Financial Data and Key Metrics Changes - In Q3, net sales reached $155.9 million, representing a 42% year-over-year increase [18] - Gross margin improved by 610 basis points year-over-year and 180 basis points sequentially, driven by favorable pricing and the absence of prior year inventory step-up amortization [18] - The company reaffirmed its 2025 guidance, expecting net sales between $624 million and $630 million, and adjusted EBITDA between $112 million and $116 million, implying adjusted EBITDA margins of 18.2% [19] Business Line Data and Key Metrics Changes - The organic backlog increased by $20 million sequentially, indicating strong demand and successful booking of previously delayed opportunities [8] - The EOD business, MedEng, was awarded a $50 million IDIQ contract by the U.S. Department of Defense, marking a significant achievement [10] - The company reported strong demand for armor and duty gear, contributing to organic growth despite challenging year-over-year comparisons due to cybersecurity impacts [44] Market Data and Key Metrics Changes - The law enforcement market is experiencing rising safety threats globally, with increasing investments in protective equipment [12] - In the nuclear sector, long-term demand is driven by policy and commercial tailwinds, with significant government and private sector support [12] - The company is strategically positioned to support the full nuclear life cycle, capitalizing on expanding national defense initiatives [13] Company Strategy and Development Direction - The company is focused on disciplined M&A, with the recent agreement to acquire Tier Tactical, enhancing its portfolio in mission-critical products [4][5] - The acquisition aims to unlock new growth opportunities in high-value end markets, particularly in Northern Europe [5] - The company continues to see robust acquisition pipelines in both public safety and nuclear markets, emphasizing a patient and disciplined approach [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value creation for shareholders, supported by a strong culture and resilient business model [6] - The macro environment remains dynamic, but the company has made considerable progress in booking large opportunities, reflected in significant backlog growth [14] - Management remains optimistic about future growth opportunities, particularly in the context of government funding and security needs for large-scale events [58] Other Important Information - The company has deployed over $400 million in acquisitions over the past 24 months, reinforcing its commitment to expanding its diversified platform of durable safety businesses [5] - The company has maintained a strong free cash flow generation, allowing for dividend payments while supporting organic growth and M&A objectives [9] Q&A Session Summary Question: Thoughts on sequential margin improvement - Management noted broad-based margin improvement across all major categories, driven by productivity and positive mix [25] Question: Progress on the Cadre operating model - Management reported exceptional progress in adopting the operating model across various international teams, with positive cultural feedback [26] Question: Long-term opportunity with the $50 million IDIQ contract - Management highlighted the commitment from the Department of Defense and the potential for future international opportunities [28][30] Question: Expected gross margin for Q4 - Management anticipates gross margins to land between Q2 and Q3 rates, with a positive outlook for the remainder of the year [34] Question: Impact of government shutdown on guidance - Management has considered potential delays in guidance due to the government shutdown but remains optimistic about covering any slippages [50][56] Question: Input costs and inflation outlook - Management indicated that input costs have remained consistent, with no significant changes expected in the inflation environment [63] Question: New product mix and innovation history - Management noted a significant refresh of the product portfolio in recent years, with expectations for continued innovation from the Tier acquisition [66]

THIRD QUARTER 2025 November 5, 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 Company and therefor ...

Cadre Holdings, Inc. (CDRE) reported $155.87 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 42.5%. EPS of $0.27 for the same period compares to $0.09 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $159.64 million, representing a surprise of -2.36%. The company delivered an EPS surprise of +3.85%, with the consensus EPS estimate being $0.26.While investors scrutinize revenue and earnings changes year-over-year and how they compa ...

Core Insights - Cadre Holdings, Inc. (CDRE) reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing significant growth from $0.09 per share a year ago, resulting in an earnings surprise of +3.85% [1] - The company posted revenues of $155.87 million for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 2.36%, but an increase from $109.41 million year-over-year [2] - Cadre Holdings, Inc. shares have increased approximately 31.5% year-to-date, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.43 for the upcoming quarter and $1.23 for the current fiscal year, alongside expected revenues of $181.43 million and $628.28 million respectively [7] - The trend of estimate revisions for Cadre Holdings, Inc. was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Security and Safety Services industry, to which Cadre Holdings, Inc. belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5]

