olivLaw · US equity research
Cemtrex, Inc. CETX
Construction - Special Trade Contractors · SIC 1700 · Vertical: Construction - Special Trade Contractors (SIC 1700)
Cemtrex is a multi-industry group with three segments: video security and access control through Vicon, industrial services through AIS, and, since 2026, aerospace and defense through Invocon. The company matters now because, while losses and debt remain pressing, the Invocon acquisition could change its revenue profile, with an 87% gross margin in the new segment. The 28.3 million USD net loss in fiscal 2025 shows how fragile the financial balance is.
At the close of 04 Nov 2026, Cemtrex, Inc. (CETX) stock was 0.99 USD (−13.07% on the day), with market capitalisation 1.7 m USD, P/E 49.6 on diluted EPS of 0.02 USD over the last 12 months, beta 1.52, 52-week range 0.99–70.50 USD. Latest reported quarter (Q3 2026): revenue of 18.4 m USD (+8.7% YoY), net income of -4.5 m USD, diluted EPS -3.27 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 14.0
- oversold (≤ 30)
- Bollinger (20, 2)
- 1.11 – 2.25
- below the lower band · %B -0.10 · band width 68.4%
- SMA 50 / 200
- 2.04 / 6.64
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.24 / -0.18
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −49.2% | −1.1% | −48.1 pp | — |
| 3 months | −65.7% | −0.5% | −65.3 pp | — |
| 6 months | −89.5% | +4.4% | −93.9 pp | — |
| Year to date | −96.2% | +12.3% | −108.5 pp | — |
| 1 year | −97.8% | +13.5% | −111.4 pp | −46.5% |
| 3 years | −100.0% | +76.4% | −176.4 pp | −8.3% |
| 5 years | −100.0% | +63.7% | −163.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 18.1 m | 13.7 m | 27.3 m | 17.0 m | 18.5 m | 16.1 m | 18.1 m | 18.4 m |
| Cost of revenue | 10.6 m | 8.0 m | 15.1 m | 9.6 m | 11.5 m | 10.5 m | 11.2 m | 10.7 m |
| Gross profit | 7.6 m | 5.7 m | 12.2 m | 7.4 m | 7.1 m | 5.6 m | 6.8 m | 7.7 m |
| Research & development | 692.8 k | 890.1 k | 777.9 k | 386.6 k | 298.6 k | 501.4 k | 546.9 k | 425.2 k |
| SG&A | 6.4 m | 6.8 m | 6.5 m | 7.3 m | 7.7 m | 7.6 m | 8.0 m | 7.9 m |
| Operating income | -319.7 k | -2.3 m | 4.6 m | -642.4 k | -1.2 m | -2.8 m | -2.2 m | -1.2 m |
| Depreciation & amortisation | 330.1 k | 337.3 k | 310.3 k | 312.9 k | 394.6 k | 412.4 k | 515.8 k | 581.7 k |
| Interest expense | 471.7 k | 483.9 k | 453.0 k | 461.5 k | 712.3 k | 12.1 m | 562.4 k | 1.1 m |
| Pre-tax income | 4.3 m | -28.5 m | 8.7 m | -4.6 m | -2.9 m | -20.3 m | 1.3 m | -4.5 m |
| Income tax | -35.8 k | 120.5 k | 110.5 k | 14.0 k | 489.8 k | 266.3 k | 73.9 k | -119.0 k |
| Net income | 4.4 m | -28.8 m | 8.6 m | -4.6 m | -3.2 m | -20.6 m | 907.0 k | -4.5 m |
| Diluted EPS | — | -387.47 ≈ | 19.62 ≈ | -5.21 | — | -7.90 ≈ | 0.09 ≈ | -3.27 |
| Operating cash flow | -1.9 m | -1.2 m | 2.8 m ≈ | 1.8 m ≈ | -3.3 m | -891.9 k | -4.4 m ≈ | 410.4 k ≈ |
| Capex | 868.0 k | 924.4 k | 435.5 k ≈ | 75.8 k ≈ | 495.8 k | 183.6 k | 153.2 k ≈ | 630.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 6-quarter history (min 561,133,893.0, median 628,500,692.9, max 1,058,655,572.3; quarters with earnings only).
