TX Rail Products, Inc. Reports Financial Results for Second Quarter of Fiscal 2025

Core Insights - TX Rail Products, Inc. reported a decrease in revenue for the second quarter of fiscal year 2025, totaling $2.2 million, down 14.2% from $2.5 million in the same period last year [2] - Despite the revenue decline, the company experienced positive cash flow from operations, with net cash provided by operating activities amounting to $186,000 for the six months ended March 31, 2025 [5] - The company’s gross profit margin decreased from 33.6% to 28.0% year-over-year, attributed to the product mix sold during the quarter [3] Financial Performance - Revenue for the second fiscal quarter ended March 31, 2025, was $2.2 million, a decrease of 14.2% compared to the prior year [2] - Cost of goods sold decreased to $1.6 million from $1.7 million, reflecting a 6.9% reduction [3] - Operating expenses were reduced to $230,000 from $243,000, a decrease of 5.2% [4] - Net income for the second quarter was $367,000, down 37.4% from $587,000 in the same quarter of the previous year [4] Cash Flow and Balance Sheet - Cash and cash equivalents as of March 31, 2025, were $92,000, down from $114,000 as of September 30, 2024 [5] - Net cash used in investing activities was $0 for the first six months of fiscal 2025, compared to ($178,000) for the same period last year [6] - Accounts receivable increased by 47.2% to $943,000 as of March 31, 2025, from $641,000 as of September 30, 2024 [6] - Inventory rose to $3.6 million, a 25.1% increase from $2.8 million as of September 30, 2024 [7]