The Q1 results confirm a severe cyclical downturn, but management's claim of a Q2 order recovery should be scrutinized. Watch for further cash burn and potential need for additional financing. The stock may face pressure until tangible signs of improvement appear in Q2 results.
Price Chart
Executive Summary
Kelso Technologies reported a sharp deterioration in Q1 2026 results, with revenue plunging 45% YoY to $1.75M and swinging from a net profit of $412K in Q1 2025 to a net loss of $431K. Gross margin contracted from 45% to 37% as fixed costs weighed on reduced order volume. Cash dropped nearly 50% to $209K, and the company drew $250K from its credit line. Management called Q1 the trough amid a >20% expected decline in industry tank car deliveries, with hopes for recovery in 2027/2028.
Key Facts
- Q1 2026 revenue of $1,749,058, down 45% from $3,158,074 in Q1 2025
- Net loss from continuing operations of $427,070 vs net income of $504,982 a year ago
- Gross margin dropped to 37% from 45%
- Cash decreased to $209,459 from $399,375 at year-end 2025
- Working capital fell to $2.14M from $2.54M
- Drew $250,000 on $1M line of credit, leaving $750K available
- CEO Frank Busch resigned April 16, replaced by Jesse Crews
- Continued material weaknesses in internal controls
Financial Impact
Revenue decline of $1.41M (45% YoY), net loss swing of $843K
Risk Factors
- Continued industry decline in tank car builds through 2026
- Customer concentration with four OEMs accounting for most revenue
- Inventory obsolescence risk on $2.26M inventory
- CEO transition adds execution uncertainty
- Tariff and trade policy risks despite domestic manufacturing
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 9 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001062993-26-002384 |
| Exhibit: exhibit99-2.htm | 0001062993-26-002384 |
| Exhibit: exhibit99-3.htm | 0001062993-26-002384 |
| Exhibit: exhibit99-5.htm | 0001062993-26-002384 |
| Exhibit: exhibit99-4.htm | 0001062993-26-002384 |
| Document: form6k.htm | 0001062993-26-002384 |
| Document: 0001062993-26-002384-index-headers.html | 0001062993-26-002384 |
| Document: 0001062993-26-002384-index.html | 0001062993-26-002384 |
| Document: 0001062993-26-002384.txt | 0001062993-26-002384 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | 6-K | $0.1000 $0.0900 | ▼ −10.00% | ▼ −11.46% | $0.0900 (−10.00%) |
May 7, 2026 24w ago | 6-K | $0.1000 $0.0900 | ▲ +10.00% | ▲ +13.14% | $0.0900 (+10.00%) |
Mar 30, 2026 30w ago | 20-F | $0.1000 $0.1100 | ▲ +10.00% | ▼ −2.60% | $0.0900 (−10.00%) |
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