Cemtrex Inc (CETX)

Business Summary

Cemtrex, Inc. is a multi-industry technology company incorporated in Delaware in 1998, which has grown through strategic acquisitions and internal development ¹. The company operates in various sectors, including smart technologies, virtual and augmented realities, industrial solutions, and intelligent security systems ¹.

The company's core business model revolves around generating revenue from two primary segments: Security and Industrial Services, along with unallocated corporate revenue from digital asset investments ². Revenue is recognized either at a point in time for goods delivered, or over time for services, particularly in industrial services contracts ³. The Security segment's principal customers are system integrators or channel partners who then sell products and solutions to end customers, including government agencies and commercial businesses ⁴. The Industrial Services segment primarily serves businesses in manufacturing, chemical, packaging, printing, electronics, automotive, construction, and metallurgical processing ⁵.

The Security segment operates under the Vicon Industries, Inc. brand, providing end-to-end security solutions. Its product offerings include browser-based video monitoring systems, analytics-based recognition systems, cameras, servers, and access control systems ⁶. These solutions are deployed in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and government offices, leveraging Artificial Intelligence (AI) based data algorithms ⁶. For the fiscal year ended September 30, 2025, this segment generated revenues of $38,398,792 ⁷, an increase of $6,376,893 or 20% ⁷ from the prior year, largely due to a single sale of security technology products valued at $10,375,000 ⁸, which represented 27% of the segment's revenue ⁸. Gross profit for the Security segment was $19,085,754 ⁹, or 50% of its revenues ¹⁰, consistent with the prior year.

The Industrial Services segment operates under the Advanced Industrial Services (AIS) brand, offering single-source expertise in rigging, millwrighting, in-plant maintenance, equipment erection, relocation, and disassembly ¹¹. This segment focuses on customers seeking to enhance asset utilization and reliability to reduce costs and increase production from existing assets, providing services such as small projects, sustaining capital, turnarounds, maintenance, specialty welding, and high-quality scaffolding ¹¹. For the fiscal year ended September 30, 2025, this segment reported revenues of $38,079,529 ¹², an increase of $3,237,544 or 9% ¹² from the previous year, driven by increased demand for its products and services ¹². Gross profit for the Industrial Services segment was $13,193,005 ¹³, or 35% of its revenues ¹⁴, an increase from 32% in the prior year due to improved margins on projects ¹⁵.

For the fiscal year ended September 30, 2025, total revenue was $76,488,088 ¹⁶, an increase from $66,863,884 ¹⁷ in the prior year. Gross profit for the period was $32,288,526 ¹⁸, representing a gross margin of 42% ¹⁹, up from 41% ²⁰ in the prior year. The company reported an operating income of $509,826 ²¹, a significant improvement from an operating loss of $5,269,745 ²² in the previous year. Net loss for the year was $28,292,520 ²³, compared to a net loss of $7,635,505 ²⁴ in 2024. Net loss attributable to Cemtrex, Inc. stockholders was $28,112,368 ²⁵, resulting in a diluted EPS from continuing operations of $(210.88) ²⁶. As of September 30, 2025, cash and cash equivalents were $4,974,303 ²⁷, and total current liabilities were $23,823,159 ²⁸. Total debt, including current maturities, was approximately $13,512,276 ²⁹. Working capital stood at $5,184,339 ³⁰.

Year-over-year, total revenue increased by $9,624,204 [16, 17]. The Security segment's revenue grew by 20% ⁷, and the Industrial Services segment's revenue increased by 9% ¹². Gross profit as a percentage of revenue remained consistent at 50% for the Security segment ¹⁰ but increased from 32% to 35% for the Industrial Services segment [14, 15]. Operating income saw a substantial improvement, moving from a loss of $5,269,745 ²² to an income of $509,826 ²¹. Net loss widened significantly from $7,635,505 ²⁴ to $28,292,520 ²³, primarily due to a substantial increase in other expense, net, which was $27,823,914 ³¹ in 2025 compared to $2,206,604 ³² in 2024, driven by losses on warrant exercises and changes in fair value of warrant liabilities ³³. Research and Development expenses decreased by $1,004,315 or 30% ³⁴ to $2,353,140 ³⁵ as the Security Segment's proprietary technology and next-generation solutions came to market ³⁶.

