JACKSONVILLE, Fla.--(BUSINESS WIRE)--Cadre Holdings, Inc. (NYSE: CDRE) ("Cadre†or "the Company†), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today that it will host an Investor Day on Wednesday, October 8, 2025 at the New York Stock Exchange in New York City. The event is scheduled to begin at 10:00 am ET and will feature remarks from Cadre's management te. ...

Group 1 - Cadre Holdings (CDRE) has demonstrated poor stock performance despite previous bullish sentiment [1] - The company specializes in protective gear and equipment for law enforcement and nuclear markets [1] - The analysis is provided by an expert with a background in aerospace engineering, focusing on investment opportunities in the aerospace, defense, and airline sectors [1] Group 2 - The investing group offers access to data analytics monitors to support investment decisions [1] - The analyst emphasizes that investment ideas are driven by data-informed analysis [1]

Summary of Cadre Holdings (CDRE) 2025 Conference Call Company Overview - **Company Name**: Cadre Holdings - **Public Listing Date**: November 2021 - **Industry**: Safety equipment for public safety and nuclear sectors - **History**: Over 55 years in operation, positioned as a global leader in safety equipment Core Product Offerings 1. **Explosive Ordnance Disposal (EOD)**: - Major customer base includes militaries worldwide - Estimated 87-90% market share in bomb suits for militaries and law enforcement [3][4] 2. **Duty Gear**: - Focus on holsters, with approximately 90% market share in the US law enforcement sector [4] 3. **Body Armor**: - Includes hard and soft armor, with market share estimated in the high 30% to low 40% range in the US [5][6] 4. **Nuclear Segment**: - Entered in 2021, aiming for diversification into nuclear safety equipment [6] Growth Algorithm - **Market Growth Rates**: - Public safety and law enforcement: 3% growth - Nuclear sector: 4-6% growth [7] - **EBITDA Expansion**: - Price increases contribute approximately 1% net of material inflation, driving 5% EBITDA expansion [8] - Low CapEx business model (<2% of revenue), allowing for high free cash flow generation [10][11] Competitive Positioning - **Brand Recognition**: Strong brand presence in safety equipment, with over 2,254 saves attributed to their products [12][13] - **Innovation**: Continuous product development to meet customer needs, although new products often cannibalize existing ones [14][23] Tariff and Supply Chain Management - **Supply Chain Resilience**: - Primarily regional sourcing, with limited exposure to tariffs due to North American manufacturing [16][17] - USMCA agreement mitigates tariff impacts on goods movement [18][19] - **Price Increases**: - Implemented price increases in response to tariffs, with a focus on maintaining competitive pricing [20][46] Market Trends and Customer Sensitivity - **Public Safety Budgets**: - Historical consistency in law enforcement budgets, typically growing at 2.8-3% CAGR [26][27] - Demand for safety equipment remains stable even during budget constraints [30][31] - **Nuclear Market Drivers**: - Growth driven by environmental safety, national security, and nuclear energy needs [33] - Significant investments in nuclear power plant decommissioning and modernization of nuclear arsenals [38][40][44] Margin and Financial Outlook - **EBITDA Margin Goals**: - Long-term target of mid-20s EBITDA margins, with ongoing margin expansion opportunities [64][66] - **Leverage Strategy**: - Current leverage at 1.8x, with a target range of 2x for optimal investor returns [68][70] - Focus on M&A as the primary capital allocation strategy [71] Integration and Cross-Selling Opportunities - **Integration Progress**: - Successful integration of back-office functions post-acquisition, with ongoing development of operating models [55][56] - **Cross-Selling Strategy**: - Opportunities to introduce Alpha Safety products into existing customer bases, particularly in the UK [59][62] Conclusion - Cadre Holdings is positioned for stable growth in both public safety and nuclear sectors, leveraging strong brand recognition, innovative product development, and a resilient supply chain. The company aims to enhance margins and pursue strategic acquisitions while maintaining a focus on cash flow generation and operational efficiency.

