Cemtrex (CETX) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue rose 13% year-over-year to $66.9M, with Q4 revenue up 9% to $18.1M compared to the prior year.

• Growth was driven by a 39% surge in AIS segment revenue, offsetting a 7% decline in Vicon security segment revenue.

• Operating loss widened to $5.3M for the year, mainly due to higher selling, general, and administrative expenses.

• Net loss for the year narrowed to $7.7M from $9.2M in 2023, while Q4 saw a net income of $4.4M versus a $1.2M loss in Q4'23.

Financial highlights

• Gross profit for FY24 was $27.5M (41% margin), up from $25.7M (43% margin) in FY23; Q4 gross profit rose 11% to $7.6M.

• Total operating expenses increased to $32.8M from $27.2M, driven by higher salaries, G&A, and R&D for security tech development.

• Cash, cash equivalents, and restricted cash at year-end were $5.4M, down from $6.3M a year earlier.

Outlook and guidance

• Management expects continued growth in both segments, with new product launches (NEXT modular camera, Anavio cloud platform) and strong order pipelines, especially in AIS.

• The video surveillance market is projected to reach $88.7B globally by 2030, supporting long-term growth.