Hauppauge, NY, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Cemtrex Inc. (Nasdaq: CETX, CETXP), a multi-industry technology company focused on security and industrial services, today announced its financial results for the third quarter and nine months ended June 30, 2025, showing substantial improvement in revenue, margins, and profitability compared to the prior year.
"Through the first nine months of fiscal 2025, Cemtrex is a stronger, more profitable, and more efficient business than it was a year ago," said Saagar Govil, Chairman and CEO. "We've grown sales nearly 20 percent, expanded gross margins by three points, and delivered a $6.6 million year-over-year swing to positive operating income. This improvement is visible in nearly every major metric."
Third Quarter Fiscal 2025 Highlights (three months ended June 30, 2025 vs. 2024)
- Revenue increased 16% to $17.0 million from $14.7 million.
- Security segment revenue increased 22% to $7.6 million; Industrial Services revenue increased 10% to $9.4 million.
- Gross profit increased 25% to $7.37 million, with gross margin improving to 43% from 40%.
- Operating loss narrowed to $0.64 million from $3.18 million.
Nine Months Fiscal 2025 Highlights (nine months ended June 30, 2025 vs. 2024)
- Revenue increased 19% to $58.0 million from $48.7 million.
- Security segment revenue increased 28% to $30.0 million, including a $10.4 million Vicon order.
- Industrial Services revenue increased 11% to $27.9 million.
- Gross profit increased 27% to $25.24 million, with gross margin improving to 44% from 41%.
- Operating income was $1.69 million, compared to an operating loss of $4.95 million last year, a $6.64 million improvement.
Balance Sheet and Liquidity
- Cash and equivalents, including restricted cash, increased to $8.15 million from $5.42 million at September 30, 2024.
- Working capital was $4.92 million despite higher current maturities of long-term liabilities.
"Our Security segment continues to see encouraging growth, anchored by the largest single order in Vicon's history, while Industrial Services continues to execute at a high level delivering strong growth and margin gains," added Govil. "We have tightened expenses, improved efficiency, and strengthened the balance sheet, all while executing on our growth plan. The difference between this year and last is significant, and we believe we are well positioned to build on this momentum into our next fiscal year."
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.
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 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) | ||||||||
| June 30, 2025 | September 30, 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,032,530 | $ | 3,897,511 | ||||
| Restricted cash | 1,112,829 | 1,522,881 | ||||||
| Trade receivables, net | 12,678,928 | 11,159,676 | ||||||
| Trade receivables, net - related party | 513,263 | 685,788 | ||||||
| Inventory, net | 5,826,243 | 6,988,529 | ||||||
| Contract assets, net | 598,151 | 985,207 | ||||||
| Prepaid expenses and other current assets | 1,555,663 | 1,456,687 | ||||||
| Total current assets | 29,317,607 | 26,696,279 | ||||||
| Property and equipment, net | 9,573,374 | 9,133,578 | ||||||
| Right-of-use operating lease assets | 1,969,122 | 1,933,378 | ||||||
| Royalties receivable, net - related party | 230,143 | 456,611 | ||||||
| Goodwill | 3,708,347 | 3,708,347 | ||||||
| Other | 2,162,230 | 2,187,265 | ||||||
| Total Assets | $ | 46,960,823 | $ | 44,115,458 | ||||
| Liabilities & Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,815,551 | $ | 4,520,173 | ||||
| Sales tax payable | 14,575 | 73,024 | ||||||
| Revolving line of credit | 2,039,858 | 3,125,011 | ||||||
| Current maturities of long-term liabilities | 9,827,991 | 4,732,377 | ||||||
| Operating lease liabilities - short-term | 818,486 | 832,823 | ||||||
| Loan from CEO | 200,000 | - | ||||||
| Deposits from customers | 261,671 | 408,415 | ||||||
| Accrued expenses | 1,925,794 | 1,393,902 | ||||||
| Accrued payable on inventory in transit | 168,717 | 640,450 | ||||||
