Press release·08/15/2026 07:53:09

General Overview

Cemtrex is a diversified industrial and manufacturing company that has evolved through strategic acquisitions and internal growth. The company operates in three main segments: Security, Industrial Services, and Aerospace and Defense.

Security Segment Cemtrex’s Security segment operates under the Vicon Industries brand, providing end-to-end security solutions including video monitoring systems, analytics-based recognition systems, cameras, servers, and access control systems.

Industrial Services Segment Cemtrex’s Industrial Services segment operates under the Advanced Industrial Services (AIS) brand, offering services such as rigging, millwrighting, in-plant maintenance, equipment installation and relocation for customers in various industrial markets.

Aerospace and Defense Segment Cemtrex’s Aerospace and Defense segment operates under the Invocon brand, designing, manufacturing, and supporting advanced instrumentation, wireless sensing, and telemetry systems for government and prime contractor programs.

Significant Accounting Policies and Estimates Cemtrex’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make judgments, estimates and assumptions that affect the reported amounts. The company has identified certain “significant” accounting policies that require complex judgments.

Results of Operations - Q3 FY2026 vs. Q3 FY2025

Revenues:

• Security segment revenues decreased 18% due to delays in shipping from increased production time.
• Industrial Services segment revenues increased 6% due to the acquisition of Richland, LLC.
• Aerospace and Defense segment generated $2.2 million in new revenues.

Gross Profit:

• Overall gross profit was 42% of revenues compared to 43% in the prior year.
• Security segment gross profit decreased to 49% from 52% due to increased costs and tariffs/fuel surcharges.
• Industrial Services segment gross profit decreased to 27% from 36% as the company works to increase efficiency for the Richland acquisition.
• Aerospace and Defense segment had a gross profit margin of 87%.

Expenses:

• General and administrative expenses increased 11% mainly due to the Invocon and Richland acquisitions.
• Research and development expenses increased 10% to support new product development.

Other Income/Expense:

• Other expense decreased to $3.3 million from $3.9 million, driven by changes in fair value of warrant liabilities and interest expense.

Taxes:

• The company had an income tax benefit of $119,001 compared to an expense of $14,035 in the prior year.

Results of Operations - 9 Months FY2026 vs. 9 Months FY2025

Revenues:

• Security segment revenues decreased 42% due to a large sale in the prior year period.
• Industrial Services segment revenues increased 13% due to the Richland acquisition.
• Aerospace and Defense segment generated $3.4 million in new revenues.

Gross Profit:

• Overall gross profit was 38% of revenues compared to 44% in the prior year.
• Security segment gross profit decreased to 44% from 52% due to the large sale and increased costs.
• Industrial Services segment gross profit increased to 31% from 35% due to the Richland acquisition.
• Aerospace and Defense segment had a gross profit margin of 71%.

Expenses:

• General and administrative expenses increased 16% mainly due to the Invocon and Richland acquisitions.
• Research and development expenses decreased 28% compared to the prior year.

Other Items:

• The company recorded a $2.1 million bargain purchase gain from the Richland acquisition.
• Other expense decreased to $17.3 million from $26.1 million, driven by changes in fair value of warrant liabilities and digital asset losses.

Taxes:

• The company had an income tax expense of $221,184 compared to $245,098 in the prior year.

Liquidity and Capital Resources

• Working capital increased to $13.2 million at June 30, 2026 from $5.2 million at September 30, 2025, primarily due to cash raised through equity offerings and warrant exercises.
• Cash used in operating activities was $4.9 million compared to cash provided of $3.4 million in the prior year period.
• Cash used in investing activities was $13.3 million, driven by acquisitions, equipment purchases, and digital asset investments.
• Cash provided by financing activities was $21.2 million, primarily from equity offerings and warrant exercises.
• The company’s working capital may not be sufficient to cover operating costs, indicating substantial doubt about its ability to continue as a going concern. The company is pursuing additional financing options to fund operations and growth initiatives.

Effects of Inflation Cemtrex’s business and operations have been affected by inflation, leading the company to institute price increases and cost-saving measures to mitigate the effects.