Cemtrex Accelerates Growth Strategy After Strong First Half with Targeted Acquisitions
Cemtrex reported over $2.3 million in operating income for the first six months of the year, a major shift from the prior year and a clear signal that the Company's core businesses, particularly Vicon Security, are now generating sustainable profitability. First-half revenue grew to $41 million, up more than 20% year-over-year, driven by strong execution and continued demand across its industrial and security platforms.
'We've crossed the profitability threshold, and now we're going on offense,' said Saagar Govil, Chairman and CEO of Cemtrex. 'We've spent the last few years rebuilding from the ground up. Today, we're in a position of strength and focused on acquiring businesses that drive immediate earnings and expand our long-term value.'
The Company is currently conducting in-depth evaluations on two potential acquisition targets and actively evaluating several others. If completed, these transactions are expected to contribute an additional $3 to $4 million in annual operating income, further accelerating Cemtrex's earnings trajectory.
'Our strategy is simple: buy strong, cash-generating businesses at sensible multiples, integrate quickly, and compound value,' Govil added. 'We're already seeing continued momentum in our core businesses, particularly through new products and customer wins. Acquisitions are an accelerant, not a substitute, for the organic growth we're already delivering. Since 2021, we've nearly doubled revenue and significantly improved margins. The next phase is about scaling what we've built, through focused execution and disciplined expansion.'
Cemtrex plans to fund future acquisitions through a mix of internal capital, seller financing, and non-toxic equity raises. Each opportunity will be evaluated for its return on capital, margin impact, and contribution to earnings per share.
There is no assurance any specific transaction will be completed. The Company will provide updates as material developments occur.
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.
Investor Relations: [email protected]
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