Cemtrex Reports Third Quarter Fiscal 2026 Financial Results
Rhea-AI Summary
Cemtrex (Nasdaq: CETX) reported third quarter fiscal 2026 revenue of $18.4 million, up 9% year-over-year and 2% sequentially. Gross profit was $7.7 million with a 41.7% margin, up from 38.3% in Q2.
Consolidated operating loss narrowed sequentially to $1.2 million from $2.2 million, while Operating EBITDA improved to a loss of $0.6 million versus losses of $1.7 million in Q2 and $2.5 million in Q1. Net loss attributable to stockholders was $4.5 million, similar to the prior-year quarter.
Operating cash flow turned positive at $0.2 million. Security segment gross margin rose to 49% and its operating loss fell to $0.3 million. Aerospace & Defense generated $2.2 million revenue and $1.0 million operating income. Working capital increased to $13.2 million and stockholders’ equity to $32.0 million.
Positive
- Revenue $18.4M, up 9% year-over-year and 2% sequentially in Q3 FY2026
- Consolidated operating loss improved sequentially to $1.2M from $2.2M in Q2
- Operating EBITDA loss reduced to $0.6M from $1.7M in Q2 and $2.5M in Q1
- Operating cash flow turned positive at $0.2M in Q3 FY2026
- Aerospace & Defense delivered $2.2M revenue and $1.0M operating income with 87% gross margin
- Security segment gross margin improved to 49%, up from 44% in Q2 and 39% in Q1
- Working capital rose to $13.2M and stockholders’ equity to $32.0M from $5.2M and $8.7M at FY2025 year-end
- Completed acquisition of Plant Engineering Services post-quarter, expanding Industrial Services and automotive/defense exposure
Negative
- Net loss $4.5M in Q3 FY2026, similar to $4.6M in prior-year quarter
- Q3 FY2026 operating loss $1.2M versus $0.6M operating loss in Q3 FY2025
- Year-to-date FY2026 revenue $52.6M, down from $58.0M in year-to-date FY2025
- Year-to-date FY2026 gross profit $20.2M versus $25.2M in year-to-date FY2025
- Year-to-date FY2026 Operating EBITDA loss $4.8M versus $2.7M profit in year-to-date FY2025
- Industrial Services posted $0.7M operating loss in Q3, versus $0.7M operating income in Q2, driven by AIS Tennessee loss > $1M
- Security segment revenue fell to $6.3M from $7.6M and gross margin to 49.1% from 52% versus Q3 FY2025
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 15 | Q2 earnings report | Positive | -3.8% | Operational improvement and acquisitions were reported, but the stock declined 3.75%. |
| Feb 17 | Q1 earnings report | Negative | -6.3% | Operating loss widened despite revenue growth and newly acquired businesses. |
| Dec 29 | FY2025 earnings report | Positive | +41.2% | Revenue growth and return to operating profitability accompanied a 41.23% reaction. |
| Aug 14 | Q3 earnings report | Positive | -5.2% | Revenue and operating performance improved, but the stock declined 5.22%. |
| May 15 | Q2 earnings report | Positive | +11.6% | Revenue, net income, operating income, and gross margin all improved year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
CETX's earnings-tagged news produced three positive reactions and two negative reactions, including a negative reaction to the prior quarter's results.
Key Terms
operating ebitda financial
non-gaap financial measure financial
letter of intent financial
fair value of warrant liabilities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Operating cash flow turned positive for the quarter as sequential Operating EBITDA improved by
Hauppauge, NY, Aug. 14, 2026 (GLOBE NEWSWIRE) -- – Cemtrex, Inc. (Nasdaq: CETX, CETXP) today reported results for the 2026 third fiscal quarter ended June 30, 2026.
Key Highlights for Third Fiscal Quarter 2026
- Revenue increased
9% year-over-year to$18.4 million , up2% sequentially from the second fiscal quarter. - Consolidated operating loss narrowed to
$1.2 million from$2.2 million in Q2, the second consecutive quarter of sequential improvement. - Operating EBITDA improved to a loss of
$0.6 million , from a loss of$1.7 million in Q2 and a loss of$2.5 million in Q1. Operating EBITDA is a non-GAAP measure defined and reconciled below. - Security segment operating loss narrowed to
$0.3 million , from$1.4 million in Q2 and$3.0 million in Q1, as the segment approaches operating breakeven. Security gross margin improved to49% , from44% in Q2 and39% in Q1. - Aerospace & Defense segment generated
$2.2 million of revenue, up79% sequentially, and$1.0 million of segment operating income in its second quarter of consolidation. - Operating cash flow was positive
$0.2 million during Q3, compared to$5.1 million of cash used in operations during the first half of the fiscal year. - Completed the acquisition of Plant Engineering Services in July 2026, subsequent to quarter end. An additional Industrial Services acquisition is currently under letter of intent.