During the reported period, the company completed several reverse stock splits: a 60:1 split on October 2, 2024, a 35:1 split on November 26, 2024, and a 15:1 split on September 29, 2025 ³⁷. The company also addressed Nasdaq listing deficiencies related to minimum bid price and minimum stockholder's equity, regaining compliance on December 11, 2024, and June 4, 2025, respectively ³⁸. In May 2024, the company completed an equity financing, issuing common units and pre-funded units for aggregate gross proceeds of $10,035,293 ³⁹. Subsequent to the fiscal year-end, in December 2025, the company received $5,657,264 ⁴⁰ in gross proceeds from Series B Warrant exercises, issued 2,500,609 ⁴¹ shares of common stock to satisfy $6,084,000 ⁴² of outstanding debt, and raised an additional $4,000,000 ⁴³ in gross proceeds from two registered direct offerings ⁴⁴. The company also invested $998,642 ⁴⁵ in Solana (SOL) digital assets in July 2025, recognizing $12,522 ⁴⁶ in staking revenue and an unrealized gain of $150,009 ⁴⁷.

Business Outlook & Financial Sufficiency

The company explicitly states that it does not provide formal guidance for revenue, margin, or EPS for the upcoming period.

A significant growth area for Cemtrex is through strategic acquisitions, with a focus on complementary businesses, products, and technologies ⁴⁸. The company entered into a Share Purchase Agreement on November 13, 2025, to acquire 100% of Invocon, Inc., a Texas-based systems-engineering firm specializing in mission-critical instrumentation, wireless sensing systems, and flight hardware for aerospace, defense, and civil structure monitoring applications, for a purchase price of $7,060,000 ⁴⁹. This transaction is expected to close around January 1, 2026 ⁴⁹, and upon closing, the company plans to establish a new reporting segment, Aerospace & Defense, with Invocon as its cornerstone ⁵⁰. This acquisition is intended to expand the company's product and service offerings and enter new markets ⁵¹.

Another growth vector is the continued development and market introduction of new and improved products and services within its Security segment ⁵². The company's Research and Development efforts are focused on proprietary technology and next-generation solutions for security and surveillance systems software ³⁶. The decrease in R&D expenses by $1,004,315 or 30% ³⁴ in the last fiscal year is attributed to these solutions having come to market ³⁶, suggesting a transition from development to commercialization. The company also continually reevaluates its pricing model for the Vicon brand to improve margins and introduces new innovative products to grow revenues ⁵³.

Operationally, the company aims to improve margins on its Vicon brand products through pricing model reevaluation ⁵³. The Industrial Services segment saw an increase in gross profit as a percentage of revenues from 32% to 35% [14, 15] due to improved margins on projects, indicating a focus on project profitability. The company also plans to attract and retain talent for its Industrial Services segment to ensure continued successful operation ⁵⁴.

Regarding capital allocation, the company intends to use cash proceeds from recent financing activities to complete potential acquisitions ⁵⁵. Specifically, the $7,000,000 ⁵⁶ cash received from the Promissory Note issued on November 7, 2025, is intended for potential acquisitions ⁵⁵. The company also raised approximately $9.6 million ⁵⁷ in gross cash proceeds from warrant exercises and equity offerings subsequent to September 30, 2025, which will support ongoing operations and potential acquisitions ⁵⁸. The company has a share repurchase program for up to 2,200,000 ⁵⁹ shares of its Series 1 Preferred Stock, which began on September 1, 2023, and ends on August 31, 2026 ⁶⁰.