| Contract liabilities | 2,709,590 | 1,254,204 | ||||||
| Deferred revenue | 1,329,902 | 1,297,616 | ||||||
| Accrued income taxes | 288,848 | 314,827 | ||||||
| Total current liabilities | 24,400,983 | 18,592,822 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt | 8,475,921 | 13,270,178 | ||||||
| Long-term operating lease liabilities | 1,200,841 | 1,159,204 | ||||||
| Other long-term liabilities | 285,821 | 274,957 | ||||||
| Deferred Revenue - long-term | 490,046 | 658,019 | ||||||
| Warrant liabilities | 8,255,215 | 5,199,436 | ||||||
| Total long-term liabilities | 18,707,844 | 20,561,794 | ||||||
| Total liabilities | 43,108,827 | 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, 2,705,327 shares issued and 2,641,227 shares outstanding as of June 30, 2025 and 2,456,827 shares issued and 2,392,727 shares outstanding as of September 30, 2024 (liquidation value of $10 per share) | 2,705 | 2,457 | ||||||
| Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at June 30, 2025 and September 30, 2024 | 50 | 50 | ||||||
| Common stock, $0.001 par value, 70,000,000 shares authorized, 3,509,606 shares issued and outstanding at June 30, 2025 and 14,176 shares issued and outstanding at September 30, 2024 | 3,510 | 14 | ||||||
| Additional paid-in capital | 97,402,468 | 73,262,536 | ||||||
| Accumulated deficit | (96,270,146 | ) | (71,355,386 | ) | ||||
| Treasury stock, 64,100 shares of Series 1 Preferred Stock at June 30, 2025, | (148,291 | ) | (148,291 | ) | ||||
| Accumulated other comprehensive income | 2,627,462 | 2,949,297 | ||||||
| Total Cemtrex stockholders' equity | 3,617,758 | 4,710,677 | ||||||
| Non-controlling interest | 234,238 | 250,165 | ||||||
| Total liabilities and stockholders' equity | $ | 46,960,823 | $ | 44,115,458 | ||||
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| For the three months ended | For the nine months ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Revenues | $ | 16,965,658 | $ | 14,686,398 | $ | 57,955,826 | $ | 48,724,159 | ||||||||
| Cost of revenues | 9,595,152 | 8,809,251 | 32,717,929 | 28,825,197 | ||||||||||||
| Gross profit | 7,370,506 | 5,877,147 | 25,237,897 | 19,898,962 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 7,626,342 | 8,192,180 | 21,490,373 | 22,184,303 | ||||||||||||
| Research and development | 386,565 | 864,483 | 2,054,537 | 2,664,688 | ||||||||||||
| Total operating expenses | 8,012,907 | 9,056,663 | 23,544,910 | 24,848,991 | ||||||||||||
| Operating (loss)/income | (642,401 | ) | (3,179,516 | ) | 1,692,987 | (4,950,029 | ) | |||||||||
| Other (expense)/income | ||||||||||||||||
| Other income/(expense), net | 68,002 | (933,539 | ) | (47,190 | ) | (710,363 | ) | |||||||||
| Interest expense | (461,504 | ) | (521,316 | ) | (1,398,415 | ) | (1,697,803 | ) | ||||||||
| Gain/(loss) on exercise of warrant liabilities | 74,008 | (7,255,528 | ) | (15,722,097 | ) | (7,255,528 | ) | |||||||||
| Changes in fair value of warrant liability | (3,615,437 | ) | 2,807,890 | (8,928,275 | ) | 2,807,890 | ||||||||||
| Total other income/(expense), net | (3,934,931 | ) | (5,902,493 | ) | (26,095,977 | ) | (6,855,804 | ) | ||||||||
| Net loss before income taxes | (4,577,332 | ) | (9,082,009 | ) | (24,402,990 | ) | (11,805,833 | ) | ||||||||
| Income tax expense | 14,035 | 67,294 | 245,098 | 238,049 | ||||||||||||
| Loss from continuing operations | (4,591,367 | ) | (9,149,303 | ) | (24,648,088 | ) | (12,043,882 | ) | ||||||||
| (Loss)/income from discontinued operations, net of tax | (42,280 | ) | 9,984 | (282,599 | ) | 30,939 | ||||||||||
| Net loss | (4,633,647 | ) | (9,139,319 | ) | (24,930,687 | ) | (12,012,943 | ) | ||||||||
| Less net loss in noncontrolling interest | (90,312 | ) | (158,293 | ) | (15,927 | ) | (351,212 | ) | ||||||||
| Net loss attributable to Cemtrex, Inc. stockholders | $ | (4,543,335 | ) | $ | (8,981,026 | ) | $ | (24,914,760 | ) | $ | (11,661,731 | ) | ||||
| Income/(loss) per share - Basic & Diluted | ||||||||||||||||
| Continuing Operations | $ | (1.78 | ) | $ | (605.49 | ) | $ | (11.68 | ) | $ | (2,232.92 | ) | ||||
| Discontinued Operations | $ | (0.02 | ) | $ | 0.67 | $ | (0.13 | ) | $ | 5.88 | ||||||
