Core Insights - Kelso Technologies Inc. reported its third consecutive profitable quarter with a net income of $182,851 for Q3-2025, and gross revenue increased by 11.3% year-over-year to $2.81 million [5][12][15] - The company has successfully reduced total expenses by 20% year-to-date, amounting to $766,486, demonstrating a commitment to cost management and operational efficiency [5][13] - Kelso is diversifying its operations beyond rail markets into sectors such as Water & Wastewater, Oil & Gas, Chemicals, Paper & Pulp, and Irrigation, leveraging existing assets for minimal capital investment [5][13][14] Financial Performance Summary - For Q3-2025, revenues were $2,808,144 compared to $2,523,282 in Q3-2024, with a gross profit of $1,166,259 and a gross profit margin of 42% [6] - Year-to-date revenues for 2025 reached $8,609,426, up from $8,067,477 in 2024, with a gross profit of $3,651,459 [6] - The company reported a profit from continuing operations of $762,806 for the nine months ended September 30, 2025, compared to a loss of $414,402 in the same period of 2024 [6] Liquidity and Capital Resources - As of September 30, 2025, the company had cash of $835,098 and working capital of $2,893,240, an increase from $2,125,386 at the end of 2024 [9][10] - The total assets were $6,516,637, slightly down from $6,570,345 at the end of 2024, while net equity increased to $4,896,343 [10] - The company increased its line of credit from $500,000 to $1,000,000, enhancing its financial flexibility [11] Outlook - Kelso anticipates sales growth of 0% to 5% for FY2025 compared to 2024, with new tank car production expected to decline in 2026 but recover in 2027 [14] - The company is focused on securing AAR approvals for its Angle Valve and Bottom Outlet Valve, which are in service trials, to unlock new revenue streams [14] - Kelso's proactive measures, including market diversification and strengthening liquidity, position it well for long-term success despite modest near-term growth expectations [15]

Core Insights - Kelso Technologies Inc. reported its second consecutive profitable quarter with a net income of $72,175 for Q2-2025, despite a revenue decline of 8.6% year-over-year due to macroeconomic challenges [5][12][14] - The company anticipates flat to slightly positive sales growth of 0% to 5% for FY2025 compared to FY2024, while maintaining disciplined cost management to prepare for future demand increases [5][14][16] - Kelso is actively seeking full approval from the Association of American Railroads (AAR) for its new products, which is expected to create new revenue opportunities [15][17] Financial Performance Summary - For the three months ended June 30, 2025, revenues were $2,643,208, down from $2,891,591 in the same period of 2024, with a gross profit of $1,075,446 and a gross profit margin of 41% [4][5] - In the first half of 2025, total revenues reached $5,801,283, slightly up from $5,544,195 in the first half of 2024, with a gross profit of $2,485,201 and a gross profit margin of 43% [4][5] - The company reduced total expenses by 30% year-over-year, amounting to $580,303, demonstrating effective cost management [5][12] Liquidity and Capital Resources - As of June 30, 2025, the company had cash of $488,273 and accounts receivable of $1,303,613, compared to cash of $153,147 and accounts receivable of $1,091,304 as of December 31, 2024 [8][9] - The working capital position improved to $2,682,405 as of June 30, 2025, up from $2,125,386 at the end of 2024 [9] - The company fully repaid $250,000 drawn from its $500,000 line of credit, now having access to the entire amount [10] Strategic Outlook - The company is preparing for a potential rebound in tank car builds, expecting lower production in 2026 but a rise to 13,000 units in 2027 [16] - Kelso's strategic focus includes maintaining operational readiness and cost management to capitalize on anticipated demand increases in the rail industry [14][16] - The company aims to enhance profitability through a wider array of new proprietary products and improved operational efficiency [17][18]

Core Viewpoint - Kelso Technologies Inc. reported its first profitable quarter since Q1-2020, with a net income of $412,337 for Q1-2025, indicating a positive turnaround in financial performance [5][11]. Financial Performance Summary - Revenues for Q1-2025 reached $3,158,074, a 19.06% increase from $2,652,604 in Q1-2024 [4][5]. - Gross profit increased to $1,409,754, with a gross profit margin of 45%, up from 42% in the previous year [4][5]. - The company reported a net income of $412,337, compared to a net loss of $698,759 in Q1-2024 [4][5]. - Adjusted EBITDA for Q1-2025 was $412,172, significantly higher than $99,720 in Q1-2024 [4][6]. Liquidity and Capital Resources - As of March 31, 2025, the company had cash of $417,188 and accounts receivable of $1,596,583, compared to cash of $1,066,089 and accounts receivable of $939,641 as of March 31, 2024 [4][8]. - Working capital improved to $2,570,415 from $2,125,386 at the end of 2024 [9]. - Total assets were reported at $6,877,978, down from $10,207,748 in the previous year [6][9]. Strategic Outlook - The company anticipates flat to slightly positive sales growth of 0% to 5% for FY2025 compared to FY2024, focusing on cost discipline in preparation for increased tank car production expected in 2026/2027 [12][15]. - Kelso is seeking full approval from the Association of American Railroads (AAR) for its Bottom Outlet Valve and Angle Valve, which is expected to create new revenue opportunities [13]. - The forecast for tank car deliveries shows a modest increase, with expectations of 10,325 units in 2025, indicating a 15.8% rise over the average from 2021 to 2023 [14].