TX Rail Products, Inc. Reports Financial Results for Fiscal Year 2025

Rhea-AI Summary

TX Rail Products (OTC: TXRP) reported fiscal 2025 results for the year ended September 30, 2025. Revenue was $8.3M, up 1.3% from $8.1M a year earlier. Net income was $1.0M, down 20.8% year-over-year. Gross margin fell to 25.7% from 27.2% due to product mix. Operating expenses rose to $1.1M (up 17.8%).

Balance sheet and cash flow moves include inventory of $5.1M (up 79.1%), accounts receivable of $1.0M (up 56.2%), cash of $111k, net cash used in operations of $1.4M, and net cash provided by financing of $1.4M. Management cites higher operating costs and tariffs but says strategic inventory investments improve readiness for demand.

Positive

• Net income of $1.0M for fiscal 2025
• Net cash provided by financing activities of $1.4M

Negative

• Net income declined by 20.8% year-over-year
• Inventory increased 79.1% to $5.1M
• Accounts receivable up 56.2% to $1.0M
• Operating expenses rose 17.8%
• Gross margin contracted by 150 basis points to 25.7%

Rising Demand and Operational Discipline Drive Revenue Growth and Continued Profitability Strategic Inventory Investments Position Company for Continued Growth and Market Readiness

ASHLAND, Ky., Dec. 30, 2025 (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 fiscal year ended September 30, 2025.

Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, “Our results for fiscal 2025 reflect increasing demand across our core end markets and meaningful progress in positioning the business for future growth. We continued to invest in product availability and operational readiness to support expanding opportunities with mining, rail and infrastructure customers. While recent tariffs and higher operating costs impacted near-term margins, we believe the investments we have made strengthen our ability to respond to customer needs, execute on backlog and pursue incremental growth as market conditions evolve.”

Fiscal Year 2025 Financial Summary

Revenue for the fiscal year ended September 30, 2025, was $8.3 million as compared to $8.1 million for the prior fiscal year, an increase of 1.3%.

Cost of goods sold was $6.1 million as compared to $5.9 million for the prior fiscal year, an increase of 3.4%.

Gross profit for the fiscal year ended September 30, 2025 decreased as a percentage of revenue from 27.2% to 25.7% when compared to the prior fiscal year. The decrease in gross profit as a percentage of revenue is the result of the mix of products sold in the fiscal year.

Operating expenses for the fiscal year ended September 30, 2025, were $1.1 million as compared to $894,000 for the 12 months ended September 30, 2024, an increase of 17.8%.

Interest and other expense, net for the fiscal year ended September 30, 2025, was ($42,000) as compared to ($22,000) in the prior fiscal year.

Net income for the fiscal year ended September 30, 2025 was $1.0 million, compared to $1.3 million in fiscal year 2024, representing a decrease of 20.8%.

On September 30,2025, cash and cash equivalents were $111,000 compared to $114,000 as of September 30, 2024. Net cash used in operating activities was $1.4 million for the 12 months ended September 30, 2025.

Net cash used in investing activities was $0 for the 12 month period ended September 30, 2025 and ($311,000) for the same period in the prior fiscal year. Net cash provided by financing activities for the 12 months ended September 30, 2025 was $1.4 million as compared to $29,000 for the prior fiscal year.

Accounts receivable was $1.0 million as of September 30, 2025, as compared to $641,000 as of September 30, 2024, an increase of 56.2%.

Inventory was $5.1 million as of September 30, 2025, an increase of 79.1% as compared to $2.8 million as of September 30, 2024. The increase in inventory is primarily the result of materials acquired in advance of customer orders and project-related demand.

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 the Company's 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

Investor Relations:
Brett Maas
Hayden IR
txrp@haydenir.com
646-536-7331

William “Buck” Shrewsbury        
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131        

FAQ

What were TXRP's fiscal 2025 revenue and net income figures?

TXRP reported $8.3M in revenue and $1.0M in net income for fiscal 2025 (year ended Sept 30, 2025).

Why did TXRP's gross margin decline in fiscal 2025?

Gross margin fell to 25.7% from 27.2% due to the mix of products sold, per company disclosure.

How did TXRP's balance sheet change by Sept 30, 2025 (cash, inventory, AR)?

As of Sept 30, 2025 TXRP had $111k cash, $5.1M inventory (up 79.1%), and $1.0M accounts receivable (up 56.2%).

What was TXRP's cash flow from operations in fiscal 2025?

TXRP reported net cash used in operating activities of $1.4M for the 12 months ended Sept 30, 2025.

Did TXRP raise or use financing in fiscal 2025 and by how much?

Net cash provided by financing activities was $1.4M in fiscal 2025, versus $29k the prior year.

What risks did TXRP identify that affected near-term margins in fiscal 2025?

Management cited recent tariffs and higher operating costs as factors affecting near-term margins.