- Revenue of $3.6 Million, an increase of 72% over prior year
- Operating income increased 201%
- Gross profit increased 99.7%
- Net Income increased 185%
ASHLAND, Ky., Jan. 26, 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 first quarter of fiscal year 2026.
Mr. Shrewsbury, CEO and Chairman commented, "We delivered a strong start to fiscal 2026, marked by substantial revenue growth and significantly improved profitability. Demand across our core rail markets remained robust, allowing us to expand margins while maintaining disciplined cost control. Our ability to generate meaningful operating cash flow while scaling the business reflects the strength of our operating model and the dedication of our team. We remain focused on executing against our backlog, supporting our customers, and building long-term value for shareholders as we move through the year."
First Quarter of Fiscal 2026 Financial Highlights
- Revenue for the first fiscal quarter ended December 31, 2025, was $3.6 million as compared to $2.1 million for the same period in the prior year, an increase of 72%.
- Cost of goods sold was $2.7 million as compared to $1.6 million for the same period in the prior year, an increase of 64%.
- Gross profit for the first fiscal quarter ended December 31, 2025, was $906,000 compared to $454,000 the prior year, an increase of 99.7$.
- Gross product margin for the first fiscal quarter ended December 31, 2025, was 25.4% as compared to 21.9% for the same period last year, an increase of 3.5%.
- Selling, general and administrative expenses for the first fiscal quarter ended December 31, 2025, were $373,000 as compared to $277,000 for the same period last year, an increase of 35%.
- Interest and other expense, net for the first fiscal quarter ended December 31, 2025, was ($27,000) as compared to interest and other income, net of $600 in the same quarter the prior year.
- Net income for the quarter was $506,000, compared to $178,000 in the same quarter the prior year 2025, representing an increase of 185%.
- On December 31,2025, cash and cash equivalents were $68,000 compared to $111,000 as of September 30, 2025.
- Net cash provided by operating activities was $932,000 for the quarter compared to $141,000 in the prior year, an increase of 561%.
- Accounts receivable was $1.6 million as of December 31, 2025, as compared to $1.0 million as of September 30, 2025, an increase of 61%.
- Accounts Payable were $1.2 million as of December 31,2025, as compared to approximately $120,000 as of September 30, 2025, an increase of 900%
- Inventory was $5.11 million as of December 31, 2025, an increase of 0.3% as compared to $5.10 million as of September 30, 2025.
- Net cash used in financing activities for the first three months of fiscal year 2026 was $975,000 as compared to net cash provided by $4,000 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 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
