Kelso Technologies Inc. Financial Results for the Three Months Ended June 30, 2025

WEST KELOWNA, British Columbia and BONHAM, Texas, July 30, 2025 (GLOBE NEWSWIRE) — Kelso Technologies Inc. (“Kelso” or the “Company”) (TSX:KLS) reports that the Company has released the unaudited interim consolidated financial statements and Management Discussion and Analysis for the three months ended June 30, 2025.

The unaudited interim consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All amounts herein are expressed in United States dollars (the Company’s functional currency) unless otherwise indicated. The Company’s unaudited interim consolidated financial statements and MD&A for the three months ended June 30, 2025 were approved by the Board of Directors on July 30, 2025.

HIGHLIGHTS:

• Kelso Technologies Inc. announces its second consecutive profitable quarter.
• The Company reported Q2-2025 net income of $72,175 or $0.00 per share. Excluding discontinued operations, the Company reported net income of $70,705.
• For Q2-2025, gross revenue decreased by 8.6% YoY to $2.64 million compared to $2.89 million in Q2-2024. The revenue decline was mainly due to macroeconomic challenges, as Kelso’s main customers adopted a cautious stance in response to new tariffs in April and May. Since the beginning of June, the Company has observed signs of improvement as the industry adjusts to current conditions.
• In the first half of 2025, the Company cut total expenses by 30% ($580,303) year over year through disciplined cost management. While revenue in the second quarter was affected by new tariff-related uncertainty for tank car builds, the Company remained profitable, highlighting strong operational execution. Ongoing strategic planning and innovation continue to support sustainable revenue growth despite persistent challenges.
• For FY2025, the company believes that sales growth will be flat to slightly positive, ranging from 0% to 5%, compared to fiscal year 2024. Looking ahead, the company anticipates that new tank car builds will be lower in 2026 before rebounding in 2027. In preparation for this expected recovery, Kelso is maintaining disciplined cost management and ensuring operational readiness to seize growth opportunities as industry demand strengthens in the coming years. This strategy is designed to position the company to capitalize on the anticipated demand and enhance profitability.
• During the three months ended June 30, 2025, the Company repaid in full the $250,000 previously drawn on its $500,000 line of credit in the first quarter. As a result, the Company now has access to the entire $500,000 available under its line of credit.
• On July 08, 2025, Kelso Technologies Inc. (“Kelso”) and Kitchener Holdings Corp. (“Kitchener”) reached a settlement agreement to resolve the lawsuit filed by Kitchener against Kelso in October 2024. The settlement agreement marks the conclusion of all matters between the parties, bringing an end to the legal proceedings. Both parties have agreed to the terms set out in the settlement agreement, which includes the execution of a Full and Final Release by Kitchener and the dismissal of the lawsuit. Kelso and Kitchener have agreed to maintain confidentiality of the settlement terms and the facts surrounding the settlement.

SUMMARY OF FINANCIAL PERFORMANCE