The company explicitly flagged several structural headwinds and execution risks. Its ability to continue as a going concern is in substantial doubt due to incurred losses of $28,112,368 ⁶¹ and $7,229,491 ⁶² for fiscal years 2025 and 2024, respectively, and debt obligations of $12,101,593 ⁶³ over the next fiscal year, against working capital of $5,184,339 ⁶⁴. There is no guarantee that cash flow from existing or future operations and external capital will be sufficient to meet working capital needs ⁶⁵. The company also faces risks related to its substantial debt of approximately $16.8 million ⁶⁶ as of September 30, 2025, which could limit its ability to raise additional capital or meet obligations ⁶⁷. The volatility in currency exchange rates may adversely affect financial condition, results of operations, and cash flows, particularly given that international operations accounted for approximately 6.8% of net sales in 2025 ⁶⁸.

Management Sentiments & Priorities

Management's overall tone emphasizes a strategic focus on utilizing resources to build brands and businesses in high-growth markets characterized by innovation and technological shifts, aiming to create exceptional value for customers, shareholders, and employees over the long term ⁸⁰. They seek to build or acquire businesses with attractive gross margins, strong customer retention opportunities, and low capital intensity, adopting a long-term approach with strategies spanning five years or longer ⁸¹. Management highlights its commitment to understanding customer business performance requirements and leveraging expertise to provide cutting-edge technology solutions, working closely with customers from operational to senior executive levels ⁸². The company plans to continue seeking and executing strategic acquisitions, expanding products and services, and entering new markets, believing that the diversity of its offerings provides multiple income sources and a competitive advantage ⁸³. Management explicitly states that the company has incurred substantial losses of $28,112,368 ⁶¹ and $7,229,491 ⁶² for fiscal years 2025 and 2024, respectively, and has debt obligations of $12,101,593 ⁶³ over the next fiscal year, with working capital of $5,184,339 ⁶⁴, which raises substantial doubt about its ability to continue as a going concern ⁶⁵. Despite this, management believes its plans, including securing lines of credit, reevaluating pricing models, introducing new products, and raising capital through equity financings, would be sufficient to meet capital demands for at least the next twelve months, though there is no guarantee of success ⁸⁴. Key strategic priorities include the acquisition of Invocon, Inc. for $7,060,000 ⁴⁹ to establish a new Aerospace & Defense segment ⁵⁰, and leveraging recent financing activities, which provided approximately $9.6 million ⁵⁷ in gross cash proceeds and reduced debt by $6.084 million ⁴², to improve liquidity and fund potential future acquisitions ⁵⁸.

Risk Factors

The company faces material risks including adverse macroeconomic conditions such as slow growth, recession, high unemployment, inflation, tighter credit, and higher interest rates, which can negatively impact demand for products and services, and affect suppliers and financial stability ⁶⁹. Political events, trade disputes, war, terrorism, natural disasters, and public health issues can disrupt international commerce and supply chains, with restrictions on international trade potentially requiring costly operational changes ⁷⁰. The company's operations are subject to various complex international laws and rules, including the Foreign Corrupt Practices Act and GDPR, with compliance difficulties potentially arising from new acquisitions ⁷¹. A substantial doubt exists about the company's ability to continue as a going concern due to significant net losses of $28,112,368 ⁶¹ in 2025 and $7,229,491 ⁶² in 2024, and current debt obligations of $12,101,593 ⁶³ exceeding working capital of $5,184,339 ⁶⁴. The company has substantial debt of approximately $16.8 million ⁶⁶ as of September 30, 2025, which could limit future financing and ability to meet obligations ⁶⁷. Investments in digital assets, primarily Solana (SOL), are subject to extreme price volatility, regulatory uncertainty, technological vulnerabilities, and liquidity constraints, with a significant decline in SOL's price potentially leading to substantial losses or impairment charges ⁷². The company is dependent on the continued market acceptance of its technology, facing intense competitive challenges, rapid technological changes, and pricing pressure from competitors, which could lead to reduced sales and profits ⁷³. Cybersecurity threats, including service interruptions, data corruption, and hacking attacks, pose a risk to operations, reputation, and financial results, with the company currently lacking specific insurance coverage for such incidents ⁷⁴. The company's operating results are sensitive to raw material and resale product availability, quality, and cost, with potential disruptions from natural disasters, trade tariffs, or supplier difficulties ⁷⁵. Legal uncertainties include potential civil or criminal penalties for violating SEC settlement terms ⁷⁶, and the company may not have sufficient financial resources to defend its intellectual property rights or against infringement claims ⁷⁷. Product liability lawsuits could result in substantial liabilities and limit commercialization of products ⁷⁸. The company's common stock may experience extreme price and volume fluctuations, and future sales and issuances of common stock or rights to purchase common stock could result in additional dilution ⁷⁹.

