Kelso Technologies Inc. 2025 Outlook and Strategic Initiatives
Kelso Technologies (TSX: KLS) has announced its 2025 outlook and strategic initiatives, projecting flat to modest sales growth of 0-5% compared to FY2024's expected revenue of $10.7 million. The company anticipates a significant loss in FY2024 due to one-time expenses and write-offs.
Key strategic initiatives include pursuing AAR approval for its Bottom Outlet Valve and Angle Valve products, which are in service trial periods. The tank car market shows signs of improvement, with deliveries reaching 10,000 cars in 2024 and projected at 10,325 in 2025, representing a 15.8% increase over the 2021-2023 average.
The company has implemented cost-cutting measures and secured a $250,000 line of credit from Texas Capital Bank. Management expects market recovery post-2025, with industry projections indicating growth to 13,000 units by 2027.
Kelso Technologies (TSX: KLS) ha annunciato le sue previsioni per il 2025 e le iniziative strategiche, prevedendo una crescita delle vendite piatta o modesta del 0-5% rispetto ai ricavi attesi per l'anno fiscale 2024, pari a 10,7 milioni di dollari. L'azienda prevede una perdita significativa per l'anno fiscale 2024 a causa di spese straordinarie e svalutazioni.
Le principali iniziative strategiche includono la ricerca dell'approvazione AAR per i suoi prodotti Bottom Outlet Valve e Angle Valve, attualmente in fase di prova. Il mercato dei vagoni cisterna mostra segni di miglioramento, con consegne che raggiungono 10.000 vagoni nel 2024 e previste a 10.325 nel 2025, rappresentando un aumento del 15,8% rispetto alla media 2021-2023.
L'azienda ha implementato misure di riduzione dei costi e ha ottenuto una linea di credito di 250.000 dollari da Texas Capital Bank. La direzione si aspetta una ripresa del mercato dopo il 2025, con proiezioni di crescita dell'industria che indicano un aumento a 13.000 unità entro il 2027.
Kelso Technologies (TSX: KLS) ha anunciado su perspectiva para 2025 y las iniciativas estratégicas, proyectando un crecimiento de ventas plano a modesto del 0-5% en comparación con los ingresos esperados para el año fiscal 2024 de 10,7 millones de dólares. La compañía anticipa una pérdida significativa en el año fiscal 2024 debido a gastos únicos y cancelaciones.
Las principales iniciativas estratégicas incluyen buscar la aprobación de la AAR para sus productos Bottom Outlet Valve y Angle Valve, que están en períodos de prueba. El mercado de vagones cisterna muestra signos de mejora, con entregas que alcanzan los 10,000 vagones en 2024 y proyectadas en 10,325 en 2025, lo que representa un aumento del 15.8% en comparación con el promedio de 2021-2023.
La compañía ha implementado medidas de reducción de costos y ha asegurado una línea de crédito de 250,000 dólares de Texas Capital Bank. La dirección espera una recuperación del mercado después de 2025, con proyecciones de crecimiento de la industria que indican un aumento a 13,000 unidades para 2027.
켈소 테크놀로지스 (TSX: KLS)는 2025년 전망과 전략적 계획을 발표하며, 2024 회계연도 예상 수익인 1,070만 달러에 비해 0-5%의 평탄하거나 완만한 매출 성장을 예상하고 있습니다. 회사는 일회성 비용과 손실 처리로 인해 2024 회계연도에 상당한 손실을 예상하고 있습니다.
주요 전략적 계획에는 서비스 시험 기간에 있는 Bottom Outlet Valve 및 Angle Valve 제품에 대한 AAR 승인을 추구하는 것이 포함됩니다. 탱크카 시장은 개선의 조짐을 보이고 있으며, 2024년에 10,000대의 차량이 인도되고 2025년에는 10,325대로 예상되어 2021-2023년 평균보다 15.8% 증가할 것으로 보입니다.
회사는 비용 절감 조치를 시행하고 Texas Capital Bank로부터 25만 달러의 신용 한도를 확보했습니다. 경영진은 2025년 이후 시장 회복을 기대하고 있으며, 산업 전망에 따르면 2027년까지 13,000대의 성장세를 보일 것으로 예상하고 있습니다.
Kelso Technologies (TSX: KLS) a annoncé ses perspectives pour 2025 et ses initiatives stratégiques, prévoyant une croissance des ventes plate ou modeste de 0 à 5% par rapport aux revenus attendus pour l'exercice 2024 de 10,7 millions de dollars. L'entreprise anticipe une perte significative pour l'exercice 2024 en raison de dépenses exceptionnelles et de amortissements.
