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Cemtrex Reports Second Quarter Fiscal Year 2025 Financial Results

1. Cemtrex's revenue surged 59% to $27.3 million compared to last year. 2. The company achieved a net income of $8.4 million versus a loss previously. 3. Gross profit margin rose to 45%, reflecting improved operational efficiency. 4. Significant gains in the Security segment, especially from AI-enhanced solutions. 5. Cemtrex is optimistic about future growth and shareholder value.

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FAQ

Why Very Bullish?

Cemtrex's return to profitability, strong revenue growth, and positive management outlook often lead to increased investor confidence. An example from the past is when similar financial turnarounds drove significant stock price increases for small-cap tech companies.

How important is it?

The substantial financial improvements and positive executive commentary suggest strong future performance, making it highly probable that this news will impact CETX's stock positively.

Why Long Term?

The improvements in revenue and profitability may lead to sustained investor interest and long-term growth. Historically, such positive quarterly results can create a trend of rising stock prices over several months in similar companies.

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VICNAEISCSCO
Brooklyn, NY, May 15, 2025 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, has reported its financial and operational results for the fiscal second quarter ended March 31, 2024. Key Highlights for Second Fiscal Quarter 2025 Revenue increased 59% to $27.3 million, compared to revenue in the prior year quarter of $17.2 million.Operating Income totaled $4.6 million, compared to an operating loss of $1 million in Q2 FY 2024.Net Income for the period was $8.4 million, compared to a net loss of $1.5 million in Q2 FY 2024.Gross profit margin increased to 45%, up from 40% in the prior year period.Stockholders equity rose to $6.4 million, up from $4.7 million at September 30th 2024. Management Commentary Cemtrex Chairman and CEO, Saagar Govil, commented on the results: “We are extremely pleased with our strong second quarter performance, which reflects our team’s sharp focus on execution and margin improvement. Both operating segments contributed to robust revenue growth, and we delivered a return to profitability on both an operating and net income basis. The improvement in gross margins, combined with disciplined expense management, enabled us to post over $8 million in net income this quarter. We believe this result marks an inflection point for Cemtrex. “At Vicon, our Security segment, we benefited from the initial shipments of a record $10.4 million order and from the ramp-up of our new NEXT Modular Sensor System, which is now in full production. Our efforts to expand our presence in international markets are also beginning to show progress, with recent STQC certification in India positioning us for long-term growth in that region. Meanwhile, our Industrial Services segment, AIS, delivered solid 13% year-over-year growth and continues to execute well on large infrastructure and industrial projects.” “We remain laser-focused on delivering shareholder value through improved profitability, strategic innovation, and operational discipline. With a strengthening balance sheet and a growing backlog, we believe we are positioned to sustain momentum through the second half of the fiscal year, and remain optimistic that fiscal 2025 financial performance will surpass fiscal 2024.” Segment Highlights: Vicon Industries: Revenue grew 110% year-over-year to $17.0 million, driven by execution of a large government order and increased demand for AI-enhanced security solutions.Gross margin improved to 52% from 51% in the prior year quarter.Operating income for the segment totaled $4.3 million, compared to a loss of $0.7 million a year ago. Advanced Industrial Services: Revenue increased 13% to $10.3 million, up from $9.1 million in the prior year period.Gross profit grew to $3.4 million, with gross margin improving to 33%.Operating income rose to $0.9 million from $0.7 million in Q2 FY2024. MetricQ2 FY2025Q2 FY2024% ChangeRevenue$27.3M$17.2M+59%Gross Profit$12.2M$6.9M+75%Gross Margin45%40%+500bpsOperating Income$4.6M($1.0M)N/ANet Income to CETX Shareholders$8.4M($1.5M)N/AEPS (Basic & Diluted)$4.10($3,054.05)N/A As of March 31, 2025, cash and cash equivalents were $4.5 million, and total assets were $46.2 million. Inventories decreased to $6.1 million at March 31, 2025, from $7.0 million at September 30, 2024. Stockholders’ equity improved to $6.4 million, exceeding Nasdaq’s minimum continued listing standards. About Cemtrex Cemtrex, Inc. (Nasdaq: CETX) is a diversified technology company operating in the Security and Industrial sectors. Its Security segment, led by Vicon Industries, provides advanced video management software, high-performance security cameras, and integrated surveillance solutions for enterprise, government, and critical infrastructure. The Industrial segment, through Advanced Industrial Services (AIS), delivers expert rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. With a focus on innovation, execution, and strategic growth, Cemtrex is committed to enhancing safety, efficiency, and value for its customers and shareholders. For more information visit www.cemtrex.