View Source Annual Report on SEC.gov ↗

References

[1] Item 1, Business — Overview
[2] Item 3, Segment and Geographic Information — Operating segments
[3] Item 2, Basis of Presentation and Significant Accounting Policies — Revenue Recognition
[4] Item 1, Business — Customers
[5] Item 1, Business — Customers
[6] Item 1, Business — Security
[7] Item 7, MD&A — Revenues
[8] Item 2, Basis of Presentation and Significant Accounting Policies — Concentrations and cash and credit risks
[9] Item 7, MD&A — Gross Profit
[10] Item 7, MD&A — Gross Profit
[11] Item 1, Business — Industrial Services
[12] Item 7, MD&A — Revenues
[13] Item 7, MD&A — Gross Profit
[14] Item 7, MD&A — Gross Profit
[15] Item 7, MD&A — Gross Profit
[16] Item 7, MD&A — Revenues
[17] Item 7, MD&A — Revenues
[18] Item 7, MD&A — Gross Profit
[19] Item 7, MD&A — Gross Profit
[20] Item 7, MD&A — Gross Profit
[21] Item 7, MD&A — Operating income/(loss)
[22] Item 7, MD&A — Operating income/(loss)
[23] Item 7, MD&A — Net loss
[24] Item 7, MD&A — Net loss
[25] Item 7, MD&A — Net loss attributable to Cemtrex, Inc. stockholders
[26] Item 2, Basis of Presentation and Significant Accounting Policies — Loss per share - Basic & Diluted - Continuing Operations
[27] Item 8, Consolidated Balance Sheets — Cash and cash equivalents
[28] Item 8, Consolidated Balance Sheets — Total current liabilities
[29] Item 16, Lines of Credit and Long-Term Liabilities — Total debt
[30] Item 7, MD&A — Liquidity and Capital Resources
[31] Item 7, MD&A — Other expense, net
[32] Item 7, MD&A — Other expense, net
[33] Item 7, MD&A — Other expense, net
[34] Item 7, MD&A — Research and Development Expenses
[35] Item 7, MD&A — Research and Development Expenses
[36] Item 7, MD&A — Research and Development Expenses
[37] Item 1, Business — Recent Developments
[38] Item 1, Business — Nasdaq Notices for Listing Deficiencies
[39] Item 1, Business — May 2024 Equity Financing
[40] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[41] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[42] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[43] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[44] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[45] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
[46] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
[47] Item 2, Basis of Presentation and Significant Accounting Policies — Recently Adopted Accounting Pronouncements
[48] Item 1, Business — Business Strategy
[49] Item 1, Business — Share Purchase to Acquire Invocon, Inc.
[50] Item 1, Business — Share Purchase to Acquire Invocon, Inc.
[51] Item 1, Business — Business Strategy
[52] Item 1A, Risk Factors — Our future operating results depend in part on continued successful research, development and marketing of new and improved products and services through our Security segment, and there can be no assurance that we will successfully introduce new products and services into the market.
[53] Item 1, Going Concern Considerations
[54] Item 1A, Risk Factors — Our future operating results depends in part on the continued successful operation of our Industrial Services segment, and there can be no assurance that we will be successful in this business.
[55] Item 1, Business — Issuance of Note payable
[56] Item 1, Business — Issuance of Note payable
[57] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[58] Item 7, MD&A — Subsequent to September 30, 2025, the Company completed several financing and capital transactions that have significantly improved liquidity and reduced debt
[59] Item 18, Stockholders' Equity — Series 1 Preferred Stock
[60] Item 18, Stockholders' Equity — Series 1 Preferred Stock
[61] Item 1, Going Concern Considerations
[62] Item 1, Going Concern Considerations
[63] Item 1, Going Concern Considerations
[64] Item 1, Going Concern Considerations
[65] Item 1, Going Concern Considerations
[66] Item 1A, Risk Factors — We have substantial debt which could adversely affect our ability to raise additional capital to fund operations and prevent us from meeting our obligations under outstanding indebtedness.
