Big news for Cemtrex (NASDAQ: CETX) today.

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The company announced that its subsidiary, Invocon, Inc., has been selected for a U.S. Navy SBIR Phase I contract focused on naval mine warfare technology.

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The market was pleased with this news …

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To be sure, while Phase I SBIR awards are typically small and early-stage, they’re important because they serve as an entry point into the U.S. defense contracting ecosystem. 

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Companies selected for SBIR programs are often eligible for follow-on Phase II and Phase III contracts, which can be significantly larger and tied to real deployment.

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$7 Million - well spent!

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If you’re unfamiliar, Cemtrex operates as a diversified industrial and technology company with three primary segments:

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  • Security systems and infrastructure
  • Industrial services and installation
  • Aerospace and defense 

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The defense segment is built around Invocon, which Cemtrex acquired in 2026 for about $7 million.

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Invocon specializes in sensors, instrumentation, telemetry systems, and power systems for aerospace and defense applications. 

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The company has already worked on programs related to the International Space Station, missile systems, and other government projects, giving Cemtrex an existing foothold in defense and aerospace, which is extremely lucrative right today.

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Now this new U.S. Navy contract focuses on modular mine warfare components, including advanced electronics and power systems. At this stage, the contract only supports research and feasibility work and does not represent large-scale production or revenue. 

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That being said, a successful completion of Phase I can lead to Phase II development contracts and integration into larger defense programs. 

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Worth noting: this news comes less than a month after the company announced that its industrial services subsidiary (AIS) was awarded a $1.2 million contract from a large national general contractor for work at a specialty manufacturing facility in the Northeastern United States. 

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The project includes planning, equipment unloading, installation, and commissioning of production systems, including tanks, agitators, condensers, and freezers. The work is being executed in multiple phases, with the project expected to begin in early 2026 and continue through the first quarter of 2027.

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