Financial Data and Key Metrics Changes - Revenue and gross profit increased year over year by 9% and 10.5% respectively, reflecting strong demand for protection products despite a challenging macro environment [4][22] - Q2 sales reached $157 million, exceeding expectations, with gross margin improving by 30 basis points year over year due to favorable pricing and absence of inventory step-up amortization [22][24] - Full year outlook implies year over year revenue and adjusted EBITDA growth of 10.5% and 8.7% respectively at the midpoints [24] Business Line Data and Key Metrics Changes - The acquisition of KAR's engineering division in April expanded CADRE's nuclear vertical and added scale to its operations [5][20] - The law enforcement segment remains the largest market, with consistent growth driven by increased police protection expenditures [11] - The nuclear safety sector is experiencing accelerating global demand, supported by energy, defense, and nuclear waste management trends [6][12] Market Data and Key Metrics Changes - Positive trends in North American law enforcement are highlighted by significant federal investments [14] - Geopolitical instability continues to underscore the importance of CADRE's offerings, particularly in conflict zones [14] - The consumer channel has shown resilience despite broader market challenges, with strong demand for consumer holsters [15] Company Strategy and Development Direction - CADRE is focused on strategic acquisitions to enhance its market leadership and operational efficiency [5][21] - The company aims to leverage its strong balance sheet and robust acquisition pipeline to pursue additional M&A opportunities [5][21] - Innovation remains a core focus, with successful new product launches contributing to market share growth [16][68] Management's Comments on Operating Environment and Future Outlook - Management noted a greater degree of uncertainty in the operating environment compared to previous years, particularly regarding large opportunities in the sales funnel [17][18] - Despite timing shifts for some large public safety and nuclear opportunities, management remains confident in the quality of the sales funnel [27] - The company anticipates strong long-term growth driven by macro tailwinds in law enforcement, military, and nuclear markets [19] Other Important Information - The company maintains significant financial flexibility with a net leverage ratio of 1.8 times, allowing it to pursue inorganic growth opportunities [23] - The integration of the acquired engineering division is underway, focusing on finance, accounting, IT, and compliance [10][20] Q&A Session Summary Question: On the contracts or the push out on some of these orders - Management indicated that the shift in timing is across various business units, but there are no reductions in budgets or allocations [30][32] Question: Margin outlook for the future - Management expressed confidence in long-term margin expansion, aiming for mid to upper 40s gross margins [38] Question: Clarification on guidance change - The guidance change was strictly a matter of timing, with no potential business exiting the funnel [42] Question: Sales mix and margin expectations for the second half - Management expects Q3 gross margins to be similar to Q2, with a slight increase anticipated in Q4 due to stronger EOD business [45] Question: Updates on the Nuclear business and integration - Early integration efforts are focused on functional areas, with initial discussions on potential commercial synergies underway [48][73] Question: Pricing trends across the portfolio - Pricing has exceeded expectations, with a net increase of 1% in Q2, and further increases expected in the second half [52] Question: Opportunities in defense and EOD business - Management noted that cleanup phases in conflict zones are not yet underway, but they are preparing for future opportunities [57] Question: Exposure to ICE and Border Patrol - Management highlighted ongoing opportunities as these agencies expand their personnel and equipment needs [60] Question: Tariff impacts on guidance - Current guidance reflects known tariffs, with mitigation plans in place to address potential future changes [62] Question: Performance of new products - Recent product launches have performed well, contributing positively to market share despite broader market challenges [68]

