Which business segments contributed most to the revenue growth and margin expansion?

Answer

Cemtrex’s third‑quarter results were powered primarily by its Security Solutions and Industrial Services businesses. The Security segment—covering cyber‑security, video‑analytics, and access‑control hardware—generated the bulk of the top‑line surge, benefitting from heightened corporate and municipal spending on threat‑mitigation after a series of high‑profile breaches earlier in the year. The Industrial Services segment, which includes predictive‑maintenance, automation, and field‑service contracts for heavy‑industry OEMs, added a solid second‑half lift, especially in the U.S. energy‑equipment and aerospace markets where demand for uptime‑maximizing services has accelerated.

Both of these units also drove the margin expansion. Security solutions are inherently high‑margin (software and recurring‑license components) and have seen a shift toward more subscription‑based pricing, improving gross profitability. Industrial Services, while more labor‑intensive, benefitted from higher‑value, longer‑term service contracts that carry better cost‑allocation efficiencies and lower variable costs than one‑off project work. The combination of a high‑margin, recurring‑revenue security franchise and a scaling, contract‑heavy industrial services platform lifted overall operating margins well above the prior‑year baseline.

Trading implications – the clear upside in these two segments underpins a bullish view on CETX. On the technical side, the stock has broken above its 20‑day moving average and is testing the $12‑$13 range, a key resistance zone that aligns with the recent earnings‑driven rally. With the fundamentals pointing to continued secular growth in security and industrial services, a long position with a stop just below the 20‑day MA (≈$11.30) is justified. If the price retests $13–$14 resistance and holds, the next upside target would be the $15‑$16 level, where the 50‑day moving average and prior high‑volume rally points sit. Conversely, a breach below $11.30 could signal that the earnings momentum is fading and may warrant a defensive exit.