Cemtrex Reports Second Quarter Fiscal Year 2025 Financial Results

Yahoo

15-05-2025

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), 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 SubsidiariesCondensed 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 SubsidiariesCondensed 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 SubsidiariesCondensed 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 SubsidiariesCondensed 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
$
-
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