have pre-existing exclusive relationships with Greystone's competitors and others that may preclude Greystone from obtaining raw materials from such suppliers. Greystone's business could be affected by competition and rapid technological change. Greystone currently faces competition from many companies that produce wooden pallets at prices that are substantially lower than the prices Greystone and other companies that manufacture plastic pallets charge for their plastic pallets. It is anticipated that the plastic pallet industry will be subject to intense competition and rapid technological change. Greystone could potentially face additional competition from recycling and plastics companies, many of which have substantially greater financial and other resources than Greystone and, therefore, are able to spend more t

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View this 10-K filing on SEC EDGAR