Les principales initiatives stratégiques incluent la recherche de l'approbation de l'AAR pour ses produits Bottom Outlet Valve et Angle Valve, qui sont en période d'essai. Le marché des wagons-citernes montre des signes d'amélioration, avec des livraisons atteignant 10 000 wagons en 2024 et projetées à 10 325 en 2025, représentant une augmentation de 15,8% par rapport à la moyenne de 2021-2023.
L'entreprise a mis en œuvre des mesures de réduction des coûts et a sécurisé une ligne de crédit de 250 000 dollars auprès de Texas Capital Bank. La direction s'attend à une reprise du marché après 2025, avec des prévisions de croissance de l'industrie indiquant une augmentation à 13 000 unités d'ici 2027.
Kelso Technologies (TSX: KLS) hat seine Prognose für 2025 und strategische Initiativen bekannt gegeben und rechnet mit einem flachen bis moderaten Umsatzwachstum von 0-5% im Vergleich zu den erwarteten Einnahmen von 10,7 Millionen Dollar für das Geschäftsjahr 2024. Das Unternehmen erwartet im Geschäftsjahr 2024 aufgrund von einmaligen Kosten und Abschreibungen einen erheblichen Verlust.
Zu den wichtigsten strategischen Initiativen gehört die Beantragung der AAR-Zulassung für seine Produkte Bottom Outlet Valve und Angle Valve, die sich in der Erprobungsphase befinden. Der Markt für Tankwagen zeigt Anzeichen einer Verbesserung, mit Lieferungen von 10.000 Wagen im Jahr 2024 und einer Prognose von 10.325 Wagen im Jahr 2025, was einem Anstieg von 15,8% im Vergleich zum Durchschnitt von 2021-2023 entspricht.
Das Unternehmen hat Kostensenkungsmaßnahmen umgesetzt und eine Kreditlinie von 250.000 Dollar von der Texas Capital Bank gesichert. Das Management erwartet eine Markterholung nach 2025, wobei Branchenprognosen auf ein Wachstum auf 13.000 Einheiten bis 2027 hindeuten.
- Secured $250,000 credit line from Texas Capital Bank
- Tank car deliveries projected to increase 15.8% over 2021-2023 average
- Cost-cutting initiatives improving vendor payment capabilities
- New BOV and AV products in final stages of AAR approval process
- Significant losses expected for FY2024 due to write-offs
- Minimal growth projected (0-5%) for FY2025
- Required inventory level reassessment and KXI carrying value write-down
- Current market headwinds affecting performance
Insights
Kelso Technologies (KIQ) has outlined a cautious approach for 2025, projecting minimal revenue growth of 0-5% over their expected
The company's warning of significant 2024 losses due to inventory reassessments and KXI carrying value write-downs signals a "kitchen sink" approach by the new management team. These one-time charges, while painful in the short term, could create a cleaner financial foundation for 2025. Investors should view 2025 as a transition year focused on operational efficiency rather than growth.
Two key value drivers deserve attention. First, Kelso's pursuit of AAR approvals for their Bottom Outlet Valve and Angle Valve products represents meaningful revenue potential. These pressure car components carry higher unit values than their current product mix, potentially improving margins and diversifying revenue streams once approved. Second, the projected industry recovery timeline aligns well with Kelso's product development cycle – with tank car deliveries expected to increase from 10,325 units in 2025 to approximately 13,000 by 2027 (
The
For investors, the key question is whether Kelso can maintain operational capability during this cost-cutting phase to fully capitalize on the anticipated 2026-2027 industry upswing. The company's ability to secure AAR approvals while managing expenses will be critical performance indicators to monitor throughout 2025.
WEST KELOWNA, British Columbia and BONHAM, Texas, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Kelso Technologies Inc (TSX: KLS) today announced that its Board of Directors has approved the budget for fiscal year 2025. The company anticipates sales growth to be flat to slightly positive, in the range of
"We are pleased to have reached a consensus on a budget that supports our strategic objectives for 2025," said Paul Cass, Lead Independent Director. "While we anticipate modest sales growth, we are confident in our ability to navigate the current economic environment, maintain cost discipline, and deliver value to our shareholders, particularly as we look ahead to the increased tank car build cycle."
As of early 2025, Kelso Technologies Inc is emerging from a challenging financial landscape, influenced by market dynamics and strategic initiatives in 2024. The new management team has focused on improving operational efficiency and reducing overhead costs and anticipate a positive impact on profitability for 2025. For FY2024, the Company intends to optimize its balance sheet by reassessing inventory levels and the carrying value of KXI. Consequently, Kelso anticipates a significant loss in FY2024 due to one-time expenses and write-offs.
