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Revenue of $3.5 Million, an increase of 60% over prior year period
Net Income of $391,000
Year-to-date Operating Cash Flow Rises to $1.6 Million, Reflecting Strong Improvement and Supporting Continued Growth
ASHLAND, Ky., April 30, 2026 (GLOBE NEWSWIRE) -- TX Rail Products, Inc. (OTC Markets PINK: TXRP), a supplier of rail and rail products to the U.S. coal mining industry, short line railroads and tunneling contractors, today announced financial results for the second fiscal quarter of 2026.
CEO Comments
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, “During the quarter, we continued to build on the momentum established over the past year, delivering strong top-line growth while maintaining consistent profitability. Demand across our core markets remained solid, and our team executed well in a dynamic operating environment. While we saw some pressure on margins as we scaled to meet increased activity, we remain focused on disciplined cost management and operational efficiency. We believe our strengthened balance sheet and improved cash flow position us well to support continued growth and create long-term value for our shareholders.”
Second Quarter Fiscal Year 2026 Financial Summary
Revenue for the second fiscal quarter ended March 31, 2026, was $3.5 million as compared to $2.2 million for the same period in the prior year, an increase of 59.7%.
Cost of goods sold was for the second fiscal quarter ending March 31, 2026, was $2.6 million as compared to $1.6 million for the same period in the prior fiscal year, an increase of 67.5%.
Gross margin for the second fiscal quarter ending March 31, 2026, was 24.4% as compared to 28.0% for the same period in the prior fiscal year.
Selling, general and administrative expenses for the second fiscal quarter ending March 31, 2026, was $429,000 as compared to $230,125 for the same period in the prior fiscal year, an increase of 86.3%.
Interest expense and other, net for the second fiscal quarter ending March 31, 2026, was $28,000, compared to $10,000 for the same period in the prior fiscal year.
Net income for the second fiscal quarter ending March 31, 2026, was $391,000, compared to $367,000 for the same period in the prior fiscal year, an increase of 6.4%.
On March 31,2026, cash and cash equivalents were $303,000 compared to $111,000 as of September 30, 2025. Net cash provided by operating activities was $1.6 million for the second quarter ending March 31, 2026, compared to $223,000 for the same period in the prior year, an increase of 617.5%.
Accounts receivable was $2.2 million as of March 31, 2026, as compared to $1.0 million as of September 30, 2025, an increase of 115%.
Inventory was $4.6 million as of March 31, 2026, as compared to $5.1 million as of September 30, 2025, a decrease of 9.8%.
Net cash used in financing activities for the second fiscal quarter ending March 31,2026 was $1.4 million as compared to $245,000 for the same period the prior fiscal year.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect", "plan", "assume" and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on our current assumptions regarding future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in "penny stocks;" the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1933, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be applied to us at certain times.
Contacts
Brett Maas
Hayden IR
[email protected]
646-536-7331
Company Contact:
William “Buck” Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
TX RAIL PRODUCTS, INC. | ||||||||
BALANCE SHEETS | ||||||||
Unaudited | ||||||||
March 31, | September 30, | |||||||
2026 | 2025 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 303,167 | $ | 111,213 | ||||
Accounts receivable, net | 2,156,355 | 1,000,770 | ||||||
Inventory | 4,599,771 | 5,099,161 | ||||||
Other current assets | 30,766 | 16,079 | ||||||
Total current assets | 7,090,059 | 6,227,223 | ||||||
Property and equipment, net | 290,984 | 315,662 | ||||||
Total Assets | $ | 7,381,043 | $ | 6,542,885 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 1,420,395 | $ | 119,737 | ||||
Accrued expenses | 10,000 | 10,000 | ||||||
Accrued expenses-related party | 561,933 | 855,773 | ||||||
Line of Credit | 925,030 | 1,999,453 | ||||||
Other current liability | 128,919 | 120,458 | ||||||
Total current liabilities | 3,046,277 | 3,105,421 | ||||||
Note payable-related party | 2,000,000 | 2,000,000 | ||||||
Total Liabilities | 5,046,277 | 5,105,421 | ||||||
Commitments and contingencies (Note 1) | ||||||||
Preferred stock: no par value, 1,000,000 shares authorized no shares outstanding | _ | _ | ||||||
Common stock: no par value, 250,000,000 shares (Note 8) authorized, 45,000,000 shares issued and outstanding at March 31, 2026 and September 30, 2025 | 8,703,344 | 8,703,344 | ||||||
