Cemtrex Reports Fiscal Year 2026 Second Quarter Financial Results
Rhea-AI Summary
Cemtrex (Nasdaq: CETX) reported fiscal Q2 2026 results for the quarter ended March 31, 2026. Revenue was $18.1 million, gross profit $6.8 million with a 38% margin, and operating loss $2.2 million. A $2.1 million bargain purchase gain supported net income of $0.9 million.
Industrial Services revenue rose 7% to $11.0 million. The new Aerospace & Defense segment generated $1.2 million of revenue. Security revenue was $5.8 million, with gross margin improving about 500 basis points to 44%. Stockholders’ equity increased to $34.7 million and working capital to $12.6 million, aided by equity offerings, warrant exercises, and debt settled in stock. Cemtrex completed the Invocon and Richland Industries acquisitions and has a letter of intent for another Industrial Services acquisition.
AI-generated analysis. Not financial advice.
Positive
- Q2 2026 revenue of $18.1 million with 38% gross margin
- Industrial Services revenue up 7% year-over-year to $11.0 million
- AIS (excluding AIS TN) generated about $1.0 million operating earnings on $9.7 million revenue
- Security segment gross margin improved about 500 bps sequentially to 44%
- Bargain purchase gain of $2.1 million from Richland acquisition
- Stockholders’ equity increased to $34.7 million from $8.7 million
- Working capital improved to $12.6 million from $5.2 million
- Cash, equivalents, restricted cash, and marketable securities totaled $12.9 million
- Invocon added Aerospace & Defense segment with $1.2 million initial revenue
- Vicon restructuring expected to deliver $2.5–$3.0 million annualized cost savings
- Letter of intent for an additional Industrial Services acquisition
- Invocon awarded Phase I SBIR contract with Naval Sea Systems Command
Negative
- Q2 operating loss of $2.2 million despite bargain purchase gain
- Security segment revenue fell to $5.8 million from $17.0 million year-over-year
- Underlying Security revenue down about 12% year-over-year excluding prior one-time sale
- Invocon recorded about $0.4 million segment operating loss in first consolidated quarter
- AIS TN generated about $0.3 million operating loss during restructuring period
- Vicon restructuring incurred about $200,000 one-time expenses in the quarter
- Equity offerings, warrant exercises, and debt settled in stock imply shareholder dilution risk
Key Figures
Market Reality Check
Peers on Argus
Pre-news data show CETX flagged as moving down in momentum tools while only one peer, ATCH, appeared with a modest up move and no news. Broader peers show mixed single‑stock moves, not a coordinated sector trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q1 2026 earnings | Positive | -6.3% | Reported Q1 revenue growth, higher gross profit, and strong Industrial segment. |
| Dec 29 | FY 2025 results | Positive | +41.2% | Returned to operating profit with higher revenue and improved gross margins. |
| Aug 14 | Q3 2025 earnings | Positive | -5.2% | Strong revenue and margin gains, especially in Security and Industrial segments. |
| May 15 | Q2 2025 earnings | Positive | +11.6% | Significant revenue surge, swing to net income, and stronger balance sheet. |
| Feb 14 | Q1 2025 earnings | Negative | -7.9% | Revenue decline, wider operating loss, and large non‑cash warrant expense. |
Earnings reactions have been mixed, with both sharp rallies and selloffs; positive fundamental updates have not consistently produced positive next‑day moves.
Across the last five earnings releases from Feb 2025 through Feb 2026, Cemtrex has swung between growth and restructuring. FY2025 results marked a return to operating profit on $76.5M revenue, helped by Security strength and a major $10.4M order. Subsequent quarters showed acquisition activity, changing segment mix, and margin volatility. Price reactions have alternated between strong gains and declines, indicating that market responses to Cemtrex’s earnings have been inconsistent.
Historical Comparison
In the past five earnings releases, CETX saw an average next‑day move of 6.68%, with both sharp rallies and declines, underscoring historically volatile reactions to results.
Earnings history shows Cemtrex moving from FY2025 profitability and strong Security orders into FY2026 with acquisitions, shifting segment mix, and fluctuating margins across quarters.
Market Pulse Summary
This announcement details Q2 2026 results with revenue of $18.1M, a 38% gross margin, and net income of $0.9M despite an operating loss. It highlights growth in Industrial Services, the launch of Aerospace & Defense, and margin improvement in Security alongside a stronger balance sheet with equity of $34.7M. Historical earnings have produced volatile reactions, while recent filings note reverse‑split authorization and equity offerings, making capital structure, segment mix, and margin trajectory key metrics to watch.