Fiscal years
| Fiscal year | ⚠ 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 22.6 m | 39.3 m | 43.5 m | 43.1 m | 45.0 m | 59.4 m | 66.9 m | 76.5 m |
| Revenue YoY | — | +73.4% | +10.8% | −0.9% | +4.4% | +31.9% | +12.6% | +14.4% |
| Net income | -9.2 m | -22.4 m | -10.5 m | -7.8 m | -13.0 m | -9.2 m | -7.2 m | -28.1 m |
| Net income YoY | — | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -0.90 | unavailable | -1.00 | 0.02 | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | — | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -40.8% | -57.0% | -24.1% | -18.1% | -28.9% | -15.5% | -10.8% | -36.8% |
| Free cash flow | -14.7 m | 2.3 m | unavailable | -11.1 m | -17.9 m | -5.0 m | -5.2 m | -1.8 m |
The series breaks before 2018: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 5.0 m USD
- Financial debt
- 13.5 m USD
- Net debt
- 8.5 m USD
- Equity
- 8.7 m USD
- Total assets
- 47.8 m USD
- Debt / equity
- 1.55x
- Current ratio
- 1.22x
- ROE
- -418.7%
- ROA
- -61.2%
- FCF margin
- -2.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 43.5 m | 43.1 m | 45.0 m | 59.4 m | 66.9 m | 76.5 m | SEC (XBRL)· 29 Dec 2025verified |
| Cost of revenue | 25.9 m | 26.2 m | 28.5 m | 33.7 m | 39.4 m | 44.2 m | SEC (XBRL)· 29 Dec 2025verified |
| Gross profit | 17.6 m | 17.0 m | 16.6 m | 25.7 m | 27.5 m | 32.3 m | SEC (XBRL)· 29 Dec 2025verified |
| Research & development | 1.8 m | 3.2 m | 4.4 m | 3.3 m | 3.4 m | 2.4 m | SEC (XBRL)· 29 Dec 2025verified |
| SG&A | — | — | 21.2 m | 22.9 m | 27.6 m | 28.2 m | SEC (XBRL)· 29 Dec 2025verified |
| Operating income | -4.6 m | -8.7 m | -14.1 m | -1.5 m | -5.3 m | 509.8 k | SEC (XBRL)· 29 Dec 2025verified |
| Depreciation & amortisation | 1.9 m | 1.3 m | 1.8 m | 1.0 m | 1.3 m | 1.4 m | SEC (XBRL)· 29 Dec 2025verified |
| EBITDA | -2.7 m ≈ | -7.4 m ≈ | -12.4 m ≈ | -485.4 k ≈ | -3.9 m ≈ | 1.9 m ≈ | SEC (XBRL)· 29 Dec 2025derived |
| Interest expense | 4.6 m | 2.9 m | 3.9 m | 5.0 m | 2.2 m | 2.1 m | SEC (XBRL)· 29 Dec 2025verified |
| Pre-tax income | -7.4 m | 769.2 k | -10.8 m | -6.0 m | -7.5 m | -27.3 m | SEC (XBRL)· 29 Dec 2025verified |
| Income tax | 2.1 m | 375.4 k | -209.3 k | 394.3 k | 202.3 k | 734.9 k | SEC (XBRL)· 29 Dec 2025verified |
| Net income | -10.5 m | -7.8 m | -13.0 m | -9.2 m | -7.2 m | -28.1 m | SEC (XBRL)· 29 Dec 2025verified |
| Diluted EPS | -1.00 | 0.02 | — | — | — | — | SEC (XBRL)· 21 Jan 2022verified |
| Weighted average diluted shares | 9.6 m | 18.9 m | 709.5 k | 414 | 27.2 k | 132.4 k | SEC (XBRL)· 29 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 19.5 m | 15.4 m | 9.9 m | 5.3 m | 3.9 m | 5.0 m | SEC (XBRL)· 29 Dec 2025verified |
| Receivables | 6.7 m | 7.8 m | 5.4 m | — | — | — | SEC (XBRL)· 14 Feb 2023verified |
| Inventories | 4.9 m | 5.7 m | 8.5 m | 8.7 m | 7.0 m | 6.6 m | SEC (XBRL)· 29 Dec 2025verified |
| Current assets | 36.2 m | 34.7 m | 31.8 m | 29.3 m | 26.7 m | 29.0 m | SEC (XBRL)· 29 Dec 2025verified |
| Property, plant & equipment, net | 6.0 m | 6.7 m | 5.3 m | 9.2 m | 9.1 m | 9.7 m | SEC (XBRL)· 29 Dec 2025verified |
| Goodwill | 7.2 m | 7.8 m | 3.9 m | 4.4 m | 3.7 m | 3.7 m | SEC (XBRL)· 29 Dec 2025verified |
| Intangibles (excl. goodwill) | — | 17.5 m | 11.8 m | 15.9 m | 11.1 m | 11.7 m | SEC (XBRL)· 29 Dec 2025verified |
| Total assets | 60.8 m | 52.9 m | 45.8 m | 48.5 m | 44.1 m | 47.8 m | SEC (XBRL)· 29 Dec 2025verified |
| Accounts payable | 4.8 m | 4.2 m | 3.1 m | — | 4.5 m | 4.5 m | SEC (XBRL)· 29 Dec 2025verified |
| Short-term debt | 7.0 m | 10.0 m | 16.9 m | 14.5 m | 4.7 m | 8.9 m | SEC (XBRL)· 29 Dec 2025verified |
| Long-term debt | 19.4 m | 16.4 m | 2.4 m | 9.9 m | 13.3 m | 4.6 m | SEC (XBRL)· 29 Dec 2025verified |
| Current liabilities | 16.3 m | 19.7 m | 25.5 m | 27.3 m | 18.6 m | 23.8 m | SEC (XBRL)· 29 Dec 2025verified |
| Total liabilities | 32.0 m | 29.4 m | 31.1 m | 40.1 m | 39.2 m | 39.1 m | SEC (XBRL)· 29 Dec 2025verified |
