Cemtrex Completes Acquisition of Plant Engineering Services, Adding Specialized Engineering Capabilities and Expanding into Automotive and Defense Markets

Cemtrex (Nasdaq: CETX) completed the acquisition of Plant Engineering Services (PES) through its Advanced Industrial Services (AIS) subsidiary, adding full-service engineering and expanding into automotive and defense markets.

Rhea-AI Summary

Cemtrex (Nasdaq: CETX) completed the acquisition of Plant Engineering Services (PES) through its Advanced Industrial Services (AIS) subsidiary, adding full-service engineering and expanding into automotive and defense markets.

AIS revenue grew from about $21M in 2022 to $38M in 2025. PES is expected to add $4–$5M revenue over the next 12 months and be profitable immediately. The asset deal totaled $3.5M cash plus up to $1.5M earnout, funded with cash on hand. This is Cemtrex’s third acquisition this fiscal year, with another LOI signed for a potential deal in the September quarter.

Positive

• AIS revenue increased from approximately $21M in fiscal 2022 to $38M in fiscal 2025
• PES expected to contribute about $4–$5M in revenue over the next 12 months
• PES projected to be profitable from day one after acquisition
• $3.5M cash purchase funded using Cemtrex’s cash on hand
• Earnout of up to $1.5M tied to PES performance over three years
• Acquisition expands AIS into automotive and defense manufacturing markets with engineering-led capabilities

Negative

• Cemtrex commits approximately $3.5M in cash upfront for the PES acquisition
• Up to $1.5M additional earnout may be payable over three years, creating future cash obligations

Argus Jul 2 session

+6.07% close to close Open Argus

Details

Market move: CETX +6.07% in the Jul 2 session. Plant Engineering Services acquisition

On Jul 2, the day this news came out, CETX closed 6.07% above the previous close.

Data tracked by StockTitan Argus for the Jul 2 session.

Key Figures

AIS revenue FY 2022: $21 million AIS revenue FY 2025: $38 million PES expected revenue: $4–5 million +4 more

AIS revenue FY 2022

$21 million

Approximate annual revenue in fiscal 2022

AIS revenue FY 2025

$38 million

Approximate annual revenue in fiscal 2025

PES expected revenue

$4–5 million

Expected contribution over next twelve months

Cash purchase price

$3.5 million

AIS asset purchase of PES, subject to working capital adjustments

Earnout consideration

$1.5 million

Maximum additional earnout over three years post‑closing

PES operating history

30+ years

PES founded more than thirty years ago

Cemtrex acquisitions FY26

3 acquisitions

PES marks Cemtrex’s third completed acquisition in current fiscal year

Previous Acquisition Reports

5 past events · Latest: Feb 05

Same Type 5 events

1. Feb 05

   Richland acquisition close

   24h Move

   +15.7%

   AIS Tennessee acquisition expected to add $8–10M revenue and expand footprint.

2. Jan 08

   Invocon acquisition close

   24h Move

   +2.4%

   Completed Invocon deal and launched Aerospace & Defense reporting segment.

3. Nov 20

   Invocon deal agreement

   24h Move

   -21.8%

   Announced agreement to buy Invocon for $7.06M cash, expanding into defense.

4. Aug 25

   Two LOIs signed

   24h Move

   +7.6%

   Signed LOIs for two acquisitions projected to add revenue and operating income.

5. Jun 12

   Acquisition strategy update

   24h Move

   +3.0%

   Outlined targeted acquisitions after strong first half to accelerate growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

earnout consideration, asset purchase transaction, backlog, loi

4 terms

earnout consideration financial

"with up to an additional $1.5 million payable in earnout consideration tied"

Earnout consideration is the portion of a purchase price that one party pays later only if the acquired business meets agreed future targets, like sales or profit goals. Think of it as a performance-linked bonus that shifts some risk from the buyer to the seller; investors watch earnouts because they affect how much value will actually be paid, influence future cash flow, and can change reported earnings or liabilities if targets are missed or met.

asset purchase transaction financial

"AIS acquired the business in an asset purchase transaction for approximately"

An asset purchase transaction is a deal in which a buyer acquires specific assets and rights of a business—such as equipment, contracts, patents, or inventory—rather than buying the company's shares. For investors, it matters because this lets the buyer pick what to own and often avoid unwanted debts or legal obligations, which changes future revenue, costs, tax treatment and balance-sheet risk. Think of it like buying a store's products and fixtures without taking on the building owner's past bills.

backlog financial

"Based on historical performance and current backlog, PES is expected to contribute"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

loi financial

"The Company has also signed an LOI for an additional acquisition, which it expects"

A letter of intent (LOI) is a short, nonbinding written note that outlines the basic terms two parties expect to follow when pursuing a deal such as an acquisition, partnership, or major contract. Like a handshake that records the main points before lawyers write the formal agreement, an LOI signals deal intent, timelines and key conditions — information investors use to gauge potential changes to a company’s value, while remembering the agreement can still change.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Hauppauge, NY, July 02, 2026 (GLOBE NEWSWIRE) -- Cemtrex, Inc. (Nasdaq: CETX, CETXP) today announced that its Advanced Industrial Services ("AIS") subsidiary has acquired Plant Engineering Services ("PES"), a Fort Wayne, Indiana-based engineering firm specializing in the design, modernization, and relocation of large hydraulic and mechanical press systems and complex manufacturing equipment. The acquisition adds a full-service engineering capability to AIS' industrial services platform and extends the Company's reach into the automotive and defense end markets.

The transaction marks a new dimension in AIS' growth strategy. Since fiscal 2022, AIS has grown from approximately $21 million in annual revenue to approximately $38 million in fiscal 2025 through disciplined execution of complex industrial, infrastructure, and manufacturing work. Earlier this year, AIS expanded geographically with the formation of AIS Tennessee. With PES, the Company is now expanding the platform's capabilities — adding the engineering expertise that sits upstream of the installation, rigging, and millwrighting services AIS has delivered for over four decades.