Financial Performance - For the three months ended September 30, 2025, net sales increased to $155,869,000, a 42.5% increase from $109,408,000 in the same period of 2024[20] - Gross profit for the nine months ended September 30, 2025, was $187,005,000, representing a 19.6% increase compared to $156,294,000 for the same period in 2024[20] - Operating income for the three months ended September 30, 2025, rose to $18,674,000, up 244.5% from $5,426,000 in the prior year[20] - Net income for the nine months ended September 30, 2025, was $32,400,000, a 40% increase from $23,150,000 in the same period of 2024[20] - The company’s diluted net income per share for the three months ended September 30, 2025, was $0.27, compared to $0.09 for the same period in 2024, reflecting a 200% increase[20] - Net income for the quarter ending June 30, 2025, was reported at $10,941,000, compared to $9,248,000 for the previous quarter, indicating a sequential increase of 18.4%[25] - For the three months ended September 30, 2025, net income was $10,941,000, compared to $3,655,000 for the same period in 2024, representing a significant increase[49] - Adjusted EBITDA for the three months ended September 30, 2025, was $29.8 million, compared to $13.5 million in the same period of 2024, reflecting a significant increase in operational performance[130] Cash and Assets - Cash and cash equivalents increased to $150,875,000 as of September 30, 2025, compared to $124,933,000 at the end of 2024, reflecting a growth of 20.7%[17] - Total assets grew to $792,055,000 as of September 30, 2025, up 21.4% from $652,713,000 at the end of 2024[17] - As of September 30, 2025, total shareholders' equity increased to $340,374,000 from $311,515,000 as of December 31, 2024, reflecting a growth of approximately 9.3%[25] - The company reported a net cash provided by operating activities of $42,455,000 for the nine months ended September 30, 2025, significantly higher than $8,066,000 in the same period of 2024[24] - The company had $150.9 million in cash and cash equivalents at the end of the period on September 30, 2025, compared to $92.9 million at the end of 2024[192] Liabilities and Debt - Total liabilities increased to $451,681,000 as of September 30, 2025, compared to $341,198,000 at the end of 2024, marking a 32.5% rise[17] - Total long-term debt as of September 30, 2025, is $294,971, an increase from $211,830 as of December 31, 2024[78] - Outstanding debt increased to $311.2 million as of September 30, 2025, up from $223.2 million as of December 31, 2024, primarily related to term loan facilities[175] Acquisitions - Business acquisitions for the nine months ended September 30, 2025, totaled $89,590,000, down from $141,813,000 in the same period of 2024[24] - The total consideration for the acquisition of Zircaloy was $89,590,000, net of cash acquired, with total acquisition-related costs amounting to $4,520,000[53] - The company signed a definitive agreement to acquire Tyr Tactical, LLC for a total consideration of $175,000, including $150,000 in cash at closing[121] - The acquisition of ICOR resulted in total consideration of $39,282,000, net of cash acquired, with contingent consideration of $2,226,000 included[56] - The acquisition of Alpha Safety had a total consideration of $102,531, with goodwill of $49,133, indicating anticipated profitability from market expansion[63] Revenue Segments - Net sales for the Product segment for the three months ended September 30, 2025, were $138,789, an increase from $96,493 in the same period of 2024[120] - The Product segment net sales increased by $42.3 million, or 43.8%, to $138.8 million for the three months ended September 30, 2025, primarily due to the Zircaloy acquisition and stronger demand for armor and duty gear products[146] - Distribution segment net sales increased by $8.7 million, or 48.5%, to $26.5 million for the three months ended September 30, 2025, driven by stronger demand for hard goods[146] - Product segment net sales increased by $48.0 million, or 14.0%, from $343.7 million to $391.7 million for the nine months ended September 30, 2025, primarily due to the Zircaloy acquisition and increased demand for duty gear products[155] - Distribution segment net sales increased by $8.3 million, or 11.5%, from $71.6 million to $79.9 million for the nine months ended September 30, 2025, driven by stronger demand for hard goods[155] Expenses - Selling, general and administrative expenses increased by $19.2 million, or 17.0%, for the nine months ended September 30, 2025, primarily due to the Zircaloy acquisition and increased payroll expenses[157] - Interest expense, net increased by $3.2 million for the nine months ended September 30, 2025, primarily due to debt assumed from the Zircaloy acquisition[161] Tax and Other Income - Provision for income taxes was $12.3 million for the nine months ended September 30, 2025, with an effective tax rate of 27.5%[163] - Other income, net was $6.6 million for the nine months ended September 30, 2025, compared to other expense, net of $0.2 million for the same period in 2024, primarily due to changes in foreign currency exchange rates[162] Market Risks - The company is exposed to foreign currency exchange risk, primarily with the Canadian dollar and Mexican peso, due to its geographically diverse operations[214] - Forward contracts have been established to hedge forecasted costs in Mexican pesos, designated as cash flow hedges to manage foreign currency transaction risk[215] - Market risks, including interest rate and foreign currency exchange risks, are not currently significant to the company's results of operations but may become so in the future[207]

