Scrap Metal Recycling & Processing Company, 30-Year Full-Service Processor

$17.1M

Revenue

$1.2M

SDE

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Full Editorial Writeup

This is a full-service scrap metal processor and recycler that has been operating for over three decades, supplying steel mills, foundries, and end consumers both domestically and internationally. The company handles a broad mix of ferrous and non-ferrous metals including copper, brass, aluminum, stainless steel, and steel, and differentiates itself with in-house metal testing and container delivery and pickup services for commercial, industrial, and contractor clients. On roughly $17.1M of revenue it produces $1.219M of EBITDA, a mid-single-digit margin that is typical for a volume-driven, commodity-linked recycling operation.

The business runs its own fleet of trucks to haul inbound scrap to its facility and deliver processed material to buyers, which keeps logistics costs internalized and margins protected. Management reports adjusted EBITDA grew at a 12.8% CAGR from 2022 through the trailing twelve months ending June 30, 2025, a respectable clip given how sensitive scrap economics are to underlying commodity prices. The facility is leased rather than owned, so a buyer inherits the operation and rolling stock but not the dirt.

What makes this notable is the combination of a 30-plus year reputation, an established supplier and consumer network on both the buy and sell side, and vertically integrated hauling. Scrap recycling is a legitimately essential, non-discretionary link in the industrial supply chain, though buyers should go in clear-eyed that revenue and margin ride the commodity cycle and volume flows more than long-term contracts.

Why we like it

Earnings quality is real and growing, with $1.219M of EBITDA on $17.1M of revenue and a reported 12.8% adjusted EBITDA CAGR from 2022 through mid-2025. A three-year growth trend into a recent TTM cut is a good sign that the numbers are current and not cherry-picked from a peak year.
The moat is reputation and relationships built over 30-plus years supplying mills, foundries, and consumers on both a domestic and international basis. In scrap, the operators who reliably move volume and grade material accurately keep the buyers and feedstock coming, and that network is hard for a new entrant to replicate quickly.
Scrap metal recycling is genuinely non-discretionary infrastructure: mills and foundries always need feedstock and industrial clients always generate scrap. This is an essential B2B service that keeps operating through a downturn, even if pricing compresses with the commodity cycle.
Vertical integration via an owned truck fleet controls the single biggest variable cost in this business, inbound and outbound logistics. Owning the hauling instead of renting it protects margin and gives an operator levers to pull that a pure brokerage does not have.

How to improve it

Push hard on the long-term contract initiative the seller already flagged. Converting spot, transactional scrap flows into recurring supply agreements with steady industrial generators would smooth revenue, reduce commodity whipsaw, and materially raise the multiple a future buyer will pay.
Build a disciplined hedging or pricing program around the metals mix (copper, brass, aluminum, stainless, steel). A commodity-linked business at $17M of revenue lives and dies on spread management, so formalizing buy/sell spread discipline can protect the mid-single-digit margin during price swings.
Optimize fleet utilization and route density now that hauling is owned in-house. Better container placement, backhaul planning, and load consolidation directly convert into margin because logistics is the largest controllable cost.
Invest in the container and account footprint with commercial and industrial contractors. Each placed container is a recurring feedstock source, so a focused sales effort to place more containers with generators grows volume without proportional overhead.
Execute the seller's stated AI and automation plan on the operations side, specifically metal identification, testing throughput, and inventory tracking. Faster, more accurate grading reduces costly misclassification and increases how much material one crew can process.
Modernize the website and SEO as the listing suggests, but frame it toward feedstock acquisition. Ranking for local scrap pickup and container service captures generators, which is the demand-constrained side of this business, not buyers.
Explore geographic expansion into a second facility once the core operation is systematized. A 30-year brand and existing hauling capability make a nearby yard the most capital-efficient growth path if the local supply base supports it.

Diligence notes

Separate commodity price effect from real volume growth in that 12.8% EBITDA CAGR. Scrap metals ran hot in 2022-2025, so confirm how much of the growth came from tons processed and spread management versus simply riding higher copper and aluminum prices.
Scrutinize working capital and inventory exposure, since scrap sitting in the yard is priced daily and can swing hard. Understand the average inventory holding period, how material is priced on the buy versus sell, and what a sharp commodity drop would do to a load bought at yesterday's price.
The facility is leased, not owned, so review the lease term, renewal options, rent escalators, and environmental obligations. A scrap yard is an environmentally sensitive use, so confirm permits, any past contamination issues, and whether the landlord relationship is stable enough to underwrite the business.
Verify the age, ownership status, and condition of the truck fleet, since it is core to the margin story. Confirm whether the trucks are owned free and clear or financed, upcoming replacement capex, and how much deferred maintenance is hiding in the balance sheet.
Assess customer and supplier concentration on both sides of the market. Ask how much revenue flows through the top few mill or foundry buyers and how much feedstock comes from the largest generators, because losing either end of a concentrated relationship can gut this business.
Since asking price and SDE are not disclosed and only EBITDA is shown, pin down normalized owner earnings and the actual add-backs. Clarify whether the $1.219M is truly adjusted EBITDA net of a market-rate manager, and what a fair multiple looks like for a commodity-cyclical, leased-facility recycler.

Source

Originally listed on BizBuySell. View original listing →