Cemtrex reported Q3 2024 revenue of $14.69 million, essentially flat YoY (-0.3%) and down QoQ (-14.4%), driven by a resilient Industrial Services line (AIS) offset by a softer Security segment (Vicon) as project delays persisted. AIS revenue rose 49% to $8.5 million, underscoring a meaningful upcycle in services and deployment activity, while the Security segment faced delayed projects that compressed gross profit in the quarter. The company posted an operating loss of $3.18 million and a net loss of $8.98 million, with diluted EPS of -$601.70, reflecting approximately $2 million of one-time charges (employee-related charges, legal costs, and some bad debt write-offs) that weigh on near-term profitability. Despite the earnings shortfall, Cemtrex’ management framed a constructive path to profitability, guided by a strengthened balance sheet from a $10 million upsized public offering, ongoing AIS growth potential, product upgrades (Anavio cloud security platform and Valerus improvements), and an active pipeline that could support a record year in 2025 for the Industrial Services segment.
The call reiterated a focus on revenue growth, tight cost controls, and potential accretive acquisitions to expand market reach and service capabilities. Management projected positive operating income in the future and highlighted the significant strategic optionality stemming from a healthier balance sheet, ongoing product initiatives, and an improving AIS demand environment.