| Equity | 27.8 m † | 22.6 m † | 13.9 m † | 7.7 m † | 4.7 m † | 8.7 m † | SEC (XBRL)· 29 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -3.8 m | -10.1 m | -16.1 m | -2.2 m | -3.9 m | 159.3 k | SEC (XBRL)· 29 Dec 2025verified |
| Capex | — | 1.1 m | 1.8 m | 2.8 m | 1.3 m | 1.9 m | SEC (XBRL)· 29 Dec 2025verified |
| Free cash flow | — | -11.1 m ≈ | -17.9 m ≈ | -5.0 m ≈ | -5.2 m ≈ | -1.8 m ≈ | SEC (XBRL)· 29 Dec 2025derived |
| Investing cash flow | -2.4 m | 840.9 k | 6.6 m | -5.6 m | -1.3 m | -3.0 m | SEC (XBRL)· 29 Dec 2025verified |
| Financing cash flow | 24.4 m | 4.4 m | 5.0 m | 2.0 m | 4.4 m | 4.1 m | SEC (XBRL)· 29 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.7 m USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 41.11 – 133.41 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)41.11 – 133.41 (Mid 63.71)WACC 5.4% · starting FCFF 2.6 m USD · terminal value share of EV 87%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -22.1% | 14 (vs peers) | 24% |
| Net margin · Quality | -38.4% | 11 (vs peers) | 14% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 19.3% | 100 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -0.5x | 0 (on a fixed band) | 14% |
| Current ratio · Balance sheet | 1.5x | 62 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -563.7% | 0 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet25/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality13/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
CEMTREX, INC. (CETX). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 76.5 m USD in 2025; YoY growth 14.4%; net margin -38.4%; ROE -152.4%.
The estimated value range is 41.11–133.41 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 63.71 USD, the price of 0.99 USD leaves a potential of 6,329.0% (value / price − 1) and a margin of safety of 98.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 19.3%
- The price is below the estimated value range
What contradicts it
- ROIC: -22.1%
- Net margin: -38.4%
- Interest coverage: -0.5x
- FCF yield: -563.7%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Construction - Special Trade Contractors (SIC 1700) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AGXArgan Inc | 4.1 bn | 23.0 | 39.8% | 15.1% | +8.1% | −26% / +523% |
| BBUCBrookfield Business Corporation | 2.7 bn | — | 2.4% | 1.4% | −32.4% | −11% / +70% |
| RUNSunrun Inc. | 2.1 bn | 4.4 | 16.2% | 14.0% | +45.1% | −57% / −32% |
| LMBLimbach Holdings, Inc. | 681.6 m | 22.7 | 16.0% | 4.2% | +24.7% | −18% / +52% |
| BBCPConcrete Pumping Holdings, Inc. | 510.5 m | 59.8 | 3.9% | 2.4% | −7.7% | +61% / +36% |
| PHOEPhoenix Asia Holdings Limited | 401.7 m | — | -25.9% | -16.7% | −2.2% | +32% / unavailable |
| MTRXMatrix Service Company | 258.3 m | — | -1.8% | -0.3% | +13.6% | −22% / −8% |
| MSGYMasonglory Limited | 66.8 m | 7.0 | -135.4% | -34.0% | +1.0% | −82% / unavailable |
| SPWRSunpower Inc. | 50.5 m | — | — | -3.8% | +175.9% | −86% / −79% |
| FGLFounder Group Limited | 24.7 m | — | -31.9% | -5.6% | unavailable | −100% / unavailable |
| SMXTSolarMax Technology, Inc. | 19.5 m | — | — | -7.9% | +295.8% | −63% / unavailable |
| PMAMing Shing Group Holdings Limited | 16.9 m | — | — | -39.4% | −56.8% | −23% / unavailable |
| WXMWF International Limited | 14.4 m | — | -71.9% | -24.5% | −13.7% | −62% / unavailable |
| CETXCemtrex, Inc. | 1.7 m | — | -152.4% | -38.4% | +14.4% | −98% / −100% |
| KAZRSkyline Builders Group Holding Limited | — | — | 20.6% | 18.1% | +8.9% | −54% / unavailable |
| LGNLegence Corp. | — | — | -7.5% | -1.2% | +21.5% | −30% / unavailable |
| ZEOZeo Energy Corp. | 0 | — | — | -15.4% | −5.3% | −83% / −98% |
| AMRCAmeresco, Inc. | — | — | 5.5% | 3.3% | +28.8% | −39% / −29% |
| PBKPOWERBANK Corp | — | — | -174.4% | -74.7% | −28.9% | −90% / unavailable |
1- and 3-year price returns: for CETX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Cemtrex is a multi-industry group with three segments: video security and access control through Vicon, industrial services through AIS, and, since 2026, aerospace and defense through Invocon. The company matters now because, while losses and debt remain pressing, the Invocon acquisition could change its revenue profile, with an 87% gross margin in the new segment. The 28.3 million USD net loss in fiscal 2025 shows how fragile the financial balance is.