Strategic Initiatives
Kelso is actively pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve (BOV) and Angle Valve (AV), both of which are well into their required service trial periods. This approval is expected to open new revenue streams, especially given the higher unit value of pressure car packages.
“2025 will be a re-building year for Kelso,” says Frank Busch, CEO. “We have, and continue to hear, our shareholders’ concerns and are acting upon fundamental business principles of increasing top-line revenue and reducing expenditures to maximize EBITDA.”
Additionally, the company is undergoing a strategic reorganization to enhance financial stability without compromising production capabilities. This includes a comprehensive review of the KXI HD product line to unlock shareholder value.
Market Outlook
“The outlook for tank car deliveries has improved slightly from recent history” said Amanda Smith, EVP of Operations. “After averaging just over 8,700 cars per year from 2021 to 2023, actual tank car deliveries for 2024 reached just over 10,000 cars and FTR projects a slight improvement to 10,325 in 2025. This level of production represents a
Industry projections for 2026 and beyond show a positive trend, with anticipated growth to 13,000 units in 2027. Kelso’s strategic focus on obtaining AAR approvals aligns with this projected market upturn, positioning the company to capitalize on future demand increases.
Liquidity and Capital Resources
Management's cost-cutting initiatives have yielded positive results, enabling the company to meet its vendor obligations promptly. In addition, Kelso has established a Texas Capital Bank line of credit with
Conclusion
Kelso Technologies is striving for a profitable FY2025. Despite current market headwinds, the Company's strategic initiatives, including the pursuit of AAR approvals and financial restructuring, are designed to enhance performance in the coming years. The anticipated market recovery post-2025 provides a favorable backdrop for these efforts.
About Kelso Technologies
Kelso is a diverse transportation equipment company that specializes in the creation, production, sales and distribution of proprietary products used in rail and automotive transportation. The Company’s rail equipment business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of commodities during rail transport. The automotive division of the Company has created the first proven automated suspension-based Advanced Driver Assistance System for commercial mission-critical wilderness operations. All Kelso products are specifically designed to address the challenging issues of public safety, worker well-being and potential environmental harm while providing effective and efficient operational advantages to customers. Kelso’s innovation objectives are to create products that diminish the potentially dangerous effects of human and technology error through the use of the Company’s portfolio of proprietary products.
For a more complete business and financial profile of the Company, please view the Company's website at www.kelsotech.com and public documents posted under the Company’s profile on SEDAR in Canada and on EDGAR in the United States.
On behalf of the Board of Directors,
Frank Busch, CEO
Legal Notice Regarding Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of applicable securities legislation and indicate expectations or intentions. Forward-looking statements in this news release include that our new rail products will sell once AAR approvals are secured; that although the rail industry is very slightly improving there is still opportunity for Kelso to grow its revenues; and that the Company is improving efficiency while reducing operational costs as part of a strategic initiative. Although Kelso believes the Company’s anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, they can give no assurance that such expectations will prove to be correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kelso to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information, including without limitation that current rail industry risks including high interest rates, inflation and supply chain issues may last longer than expected delaying business orders from customers; that the development of new products may proceed slower than expected, cost more or may not result in a saleable product; that tank car producers may produce or retrofit fewer than cars than expected and even if they meet expectations, they may not purchase the Company’s products for their tank cars; capital resources may not be adequate enough to fund future operations as intended; that the Company’s products may not provide the intended economic or operational advantages to end users; that the Company’s new rail products may not receive regulatory certification; that customer orders may not develop or be cancelled; that competitors may enter the market with new product offerings which could capture some of the Company’s market share; that a new product idea under research and development may be dropped if ongoing product testing and market research reveal engineering and economic issues that render a new product concept infeasible; and that the Company’s new equipment offerings may not capture market share as well as expected. Except as required by law, the Company does not intend to update the forward-looking information and forward-looking statements contained in this news release.
For further information, please contact:
| Frank Busch Chief Executive Officer Email: busch@kelsotech.com | Sameer Uplenchwar Chief Financial Officer Email: sameer@kelsotech.com | Head office: 305 – 1979 Old Okanagan Hwy, West Kelowna, BC V4T 3A4 www.kelsotech.com |
FAQ
What is Kelso Technologies' (KLS) revenue forecast for 2025?
How many tank car deliveries are projected for the industry in 2025?
What new products is Kelso seeking AAR approval for in 2025?
What credit facility has Kelso secured for 2025?
What are the industry projections for tank car deliveries by 2027?
