Cemtrex Reports Second Quarter Fiscal Year 2025 Financial Results

Rhea-AI Summary

Cemtrex (NASDAQ: CETX) reported strong Q2 FY2025 financial results with significant improvements across key metrics. Revenue surged 59% to $27.3 million, while net income reached $8.4 million, compared to a $1.5 million loss in Q2 FY2024. The company achieved an operating income of $4.6 million, reversing a $1 million loss from the previous year. Gross profit margin improved to 45% from 40%. The Security segment, Vicon Industries, led growth with a 110% revenue increase to $17.0 million, driven by a major government order and AI-enhanced security solutions. Advanced Industrial Services contributed with a 13% revenue growth to $10.3 million. The company's strengthened balance sheet shows $4.5 million in cash and improved stockholders' equity of $6.4 million, meeting Nasdaq's listing requirements.

Positive

• Revenue increased significantly by 59% to $27.3 million
• Achieved $8.4 million net income, reversing previous year's loss
• Gross profit margin improved to 45% from 40%
• Security segment (Vicon) revenue grew 110% year-over-year
• Stockholders' equity improved to $6.4 million, meeting Nasdaq listing requirements
• Secured record $10.4 million order in Security segment
• Inventory efficiency improved with reduction from $7.0M to $6.1M

Negative

• None.

Insights

Financial Analyst

Cemtrex dramatically turns to profitability with 59% revenue growth, driven by security segment execution and improved margins.

This quarterly report represents a remarkable turnaround for Cemtrex. The 59% revenue jump to $27.3 million alongside the swing from a $1 million operating loss to $4.6 million operating income signals a significant inflection point in the company's financial trajectory. Most impressive is the net income of $8.4 million compared to last year's $1.5 million loss – a decisive return to profitability.

The 500 basis point improvement in gross margin to 45% demonstrates that Cemtrex isn't just growing revenue, but enhancing operational efficiency. This margin expansion, driven by higher-margin security solutions and improved industrial services execution, is particularly noteworthy as it indicates sustainable profit potential rather than one-time gains.

Breaking down the segments reveals the true story: Vicon Industries (security segment) was the standout performer with 110% year-over-year growth to $17 million, benefiting from a major government order and AI-enhanced security solutions. The transformation of this division from a $0.7 million loss generator to contributing $4.3 million in operating income is driving the overall company performance.

The balance sheet improvement is equally important – stockholders' equity rose to $6.4 million, surpassing Nasdaq's minimum listing requirements, reducing an existential risk. The company's inventory reduction to $6.1 million from $7.0 million while growing revenue substantially indicates improved inventory management and working capital efficiency.

This quarter marks a potential turning point where operational improvements are translating to financial results, addressing previous investor concerns about sustained profitability. The execution of the $10.4 million order and the successful production ramp of their NEXT Modular Sensor System provide tangible evidence of the security segment's growth drivers.

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 30^th 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), 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, 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 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

FAQ

What were Cemtrex's (CETX) Q2 2025 earnings results?

Cemtrex reported Q2 FY2025 revenue of $27.3M (up 59%), net income of $8.4M, and EPS of $4.10. The company achieved operating income of $4.6M and improved gross margin to 45%.

How did Cemtrex's (CETX) different segments perform in Q2 2025?

Vicon Industries (Security segment) grew 110% to $17.0M with 52% gross margin. Advanced Industrial Services increased 13% to $10.3M with 33% gross margin.

What is Cemtrex's (CETX) current financial position?

As of March 31, 2025, Cemtrex had $4.5M in cash, total assets of $46.2M, and stockholders' equity of $6.4M, meeting Nasdaq's listing requirements.

What drove Cemtrex's (CETX) revenue growth in Q2 2025?

Growth was driven by initial shipments of a $10.4M order in the Security segment, ramp-up of the NEXT Modular Sensor System, and solid performance in industrial projects.