Core Viewpoint - Cadre is experiencing strong demand for its mission-critical safety products, with significant growth in order backlog and recent contract wins, particularly in the defense and nuclear safety sectors, following strategic acquisitions. Group 1: Financial Performance and Growth - The fourth quarter of 2025 showed strong demand for Cadre's safety products, with a notable increase in order backlog, which grew nearly 50% year-over-year due to the addition of Carr's Engineering and other factors [2][5] - Full-year 2025 net sales, net income, and adjusted EBITDA rose significantly, with adjusted EBITDA reaching $111.7 million, marking a third consecutive annual record [12][13] - For 2026, Cadre is guiding net sales between $736 million to $758 million and adjusted EBITDA between $136 million to $141 million, implying an adjusted EBITDA margin of 18.5% [18] Group 2: Strategic Acquisitions - The acquisition of TYR Tactical, closed in February 2026, is expected to enhance Cadre's focus on high-margin, mission-critical products and provide access to international markets [3] - The acquisition of Carr's Engineering is aimed at strengthening Cadre's portfolio in the nuclear safety market, leveraging technical expertise and customer relationships [4] Group 3: Market Opportunities and Challenges - Cadre is seeing increased opportunities in the nuclear sector, driven by government and commercial programs, particularly in nuclear ventilation and containment systems [7] - However, there are near-term challenges in the environmental management segment due to a slowdown in downblending activities, which has reduced demand for certain products [8][9] Group 4: Major Contracts and Product Developments - A significant contract win was announced for $86 million from General Dynamics European Land Systems to supply blast attenuation seats, with production expected to begin in 2026 [10][11] - The company has a strong installed base of over 13,000 seats, demonstrating proven performance in protecting military vehicle occupants [11] Group 5: Capital Allocation and Future Guidance - Cadre has maintained a consistent dividend policy, paying 17 consecutive quarterly dividends and recently increasing its annualized dividend to $0.40 per share [14] - The company is modeling TYR to contribute approximately $100 million in revenue on a full-year basis, with EBITDA margins in the 20% range [17]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Cadre Holdings, Inc. due to significant losses following the company's disappointing financial results for Q4 and full-year 2025 [1][4]. Financial Performance - Cadre Holdings reported fourth quarter revenue of approximately $167.2 million, which was below analyst expectations of $184–$186 million [3]. - The company reported fourth quarter earnings per share of approximately $0.27, compared to analyst expectations of approximately $0.40 [3]. - For the full year 2025, Cadre reported revenue of approximately $610.3 million, falling short of its previously reaffirmed guidance of $624 million to $630 million [4]. Stock Market Reaction - Following the financial disclosures, Cadre's common stock experienced a decline on March 11, 2026 [4]. Legal Investigation - Johnson Fistel is investigating whether Cadre complied with federal securities laws in light of the reported financial results and subsequent investor losses [1][4].

Core Insights - Cadre Holdings, Inc. is focused on integrating its acquired businesses to create a cohesive platform that enhances operational efficiency and market reach [1][3][4] - The company has experienced strong demand across various end markets, particularly in advanced sensor technologies and blast mitigation seating, leading to significant contract wins [1][6][17] - The acquisition of TIER Tactical is expected to complement Cadre's existing capabilities and strengthen its position in mission-critical safety solutions [2][9][21] Business Performance - Fiscal 2025 was marked by steady progress, with a focus on building a portfolio that delivers mission-critical technologies while ensuring sustainable growth for shareholders [3][11] - The company reported a nearly 50% increase in backlog compared to the previous year, driven by strong order growth and the addition of the CARS engineering division [6][22] - Adjusted EBITDA for 2025 reached a record $111.7 million, with gross margins improving by 140 basis points [23][25] Market Trends - The law enforcement market is seeing increased spending on protection equipment due to rising safety threats globally, supported by bipartisan commitment to public safety in the U.S. and Europe [11][12] - In the nuclear safety sector, long-term demand is driven by government policies and commercial programs across environmental management, national security, and nuclear energy [12][14] - The company is witnessing a shift in focus within the nuclear sector from environmental cleanup to pit production programs, which may temporarily impact certain product demands [15][41] M&A Strategy - Cadre Holdings has maintained an active M&A pipeline, with the recent acquisition of TIER Tactical marking the sixth acquisition since going public [19][20] - The integration of TIER is underway, with initial projects aimed at leveraging TIER's capabilities within Cadre's existing business units [10][60] - The company is committed to pursuing additional acquisitions that align with its strategic focus on high-margin, mission-critical products [19][31] Financial Outlook - For 2026, Cadre Holdings anticipates net sales between $736 million and $758 million, with adjusted EBITDA guidance of $136 million to $141 million, reflecting organic growth expectations of 3% to 5% [27][28] - The company expects a heavier revenue cadence in the second half of the year, with significant contributions from new product lines and ongoing projects [29][30] - Capital expenditures for 2026 are projected to be between $10 million and $14 million, primarily focused on capacity expansion in the nuclear sector [43]

