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Cemtrex Stock Pops After Hours On Monday—What's Going On? - Cemtrex (NASDAQ:CETX)
Benzinga· 2025-12-30 07:26
Core Viewpoint - Cemtrex Inc. has returned to profitability, leading to a significant increase in its stock price despite earlier concerns about its financial stability and going-concern warning [1][5]. Financial Performance - For the fiscal year ending September 30, Cemtrex reported revenue of $76.5 million, up from $66.9 million the previous year, but incurred a net loss of $28.3 million [2]. - The security segment's revenue increased by 20% to $38.4 million, while industrial services revenue rose by 9% to $38 million [2]. - Operating income was $500,000, a turnaround from an operating loss of $5.3 million the previous year, indicating a significant operational improvement [3]. Debt and Financial Stability - As of September 30, the company had cash and equivalents of $6.35 million and total debt of $13.5 million, with over $12.1 million in debt obligations due in the next fiscal year, raising concerns about financial stability [4]. - The company acknowledged "substantial doubt" about its ability to continue as a going concern due to near-term funding and debt challenges, which initially impacted its stock price [5]. Strategic Initiatives - Cemtrex is actively investing in capital markets initiatives to restore liquidity and flexibility, with expectations of further improvement in core operating performance as certain expenses are not expected to recur [4]. - The company plans to close two acquisitions soon, which could act as catalysts for financial improvement [6]. Stock Performance - After-hours trading saw CETX shares rise by 42.65% to $3.01, although the stock has declined 95.51% over the past year, significantly down from a 52-week high of $55.50 [6].