Financial Performance - Q2 2025 net sales increased by 9% year-over-year to $157.1 million[33], compared to $144.3 million in Q2 2024[33] - Gross margin improved by 30 bps year-over-year to 40.9% in Q2 2025[33], from 40.6% in Q2 2024[33] - Net income was $12.2 million, or $0.30 per diluted share in Q2 2025[33], compared to $12.6 million, or $0.31 per diluted share in Q2 2024[33] - Adjusted EBITDA for Q2 2025 was $27.0 million[33], with an adjusted EBITDA margin of 17.2%[33] - For the first six months of 2025, net sales reached $287.2 million[47], a slight increase from $282.2 million in the same period of 2024[47] - Net income for the first six months of 2025 was $21.459 million[47], compared to $19.495 million for the first six months of 2024[47] Acquisition and Expansion - Completed the acquisition of Carr's Engineering division in April 2025 for £75 million[28] - Carr's Engineering division had £51 million in revenue for FY 2024[28] - The acquisition expands the nuclear TAM through entry into international channel, and nuclear medicine and nuclear energy markets[28] Outlook and Guidance - The company expects net sales between $624 million and $630 million for fiscal year 2025[35,42] - Adjusted EBITDA is projected to be between $112 million and $116 million for fiscal year 2025[37,42]

[PART I FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and detailed notes for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$794.4 million** by June 30, 2025, with liabilities rising significantly and shareholders' equity seeing a modest increase | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total Assets | $794,437 | $652,713 | $141,724 | | Total Liabilities | $461,977 | $341,198 | $120,779 | | Total Shareholders' Equity | $332,460 | $311,515 | $20,945 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 net sales increased **8.9%** but net income decreased **2.8%**; H1 2025 net sales grew **1.8%** with net income up **10.1%** | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net sales | $157,109 | $144,309 | 8.9% | $287,215 | $282,169 | 1.8% | | Gross profit | $64,249 | $58,650 | 9.5% | $120,380 | $116,278 | 3.5% | | Operating income | $14,685 | $19,953 | (26.4)% | $28,237 | $31,932 | (11.6)% | | Net income | $12,211 | $12,567 | (2.8)% | $21,459 | $19,495 | 10.1% | | Basic EPS | $0.30 | $0.31 | (3.2)% | $0.53 | $0.50 | 6.0% | | Diluted EPS | $0.30 | $0.31 | (3.2)% | $0.52 | $0.49 | 6.1% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$20.0 million** for H1 2025, while investing used **$92.3 million** and financing provided **$82.9 million** | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash from operating activities | $19,979 | $13,280 | | Net cash used in investing activities | $(92,317) | $(145,129) | | Net cash from financing activities | $82,943 | $149,881 | | Change in cash and cash equivalents | $12,536 | $18,212 | | Cash and cash equivalents, end of period | $137,469 | $105,903 | [Condensed Consolidated Statements of Shareholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased from **$311.5 million** to **$332.5 million** by June 30, 2025, primarily due to net income and stock-based compensation | Metric (in thousands) | Balance, December 31, 2024 | Balance, June 30, 2025 | | :-------------------- | :------------------------- | :--------------------- | | Total Shareholders' Equity | $311,515 | $332,460 | | Net income | $21,459 (6 months) | $21,459 (6 months) | | Dividends declared | $(7,721) (6 months) | $(7,721) (6 months) | | Stock-based compensation | $4,393 (6 months) | $4,393 (6 months) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain significant accounting policies, acquisitions, revenue, assets, debt, derivatives, commitments, taxes, leases, related parties, and segment data [1. Significant Accounting Policies](index=12&type=section&id=1.%20Significant%20Accounting%20Policies) This section outlines the company's operations as a global leader in safety equipment and its key accounting policies, including its emerging growth company status - Cadre Holdings, Inc. (D/B/A The Safariland Group) is a global leader in manufacturing and distributing safety equipment for law enforcement, first responders, military, and nuclear markets, operating 20 manufacturing plants across multiple countries[26](index=26&type=chunk) - The Company is an "emerging growth company" and has elected to use the extended transition period for complying with new or revised accounting standards, which may affect comparability with other public companies[30](index=30&type=chunk)[31](index=31&type=chunk) [2. Acquisitions](index=18&type=section&id=2.%20Acquisitions) The company completed the **Zircaloy** acquisition in April 2025 for **$89.6 million**, and **ICOR** and **Alpha Safety** in 2024, boosting goodwill and intangible assets - **Zircaloy Acquisition (April 22, 2025):** * Total consideration, net of cash acquired: **$89,590 thousand** * Goodwill recognized: **$23,803 thousand**, expected to be non-deductible for tax purposes * Acquired exclusive rights to trademarks, customer relationships, and product technologies * Zircaloy revenue included in Product segment: **$13,434 thousand** for the period ended June 30, 2025[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - **ICOR Acquisition (January 9, 2024):** * Total consideration, net of cash acquired: **$41,508 thousand** (including contingent consideration) * Goodwill recognized: **$18,602 thousand**, expected to be non-deductible for tax purposes * Contingent consideration liability: **$2,225 thousand** as of January 9, 2024, remeasured to **$4,249 thousand** as of June 30, 2025[53](index=53&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) - **Alpha Safety Acquisition (February 29, 2024):** * Total consideration, net of cash acquired: **$102,531 thousand** * Goodwill recognized: **$49,133 thousand**, expected to be non-deductible for tax purposes[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [3. Revenue Recognition](index=22&type=section&id=3.