Cemtrex (CETX) investor relations material

Executive summary

• Revenues for Q2 2026 were $18.1M, down from $27.3M year-over-year, mainly due to a large prior-year security segment sale; net income attributable to stockholders was $0.9M, aided by a $2.1M bargain purchase gain.

• Two acquisitions completed: Invocon (Aerospace & Defense) and Richland Industries (Industrial Services), with a third under letter of intent, expanding segment structure.

• Working capital increased to $13.7M at March 31, 2026, from $5.2M at September 30, 2025, driven by equity offerings and warrant exercises; stockholders' equity rose to $34.7M.

• Operating loss was $2.2M for Q2 2026.

Financial highlights

• Gross profit margin for Q2 2026 was 38%, down from 45% in Q2 2025; six-month margin was 36% vs. 44% prior year.

• Industrial Services Q2 revenues rose 7% to $11.0M, with gross margin at 34%, benefiting from the Richland acquisition.

• Security segment Q2 revenues fell 66% year-over-year to $5.8M due to a large prior-year sale; gross margin was 44%, improved sequentially from 39% in Q1.

• Aerospace and Defense segment contributed $1.2M in Q2 revenue with a 42% gross margin; $0.4M operating loss and $0.8M in deferred revenue.

• Cash, cash equivalents, restricted cash, and marketable securities totaled $12.9M at March 31, 2026.

Outlook and guidance

• Management expresses substantial doubt about the ability to continue as a going concern due to recurring losses and debt obligations, despite recent capital raises.

• Plans include further equity offerings, debt restructuring, and margin improvements, but success is not guaranteed.

• AIS TN expected to contribute $8–$10M in revenue over the next twelve months and approach historical margin profile post-restructuring.

• Invocon's deferred revenue supports future quarters; segment expected to move toward profitability as revenue recognition catches up.

• Security segment anticipates improved performance from cost actions, pricing improvements, and recovering public-sector demand.