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law. Cemtrex, Inc. and SubsidiariesCondensed Consolidated Balance Sheets   (Unaudited)      March 31,  September 30,   2025  2024 Assets        Current assets        Cash and cash equivalents $4,538,405  $3,897,511 Restricted cash  1,527,628   1,522,881 Trade receivables, net  12,715,992   11,159,676 Trade receivables, net - related party  550,613   685,788          Inventory, net  6,136,765   6,988,529 Contract assets, net  1,156,620   985,207 Prepaid expenses and other current assets  2,026,088   1,456,687 Total current assets  28,652,111   26,696,279          Property and equipment, net  9,813,887   9,133,578 Right-of-use operating lease assets  1,676,614   1,933,378 Royalties receivable, net - related party  272,423   456,611 Goodwill  3,708,347   3,708,347 Other  2,113,768   2,187,265 Total Assets $46,237,150  $44,115,458          Liabilities & Stockholders’ Equity        Current liabilities        Accounts payable $4,001,843  $4,520,173 Sales tax payable  3,970   73,024 Revolving line of credit  2,867,425   3,125,011 Current maturities of long-term liabilities  9,301,045   4,732,377 Operating lease liabilities - short-term  829,644   832,823 Deposits from customers  182,855   408,415 Accrued expenses  2,764,172   1,393,902 Accrued payable on inventory in transit  242,303   640,450 Contract liabilities  1,924,425   1,254,204 Deferred revenue  1,179,536   1,297,616 Accrued income taxes  277,763   314,827 Total current liabilities  23,574,981   18,592,822 Long-term liabilities        Long-term debt  9,492,824   13,270,178 Long-term operating lease liabilities  902,223   1,159,204 Other long-term liabilities  282,200   274,957 Deferred Revenue - long-term  509,882   658,019 Warrant liabilities  4,747,468   5,199,436 Total long-term liabilities  15,934,597   20,561,794 Total liabilities  39,509,578   39,154,616          Commitments and contingencies  -   -          Stockholders’ equity        Preferred stock , $0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 2,579,994 shares issued and 2,515,894 shares outstanding as of March 31, 2025 and 2,456,827 shares issued and 2,392,727 shares outstanding as of September 30, 2024 (liquidation value of $10 per share)  2,580   2,457 Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at March 31, 2025 and September 30, 2024  50   50          Common stock, $0.001 par value, 70,000,000 shares authorized, 1,784,581 shares issued and outstanding at March 31, 2025 and 14,176 shares issued and outstanding at September 30, 2024  1,785   14 Additional paid-in capital  95,879,333   73,262,536 Accumulated deficit  (91,726,811)  (71,355,386)Treasury stock, 64,100 shares of Series 1 Preferred Stock at March 31, 2025, and September 30, 2024  (148,291)  (148,291)Accumulated other comprehensive income  2,394,376   2,949,297 Total Cemtrex stockholders’ equity  6,403,022   4,710,677 Non-controlling interest  324,550   250,165 Total liabilities and stockholders’ equity $46,237,150  $44,115,458  Cemtrex, Inc. and SubsidiariesCondensed Consolidated Statements of Operations (Unaudited)                For the three months ended  For the six months ended   March 31, 2025  March 31, 2024  March 31, 2025  March 31, 2024              Revenues $27,250,269  $17,159,595  $40,990,168  $34,037,761 Cost of revenues  15,084,814   10,220,179   23,122,777   20,015,946 Gross profit  12,165,455   6,939,416   17,867,391   14,021,815 Operating expenses                General and administrative  6,770,742   7,020,157   13,864,031   13,992,123 Research and development  777,889   951,400   1,667,972   1,800,205 Total operating expenses  7,548,631   7,971,557   15,532,003   15,792,328 Operating income/(loss)  4,616,824   (1,032,141)  2,335,388   (1,770,513)Other (expense)/income                Other income, net  (150,165)  144,765   (115,192)  223,176 Interest expense  (452,998)  (592,804)  (936,911)  (1,176,487)Loss on exercise of warrant liabilities  -   -   (15,796,105)  - Changes in fair value of warrant liability  4,707,374   -   (5,312,838)  - Total other