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Kelso Technologies Inc. 2025 Outlook and Strategic Initiatives
KIQKelso(KIQ) Newsfilter·2025-02-27 04:11

Core Viewpoint - Kelso Technologies Inc anticipates flat to slightly positive sales growth for fiscal year 2025, with a focus on maintaining cost discipline and preparing for an upswing in tank car builds expected to begin in 2026 [1][2][7] Financial Performance - For FY2024, the company expects to report revenue of 10.7millionandanticipatesasignificantlossduetoone−timeexpensesandwrite−offs[1][2]−Themanagement′scost−cuttinginitiativeshaveimprovedoperationalefficiencyandareexpectedtopositivelyimpactprofitabilityforFY2025[2][6]StrategicInitiatives−KelsoispursuingfullAssociationofAmericanRailroads(AAR)approvalforitsBottomOutletValve(BOV)andAngleValve(AV),whichareinservicetrialperiods,toopennewrevenuestreams[3]−ThecompanyisundergoingastrategicreorganizationtoenhancefinancialstabilitywhilereviewingtheKXIHDproductlinetounlockshareholdervalue[4]MarketOutlook−Tankcardeliveriesareprojectedtoimproveslightly,withactualdeliveriesfor2024reachingover10,000carsandanexpectedincreaseto10,325in2025,representinga15.810.7 million and anticipates a significant loss due to one-time expenses and write-offs [1][2] - The management's cost-cutting initiatives have improved operational efficiency and are expected to positively impact profitability for FY2025 [2][6] Strategic Initiatives - Kelso is pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve (BOV) and Angle Valve (AV), which are in service trial periods, to open new revenue streams [3] - The company is undergoing a strategic reorganization to enhance financial stability while reviewing the KXI HD product line to unlock shareholder value [4] Market Outlook - Tank car deliveries are projected to improve slightly, with actual deliveries for 2024 reaching over 10,000 cars and an expected increase to 10,325 in 2025, representing a 15.8% increase over the 2021-2023 average [5] - Industry projections indicate growth to 13,000 units in 2027, aligning with Kelso's strategic focus on obtaining AAR approvals [5] Liquidity and Capital Resources - Kelso has established a line of credit with Texas Capital Bank for 250,000, enhancing its liquidity position [6]