Key Terms
contract liabilities financial
deferred revenue financial
bargain purchase gain financial
AI-generated analysis. Not financial advice.
Hauppauge, NY, May 15, 2026 (GLOBE NEWSWIRE) -- Cemtrex, Inc. (Nasdaq: CETX, CETXP) today reported results for the 2026 second fiscal quarter ended March 31, 2026.
Key Highlights for Second Fiscal Quarter 2026
- Industrial Services segment revenue increased
7% year-over-year to$11.0 million . AIS (excluding recently acquired AIS TN) generated approximately$1 million of operating earnings on$9.7 million of revenue during the second fiscal quarter — an approximately10% operating margin, fully consistent with AIS's historical profile. - Aerospace & Defense segment launched with
$1.2 million of revenue in its first quarter of consolidation, and$0.8 million of contract liabilities (deferred revenue) on the balance sheet supporting future quarters. - Security segment gross margin improved approximately 500 basis points sequentially to
44% in Q2 from approximately39% in Q1, reflecting initial benefits from pricing actions and the cost reduction program recently implemented. - Stockholders' equity increased to
$34.7 million at March 31, 2026, from$8.7 million at September 30, 2025, an improvement of approximately$26 million . - Working capital improved to
$12.6 million at March 31, 2026, from$5.2 million at September 30, 2025. - Completed the acquisitions of Invocon (January 2026, launching the Aerospace & Defense segment) and Richland Industries (February 2026, expanding Industrial Services). Currently under letter of intent on an additional Industrial Services acquisition, with further details to be provided as that transaction progresses.
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results:
"The second fiscal quarter was a period of significant expansion at Cemtrex. We completed two acquisitions, launched a new Aerospace & Defense segment, materially strengthened our balance sheet, and continued executing on the cost and pricing actions in our Security segment that we previously announced. The performance of each operating segment is described below.
Industrial Services. Our Industrial Services segment reported
AIS TN, during the same period, generated an operating loss of approximately
Aerospace & Defense. Invocon, in its first quarter of consolidation, contributed
Security. Our Security segment, operated under Vicon, reported
In January 2026 we completed a restructuring at Vicon that carried approximately
Capital structure and acquisition activity. During the first half of fiscal 2026, we materially strengthened the Company's capital position. Stockholders' equity increased to
Our consolidated Q2 results were weighed down by three identifiable, time-bound factors: AIS TN's restructuring period, Invocon's revenue recognition timing, and the residual impact of cost actions at Vicon that have not yet fully annualized. Each is on a defined path. AIS, excluding TN, is performing at historical margins today. Invocon's deferred revenue supports catch-up in coming quarters. Vicon's cost actions will increasingly flow through, and pricing improvements are already visible in the gross margin line. With two acquisitions integrated, a third under letter of intent, a Navy program win, and a balance sheet repositioned to support further growth, Cemtrex is meaningfully better positioned exiting the second fiscal quarter than entering it."
Condensed Financial Summary (Fiscal Q2 2026)
- Revenue:
$18.1 million - Gross profit:
$6.8 million - Gross margin:
38% - Operating loss:
$2.2 million - Bargain purchase gain (reported in other income per GAAP):
$2.1 million - Net income attributable to Cemtrex stockholders:
$0.9 million - Cash, cash equivalents, restricted cash, and marketable securities:
$12.9 million - Working capital:
$12.6 million - Stockholders' equity:
$34.7 million
Additional details are available in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
About Cemtrex
Cemtrex, Inc. (Nasdaq: CETX) is a diversified industrial and technology company operating across the Security, Industrial, and Aerospace & Defense sectors. The Company's 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 customers. Its Industrial segment, through Advanced Industrial Services (AIS), delivers specialized rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. Cemtrex's Aerospace & Defense segment, anchored by Invocon, provides mission-critical engineering, instrumentation, and sensing solutions supporting aerospace, defense, and space-based programs. With a focus on disciplined execution and strategic growth, Cemtrex is committed to building durable businesses that enhance safety, reliability, and long-term 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 anticipated operational performance, potential acquisitions, strategic initiatives, closing of any offerings, gross proceeds from any offerings, 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: investors@cemtrex.com