Kelso Technologies Inc. Financial Results for the Three Months Ended September 30, 2025
Executive Summary
- Kelso Technologies reported a third consecutive profitable quarter, posting Q3‑2025 net income of $182,851 (or $187,119 excluding discontinued operations).
- Gross revenue increased 11.3% YoY to $2.81 M, driven by order timing shifts despite macro‑economic tariff pressures.
- The company doubled its revolving line of credit from $500k to $1.0 M, enhancing liquidity for upcoming growth initiatives and diversification efforts.
Key Details
- Financial Performance (Q3‑2025)
- Net income: $182,851 (continuing ops) / $187,119 (ex‑discontinued).
- Gross revenue: $2,808,144 vs. $2,523,282 in Q3‑2024 (+11.3%).
- Adjusted EBITDA (continuing): $218,880 vs. $37,309 YoY.
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Gross profit margin declined slightly to 42% from 44%.
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Year‑to‑Date (9 months)
- Revenue: $8,609,426 vs. $8,067,477 in 2024.
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Continuing operating profit: $762,806 vs. a loss of $414,402 in 2024.
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Cost Management
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Total expenses reduced by 20% year‑to‑date ($766,486) through cost‑control initiatives.
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Liquidity & Capital Resources
- Cash on hand: $835,098 (up from $153,147 at end‑2024).
- Working capital: $2,893,240 vs. $2,125,386 prior year.
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Line of credit increased to $1,000,000; interest rate WSJ Prime + 1.00% (WSJ Prime was 7.50% on Sep‑30‑2025).
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Operational Outlook
- FY2025 sales growth projected at 0–5% versus FY2024.
- Anticipated decline in new tank‑car production for 2026 with recovery expected in 2027.
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Pursuing diversification into Water & Wastewater, Oil & Gas, Chemicals, Paper & Pulp, Irrigation and related sectors using existing valve technology platform.
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Product Development
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Ongoing service trials for Angle Valve (AV) and Bottom Outlet Valve (BOV); seeking full AAR approvals to unlock additional revenue streams.
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Governance Update
- Appointed CBIZ CPAs P.C. as new public accounting firm, replacing Smythe LLP effective Oct 6‑2025.
Notable Quotes
- “Kelso Technologies has delivered its third consecutive profitable quarter, signaling a steady recovery from earlier macroeconomic challenges,” – Frank Busch, CEO.