SWOT
Strengths
- A diversified portfolio across security, industrial services and aerospace gives several sources of revenue.
- Very high gross margin in the new Aerospace and Defense segment, which could improve profitability if sustained.
- Vicon uses artificial intelligence technology for video analysis, a technical advantage in its field.
Weaknesses
- Large net loss in fiscal 2025 and doubts expressed by the auditor about the ability to continue as a going concern.
- Reliance on equity issuance and high-cost borrowing for financing, with dilution risk.
- Margins in the Security and Industrial Services segments declined in the second quarter of 2026.
Opportunities
- Integrating Invocon could open access to space and defense programs with sustained demand.
- Further acquisitions could expand existing segments, in line with the stated growth-through-acquisition strategy.
- Recovering tariffs already paid could reduce costs and improve Security segment margins.
Threats
- Trade tensions and tariffs could raise costs and disrupt supply chains.
- If financing remains dependent on shares, existing shareholders could bear significant dilution.
- Failure to comply with export and sanctions rules could affect international operations.
Risks
- Going concernhigh
The auditor has expressed significant doubt about the company's ability to continue as a going concern, and available capital does not cover long-term needs.
- Financing and dilutionhigh
If financing continues through share issuance or debt conversions, existing shareholders could suffer a large reduction in their stake.
- Acquisition integration riskmedium
Integrating Invocon and Richland may be difficult, especially internal controls and compliance procedures in new jurisdictions.
- Tariffs and supply chainsmedium
Trade restrictions and delays in component production can affect deliveries and margins, as seen in the Security segment.
- Export and sanctions compliancelow
Breaching export rules could bring criminal and civil penalties and limit product exports.
Investment thesis
What would need to be true (bull case)
- If the new aerospace segment sustains its high margins and expands its contracts, the company's revenue profile could become less dependent on video security.
- Recent acquisitions may bring new revenue and capabilities, and the stated strategy favors businesses with low capital requirements.
- Recovering tariffs and resolving supply problems could improve Security segment margins.
What would break the thesis
- The auditor has doubted the company's ability to continue as a going concern, and it could need new financing on unfavorable terms.
- If financing continues through shares, dilution could reduce value for existing shareholders.
- Falling Security revenue and Industrial Services margins could signal operational problems that persist.
What to watch
- Gross margin trend in the Aerospace and Defense segment after the Invocon integrationQ3 2026
- Outcome of the tariff refund claims in the Security segment2026
- How debt obligations are financed and any further dilution through sharesnext 10-K
- The auditor's going-concern opinion in the annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Cemtrex, Inc., incorporated in 1998 in Delaware, describes itself as a multi-industry group formed through acquisitions and internal growth. The Security segment, operating through Vicon Industries, supplies video monitoring systems, cameras, servers and access control, with AI-based algorithms, for industrial facilities, prisons, hospitals and government offices. The Industrial Services segment, operating as Advanced Industrial Services, offers maintenance, equipment erection, relocation and specialty welding for customers in automotive, packaging, chemicals and printing.
