Cemtrex Reports Fiscal Year 2026 First Quarter Financial Results
Rhea-AI Summary
Cemtrex (Nasdaq: CETX, CETXP) reported Q1 fiscal 2026 results for the quarter ended December 31, 2025: revenue $16.1M (up 17% YoY), gross profit $5.6M (35% gross margin) and operating loss $2.8M. Cash and cash equivalents rose to $20.5M (up 312% YoY).
The Industrial segment delivered a record quarter with $10.6M revenue (up 28%). Security faced gross margin pressure; management completed acquisitions of Invocon and Richland Industries, expected to contribute beginning Q2.
Positive
- Revenue +17% YoY to $16.1 million
- Industrial revenue +28% YoY to $10.6 million (record quarter)
- Cash and cash equivalents +312% to $20.5 million
- Completed acquisitions of Invocon and Richland Industries
Negative
- Operating loss widened to $2.8 million
- Net loss of $20.6 million driven by non-cash debt settlement
- Security segment gross margin compression from tariffs and weaker demand
- One-time restructuring and transaction costs raised near-term expenses
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner shows 3 peers (e.g., OLB, ATCH) moving down, while broader peer list is mixed with both gains and losses. With CETX flat pre-release, the read-through on sector-driven impact is unclear.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 29 | Full-year results | Positive | -7.5% | Reported FY2025 revenue growth and return to operating profit. |
| Aug 14 | Quarterly results | Positive | -5.2% | Q3 FY2025 revenue and margins improved with positive operating income. |
| May 15 | Quarterly results | Positive | +11.6% | Q2 FY2025 showed strong revenue growth and a swing to net profit. |
| Feb 14 | Quarterly results | Negative | -7.9% | Q1 FY2025 revenue declined and losses widened on warrant expenses. |
| Dec 30 | Full-year results | Neutral | -7.7% | FY2024 revenue grew but operating loss increased versus prior year. |
Earnings releases have often been followed by negative next-day moves, even when results highlighted revenue growth and margin improvements.
Over the last five earnings-related releases from Dec 2024 through Dec 2025, Cemtrex reported consistent revenue growth, improving gross margins, and a return to operating profit in FY2025 with revenue of $76.5M. Several quarters (Q2 and Q3 FY2025) showed strong segment performance and positive operating income, yet four of the five earnings events saw negative 24-hour price reactions. Today’s Q1 FY2026 results continue the narrative of growth in Industrial and higher cash, against a backdrop of prior market skepticism around earnings releases.
Historical Comparison
Across the last 5 earnings-related releases, CETX averaged a next-day move of -3.33%, showing a tendency for cautious to negative reactions around results.
Earnings history shows Cemtrex moving from FY2024 operating losses toward FY2025 operating profit, with multiple quarters of strong revenue growth and margin gains, especially from the Security and Industrial segments.
Market Pulse Summary
This announcement highlights Q1 FY2026 revenue growth to $16.1M, record Industrial segment sales of $10.6M, and a sizeable cash balance of $20.5M, alongside an operating loss of $2.8M and net loss of $20.6M. Management points to cost reductions in Security and contributions from recent acquisitions as future levers. Given prior earnings-related volatility and recent going-concern language in filings, investors may watch segment margins, cash trends, and debt metrics closely.
AI-generated analysis. Not financial advice.
Hauppauge, NY, Feb. 17, 2026 (GLOBE NEWSWIRE) -- – Cemtrex, Inc. (Nasdaq: CETX, CETXP) today reported results for the 2026 first fiscal quarter ended December 31, 2025.
Key Highlights for First Fiscal Quarter 2026
- Revenues for Q1 ’26 increased
17% to$16.1 million , compared to revenue in the prior year of$13.7 million . - Industrial segment revenue increased
28% to$10.6 million , compared to revenue in the prior year of$8.3 million . - Security segment revenue increased
1% to$5.5 million , compared to revenue in the prior year of$5.4 million . - Cash and cash equivalents increased
312% to$20.5 million , compared to the prior year of$5 million .
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results:
“Fiscal Q1 2026 was a quarter of decisive action. We strengthened our balance sheet, delivered continued revenue growth driven by our Industrial segment.
Operating loss for the quarter was
In Security, we saw gross margin compression driven by tariff related cost pressures and softer demand from certain government and corrections customers during the quarter, which was below typical historical levels amid broader public-sector budget and shutdown-related disruptions. We responded by implementing pricing adjustments and reducing overhead by approximately
In Industrial, revenue increased
During the quarter we materially improved financial flexibility through equity raises and debt settlements, increasing working capital and strengthening our capital structure. Subsequent to quarter end, we completed the acquisitions of Invocon and Richland Industries, expanding our operating footprint and earnings base. Invocon establishes our Aerospace and Defense segment and expands our presence in mission critical engineering markets. Richland strengthens AIS’s geographic reach and fabrication capabilities in the Southeast. Contributions from both acquisitions will begin to be reflected starting in the second fiscal quarter.
As we enter the second quarter, the Company expects the combined impact of cost actions in Security and earnings contributions from recently completed acquisitions to improve performance. Our focus for fiscal 2026 is restoring segment margins, expanding operating income, and strengthening cash flow generation across the platform. We remain focused on disciplined execution and capital allocation as we build a diversified platform designed to deliver durable operating income over time. We continue to pursue acquisitions that fit our criteria for durable margins and cash generation.”
Condensed Financial Summary (Fiscal Q1 2026)
- Revenue:
$16.1 million - Gross profit:
$5.6 million - Gross margin:
35% - Operating loss:
$2.8 million - Net loss:
$20.6 million , primarily driven by non-cash items related to debt settlement - Cash and cash equivalents:
$20.5 million
Additional details are available in the Company’s Quarterly Report on Form 10 Q filed with the Securities and Exchange Commission.
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 anticipated operational performance, potential acquisitions, strategic initiatives, closing of any offerings, gross proceeds from any offerings, 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.
Investor Relations: investors@cemtrex.com
FAQ
What were Cemtrex (CETX) Q1 fiscal 2026 revenues and growth?
Why did Cemtrex (CETX) report a net loss of $20.6 million in Q1 2026?
How did Cemtrex (CETX) improve its cash position in Q1 2026?
What caused margin pressure in Cemtrex's Security segment in Q1 2026?
When will Invocon and Richland Industries start contributing to Cemtrex (CETX) results?
What cost actions did Cemtrex (CETX) implement to improve Security performance?
