Cemtrex, Inc. (NASDAQ: CETX) shares exhibited notable momentum in the preceding trading session, marking a robust surge of 15.17% to conclude the transactions at $4.10. This uptick in the value of Cemtrex stock was precipitated by the acquisition of two substantial multimillion-dollar projects.
Cemtrex (CETX) disclosed the receiving of $3.8 million in fresh orders through its Advanced Industrial Services (“AIS”) subsidiary, spanning two distinctive projects. These encompass a $2.2 million order for the enhancement of a geothermal system within a Northeastern School District and a $1.6 million order for the production of a crucial component tailored for a motion control technologies company.
The geothermal system upgrade for the Northeastern School District project involves comprehensive tasks such as replacing the geothermal loop system pump and drives, geothermal heat pumps, piping and valves, heat recovery units, exhaust fans, ductwork, and control systems. The slated completion for this project is set for August 2024.
In the case of the fabrication order for the motion control technologies company, AIS is set to manufacture a pivotal component integral to the system being delivered by the company. The project, constituting the second phase of this collaboration, is scheduled to commence in the first quarter of 2024, with production concluding by October 2024.
Capitalizing on its augmented capabilities, AIS persistently fosters lucrative revenue growth by securing additional victories in new government and industrial sectors, spanning diverse service industries and geographic locations. The escalating demand for AIS products and services is attributed to the imperative to modernize water systems and services.
This trend is anticipated to persist as governmental bodies and corporations nationwide endeavor to enhance their facilities. As a distinguished provider of industrial contracting services, encompassing fabrication, millwrighting, rigging, piping, electrical, and welding, AIS consistently secures high-value projects in collaboration with industry leaders.
Collectively, this burgeoning demand contributed to an 18% surge in revenues for AIS and Cemtrex’s Industrial Services segment during FY’23, reaching $25.0 million. The increasing need for industrial services is propelling the market towards an estimated value of $45.3 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 5.53%, according to Verified Market Research.