Key Highlights for Second Fiscal Quarter 2026
Industrial Services segment revenue increased 7% year-over-year to $11.0 million. AIS (excluding recently acquired AIS TN) generated approximately $1 million of operating earnings on $9.7 million of revenue during the second fiscal quarter, an approximately 10% operating margin, fully consistent with AIS's historical profile.
Aerospace & Defense segment launched with $1.2 million of revenue in its first quarter of consolidation, and $0.8 million of contract liabilities (deferred revenue) on the balance sheet supporting future quarters.
Security segment gross margin improved approximately 500 basis points sequentially to 44% in Q2 from approximately 39% in Q1, reflecting initial benefits from pricing actions and the cost reduction program recently implemented.
Stockholders' equity increased to $34.7 million at March 31, 2026, from $8.7 million at September 30, 2025, an improvement of approximately $26 million.
Working capital improved to $12.6 million at March 31, 2026, from $5.2 million at September 30, 2025.
Completed the acquisitions of Invocon (January 2026, launching the Aerospace & Defense segment) and Richland Industries (February 2026, expanding Industrial Services). Currently under letter of intent on an additional Industrial Services acquisition, with further details to be provided as that transaction progresses.
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results:
"The second fiscal quarter was a period of significant expansion at Cemtrex. We completed two acquisitions, launched a new Aerospace & Defense segment, materially strengthened our balance sheet, and continued executing on the cost and pricing actions in our Security segment that we previously announced. The performance of each operating segment is described below.
Industrial Services. Our Industrial Services segment reported $11.0 million of revenue, up 7% year-over-year, and $0.7 million of segment operating income on a consolidated basis. The reported segment margin understates AIS's underlying performance. AIS, excluding AIS TN, generated approximately $1 million of operating earnings on $9.7 million of revenue during the second fiscal quarter, an approximately 10% operating margin, fully consistent with AIS's historical profile.
AIS TN, during the same period, generated an operating loss of approximately $0.3 million. We acquired Richland Industries, now AIS TN, with $600,000 attributed to the purchase of the business and $4,900,000 for the property. The purchase of the business was at a substantial discount to book value because the business required a period of restructuring, and that discount is reflected in the $2.1 million bargain purchase gain recorded in the quarter. We expect AIS TN to contribute $8 to $10 million in ...
