Kelso Technologies Inc. · TSX:KLS
Kelso Technologies — Investor Presentation (September 2025)
28 slides from Kelso Technologies's investor presentation, September 2025
Slide 1: Kelso Technologies Investor Presentation
KELSO TECHNOLOGIES Investor Presentation September 2025 TSX:KLS www.kelsotech.com
Slide 2: Advisories
Advisories This Presentation is for information purposes only. This Presentation does not constitute an offer to sell to any person, or a general offer to the public of, or the general solicitation from the public of offers to subscribe or purchase, any of Securities of Kelso Technologies Inc. (“Kel
Slide 3: Valuation & Comparables Disclosure and Cautionary Note
VALUATION & COMPARABLES DISCLOSURE AND CAUTIONARY NOTE The comparable company and valuation analysis presented in this document is based on publicly available financial and market data as of the dates indicated. Kelso has selected peer companies based on similar industry exposure, manufacturing char
Slide 4: Table of Contents
TABLE OF CONTENTS Overview 05 Macro Environment 08 Market and Opportunity 10 Financials 14 New Direction 16 Valuation 17 Investment Highlights 20 Appendix 28 4
Slide 5: Kelso at a Glance
KELSO AT A GLANCE Kelso is executing a profitability-focused turnaround strategy with clear catalysts and valuation upside. Macro forecast supports demand and aftermarket growth. Kelso is expanding opportunities to reach new markets and gain market share. First half of 2025 marks Kelso’s return to p
Slide 6: Company Overview
COMPANY OVERVIEW Established in 1987, Kelso is a high-margin, innovative manufacturer of safety-critical transportation valves. Our facility is located in Bonham, TX and we operate with a mandate to be a reliable supplier of high quality U.S.-made products for industrial customers. Share price is av
Slide 7: Overview Cont.
OVERVIEW CONT. Kelso works closely with leading North American tank car builders To date, we have shipped more than 100,000 valves. Everything we make is made in the U.S.A. using local labor and U.S.-made components. Currently, Kelso’s revenue is highly correlated to tank car Source: FTR & Kelso del
Slide 8: Macro Environment
MACRO ESSENTIAL. ENVIRONMENT Freight rail is largely non-discretionary, moving bulk commodities, energy, U.S. chemical shipments in July 2025 agriculture, and chemicals not easily hit their highest level since 2008, with transported otherwise. rail chemical carloads up 3.3% YoY and YTD at record hig
Slide 9: Macro Environment Outlook
MACRO ENVIRONMENT OUTLOOK Structural Growth Drivers Favoring Suppliers Like Kelso Industry Growth Safety & Compliance Global Demand Rail & trucking transport is forecasted to Regulatory tightening drives Broader industry, energy, and chemical rebound strongly by 2027 (rail ton-miles adoption of safe
Slide 10: Market Share
MARKET SHARE We estimate that Kelso has 30% of the total valve market, with 30% RegO), Valmet, and others. competition including Dover Corporation (OPW Global, Midland, We differentiate through: 100% U.S. manufacturing and supply chain Outstanding safety records and reliability Industry-leading 2-4
Slide 11: Market Upside
MARKET UPSIDE The number of active tank cars in North America is estimated at over 440,000, with over 100,000 carrying Class 3 flammable liquids. There are ~10,000 new tank car builds on average annually, with new builds forecasted to rise to over 11,000 in 2027. Industry standard shifts drive adopt
Slide 12: New Product Opportunities
NEW PRODUCT OPPORTUNITIES BOTTOM OUTLET ANGLE VALVE VALVE Designed for the transfer of LP gas and Customer-driven design using ceramics to anhydrous ammonia in pressurized rail address the failures of stainless steel BOVs tank car applications, engineered by Kelso in abrasive/corrosive service. Desi
Slide 13: Market Opportunities
MARKET OPPORTUNITIES We are exploring a variety of new opportunities in adjacent and related industries to expand organically utilizing existing assets, capacity, and skills. These include: Water and Wastewater Oil and Gas Chemicals Paper and Pulp Irrigation Desalination and Power Plants With increa
Slide 14: Financial Snapshot
FINANCIAL SNAPSHOT The first half (1H) of 2025 represents Kelso’s return to profitability. Kelso has industry-leading gross margins, and its operating leverage is helping drive its earnings recovery. For the period ending June 30 of their respective year. Numbers in CAD. Originally reported in USD,
Slide 15: Financial Overview