In November 2025 the company agreed to acquire Invocon, a Texas systems-engineering firm specializing in instrumentation, wireless sensing and flight hardware for aerospace, defense and civil structure monitoring. On this basis Cemtrex created a new Aerospace and Defense segment with Invocon as its cornerstone. The company states that its sales are global in principle but presently focused on the US market, with international revenue a small share of the total.
The stated strategy is to acquire businesses with attractive gross margins, strong customer retention and low capital intensity, in fast-changing markets, over horizons of five years or longer. The company also describes its supplier dependence as limited and uses subcontractors for field installation.
Segments
Security (Vicon)
In the second quarter of fiscal 2026, Security segment revenue fell 18% to 6.25 million USD, due to shipping delays from longer production times on some component products, and gross margin declined to 49%. Management said it is purchasing additional inventory to resolve the issue and has applied for tariff refunds.
Industrial Services (AIS)
Industrial Services revenue rose 6% to 9.97 million USD in the second quarter of 2026, mainly due to the Richland, LLC acquisition. Gross margin, however, fell to 27%, with the company explaining that it is working to improve efficiency after this acquisition.
Aerospace and Defense (Invocon)
The new segment reported 2.2 million USD in revenue in the second quarter of 2026, with an 87% gross margin. The quarterly filing is brief, so no firm conclusions can yet be drawn about how sustainable this margin is.
Market context
The company operates in very different markets: video security and access control for corporate and government clients, industrial maintenance services for manufacturers and, through Invocon, instrumentation systems for space and defense programs. Sales are concentrated in the US, and international revenue represented 6.8% of net sales in 2025.
Industrial Services contracts are largely awarded through competitive bidding, where price is not always decisive, so reputation for performance matters a great deal. Revenue may therefore be sensitive to the investment cycles of industrial clients and to project timing.
Trends
- Tariffs and shipping costsheadwind
Tariffs and fuel surcharges weighed on Security segment margins in the second quarter of 2026, and the company has applied for refunds. If those refunds materialize, they could ease margin pressure.
- Artificial intelligence in securitytailwind
Vicon uses AI-based algorithms for video recognition and analysis, a direction that could support demand for new products in industrial and government facilities.
- Demand in aerospace and defensemixed
The Invocon acquisition places the company in space and defense programs, an area with demand for instrumentation and telemetry. However, integrating a new acquisition and how quickly the segment can expand remain uncertain.
- Capital pressure and dilutionheadwind
The company has financed operations through share issues, convertible instruments and a 7 million USD note. If financing continues through shares, existing shareholders could face dilution, making financing a headwind for investors.
Competitive position
According to the annual report, the company competes on price, engineering expertise, product quality and performance track record. Several companies market products that compete directly with its own, and others offer alternatives that customers may consider acceptable, though the report does not name them.
The SEC filing does not identify competitors by name, so the list below reflects only the competitor categories mentioned in the text. The company relies on a combination of trade secrets and know-how to protect its intellectual property, and invests in research and development aimed at proprietary technology.
- Producers of video security and access control systems
Companies referred to generically in the report, not named, that sell products directly competing with Vicon's.
- Other suppliers of security products for government and prisons
Generic category in the report covering alternative products that institutional clients may accept.
- Industrial maintenance and equipment erection firms
Implicit competition in the AIS business, where contracts are awarded through competitive bidding.
- Aerospace and defense instrumentation suppliers
Competitor category for the Invocon segment; the report does not name specific companies.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report09 Oct 2026Item 3.03 · Amendments to articles or bylaws · Financial statements and exhibits
- Current report18 Sept 2026Item 3.02
- Current report (amendment)16 Sept 2026Material agreement · Acquisition or disposition of assets · Financial statements and exhibits
- Quarterly report14 Aug 2026
- Current report06 Jul 2026Acquisition or disposition of assets · Item 3.02 · Other events · Financial statements and exhibits
- Current report02 Jun 2026Item 3.03 · Amendments to articles or bylaws · Financial statements and exhibits
- Quarterly report15 May 2026
- Current report15 May 2026Shareholder vote · Financial statements and exhibits
- Proxy statement26 Mar 2026
- Current report (amendment)24 Mar 2026Material agreement · Acquisition or disposition of assets · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / Cemtrex, Inc. · 29 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Cemtrex, Inc. · 14 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.