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Cemtrex Stock Pops After Hours On Monday—What's Going On?

Benzinga·12/30/2025 07:26:27
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Shares of Cemtrex Inc. (NASDAQ:CETX) climbed over 40% in trading after the bell on Monday, as investors cheered the firm’s return to profitability and shrugged off a going-concern warning that had dragged down its shares earlier in the day.

Check out the current price of CETX here.

FY Results Signal Hope?

For the year ended Sept. 30, the company reported a revenue increase to $76.5 million from $66.9 million the previous year but recorded a net loss of $28.3 million.

The security segment saw a 20% revenue increase to $38.4 million, and industrial services revenue rose by 9% to $38 million. However, the bottom line was affected by warrant-related charges, including a $15.1 million loss on the exercise of warrant liabilities.

Still, operating income, a key sign of profitability, stood at $500,000 for the year, compared to an operating loss of $5.3 million a year earlier.

“Fiscal 2025 marked a major operating inflection for Cemtrex,” CEO Saagar Govil said in a statement.

“Importantly, these results were achieved while we were actively investing in capital markets initiatives to restore liquidity and flexibility. As certain of those activities and other expenses are not expected to recur, we expect further improvement in core operating performance going forward.”

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Debt Struggles Persist

Cemtrex’s cash, cash equivalents, and restricted cash stood at $6.35 million as of Sept. 30, with total debt at $13.5 million. The company acknowledged over $12.1 million in debt obligations due in the next fiscal year, raising concerns about its financial stability.

Earlier on Monday, the company’s annual filing highlighted “substantial doubt” about its ability to continue as a going concern, citing near-term funding and debt challenges. This warning hit shares, which ended the session down 7.5% at $2.11.

Cemtrex’s management indicated that they have historically addressed short-term liabilities by issuing common stock. Additionally, the company invested about $1 million in Solana tokens during fiscal 2025, with fair-value changes reflected in net income.

The company’s plans include two acquisitions expected to close soon, which could serve as catalysts for financial improvement.

CETX Price Action: CETX shares were up 42.65% at $3.01 after the market closed on Monday, according to Benzinga Pro.

Despite Monday’s sharp rally after-hours, the stock has suffered a steep decline over the past year, with shares down 95.51%. Earlier this year, Cemtrex reached a 52-week high of $55.50, but at current levels—just 1.7% of that range—it remains far from those highs.

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