| Weighted Average Number of Shares-Basic & Diluted | 2,542,677 | 14,936 | 2,111,669 | 5,260 | ||||||||||||
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the nine months ended | |||||||
| June 30, | |||||||
| 2025 | 2024 | ||||||
| Cash Flows from Operating Activities | |||||||
| Net loss | $ | (24,930,687 | ) | $ | (12,012,943 | ||
| Adjustments to reconcile net loss to net cash used by operating activities | |||||||
| Depreciation and amortization | 960,930 | 998,641 | |||||
| (Gain)/loss on disposal of property and equipment | 19,668 | (13,595 | |||||
| Noncash lease expense | 684,360 | 645,695 | |||||
| Bad debt expense | 55,222 | 1,429,791 | |||||
| Contract modification - related party | 280,545 | - | |||||
| Share-based compensation | 10,280 | 22,675 | |||||
| Income tax expense | - | 208,669 | |||||
| Shares issued to pay for services | - | 129,000 | |||||
| Accrued interest on notes payable | 803,030 | 937,899 | |||||
| Non-cash royalty income | (48,668 | ) | (39,846 | ||||
| Amortization of original issue discounts on notes payable | 29,167 | - | |||||
| Loan origination costs | 5,000 | 54,400 | |||||
| Loss on excess fair value of warrants | - | 7,255,528 | |||||
| Loss on exercise of warrant liabilities | 15,722,096 | - | |||||
| Changes in fair value of warrant liability | 8,928,275 | (2,807,890 | |||||
| Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | |||||||
| Trade receivables | (1,534,474 | ) | 1,420,733 | ||||
| Trade receivables - related party | 87,116 | (136,277 | |||||
| Inventory | 1,162,286 | 1,350,333 | |||||
| Contract assets | 387,056 | 624,141 | |||||
| Prepaid expenses and other current assets | (98,976 | ) | 548,129 | ||||
| Other assets | 125,035 | (274,081 | |||||
| Accounts payable | 295,378 | (1,588,439 | |||||
| Accounts payable - related party | - | (5,009 | |||||
| Sales tax payable | (58,449 | ) | 2,036 | ||||
| Operating lease liabilities | (692,804 | ) | (646,595 | ||||
| Deposits from customers | (146,744 | ) | 189,331 | ||||
| Accrued expenses | 60,159 | (496,932 | |||||
| Contract liabilities | 1,455,386 | 921,287 | |||||
| Deferred revenue | (135,687 | ) | (395,065 | ||||
| Income taxes payable | (24,582 | ) | (196,727 | ||||
| Other liabilities | 10,864 | (201,366 | |||||
| Net cash provided by/(used in) operating activities | 3,410,782 | (2,076,477 | |||||
| Cash Flows from Investing Activities | |||||||
| Purchase of property and equipment | (1,435,743 | ) | (429,334 | ||||
| Proceeds from sale of property and equipment | 13,511 | 77,110 | |||||
| Royalties on related party revenues | 40,000 | 46,000 | |||||
| Investment in MasterpieceVR | (100,000 | ) | (100,000 | ||||
| Net cash used by investing activities | (1,482,232 | ) | (406,224 | ||||
| Cash Flows from Financing Activities | |||||||
| Proceeds on revolving line of credit | 23,424,024 | 26,682,873 | |||||
| Payments on revolving line of credit | (24,509,177 | ) | (24,025,081 | ||||
| Payments on debt | (985,212 | ) | (7,818,405 | ||||
| Payments on Paycheck Protection Program Loans | (50,628 | ) | (30,365 | ||||
| Proceeds on Loan from CEO | 200,000 | - | |||||
| Proceeds on bank loans | - | 28,267 | |||||
| Proceeds from notes payable | 500,000 | - | |||||
| Proceeds from warrant exercises | 1,307,354 | - | |||||
| Proceeds from offerings | 1,463,550 | 10,035,293 | |||||
| Expenses on offerings | (232,100 | ) | (935,333 | ||||
| Purchases of treasury stock | - | (69,705 | |||||
| Net cash provided by financing activities | 1,117,811 | 3,867,544 | |||||
| Effect of currency translation | (321,394 | ) | (114,180 | ||||
| Net increase/(decrease) in cash, cash equivalents, and restricted cash | 2,724,967 | 1,270,663 | |||||
| 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 | $ | 8,145,359 | $ | 7,620,225 | |||
| Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | |||||||
| Cash and cash equivalents | $ | 7,032,530 | $ | 6,468,197 | |||
| Restricted cash | 1,112,829 | 1,152,028 | |||||
| Total cash, cash equivalents, and restricted cash | $ | 8,145,359 | $ | 7,620,225 | |||