[67] Item 1A, Risk Factors — We have substantial debt which could adversely affect our ability to raise additional capital to fund operations and prevent us from meeting our obligations under outstanding indebtedness.
[68] Item 1A, Risk Factors — Volatility in currency exchange rates may adversely affect our financial condition, results of operations and cash flows.
[69] Item 1A, Risk Factors — Our operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect our business, results of operations and financial condition.
[70] Item 1A, Risk Factors — Our business can be impacted by political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions.
[71] Item 1A, Risk Factors — Our international operations subject us to many different and complex laws and rules, and we may face difficulty in compliance.
[72] Item 1A, Risk Factors — The value of our digital asset holdings is highly volatile and may decline significantly.
[73] Item 1A, Risk Factors — We are substantially dependent upon the success and continued market acceptance of our technology, the absence of which may significantly reduce our sales, profits and cash flow and adversely impact our financial condition.
[74] Item 1A, Risk Factors — We are increasingly dependent on information technology, and if we are unable to protect against service interruptions, data corruption, cyber-based attacks, or network security breaches our operations could be disrupted, and we could incur significant costs and reputational harm as a result.
[75] Item 1A, Risk Factors — Our operating results are sensitive to raw material and resale product availability, quality, and cost
[76] Item 1A, Risk Factors — We could be subject to additional civil penalties or face criminal penalties and sanctions if we violate the terms of settlement with the SEC.
[77] Item 1A, Risk Factors — We may not have sufficient financial resources to defend our intellectual property rights or otherwise successfully defend against claims that we have infringed on a third party’s intellectual property and, as a result, it may adversely affect our business, financial condition, and results of operations.
[78] Item 1A, Risk Factors — Product liability lawsuits against us could cause us to incur substantial liabilities and to limit commercialization of our product or any future products that we may develop.
[79] Item 1A, Risk Factors — Our securities may experience extreme price and volume fluctuations, which could lead to costly litigation for us and make an investment in us less appealing.
[80] Item 1, Business — Business Strategy
[81] Item 1, Business — Business Strategy
[82] Item 1, Business — Business Strategy
[83] Item 1, Business — Business Strategy
[84] Item 1, Going Concern Considerations

Analysis on 5/20/2026

Recent Material Events

Sep 16, 2026Material Event

Cemtrex, Inc. completed the acquisition of substantially all assets of Plant Engineering Services, Inc. for a total purchase price of $3,570,424, consisting of $3,220,207 in cash and $859,031 in contingent earnout consideration. The transaction includes up to approximately $1,750,000 in potential future payments based on gross profit targets over three years. Preliminary purchase price allocation records $5,403,782 in goodwill and $419,000 in intangible assets. Cemtrex operates in the industrial services sector.

Jul 6, 2026Material Event

On July 1, 2026, Cemtrex, Inc., through its subsidiary AIS Engineering, Inc., acquired substantially all assets of Plant Engineering Services, Inc. (PES) for $3,500,000 in cash, plus assumed liabilities and a potential contingent earnout of up to $1,750,000 over three years based on gross profit targets. The acquired operations are integrated into the company's Industrial Services Segment. Additionally, the company reported issuing approximately 609,000 shares of common stock in unregistered transactions following a 1-for-10 reverse stock split on June 5, 2026, resulting in 1,721,141 shares outstanding as of July 2, 2026. Cemtrex is a diversified technology company providing industrial services and advanced technology solutions.