Cemtrex Reports Second Quarter Fiscal Year 2025 Financial Results
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.
Metric Q2 FY2025 Q2 FY2024 % Change
Revenue $27.3M $17.2M +59%
Gross Profit $12.2M $6.9M +75%
Gross Margin 45% 40% +500bps
Operating Income $4.6M ($1.0M) N/A
Net Income to CETX Shareholders $8.4M ($1.5M) N/A
EPS (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 $(AIS.AU)$, 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 Subsidiaries
Condensed 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 Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
For the three months
ended For the six months ended
------------------------- --------------------------
March 31, March 31, March 31, March 31,
2025 2024 2025 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 Subsidiaries
Condensed 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 Subsidiaries
Condensed 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 $ -
========== =========
Investor Relations
investors@cemtrex.com
(END) Dow Jones Newswires
May 15, 2025 08:45 ET (12:45 GMT)
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