Financial Data and Key Metrics Changes - In Q4, net sales and net income were down compared to last year's record Q4, but full year net sales, net income, and adjusted EBITDA increased significantly year-over-year [22][23] - 2025 adjusted EBITDA reached $111.7 million, marking a record for the third consecutive year, with gross margins improving by 140 basis points [23] - The company anticipates 2026 revenue between $736 million and $758 million, with adjusted EBITDA guidance between $136 million and $141 million, implying adjusted EBITDA margins of 18.5% [26] Business Line Data and Key Metrics Changes - The duty gear and armor product lines saw revenue and margins in line with expectations, while nuclear businesses experienced revenue timing shifts and some distribution softness [23] - Order backlog increased nearly 50% year-over-year, driven by 2025 order growth and the addition of Carr's Engineering Division [9][10] - The consumer channel experienced a 7% growth for the full year and 15% growth in H2 2025, benefiting from the strength of the Safariland brand [15] Market Data and Key Metrics Changes - The law enforcement market is characterized by rising safety threats globally and increasing spending on protection equipment, supported by bipartisan commitment to public safety in the U.S. and Europe [13][14] - The nuclear safety market is seeing long-term demand driven by government and commercial programs, particularly in environmental management, national security, and nuclear energy [14][16] - The company noted a shift in priorities in the nuclear sector, with a focus on plutonium production programs impacting demand for certain products [17] Company Strategy and Development Direction - The company aims to build a cohesive platform by integrating acquired businesses and expanding capabilities, focusing on mission-critical technologies for demanding environments [4][6] - The acquisition of TYR Tactical is expected to enhance the company's product portfolio and open doors to international markets [5][11] - The company maintains an active M&A pipeline, focusing on opportunities that align with its strategic goals and return thresholds [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, citing strong demand across core markets and a robust backlog [7][30] - The company anticipates continued strong demand in 2026, despite short-term challenges in certain segments [29] - Management highlighted the importance of maintaining financial flexibility to pursue both organic and inorganic growth opportunities [26][30] Other Important Information - The company has paid 17 consecutive quarterly dividends since going public and recently raised its dividend to $0.40 per share on an annualized basis [12] - The integration process for TYR Tactical is underway, with initial projects already initiated to leverage synergies between the companies [11][21] Q&A Session Summary Question: Organic outlook and visibility on delayed orders - Management confirmed that large opportunities are delayed but not lost, with good visibility on these orders [48][49] Question: Impact of nuclear business shift on revenue - Management acknowledged a timing lag in revenue from nuclear projects but expressed confidence in future growth opportunities [40][42] Question: Revenue contribution from TYR Tactical - The company expects TYR to contribute approximately $100 million on a full-year basis, with guidance reflecting a conservative approach [53][55] Question: Details on the General Dynamics contracts - Management provided insights into the blast attenuation seats being supplied to General Dynamics, emphasizing the product's life-saving capabilities [64][65]

Financial Data and Key Metrics Changes - Fiscal 2025 showed significant growth in net sales, net income, and adjusted EBITDA, with adjusted EBITDA reaching a record of $111.7 million for the third consecutive year [23][24] - Gross margins improved by 140 basis points year-over-year, with public safety products' gross margins increasing by 188 basis points [23][24] - The company anticipates 2026 net sales between $736 million and $758 million, with adjusted EBITDA guidance of $136 million to $141 million, indicating year-over-year growth of 22% and 24% respectively at the midpoints [26] Business Line Data and Key Metrics Changes - The acquisition of Carr's Engineering and TYR Tactical contributed to a nearly 50% increase in order backlog compared to the previous year [9][10] - Duty gear and armor product lines performed in line with expectations, while nuclear businesses experienced revenue timing shifts [23] - The consumer channel saw a growth of 7% for the full year and 15% in the second half of 2025 [15] Market Data and Key Metrics Changes - The law enforcement market is characterized by rising safety threats and increased spending on protective equipment, supported by bipartisan commitment to public safety in the U.S. and Europe [13][14] - The nuclear safety market