Additional paid-in capital | 4,809,295 | 4,809,295 | ||||||
Accumulated deficit | (11,177,873 | ) | (12,075,175 | ) | ||||
Total stockholders' equity | 2,334,766 | 1,437,464 | ||||||
Total Liabilities and Stockholders' Equity | $ | 7,381,043 | $ | 6,542,885 | ||||
The accompanying notes are an integral part of the financial statements. | ||||||||
TX RAIL PRODUCTS, INC. | ||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||
Unaudited | ||||||||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 3,467,331 | $ | 2,171,695 | $ | 7,039,870 | $ | 4,247,797 | ||||||||
Cost of goods sold | (2,619,745 | ) | (1,563,672 | ) | (5,286,044 | ) | (3,186,031 | ) | ||||||||
Gross profit | 847,586 | 608,023 | 1,753,826 | 1,061,766 | ||||||||||||
Selling, general and administrative expenses | 428,731 | 230,125 | 801,829 | 506,966 | ||||||||||||
Income from operations | 418,855 | 377,898 | 951,997 | 554,800 | ||||||||||||
Interest expense | (30,783 | ) | (15,666 | ) | (59,022 | ) | (16,892 | ) | ||||||||
Other income, net | 2,870 | 5,194 | 4,327 | 7,027 | ||||||||||||
Net income | $ | 390,942 | $ | 367,426 | $ | 897,302 | $ | 544,935 | ||||||||
Basic earnings per common share | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.01 | ||||||||
Weighted average common shares outstanding | 45,000,000 | 45,000,000 | 45,000,000 | 45,000,000 | ||||||||||||
The accompanying notes are an integral part of the financial statements. | ||||||||||||||||
TX RAIL PRODUCTS, INC. | |||||||||||||||||||
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Accumulated | ||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | |||||||||||||
Balance, December 31, 2025 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (11,568,815 | ) | $ | 1,943,824 | |||||||
Net Income | 390,942 | 390,942 | |||||||||||||||||
Balance March 31, 2026 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (11,177,873 | ) | $ | 2,334,766 | |||||||
Preferred Stock | Common Stock | Paid in | Accumulated | ||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | |||||||||||||
Balance, December 31, 2024 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (12,925,708 | ) | $ | 586,931 | |||||||
Net Income | 367,426 | 367,426 | |||||||||||||||||
Balance, March 31, 2025 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (12,558,282 | ) | $ | 954,357 | |||||||
Additional | |||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Accumulated | ||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | |||||||||||||
Balance, September 30, 2025 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (12,075,175 | ) | $ | 1,437,464 | |||||||
Net Income | 897,302 | 897,302 | |||||||||||||||||
Balance, March 31, 2026 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (11,177,873 | ) | $ | 2,334,766 | |||||||
Additional | |||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Accumulated | ||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | |||||||||||||
Balance, September 30, 2024 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (13,103,217 | ) | $ | 409,422 | |||||||
Net income | 544,935 | 544,935 | |||||||||||||||||
Balance, March 31, 2025 | _ | $ _ | 45,000,000 | $ | 8,703,344 | $ | 4,809,295 | $ | (12,558,282 | ) | $ | 954,357 | |||||||
The accompanying notes are an integral part of the financial statements. | |||||||||||||||||||
TX RAIL PRODUCTS, INC. | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
Unaudited | ||||||||
Six Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Operating activities: | ||||||||
Net income | $ | 897,302 | $ | 544,935 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation expense | 24,678 | 24,678 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (1,155,585 | ) | (302,062 | ) | ||||
Inventory | 499,390 | (713,679 | ) | |||||
Deposits for purchased products | _ | 91,702 | ||||||
Other current assets | (14,687 | ) | 27,270 | |||||
Accounts payable and accrued expenses | 1,300,658 | 586,612 | ||||||
Other current liabilities | 8,461 | (36,366 | ) | |||||
Net cash provided by operating activities | 1,560,217 | 223,090 | ||||||
Investing activities: | ||||||||
Net cash from investing activities | _ | _ | ||||||
Financing activities: | ||||||||
Payment on Line of Credit, net | (1,074,423 | ) | (146,753 | ) | ||||
Proceeds from related party transactions | 16,000 | 12,000 | ||||||
Payment for related party transactions | (309,840 | ) | (110,223 | ) | ||||
Net cash used in financing activities | (1,368,263 | ) | (244,976 | ) | ||||
Increase/(decrease) in cash and cash equivalents | 191,954 | (21,886 | ) | |||||
Cash and cash equivalents at beginning of period | 111,213 | 113,976 | ||||||
Cash and cash equivalents at end of period | $ | 303,167 | $ | 92,090 | ||||
Cash paid during the period for interest | $ | 59,022 | $ | 16,892 | ||||
The accompanying notes are an integral part of the financial statements. | ||||||||