Financial Performance - Quarterly net sales increased by 42% year-over-year to $155.9 million, and net sales for the nine months ended September 30, 2025, reached $443.1 million, up from $391.6 million in the prior year[3][4][5] - Gross profit for the third quarter was $66.6 million, representing a gross profit margin of 42.7%, compared to 36.6% in the same quarter last year[6][7] - Adjusted EBITDA for the third quarter was $29.8 million, with an Adjusted EBITDA margin of 19.1%, an increase of 670 basis points year-over-year[10][11] - Net income for the third quarter was $10.9 million, or $0.27 per diluted share, compared to $3.7 million, or $0.09 per diluted share, in the same quarter last year[8][5] - Operating income for the nine months ended September 30, 2025, was $46.9 million, compared to $37.4 million for the same period in 2024, reflecting a 25.5% increase[27] - Net income for the nine months ended September 30, 2025, was $32.4 million, a 40% increase from $23.2 million in 2024[28] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $66,335,000, with an adjusted EBITDA margin of 19.1% for the three months ended September 30, 2025[31] - The EBITDA for the last twelve months was reported at $96,420,000, showcasing strong operational performance[31] Cash and Debt Management - Cash and cash equivalents increased by $25.9 million to $150.9 million as of September 30, 2025, while total debt rose by $88.0 million to $311.2 million[16] - Cash and cash equivalents increased to $150.9 million as of September 30, 2025, from $124.9 million at the end of 2024[28] - Total assets grew to $792.1 million as of September 30, 2025, compared to $652.7 million at the end of 2024, marking a 21.4% increase[26] - Total liabilities increased to $451.7 million as of September 30, 2025, from $341.2 million at the end of 2024, representing a 32.5% rise[26] Business Developments - The company announced an agreement to acquire TYR Tactical for $175 million, expected to close in the first half of 2026, which produced approximately $92.6 million in revenue in 2024[14] - Med-Eng, a subsidiary, was awarded a $50 million contract by the Department of Defense, with the first purchase order of $10 million to be shipped in 2026[15] - Organic backlog increased by $20 million from Q2 to Q3 2025, indicating strong demand and growth potential[1] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, totaled $140.1 million, up from $118.9 million in 2024, reflecting a 17.5% increase[27] - The company incurred $89.6 million in business acquisitions during the nine months ended September 30, 2025[28] - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $16,420,000, and interest expense, net, was $7,822,000 for the same period[31] - Restructuring and transaction costs amounted to $7,757,000 for the year ended December 31, 2024, reflecting significant transaction-related expenses[31] - Stock-based compensation expense was $8,369,000 for the year ended December 31, 2024, indicating a substantial investment in employee incentives[31] - The company incurred contingent consideration expenses of $1,185,000 related to the acquisition of ICOR[31] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.095 per share, with an annualized basis of $0.38 per share[17] Currency and Other Expenses - Other net expenses included a loss of $1,555,000 for the three months ended September 30, 2025, primarily due to foreign currency fluctuations[31] - The company reported a net provision for income taxes of $18,085,000 for the year ended December 31, 2024[31]

Core Viewpoint - Cadre Holdings is discussing the acquisition of TYR Tactical during a conference call, highlighting the strategic importance of this transaction for the company [3]. Group 1 - The conference call is being facilitated by IGB Group, indicating their role in the communication process [2]. - Presentation materials related to the acquisition have been made available on Cadre's website, suggesting a commitment to transparency and stakeholder engagement [4].

