Cemtrex Inc reported a highly unusual Q4 2024 where revenue was negative on a reported basis (-$5.39 million) while gross profit remained positive ($7.88 million). The quarterly result was buoyed by a substantial contribution from total other income ($4.65 million), which produced a net income of $4.43 million and an Earnings Per Share (EPS) of $311.58 on 14,175 basic shares. EBITDA stood at $5.13 million with an EBITDA margin of -0.95% due to the revenue base and expense structure, and operating income was a small negative (-$0.32 million) despite a positive operating margin metric reported (0.059). The hefty non-operating income and one-off items mask underlying cash flow and operating efficiency challenges. Translation of this quarter into a sustainable earnings narrative hinges on the persistence of non-operating gains and the normalization of operating activity.
Looking ahead, the company presents a sharp contrast in early 2025: Q1 2025 shows revenue of $13.74 million but a large net loss of $28.75 million, driven by elevated operating expenses and a sizeable non-operating impact also evident in the prior quarter. This underscores continued earnings volatility and a need for meaningful operating leverage and working capital discipline before the path to sustainable profitability is clear. On the balance sheet, Cemtrex carries a notable debt burden ($23.12 million) and net debt of approximately $19.22 million, with cash and equivalents around $3.90 million and limited free cash flow generation (negative $2.74 million in FCF for Q4). Liquidity remains reasonable with a current ratio of about 1.44 and a quick ratio near 1.06, but ongoing negative free cash flow and high leverage warrant close scrutiny of cash burn and liquidity runway. Management commentary from the earnings call is not available in the provided data, limiting qualitative narrative around strategy and guidance. Investors should monitor revenue stability, the sustainability of non-operating income sources, cost control initiatives, and debt management going forward.