- Working capital was
$13.2 million at June 30, 2026, and stockholders’ equity was$32.0 million , compared to$5.2 million and$8.7 million , respectively, at September 30, 2025.
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results:
“The third fiscal quarter showed measurable progress on each of the operational priorities we laid out earlier this year. Consolidated operating loss narrowed by nearly half sequentially, Operating EBITDA improved by
The clearest evidence of execution this quarter was in our Security segment. Vicon’s segment operating loss narrowed to
Our acquisition strategy continued to build the platform. Subsequent to quarter end, we completed the acquisition of Plant Engineering Services, which adds upstream engineering capability to AIS and opens automotive and defense manufacturing end markets, and we are under letter of intent on an additional Industrial Services acquisition.
AIS Tennessee’s restructuring weighed on Industrial Services results this quarter and completing that turnaround is a clear near-term objective. We acquired the business because we believed its long-term value materially exceeded the purchase price, not because we expected immediate profitability. While the integration and operational improvements continue, we remain confident that the acquisition will create meaningful long-term value for shareholders.
The trajectory of the consolidated business is materially better than it was six months ago: two consecutive quarters of sequential improvement in operating results, positive operating cash flow, a strengthened balance sheet, and a higher-quality mix of businesses. The drivers of that improvement are structural rather than one-time in nature.”
Third Quarter Fiscal 2026 Financial Results
Revenue. Revenue was
Gross profit. Gross profit was
Operating EBITDA. Operating EBITDA, defined as operating income (loss) before depreciation and amortization, was a loss of
Operating loss. Operating loss was
Net loss. Net loss attributable to Cemtrex stockholders was
Operating cash flow. Cash provided by operations was
Balance sheet. At June 30, 2026, cash, cash equivalents, restricted cash, and marketable securities totaled
Segment Results
Security. The Security segment, operated under Vicon, reported revenue of
Industrial Services. The Industrial Services segment reported revenue of
AIS Tennessee was acquired earlier this year for approximately
Subsequent to quarter end, the segment expanded with the acquisition of Plant Engineering Services, a Fort Wayne, Indiana-based engineering firm specializing in the design, modernization, and relocation of large hydraulic and mechanical press systems, adding engineering capability upstream of AIS’s installation, rigging, and millwrighting services and extending the platform into automotive and defense end markets.
Aerospace & Defense. The Aerospace & Defense segment, operated under Invocon, reported revenue of
Condensed Financial Summary
| Metric | Q3 FY2026 | Q3 FY2025 | YTD FY2026 | YTD FY2025 | ||||
| Revenue | ||||||||
| Gross profit | ||||||||
| Gross margin | 41.7 | % | 43.4 | % | 38.3 | % | 43.5 | % |
| Operating income (loss) | ( | ( | ( | |||||
| Operating EBITDA | ( | ( | ( | |||||
| Net income (loss) attributable to Cemtrex stockholders | ( | ( | ( | ( | ||||
Q3 FY2026 Segment Summary
| Segment | Revenue | Gross Profit | Gross Margin | Operating Income (Loss) | |
| Security | 49.1 | % | ( | ||
| Industrial Services | 27.1 | % | ( | ||
| Aerospace & Defense | 87.0 | % | |||
| Corporate | — | ( | |||
| Consolidated | 41.7 | % | ( | ||
Non-GAAP Financial Measure: Operating EBITDA
Beginning this quarter, the Company is presenting Operating EBITDA as a primary measure of operating performance. Operating EBITDA is defined as operating income (loss) before depreciation and amortization. Management believes this measure reflects the performance of the Company’s operating businesses without the effects of financing activities and other non-operating items, and provides investors with a consistent basis for evaluating operating trends across periods. Operating EBITDA is a non-GAAP financial measure and should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), or other measures prepared in accordance with GAAP. The following table reconciles Operating EBITDA to operating loss, the most directly comparable GAAP measure:
| Q3 FY2026 | Q2 FY2026 | YTD FY2026 | YTD FY2025 | ||||||||
| Operating income (loss) | $ | (1,193,142 | ) | $ | (2,172,037 | ) | $ | (6,171,339 | ) | $ | 1,692,987 |
| Depreciation and amortization | 581,651 | 515,845 | 1,420,797 | 960,930 | |||||||
| Operating EBITDA | $ | (611,491 | ) | $ | (1,656,192 | ) | $ | (4,750,542 | ) | $ | 2,653,917 |
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.
investors@cemtrex.com