Kelso Technologies Inc. 2025 Outlook and Strategic Initiatives

Core Viewpoint - Kelso Technologies Inc anticipates flat to slightly positive sales growth for fiscal year 2025, with a focus on cost discipline and preparing for increased demand in tank car builds starting in 2026 [1][2][7] Financial Performance - For FY2024, the company expects to report revenue of $10.7 million and anticipates a significant loss due to one-time expenses and write-offs [1][2] - The management's cost-cutting initiatives have improved liquidity, allowing the company to meet vendor obligations and establish a line of credit of$250,000 with Texas Capital Bank [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, 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] Conclusion - Kelso Technologies aims for a profitable FY2025 through strategic initiatives and financial restructuring, with a favorable market recovery anticipated post-2025 [7]