income/(expense), net  4,104,211   (448,039)  (22,161,046)  (953,311)Net income/(loss) before income taxes  8,721,035   (1,480,180)  (19,825,658)  (2,723,824)Income tax expense  110,525   100,004   231,063   170,755 Income/(loss) from Continuing operations  8,610,510   (1,580,184)  (20,056,721)  (2,894,579)Income/(loss) from discontinued operations, net of tax  26,969   10,463   (240,319)  20,955 Net income/(loss)  8,637,479   (1,569,721)  (20,297,040)  (2,873,624)Less net income/(loss) in noncontrolling interest  254,537   (96,510)  74,385   (192,919)Net income/(loss) attributable to Cemtrex, Inc. stockholders $8,382,942  $(1,473,211) $(20,371,425) $(2,680,705)Income/(loss) per share - Basic & Diluted                Continuing Operations $4.10  $(3,054.05) $(10.62) $(5,497.36)Discontinued Operations $0.01  $20.80  $(0.13) $41.83 Weighted Average Number of Shares-Basic & Diluted  2,032,744   503   1,897,797   501  Cemtrex, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited)          For the six months ended   March 31,   2025  2024 Cash Flows from Operating Activities             Net loss $(20,297,040) $(2,873,624)         Adjustments to reconcile net loss to net cash used by operating activities        Depreciation and amortization  648,109   673,190 Loss on disposal of property and equipment  19,668   - Noncash lease expense  461,490   389,125 Goodwill impairment  -   - Bad debt expense  10,572   35,213 Contract modification - related party  280,545   - Share-based compensation  7,183   15,116 Income tax expense  -   (96,750)Shares issued to pay for services  -   40,000 Accrued interest on notes payable  530,404   657,355 Non-cash royalty income  (71,464)  (26,564)Amortization of original issue discounts on notes payable  16,667   - Loan origination costs  5,000   36,267 Loss on exercise of warrant liabilities  15,796,105   - Changes in fair value of warrant liability  5,312,838   -          Changes in operating assets and liabilities net of effects from acquisition of subsidiaries:        Trade receivables  (1,536,888)  (2,317,074)Trade receivables - related party  66,057   (178,980)Inventory  851,764   1,341,472 Contract assets  (171,413)  (240,478)Prepaid expenses and other current assets  (569,401)  482,853 Other assets  173,497   (225,853)Accounts payable  (518,330)  (455,315)Accounts payable - related party  -   408 Sales tax payable  (69,054)  1,658 Operating lease liabilities  (464,886)  (388,516)Deposits from customers  (225,560)  150,274 Accrued expenses  972,123   (108,311)Contract liabilities  670,221   919,090 Deferred revenue  (266,217)  (252,109)Income taxes payable  (38,617)  (146,422)Other liabilities  7,243   (184,261)Net cash provided/(used) by operating activities  1,600,616   (2,752,236)         Cash Flows from Investing Activities        Purchase of property and equipment  (1,359,963)  (355,308)Proceeds from sale of property and equipment  13,511   - Royalties on related party revenues  10,000   - Investment in MasterpieceVR  (100,000)  (100,000)Net cash used by investing activities  (1,436,452)  (455,308)         Cash Flows from Financing Activities        Proceeds on revolving line of credit  18,925,223   19,360,672 Payments on revolving line of credit  (19,182,809)  (15,413,971)Payments on debt  (240,510)  (2,634,545)Payments on Paycheck Protection Program Loans  (20,247)  (20,242)Proceeds on bank loans  -   28,331 Proceeds from notes payable  500,000   - Proceeds from warrant exercises  1,050,597   - Purchases of treasury stock  -   (69,705)Net cash provided by financing activities  1,032,254   1,250,540          Effect of currency translation  (550,777)  (304,022)Net increase/(decrease) in cash, cash equivalents, and restricted cash  1,196,418   (1,957,004)Cash, cash equivalents, and restricted cash at beginning of period  5,420,392   6,349,562 Cash, cash equivalents, and restricted cash at end of period $6,066,033  $4,088,536  Cemtrex, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows (Continued)(Unaudited) Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash        Cash and cash equivalents $4,538,405  $2,916,120 Restricted cash  1,527,628   1,172,416 Total cash, cash equivalents, and restricted cash $6,066,033  $4,088,536          Supplemental Disclosure of Cash Flow Information:        Cash paid during the period for interest $389,840  $482,865 Cash paid during the period for income taxes, net of refunds $269,680  $146,422          Supplemental Schedule of Non-Cash Investing and Financing Activities        Shares issued to pay for services $-  $40,000 Financing of fixed asset purchase $-  $28,331 Noncash recognition of new leases $204,726  $- Series A Warrant Exercises $21,515,777  $- 

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