Why Cemtrex (CETX) Stock Is Exploding Higher Tuesday

Cemtrex Inc (NASDAQ:CETX) shares are trading sharply higher Tuesday morning as investors react to the industrial and security technology company's return to operating profitability and recent balance-sheet moves. Here’s what investors need to know.

• Cemtrex stock is showing exceptional strength. Why is CETX stock surging?

What To Know: Late Monday, Cemtrex reported fiscal 2025 revenue of $76.5 million, up from $66.9 million a year earlier, with Security segment sales climbing 20% to $38.4 million and Industrial Services revenue up 9% to $38 million.

Gross profit rose to $32.3 million, or 42% of sales, and the company posted operating income of approximately $500,000, reversing a prior-year operating loss of $5.3 million.

Net results remained negative, with a $28.3 million loss driven largely by warrant-related items, including a $15.1 million loss on the exercise of warrant liabilities.

Cemtrex ended the year with $6.35 million in cash versus $13.5 million of total debt and more than $12.1 million coming due within 12 months. The company said in a regulatory filing that it has incurred substantial losses of $28.3 million and $7.6 million for fiscal years 2025 and 2024, respectively, that raise “substantial doubt” about its ability to continue as a going concern.

Management said in the earnings release that the company has reduced debt by roughly $7.8 million, improved liquidity by about $9 million and is working to close two acquisitions aimed at boosting scale and profitability.

CEO Saagar Govil called 2025 "a major operating inflection" and said non-recurring capital-markets costs should set up further improvement.

“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,” Govil said.

Despite Tuesday's bounce, CETX remains far below its 52-week high of $55.50 after a steep slide over the past year.

Benzinga Edge Rankings: CETX currently shows a negative price trend across all timeframes, with Short-, Medium- and Long-Term Price Trend scores all flagged bearish, underscoring the stock's broader technical weakness despite Tuesday's sharp move higher.

CETX Price Action: Cemtrex shares were up 54.50% at $3.25 at the time of publication on Tuesday. The stock is trading near its 52-week low of $2.09, according to Benzinga Pro data.

Cemtrex’s price action has established a clear support level around $2.09, which aligns with its 52-week low. This level may serve as a critical point for buyers looking to enter the market, while sellers may see it as a target for profit-taking.

Resistance appears to be forming near the recent high of $3.37, which could pose challenges for the stock to maintain upward momentum.

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