Cemtrex’s Advanced Industrial Services Awarded Two Contracts Totaling $6.7 Million from Derry Township Municipal Authority

Rhea-AI Summary

Cemtrex (NASDAQ: CETX) announced two project contracts worth $6.7 million through its Advanced Industrial Services (AIS) subsidiary for upgrades at the Clearwater Road Wastewater Treatment Facility in Derry Township, Pennsylvania. The contracts include general and HVAC work for implementing a new gasification-drying process that converts wastewater solids into granular fertilizer.

The project is scheduled for completion by the end of 2025 at the facility, which has been operational since 1977 with a 5.02 million gallons per day treatment capacity. This development follows AIS's strategic expansion into the wastewater infrastructure market through its acquisition of Heisey Mechanical in 2023.

Positive

• Secured new contracts worth $6.7 million
• Strategic expansion into wastewater infrastructure market showing results
• Project completion expected by end of 2025 providing clear revenue visibility
• Successfully leveraging Heisey Mechanical acquisition to win larger contracts

Negative

• None.

Insights

Financial Analyst

The $6.7 million contract win represents a significant development for Cemtrex, especially considering its market cap of just $2.27 million. The contract value is nearly 3x the company's current market capitalization, demonstrating substantial revenue potential relative to its size. The strategic acquisition of Heisey Mechanical in 2023 is proving valuable, enabling CETX to compete for larger infrastructure projects in the wastewater treatment sector. With over 16,000 aging wastewater treatment plants nationwide needing upgrades, this creates a substantial addressable market for future growth. The project's completion timeline by end-2025 provides good revenue visibility for the next 12-24 months.

Environmental Technology Expert

The project's focus on biosolids conversion to fertilizer represents a cutting-edge approach in wastewater treatment infrastructure. This gasification-drying process creates a valuable revenue stream from waste while addressing environmental concerns. The technology aligns with circular economy principles by recycling nutrients and reducing carbon footprint. The 5.02 million gallons per day capacity of the facility indicates a significant scale operation. This contract positions Cemtrex well in the growing sustainable infrastructure sector, where municipalities are increasingly seeking dual-benefit solutions that both manage waste and generate revenue through resource recovery.

Project Supports Innovative Biosolids Management Program to Generate Sustainable Fertilizer

Brooklyn, NY, Dec. 09, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced it has been awarded two project contracts totaling $6.7 million through its Advanced Industrial Services (“AIS”) subsidiary. The contracts are for upgrades at the Clearwater Road Wastewater Treatment Facility in Derry Township, Pennsylvania, managed through the Derry Township Municipal Authority (DTMA).

The Clearwater Road Wastewater Treatment Facility, operational since 1977, has a treatment capacity of 5.02 million gallons per day. The AIS contracts encompass a general contract and HVAC contract for the addition of a new owner-supplied gasification-drying process and ancillary processes to support the new gasification-drying process. This process is integral to the facility’s innovative biosolids management program, which converts residual solids from wastewater into an exceptional quality granular fertilizer.

The project is expected to be completed by the calendar year end of 2025.

“Across the country, more than 16,000 wastewater treatment plants are approaching the end of their lifespans and in need of upgrades,” said Saagar Govil, Chairman and CEO of Cemtrex. “Furthermore, many municipalities are implementing biosolids programs that recycle nutrients from wastewater into a high-quality fertilizer, providing environmental benefits such as reduced water use, capturing carbon dioxide, improving farm soil health – all while producing additional revenue. Taken together, cities and municipalities are primed for capital investments that replace and innovate on their current wastewater facilities. With AIS’s expertise and capabilities, we believe it is well positioned to build on its pipeline of opportunities in the wastewater market and attract additional multi-million-dollar infrastructure projects that build revenue growth.”

“This $6.7 million contract also highlights the success of AIS’s strategic entry into the wastewater infrastructure market through its acquisition of Heisey Mechanical in 2023,” Govil continued. “This acquisition significantly broadened AIS’s capabilities and expanded the markets we serve. It’s a testament to the value of the acquisition and AIS’s ability to leverage those strengths to drive growth. As we move forward, we continue to explore new acquisition opportunities that will enable us to expand into additional markets and further accelerate our growth trajectory.”

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.

Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235

CETX@mzgroup.us  
www.mzgroup.us

FAQ

What is the value of Cemtrex's (CETX) new contracts with Derry Township Municipal Authority?

Cemtrex (CETX) secured two contracts totaling $6.7 million through its Advanced Industrial Services subsidiary for the Clearwater Road Wastewater Treatment Facility upgrades.

When will Cemtrex (CETX) complete the Derry Township wastewater facility project?

The project is expected to be completed by the end of calendar year 2025.

What type of work will Cemtrex (CETX) perform at the Derry Township facility?

Cemtrex will perform general contract and HVAC work for implementing a new gasification-drying process that converts wastewater solids into granular fertilizer.

How did Cemtrex (CETX) enter the wastewater infrastructure market?

Cemtrex entered the wastewater infrastructure market through its acquisition of Heisey Mechanical in 2023.