Shares of Cemtrex, Inc. (CETX Quick QuoteCETX - Free Report) have lost 8% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 Index’s 0.2% decline over the same time frame. Over the past month, the stock lost 1.2% versus the S&P 500’s 2.5% rise.

CETX’s Revenue and Earnings Performance

Cemtrex posted third-quarter fiscal 2025 revenues of $16.9 million, up 15.5% from $14.7 million in the year-ago quarter. Segmentally, Security revenues surged 22.4% to $7.6 million from $6.2 million, aided by strength in Vicon’s order pipeline, while Industrial Services revenues rose 10.5% to $9.4 million from $8.5 million. Gross profit climbed 25.4% to $7.4 million from $5.9 million, with margins improving to 43% from 40%. The operating loss narrowed significantly to $0.6 million from $3.2 million last year.

Despite these operational gains, Cemtrex reported a net loss attributable to shareholders of $4.5 million compared with $8.9 million in the prior-year period, translating to a loss per share of $1.78 against a much steeper $605.49 loss per share a year ago (reflecting the expanded share count).

Cemtrex’s Other Key Business Metrics

On a nine-month basis, Cemtrex’s revenues advanced 18.9% to $57.9 million from $48.7 million, driven by a 28% gain in Security revenues to $30 million from $23.4 million, which included the largest order in Vicon’s history, worth $10.4 million. Industrial Services revenues rose 10.5% to $27.9 million from $25.3 million. Gross profit jumped 26.8% to $25.2 million from $19.9 million, with margins expanding to 44% from 41% last year. CETX swung to an operating income of $1.7 million against the prior-year operating loss of $4.9 million, underscoring significant operating leverage.

Liquidity also improved, with cash and equivalents, including restricted cash, rising to $8.1 million as of June 30, 2025 from $5.4 million at the end of fiscal 2024. Working capital was $4.9 million as of June 30, 2025, compared with $8.1 million as of Sept. 30, 2024.

CETX’s Management Commentary

Chairman and CEO Saagar Govil highlighted Cemtrex’s strengthened profitability profile, noting nearly 20% sales growth, margin gains and an improvement in operating income. Govil emphasized that both business segments are executing effectively, with Security benefiting from robust demand for Vicon solutions and Industrial Services maintaining consistent execution. Management attributed the turnaround to tightened expenses, improved efficiency and balance sheet enhancements.

Factors Influencing Cemtrex’s Results

The quarter benefited from robust order flow in the Security segment, including the record-breaking Vicon order, and steady execution in Industrial Services. Expense reductions also played a key role, as operating expenses for the quarter declined 11.5% to $8 million from $9.1 million a year earlier.

However, volatility in warrant liabilities and continued interest expense weighed on bottom-line profitability. Net losses widened compared to operating performance, largely due to non-operational charges, including a $3.6 million hit from changes in the fair value of warrant liabilities during the quarter.

CETX’s Guidance

Cemtrex did not issue specific forward guidance for revenues or earnings. However, management expressed confidence in sustaining momentum into the next fiscal year, citing a strengthened financial foundation and ongoing demand in both operating segments.

Cemtrex’s Other Developments

Cemtrex invested $100,000 in MasterpieceVR during the nine months ended June 30, 2025, as disclosed in its cash flow statement. No other acquisitions, divestitures or restructuring initiatives were reported for the quarter.