Cemtrex’s Advanced Industrial Services Awarded $4.7 Million Large-Scale Infrastructure Contract

Rhea-AI Summary

Cemtrex Inc. (NASDAQ: CETX) has announced that its subsidiary, Advanced Industrial Services (AIS), has been awarded a $4.7 million contract for energy upgrades at Fort Indiantown Gap in Lebanon County, PA. The project, commissioned by the Pennsylvania Department of Military and Veterans Affairs Department of General Services, involves general construction, HVAC, plumbing, and electrical services.

Key aspects of the project include:

• Construction of a mechanical and pump room
• Installation of insulated wall/ceiling panels
• Upgrades to existing mechanical and electrical systems
• Implementation of a hybrid ground source heat pump loop
• Installation of a photovoltaic solar array

The project is expected to be completed in 2025. Cemtrex's CEO, Saagar Govil, expressed optimism about AIS's growth and anticipates additional large-scale infrastructure orders in the future.

Positive

• Secured a $4.7 million contract for energy upgrades
• Project expected to be completed in 2025, providing revenue visibility
• Potential for additional large-scale infrastructure orders in the future
• Demonstrates company's capability in handling complex industrial projects

Negative

• None.

Insights

Financial Analyst

This $4.7 million contract win for Cemtrex's AIS subsidiary is a significant development for a company with a market cap of just $405,420. The contract value is over 11 times the current market capitalization, potentially indicating substantial undervaluation or market skepticism.

The project's scope, including HVAC, plumbing and electrical services, along with renewable energy installations, showcases AIS's diverse capabilities. The expected completion in 2025 provides revenue visibility for the next fiscal year, which is important for investor confidence.

Cemtrex's ability to secure government contracts, especially in the growing field of energy efficiency and renewable energy, positions them well in a sector with increasing public and private investment. However, investors should consider the company's ability to execute such a large project relative to its size and any potential risks associated with cost overruns or delays.

The CEO's statement about a strong pipeline suggests potential for further contract wins, which could drive significant growth if realized. Investors should monitor the company's backlog and conversion rate of pipeline opportunities into firm contracts as indicators of future performance.

Energy Sector Specialist

The contract's focus on energy upgrades, including a hybrid ground source heat pump loop and photovoltaic solar array, aligns with the growing trend towards energy efficiency and renewable energy in infrastructure projects. This positions Cemtrex's AIS subsidiary at the forefront of a rapidly expanding market segment.

The integration of ground source heat pumps with solar PV demonstrates a comprehensive approach to energy management, potentially offering significant long-term cost savings and environmental benefits for the military facility. Such projects often serve as showcases for future contracts, both in the public and private sectors.

The energy upgrade market is expected to grow substantially as governments and organizations prioritize sustainability and energy independence. Cemtrex's success in securing this contract could lead to similar opportunities, especially if they can demonstrate effective execution and measurable energy savings upon completion.

Investors should consider the potential for this project to enhance Cemtrex's reputation in the energy efficiency sector, possibly leading to a higher valuation multiple if the company can consistently win and execute similar contracts.

Pennsylvania Department of Military and Veterans Affairs Project to be Completed in 2025

Brooklyn, NY, Oct. 08, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced it has been award a $4.7 million contract through its Advanced Industrial Services (“AIS”) subsidiary for Trade in Services Agreement (TiSA) energy upgrades at Fort Indiantown Gap in Lebanon County, PA through the Pennsylvania Department of Military and Veterans Affairs Department of General Services.

The project includes general construction, HVAC, plumbing, and electrical services to construct a mechanical and pump room, install insulated wall/ceiling panels, and upgrade the existing mechanical and electrical systems, including a hybrid ground source heat pump loop and photovoltaic solar array. The project is expected to be completed in 2025.

“AIS growth continues to accelerate with another multi-million-dollar project win, with a strong pipeline that will drive additional revenue in FY’25,” said Saagar Govil, Chairman and CEO of Cemtrex. “With over 40 years in the industry and a well-known reputation for industrial contracting services, we expect additional large-scale infrastructure orders from leading companies and governmental departments in the months and years ahead.”

About Cemtrex

Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.

Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com

AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com

For more information visit www.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.

FAQ

What is the value of the contract awarded to Cemtrex's AIS subsidiary?

Cemtrex's Advanced Industrial Services (AIS) subsidiary has been awarded a $4.7 million contract for energy upgrades at Fort Indiantown Gap in Lebanon County, PA.

When is the Fort Indiantown Gap project expected to be completed?

The energy upgrade project at Fort Indiantown Gap is expected to be completed in 2025.

What services will Cemtrex (CETX) provide for the Fort Indiantown Gap project?

Cemtrex (CETX) will provide general construction, HVAC, plumbing, and electrical services, including constructing a mechanical and pump room, installing insulated wall/ceiling panels, upgrading mechanical and electrical systems, and implementing a hybrid ground source heat pump loop and photovoltaic solar array.

Who awarded the $4.7 million contract to Cemtrex's AIS subsidiary?

The $4.7 million contract was awarded by the Pennsylvania Department of Military and Veterans Affairs Department of General Services.