is driven by expanding government mandates for weapons modernization and production, with a positive outlook despite short-term impacts from shifts in plutonium production priorities [16][17] - The company is experiencing strong demand in international markets, particularly in South America, Europe, and parts of Asia [10][14] Company Strategy and Development Direction - The company focuses on building a portfolio of mission-critical technologies for demanding environments, with ongoing integration of acquired businesses to enhance operational cohesion [4][6] - An active M&A pipeline is maintained, with a focus on acquiring strategically aligned businesses that meet return thresholds [8][19] - The company aims to leverage the strengths of acquired companies to enhance product offerings and market reach, particularly in the armor and safety sectors [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and maintain strong demand across core markets [30] - The outlook for 2026 reflects confidence in organic growth initiatives, with expectations of continued strong demand in public safety and nuclear safety sectors [30] - Management acknowledged temporary impacts on revenue from shifts in nuclear business priorities but remains optimistic about long-term growth opportunities [17][40] Other Important Information - The company has paid 17 consecutive quarterly dividends since going public, recently raising the dividend to $0.40 per share on an annualized basis [12] - The integration of TYR Tactical is underway, with initial projects aimed at leveraging its capabilities within existing business units [11][21] Q&A Session Summary Question: Organic outlook and visibility on delayed orders - Management confirmed that large opportunities are delayed but not lost, with good visibility on backlog and ongoing efforts to close additional orders [46][47] Question: Impact of nuclear business shifts on revenue - Management acknowledged a timing lag in revenue from nuclear projects but expressed confidence in future growth opportunities in commercial nuclear [39][40] Question: CapEx guidance for 2026 - The increase in CapEx is primarily for capacity expansion in the nuclear business, with typical investment levels for other areas [47] Question: Revenue contribution from TYR Tactical - TYR is expected to contribute approximately $100 million on a full-year basis, with a conservative approach to revenue integration [51] Question: Details on General Dynamics contracts - The contracts involve providing blast attenuation seats for military vehicles, with potential for follow-on orders based on established relationships [62]

CADRE HOLDINGS FOURTH QUARTER 2025 March 11, 2025 FORWARD-LOOKING STATEMENTS Please note that in this presentation we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Compan ...

Earnings per share (EPS) of $0.27 missed the estimated $0.47, indicating a negative surprise of 34.15%.Revenue for the quarter was $167.2 million, falling short of the anticipated $182.9 million, marking an 8.4% miss.Financial ratios such as the P/E ratio of approximately 38.27 and a debt-to-equity ratio of roughly 1.01 highlight the company's valuation and financial health.Cadre Holdings, Inc. (NYSE:CDRE) operates in the security and safety services industry, providing essential products and services for s ...

Core Insights - Cadre Holdings, Inc. reported a revenue of $167.22 million for the quarter ended December 2025, which is a 5% decrease compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $0.27, down from $0.32 in the year-ago quarter, and fell short of the Zacks Consensus Estimate of $0.41, resulting in an EPS surprise of -34.15% [1] - The reported revenue was also below the Zacks Consensus Estimate of $182.55 million, indicating a revenue surprise of -8.4% [1] Financial Performance Metrics - Net sales from products amounted to $152.05 million, which was lower than the average estimate of $159.66 million based on two analysts [4] - Net sales from reconciling items were reported at -$9.88 million, compared to the estimated -$8.9 million [4] - Net sales from distribution reached $25.05 million, falling short of the average estimate of $31.79 million based on two analysts [4] Stock Performance - Over the past month, shares of Cadre Holdings, Inc. have returned +3.7%, contrasting with the Zacks S&P 500 composite's decline of -2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Cadre Holdings, Inc. reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.41 per share, and down from $0.32 per share a year ago, representing an earnings surprise of -34.15% [1] - The company posted revenues of $167.22 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 8.4%, and down from $175.98 million year-over-year [2] - The stock has increased approximately 7.7% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $157.07 million, and for the current fiscal year, it is $1.33 on revenues of $688.3 million [7] - The Security and Safety Services industry, to which Cadre Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Market Opportunities - The company estimates the serviceable available market for soft body armor to be approximately $870 million, with explosive ordnance disposal equipment having an addressable market of about $245 million over a seven-to-ten year product lifecycle [29]. - The total addressable market for nuclear safety products is estimated to be between $3 billion and $6 billion, driven by U.S. government and commercial nuclear