FINANCIAL OVERVIEW Revenue Gross Profit Adjusted EBITDA Net Comprehensive Income 1H = First half Adjusted EBITDA is a non-IFRS measure. See Kelso MD&A for reconciliation to most directly comparable IFRS measure. All numbers for the period ending June 30 of their respective year, originally reported
Slide 16: New Direction
NEW DIRECTION Refocused on manufacturing Kelso’s new management Ceased operations in operations and exploring team and board are executing unprofitable pure-play expansion into trucking, a profitability-focused research (KXI). water, wastewater, and more. strategy. KXI Wildertec was a wilderness tra
Slide 17: Comparables - Valuation
COMPARABLES - VALUATION Comparable companies were used to benchmark Kelso’s valuation against relevant peers. For larger diversified companies, valuation is based on calculated segment-level information. We selected the following peers for their similar macro exposures, operations, or risk/return pr
Slide 18: Comparables Table - Valuation Comparison
COMPARABLES TABLE - VALUATION COMPARISON Median is used with the multiples to eliminate outliers and assess how a “typical company” may be valued. Kelso trades below peer medians across the key valuation multiples, most notably EV/Gross, though Kelso delivers above-average gross margins. Kelso also
Slide 19: Kelso Implied Value
KELSO IMPLIED VALUE Kelso Implied Valuations vs Current Market Cap Implied Equity Value (CAD) Median Implied Equity Value $15.96M CAD Valuation Multiple Applying peer valuation multiples to Kelso’s performance indicates a median implied equity value 64% above Kelso’s current market cap. Implied valu
Slide 20: Kelso Investment Highlights
KELSO INVESTMENT HIGHLIGHTS Margin Strength: Gross margins are among the strongest in sector. Path to Profitability: Returned to profitability in 2025, opportunities for further growth, and scalable operations. Operational Foundation: U.S.-based manufacturing, growing customer base, and focus on qua
Slide 21: Cost of Equity
COST OF EQUITY What it is: The return equity investors require for holding Kelso shares, reflecting perceived risk versus the broader market. Implied Cost of Equity: Derived from the relationship between Kelso’s share price and expected earnings, indicating the market’s required return. What it mean
Slide 22: Capital Structure and Financial Standing
CAPITAL STRUCTURE AND FINANCIAL STANDING Working Capital: $2,682,405 Current Ratio: 2.47 Kelso currently has no debt except for lease obligations, making for a clean capital structure. Kelso capital information as at June 30, 2025, originally reported in USD and all converted to CAD for presentation
Slide 23: Kelso Management & Board
KELSO MANAGEMENT & BOARD STRATEGICALLY ALIGNED LEADERSHIP AND AN EXPERIENCED BOARD. Sameer Uplenchwar (CFO) Frank C. Busch (CEO) Amanda Smith (COO) Director Director With Kelso’s operations since 2016. 20+ years in finance, business CPA with 20+ years in finance & 10+ years experience at Caterpillar
Slide 24: Kelso Share Ownership
KELSO SHARE OWNERSHIP Shares owned by insiders 55,160,086 shares outstanding. Purchased by insiders in last 6 months Kelso has six reporting insiders, who hold 2,845,693 shares (5.16% of shares outstanding). Remaining 94.84% of shares are widely held. Kelso insiders have purchased 1,224,558 shares (
Slide 25: Strategic Catalysts
STRATEGIC CATALYSTS Cost Discipline and Execution: Management implemented cost control and revenue focus showing early progress in first half 2025 results. Operating Leverage: Manufacturing plant has capacity to scale to nearly double the output without requiring near-term capital expansion. Product
Slide 26: Kelso Technologies: A Rare Company
KELSO TECHNOLOGIES: A RARE COMPANY Niche Market Focus: Small, nimble, and positioned well against larger competitors. Margin Profile: Gross margins among the top of the Kelso: Strong margins, industry focusing on quality, safety, and efficiency. focused execution, Capital Position: Clean capital str
Slide 27: Let's Connect
LET’S CONNECT www.kelsotech.com info@kelsotech.com 1-877-314-1879 Bonham, TX, USA West Kelowna, BC, Canada
Slide 28: Appendix and Footnotes
APPENDIX AND FOOTNOTES Figures may be rounded. Rounding does not materially affect the totals or conclusions presented. Market information for Kelso and peers is based on average closing share prices over August 11 – September 12, 2025 (to reduce single-day volatility). KLS trades in CAD on TSX, USD
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