Founded more than thirty years ago, PES provides mechanical, electrical, and hydraulic engineering, project management, and machine rebuild services to manufacturers across the United States. The company is a recognized specialist in the repair, upgrade, relocation, and modernization of large hydraulic presses and automated production lines, serving customers in aerospace forging, automotive manufacturing, defense, heavy truck, and other advanced manufacturing sectors. PES's engineering-led model allows manufacturers to access senior engineering talent for capital projects without maintaining that capability in-house.

The strategic fit between the two businesses is direct and immediate. PES regularly engages industrial contractors to perform the rigging, millwrighting, electrical, and mechanical installation work its engineered projects require — precisely the services AIS self-performs. Conversely, AIS' national client base regularly requires the specialized engineering, hydraulic, and automation expertise that PES brings. The combination allows the Company to pursue turnkey capital projects, from engineering and design through installation and commissioning, under a single platform, while positioning PES as the engineering arm of AIS' broader industrial offering.

"This acquisition allows us to expand our footprint, capability, and markets served immediately," said Saagar Govil, Chairman and CEO of Cemtrex. "PES brings deep engineering expertise that AIS has never had in-house, and AIS brings the field execution resources that PES has historically sourced externally. Each company is a natural customer of the other. At the same time, PES opens doors for us in automotive and defense manufacturing, markets where reshoring and domestic industrial investment are driving sustained demand for exactly the kind of engineering-led capital work PES does best. Additionally, we can leverage PES capabilities for AIS’ diverse customer base, deepening those relationships and capturing a larger share of the capital investment flowing into our customers' plants."

PES will operate as a dedicated business unit within AIS, maintaining its brand, Fort Wayne operations, and existing team. PES founder Mark Bohler will continue to lead the business unit as President, ensuring continuity for the company's long-standing customer relationships. Based on historical performance and current backlog, PES is expected to contribute approximately $4 to $5 million in revenue over the next twelve months and be profitable from day one.

AIS acquired the business in an asset purchase transaction for approximately $3.5 million in cash with certain adjustments for working capital, with up to an additional $1.5 million payable in earnout consideration tied to the performance of the business over the three years following closing. Cemtrex completed the acquisition using cash on hand.

The acquisition of PES represents Cemtrex's third completed acquisition in the current fiscal year and reflects the Company's broader objective of building durable operating businesses with complementary capabilities and long-term growth potential. The Company has also signed an LOI for an additional acquisition, which it expects to complete in the September quarter.

About Cemtrex
Cemtrex, Inc. (Nasdaq: CETX) is a diversified industrial and technology company operating across the Security, Industrial, and Aerospace & Defense sectors. The Company's 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 customers. Its Industrial segment, through Advanced Industrial Services (AIS), delivers specialized rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. Cemtrex's Aerospace & Defense segment, anchored by Invocon, provides mission-critical engineering, instrumentation, and sensing solutions supporting aerospace, defense, and space-based programs. With a focus on disciplined execution and strategic growth, Cemtrex is committed to building durable businesses that enhance safety, reliability, and long-term value for its customers and shareholders.
For more information, visit www.cemtrex.com.

Investor Relations: investors@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 acquisition and the expected contribution of the acquired business, or any future potential acquisition. 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.

Investor Relations: investors@cemtrex.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Cemtrex (NASDAQ: CETX) announce about acquiring Plant Engineering Services in July 2026?

Cemtrex announced that AIS acquired Plant Engineering Services, adding full-service engineering capabilities and expanding into automotive and defense markets. According to Cemtrex, PES will serve as the engineering arm of AIS, enabling turnkey capital projects from design through installation and commissioning.

How much did Cemtrex pay for the Plant Engineering Services acquisition and how is it structured for CETX investors?

Cemtrex completed the PES acquisition for about $3.5 million in cash, plus up to $1.5 million in earnout. According to Cemtrex, the earnout depends on PES performance over three years and the upfront payment was funded with cash on hand.

What revenue impact is expected from Plant Engineering Services on Cemtrex (CETX)?

PES is expected to generate approximately $4–$5 million in revenue over the next 12 months. According to Cemtrex, PES is anticipated to be profitable from day one, potentially enhancing AIS’s financial contribution alongside its existing industrial services portfolio.

How has AIS’s revenue grown before the Plant Engineering Services deal for Cemtrex (CETX)?

AIS revenue grew from about $21 million in fiscal 2022 to roughly $38 million in fiscal 2025. According to Cemtrex, this growth reflects execution on complex industrial, infrastructure, and manufacturing work, now complemented by PES’s specialized engineering services.

What strategic benefits does Plant Engineering Services bring to Cemtrex’s AIS platform (CETX)?

The acquisition adds mechanical, electrical, and hydraulic engineering, plus project management and machine rebuild services. According to Cemtrex, combining PES engineering with AIS installation capabilities enables turnkey capital projects and deeper access to automotive, defense, aerospace forging, and heavy truck customers.

How will Plant Engineering Services be operated within Cemtrex’s AIS business for CETX shareholders?

PES will run as a dedicated business unit within AIS, keeping its brand, Fort Wayne site, and team. According to Cemtrex, founder Mark Bohler will remain President, supporting continuity for long-standing customer relationships and integration into the broader AIS platform.

How does the Plant Engineering Services acquisition fit Cemtrex’s broader M&A strategy for CETX?

The PES deal is Cemtrex’s third acquisition in the current fiscal year, focused on complementary capabilities and long-term growth. According to Cemtrex, the company has also signed an LOI for another acquisition expected to close in the September quarter, extending this strategy.