market needs [32]. - The explosive ordnance disposal equipment market is driven by new global threats, while the demand for body armor is supported by a significant increase (70%) in active shooter incidents from 2020 to 2024 compared to the previous five years [28]. Customer Base and Relationships - The company has a large and diverse customer base, with no individual customer representing more than 10% of total revenue, and maintains long-term relationships with over 23,000 first responders and federal agencies [22][41]. - The SAVES CLUB® currently has over 2,274 members, honoring first responders who have experienced life-threatening incidents [23]. Product Development and Innovation - The company launched a new family of duty holsters, the Ballast, in 2025, engineered for extreme durability and various use enhancements [51]. - Recent product innovations include the Safariland SXHP ballistic armor and the next generation Ballast holster, aimed at increasing customer wallet share and driving revenue growth [57]. - Cadre's acquisition of Alpha Safety and Zircaloy enhances its nuclear safety offerings and expands its international presence in nuclear power generation and clean energy applications [54]. Growth Strategy - The company has a compelling organic and inorganic growth roadmap, with plans for international expansion and a targeted M&A program to supplement organic growth [38]. - The management projects a 3% annual growth in law enforcement personnel openings in the U.S. from 2024 to 2034, which will drive demand for first responder safety equipment [27]. - The company has completed 18 targeted M&A transactions to date, allowing for expansion into new markets and product offerings [59]. - The company maintains a robust pipeline of M&A opportunities to drive growth and enhance its product and technology offerings [60]. Financial Performance - The company generates strong profitability through diligent portfolio management and a focus on cost structure, resulting in high free cash flow generation [39]. - The company had $309.1 million in long-term debt outstanding as of December 31, 2025, which could adversely affect its financial condition and operations [152]. - The company announced a quarterly cash dividend policy of $0.10 per share, representing an increase of 5.26% from the previous annualized dividend of $0.38 per share [196]. Regulatory and Compliance Risks - The company is subject to extensive government regulations, including federal licensing requirements for certain products and compliance with environmental laws [80]. - The company is subject to extensive government regulations, which could materially restrict operations and lead to substantial penalties [98]. - The company may face increased compliance costs and legal exposure due to evolving ESG regulations and expectations [133]. - The company is subject to extensive regulations regarding federal government contracts, which could impose added costs and affect business operations [136]. Operational Challenges - The company faces risks related to product liability and warranty claims, which could result in significant financial liabilities [91]. - The company may encounter difficulties in obtaining sufficient insurance coverage for product liability, impacting its ability to bid for government contracts [94]. - Limited sources for raw materials may significantly curtail manufacturing operations, impacting costs and production capabilities [122]. - Labor shortages have increased labor costs and negatively impacted profitability, with competition for skilled personnel being particularly intense [155]. - The company may face challenges in attracting and retaining qualified personnel as it expands operations, which could strain resources [125]. Cybersecurity and IT Risks - The company is exposed to cybersecurity risks, which could result in legal liabilities and reputational harm [103]. - Cybersecurity incidents in July and September 2024 resulted in temporary operational interruptions, highlighting vulnerabilities in the company's IT systems [141][147]. - The company has established policies for managing cybersecurity risks, integrating these processes into its overall risk management systems [203]. - The company has a cybersecurity team that manages risk assessments and mitigation processes, including participation in a cybersecurity risk insurance policy [208]. Market and Economic Risks - Global economic uncertainty, including tariffs and trade restrictions, could adversely affect the company's financial performance and operations [111]. - Ongoing geopolitical conflicts, such as the Russia-Ukraine war, may materially impact the company's operations and business outlook [112]. - Pandemics and disease outbreaks could lead to a decline in demand for the company's products and services, affecting financial results [113]. - Fluctuating government budgets may cause significant variations in the company's revenue, particularly from first responder customers [117]. Corporate Governance - The company’s amended and restated bylaws include provisions that may make it more difficult for stockholders to replace current management or engage in a change of control [190]. - The CEO's divided responsibilities may affect the time and attention devoted to the company, potentially impacting its performance [138]. - The company’s status as an emerging growth company will cease no later than December 31, 2026, which may impact the trading market for its common stock [187].