03:10 PM EDT, 10/17/2024 (MT Newswires) -- Kelso Technologies ( KIQSF ) , a diverse transportation equipment company, on Thursday reported a wider loss for the third quarter versus a year earlier, as revenue decreased by 20% amid weakness in tank car demand and as the company waits on full Association of American Railroads (AAR) approval of its pressure car package.

In Q3 2024 its revenue decreased to US$2.52 million compared to $3.14 million in Q3 2023. This led to a net loss of $361,800 in Q3 2024, compared to Q3 2023, when the net loss was $102,723. However, Kelso noted the Q3 net loss represents an improvement from Q2 2024, when the net loss was $544,927, primarily due to new management's focus on expense reduction strategies.

Kelso said the third quarter of 2024 was "a challenging period" due to ongoing market weakness in tank car demand.

During the third quarter of 2024, Kelso moved to strengthen the portfolio of its rail products by closely monitoring those products near completion of the required AAR service trial period. It said the strategic focus is to obtain full AAR approvals in 2024 to complete its entire portfolio of rail pressure car products. This has been the company's core branding ambition over the past 14 years and it is expected in 2025.

The company added it is undertaking a strategic reorganization with a focus on "improving its financial outlook without impacting production capability." The company has now reduced its workforce and R&D costs associated with the KXI entity and will continue its strategic review for KXI into 2025. It noted there is a shift toward rail pressure cars and the company is completing the last stages of an AAR regulatory approved rail pressure car kit in 2024 to drive new sources of sales growth.

Kelso said the level of activity for tank car orders and deliveries puts the segment on track for the lower end of replacement demand for 2024 and 2025. But it added the outlook in 2026 "looks positive".

Kelso was last seen down $0.01 at $0.175.

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