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Yahoo
20-05-2025
- Business
- Yahoo
Cemtrex Stock Surges Following Q2 Earnings, Margins Expand
Shares of Cemtrex, Inc. CETX have risen 19.2% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 Index's 1.1% growth over the same time frame. Over the past month, the stock has surged an impressive 69.4%, significantly outperforming the S&P 500's 15.4% rise. For the second quarter of fiscal 2025, Cemtrex delivered strong top and bottom-line results. Revenues surged 58.8% year over year to $27.3 million from $17.2 million, driven by strength across both of its business segments. The company recorded an operating income of $4.6 million against a loss of $1 million in the prior year, while net income rose sharply to $8.4 million from a net loss of $1.5 million in the prior-year quarter. Basic and diluted earnings per share came in at $4.10 compared to a loss of $3,054.05 per share in the year-ago period, reflecting a significant improvement in shareholder profitability metrics. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Cemtrex's Security segment, led by Vicon Industries, posted a 110% year-over-year revenue increase to $16.9 million from $8.1 million. This was primarily due to the execution of a large $10.4 million government order and growing demand for AI-driven security products like the new NEXT Modular Sensor System, which entered full production during the quarter. The segment's gross margin slightly improved to 52% from 51%, and the operating income jumped to $4.3 million against a loss of $0.7 million in the same quarter last year. The Industrial Services segment, Advanced Industrial Services, reported a more modest 13.2% increase in revenue to $10.3 million from $9.1 million. The gross margin in this segment improved to 33% from 31%, and operating income grew to $0.9 million from $0.7 million in the previous year. These results were driven by continued execution on infrastructure and industrial projects. Cemtrex Inc. price-consensus-eps-surprise-chart | Cemtrex Inc. Quote Cemtrex's gross profit rose 75.3% year over year to $12.2 million from $6.9 million, with the gross margin expanding by 500 basis points to 45% from 40% last year. This margin improvement was attributed to a favorable sales mix and cost efficiencies. Operating expenses declined 5.3% to $7.5 million from $7.9 million, underscoring effective expense management. These trends facilitated the return to operating profitability after several quarters of losses. On the balance sheet, Cemtrex stockholders' equity improved to $6.4 million from $4.7 million at the end of Sept. 30, 2024, surpassing Nasdaq's continued listing standards. Inventory levels decreased to $6.1 million from $6.9 million, and cash and cash equivalents stood at $4.5 million as of March 31, 2025 compared with $3.9 million as of Sept. 30, 2024. Cash flow from operating activities turned positive, with the company generating $1.6 million in the six months ended March 31, 2025 against a cash burn of $2.8 million a year earlier. Despite this improvement, long-term debt stood at $9.5 million as of March 31, 2025, and total liabilities remained elevated at $39.5 million. The company also recorded $21.5 million in Series A warrant exercises, providing additional liquidity. CEO Saagar Govil described the quarter as an 'inflection point' for CETX, citing the robust revenue growth, margin gains and profitability as validation of the company's execution strategy. He emphasized strong contributions from both business segments, international expansion efforts — highlighted by Vicon's STQC certification in India — and an increasingly disciplined operational approach. Management expressed optimism for continued momentum through the remainder of fiscal 2025 and expects to surpass the performance of fiscal 2024. The significant earnings turnaround was largely driven by the large Vicon government order and the transition of new product lines, particularly the NEXT Modular Sensor System, into full-scale production. Cemtrex also benefited from expanding its global footprint, particularly in India. These developments contributed not only to higher revenues but also to enhanced economies of scale and improved margins. Additionally, the shift from an operating loss to income reflects tighter control over general and administrative expenses, which declined despite significantly higher revenues. The quarter also featured significant movements in non-operating items. Cemtrex booked a $4.7 million non-cash gain related to the fair value of warrant liabilities, which, along with lower interest expenses, helped bolster the bottom line. However, these items are one-time in nature and may not recur in future periods. No explicit financial guidance was provided by Cemtrex for the remainder of fiscal 2025. However, management's commentary pointed to expectations of sustained growth and profitability improvements, supported by a growing order backlog and a strengthened balance sheet position. Cemtrex did not report any acquisitions, divestitures or major restructuring activities during the quarter. However, the company disclosed a $21.5 million gain related to Series A warrant exercises, which was included as a non-cash financing activity. This inflow supports CETX's recent capital structure improvements and provides additional liquidity for strategic initiatives. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cemtrex Inc. (CETX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Cemtrex Reports Second Quarter Fiscal Year 2025 Financial Results
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 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 $ - CONTACT: Investor Relations investors@ in to access your portfolio