Summary of Cadre Holdings Conference Call on TIR Tactical Acquisition Company and Industry Overview - **Company**: Cadre Holdings, Inc. - **Acquisition Target**: TIR Tactical, a manufacturer of personal protective equipment for military and law enforcement globally - **Industry**: Tactical defense products and personal protective equipment Key Points and Arguments 1. **Acquisition Details**: Cadre is acquiring TIR Tactical to strengthen its safety platform and expand its portfolio in the tactical defense market, which aligns with its M&A strategy of being patient and disciplined [3][4][5] 2. **TIR Tactical Overview**: Founded in 2010, TIR Tactical has established a strong brand in tactical defense products, with a focus on innovation and quality. The company has a revenue of approximately $92.6 million for the year ending December 31, 2024, and is expected to have an immediately accretive margin profile [4][9] 3. **Market Position**: TIR Tactical has a leading market position with minimal overlap with Cadre's existing Safariland armor business, allowing for complementary growth opportunities [11][20] 4. **International Revenue**: Approximately 50% of TIR Tactical's sales come from international markets, with significant relationships in Europe, particularly with Danish and Swedish armed forces [11][25] 5. **Product Offerings**: TIR Tactical's product suite includes advanced tactical gear such as soft armor, hard armor, and tactical nylon, designed for high-risk environments [7][11] 6. **Innovation and Technology**: TIR Tactical has developed proprietary manufacturing technologies and holds 80 patents, with a focus on advanced ballistic materials and ergonomic designs for female operators [12][13] 7. **Growth Potential**: The acquisition is expected to provide growth tailwinds, with opportunities to cross-sell products and expand into new markets [5][27] 8. **Competitive Landscape**: The tactical market in the U.S. includes competitors like Safariland, Pure Tactical, and FirstSpear, while the international market is more crowded with local manufacturers [34] 9. **Financial Metrics**: The acquisition is projected to be margin accretive, with expectations of maintaining a strong EBITDA margin around 20% [29][42] 10. **Integration Plans**: Cadre plans to leverage its operational model to unlock additional opportunities with TIR Tactical, with a focus on maintaining high-quality standards and operational improvements [14][42] Additional Important Information - **Management Continuity**: Jason and Jane Beck, co-founders of TIR Tactical, will remain involved in the business post-acquisition, ensuring continuity and leveraging their expertise [52] - **Contractual Backlog**: TIR Tactical has a different backlog structure compared to Cadre's existing armor business, with a visibility of around six months due to larger military contracts [48] - **Future M&A Strategy**: Cadre has a disciplined approach to M&A, aiming for quality over quantity, and has the capacity to pursue additional acquisitions in the future [36][37] This summary encapsulates the key insights from the conference call regarding Cadre Holdings' acquisition of TIR Tactical, highlighting the strategic rationale, market dynamics, and future growth potential.

Acquisition Overview - Cadre Holdings, Inc is acquiring TYR Tactical [3] - The total consideration for the acquisition is $175 million, including $150 million in cash and $25 million in CDRE stock [5] - TYR Tactical had $93 million in revenue in FY2024 [5] - Approximately 50% of TYR Tactical's revenue in 2024 is international [11] Strategic Rationale - The acquisition provides significant entry into new markets, particularly European military and defense [5] - TYR Tactical has a large geographic footprint, servicing 39 countries [11] - TYR Tactical offers the ability to manufacture plates/shields engineered with next-gen advanced materials [5] - The acquisition is expected to be immediately accretive to earnings and adj EBITDA margins [5] Proprietary IP & Manufacturing - TYR Tactical has secured 80 patents across the U S, Canada, UK, Australia, and Europe [17] - TYR Tactical has 59 registered trademarks [21]

Group 1: Market Overview - As of October 17, 2025, two stocks in the industrials sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is highlighted as a key momentum indicator, with values above 70 indicating overbought conditions [2] Group 2: Company Performance - Powell Industries Inc - Powell Industries reported mixed third-quarter financial results, achieving a gross margin of 30.7%, an improvement of 230 basis points year-over-year [6] - The company has a book-to-bill ratio of 1.3x and a sequential backlog growth of 7% [6] - Powell Industries' stock gained approximately 16% over the past month, with a 52-week high of $364.98 and an RSI value of 71.2 [6] Group 3: Company Performance - Cadre Holdings Inc - Cadre Holdings received a Buy rating from Lake Street analyst Mark Smith, with the price target raised from $41 to $43 [6] - The stock has increased around 25% over the past month, reaching a 52-week high of $42.06, with an RSI value of 78.4 [6] - Cadre Holdings' shares rose 1% to close at $40.99 [6]