Omnitek Engineering Corp.

What they do

Omnitek develops and sells kits that convert diesel engines to run on alternative fuels such as CNG, LNG, RNG, hydrogen, and LPG, as well as complete natural gas engines and related components. The company also sells a high-pressure natural gas coalescing filter and individual replacement parts. Omnitek does not install conversions itself; it trains dealers and sub-dealers worldwide to perform the conversions.

Revenue drivers

• Conversion kits — Kits to convert diesel engines to alternative fuel, offered in turbocharged and non-turbocharged variants; the primary product line.
• Replacement parts — Individual replacement parts for conversion kits, providing recurring revenue after initial kit sales.
• High-pressure natural gas coalescing filter — A complementary product sold alongside conversion kits and parts.
• New natural gas engines — Complete new natural gas engines for markets or applications where conversions are not permitted or feasible.

Recent performance

For the three months ended March 31, 2026, revenue was $155,597, down from $359,746 in the prior-year period, and the company reported a net loss of $68,584 versus a net loss of $26,660 in the prior-year period. Gross margin improved to 52% of sales from 39% a year earlier. Annual revenue for 2025 was $1.4 million, with net income of $273,639, following a net loss of $167,137 in 2024. Quarterly revenue has declined sequentially from $605,407 (June 2025) to $296,613 (September 2025), $188,184 (December 2025), and $155,597 (March 2026). At March 31, 2026, the company had negative working capital of $978,128 and an accumulated deficit of $21,822,429.

Strategy

Omnitek targets markets where diesel fuel is more expensive than gaseous fuels, and expects the Paris Agreement and local emissions regulations to drive demand for its conversion technology. The company aims to leverage its EPA, CARB, and EURO VI certifications to expand sales of conversion kits and complete engines. It trains dealers and sub-dealers globally to perform conversions, rather than doing installations directly. The company may raise additional capital through equity sales or strategic partnerships to fund research, development, and marketing.

Risks

• Regulatory approvals — Engine conversions in the U.S. require EPA or CARB approval, and foreign markets may require additional or different approvals; loss or lack of approvals could limit sales.
• Competition — While the company believes no other firm currently offers comparable conversion technology for most heavy-duty diesel engines, competitors could develop such technology, and customers may choose alternatives.
• Funding and liquidity — The company has negative working capital, no established bank financing, and may need to raise additional capital; if funds are not available, it may have to curtail research and development programs.
• Geopolitical disruptions — The Russia-Ukraine conflict and Middle East crises could interrupt supplies and products or negatively impact operations, and may contribute to higher costs, particularly for petroleum-based products.

Outlook

Management expects fuel cost differentials and climate-related regulations to drive demand for its technology. However, the company faces significant uncertainty regarding its ability to secure additional financing and maintain regulatory approvals. The recent decline in quarterly revenue and negative working capital suggest near-term challenges in sustaining operations.