Key Highlights for First Fiscal Quarter 2026
Revenues for Q1 '26 increased 17% to $16.1 million, compared to revenue in the prior year of $13.7 million.
Industrial segment revenue increased 28% to $10.6 million, compared to revenue in the prior year of $8.3 million.
Security segment revenue increased 1% to $5.5 million, compared to revenue in the prior year of $5.4 million.
Cash and cash equivalents increased 312% to $20.5 million, compared to the prior year of $5 million.
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results:
"Fiscal Q1 2026 was a quarter of decisive action. We strengthened our balance sheet, delivered continued revenue growth driven by our Industrial segment.
Operating loss for the quarter was $2.8 million, compared to $2.3 million in the prior year period, primarily reflecting lower gross margin in Security and certain one-time expenses, including a write-off of obsolete demo equipment and elevated legal and transaction costs related to acquisition activity and other matters. Excluding these non-recurring items, our focus remains on improving segment contribution and lowering the run-rate cost structure.
In Security, we saw gross margin compression driven by tariff related cost pressures and softer demand from certain government and corrections customers during the quarter, which was below typical historical levels amid broader public-sector budget and shutdown-related disruptions. We responded by implementing pricing adjustments and reducing overhead by approximately $2.5 to $3.0 million on an annualized basis, which went into full effect in early Q2. We expect the impact of these actions to ...