%20Revenue%20Recognition) Revenue is recognized from product sales upon control transfer, with long-term contracts recognized over time; net sales are disaggregated by channel and geography | Net Sales by Channel (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | U.S. state and local agencies | $77,600 | $72,811 | $151,009 | $147,803 | | Commercial | $11,887 | $11,911 | $22,906 | $23,176 | | U.S. federal agencies | $29,022 | $20,688 | $50,506 | $41,874 | | International | $36,859 | $35,189 | $59,740 | $64,626 | | Other | $1,741 | $3,710 | $3,05

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Highlights) Cadre Holdings reported strong financial results for Q2 2025, with significant year-over-year increases in net sales and gross profit. The company also declared a quarterly cash dividend Q2 2025 and Six Months Ended June 30, 2025 Financial Highlights (in millions) | Metric | Q2 2025 | 6 Months Ended June 30, 2025 | | :--------------------- | :---------- | :----------------------------- | | Net Sales | $157.1 million | $287.2 million | | Gross Profit Margin | 40.9% | 41.9% | | Net Income | $12.2 million | $21.5 million | | Diluted EPS | $0.30 | $0.52 | | Adjusted EBITDA | $27.0 million | $47.5 million | | Adjusted EBITDA Margin | 17.2% | 16.5% | - Declared a quarterly cash dividend of **$0.095 per share** in July 2025[5](index=5&type=chunk) [CEO's Strategic Commentary](index=1&type=section&id=CEO%27s%20Strategic%20Commentary) CEO Warren Kanders highlighted strong revenue and profitability growth, driven by demand for safety products and recent acquisitions in the nuclear safety business. He expressed confidence in the company's execution, resilience, and capital allocation strategy for future growth, despite shifts in order timing - Revenue and gross profit increased year-over-year by **9%** and **10%**, respectively, driven by strong demand for best-in-class safety products across law enforcement, first responder, military, and nuclear categories[2](index=2&type=chunk) - Completed the acquisition of multiple leading, niche global nuclear brands from Carr's Group, enhancing exposure to the attractive nuclear safety market, with growth drivers including environmental cleanup and national defense programs[2](index=2&type=chunk) - Maintained a strong financial position with **$137 million in cash** and **$175 million in undrawn revolver capacity**, positioning the company to capitalize on organic and inorganic growth opportunities[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) [Consolidated Operating Results (Q2 and Six Months)](index=1&type=section&id=Consolidated%20Operating%20Results) Cadre Holdings reported increased net sales and gross profit for both the second quarter and six months ended June 30, 2025, primarily driven by recent acquisitions. Net income saw a slight decrease in Q2 due to acquisition costs but increased for the six-month period, while Adjusted EBITDA declined for both periods Net Sales Performance (in millions) | Period | 2025 (in millions) | 2024 (in millions) | Change (YoY) | | :------------------- | :----------------- | :----------------- | :----------- | | Q2 Ended June 30 | $157.1 | $144.3 | +9% | | 6 Months Ended June 30 | $287.2 | $282.2 | +1.8% | - The increase in net sales was primarily a result of recent acquisitions, with strong demand for nuclear safety and duty gear products partially offset by large order shipment timing for EOD and armor products for the six-month period[3](index=3&type=chunk)[4](index=4&type=chunk) Gross Profit and Margin Performance (in millions, percentage points) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :------------------ | :-------- | :-------- | :----------- | :------------ | :------------ | :----------- | | Gross Profit (M) | $64.2 | $58.7 | +9.4% | $120.4 | $116.3 | +3.5% | | Gross Profit Margin | 40.9% | 40.6% | +0.3 pp | 41.9% | 41.2% | +0.7 pp | - Gross profit margin improvement was mainly driven by favorable pricing and product mix, the absence of inventory step-up amortization, and exchange rate favorability[7](index=7&type=chunk) Net Income and Diluted EPS Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | :------------ | :------------ | :----------- | | Net Income (M) | $12.2 | $12.6 | -3.2% | $21.5 | $19.5 | +10.3% | | Diluted EPS | $0.30 | $0.31 | -3.2% | $0.52 | $0.49 | +6.1% | - The Q2 net income decrease was primarily due to acquisition-related costs, offset by foreign exchange. The six-month net income increase was also primarily due to foreign exchange, offset by interest expense[8](index=8&type=chunk) Adjusted EBITDA and Margin Performance (in millions, percentage points) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | :------------ | :------------ | :----------- | | Adjusted EBITDA (M) | $27.0 | $28.3 | -4.6% | $47.5 | $52.8 | -10.0% | | Adjusted EBITDA Margin | 17.2% | 19.6% | -2.4 pp | 16.5% | 18.7% | -2.2 pp | [Segment Performance](index=2&type=section&id=Segment%20Performance) Both the Product and Distribution segments showed slight changes in gross margin year-over-year, with the Product segment improving and the Distribution segment experiencing a minor decline over the six-month period Segment Gross Margin Performance (percentage points) | Segment | Period | 2025 Gross Margin | 2024 Gross Margin | Change (YoY) | | :---------------- | :------------------- | :------------------ | :------------------ | :----------- | | Product Segment | Q2 | 41.7% | 41.1% | +0.6 pp | | | 6 Months | 42.9% | 42.0% | +0.9 pp | | Distribution Segment | Q2 | 23.1% | 22.9% | +0.2 pp | | | 6 Months | 22.3% | 23.2% | -0.9 pp | [Liquidity and Capital Allocation](index=2&type=section&id=Liquidity%20and%20Capital%20Allocation) [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) Cadre's Board of Directors declared a quarterly cash dividend, continuing its commitment to shareholder returns - On July 22, 2025, the Board of Directors declared a quarterly cash dividend of **$0.095 per share**, or **$0.38 per share on an annualized basis**[13](index=13&type=chunk) - The dividend payment is scheduled for August 15, 2025, to shareholders of record as of August 1, 2025[13](index=13&type=chunk) [Balance Sheet Highlights](index=2&type=section&id=Balance%20Sheet%20Highlights) The company's balance sheet reflects increased cash and total debt, leading to a higher net debt position, while capital expenditures decreased year-over-year for both the quarter and six-month period Key Balance Sheet Changes (December 31, 2024 to June 30, 2025, in millions) | Metric | Dec 31, 2024 (in millions) | June 30, 2025 (in millions) | Change | | :-------------------------- | :------------------------- | :------------------------ | :------- | | Cash and cash equivalents | $124.9 | $137.5 | +$12.5M | | Total debt | $223.2 | $315.2 | +$91.9M | | Net debt | $98.3 | $177.7 | +$79.4M | Capital Expenditures (in millions) | Period | 2025 (in millions) | 2024 (in millions) | | :------------------- | :----------------- | :----------------- | | Q2 Ended June 30 | $1.3 | $2.1 | | 6 Months Ended June 30 | $2.7 | $3.4 | [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Cadre Holdings provided its full-year 2025 financial guidance, expecting increased net sales and Adjusted EBITDA, while noting that the outlook reflects updated expectations on order timing and excludes potential impacts from new tariffs Full Year 2025 Guidance (in millions) | Metric | Range (in millions) | | :------------------ | :------------------ | | Net Sales | $624 to $630 | | Adjusted EBITDA | $112 to $116 | | Capital Expenditures | $7 to $8 | - The outlook reflects updated expectations around the timing of orders and does not incorporate impacts from new tariffs announced July 31st[14](index=14&type=chunk) - Net income guidance was not provided due to the inherent difficulty of forecasting certain expenses and gains that affect net income but not Adjusted EBITDA[14](index=14&type=chunk)[16](index=16&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About Cadre Holdings, Inc.](index=3&type=section&id=About%20Cadre%20Holdings%2C%20Inc.) Cadre Holdings is a global leader in safety product manufacturing and distribution, providing critical protection equipment across various markets with key brands like Safariland® and Med-Eng® - Cadre is a global leader in the manufacturing and distribution of safety products, headquartered in Jacksonville, Florida[19](index=19&type=chunk) - Core products include body armor, explosive ordnance disposal equipment, duty gear, and nuclear safety products, utilized in over 100 countries by law enforcement, first responders, military, and emergency medical technicians[19](index=19&type=chunk) - Key brands include Safariland® and Med-Eng®[19](index=19&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Management will host a conference call to discuss the latest corporate developments and financial results, with details provided for live access and replay - A conference call will be hosted on Wednesday, August 6, 2025, at **10:00 a.m. EST**[17](index=17&type=chunk) - Dial-in numbers: US **(800)-715-9871**, International **646-307-1963**; Access Code: **9511718**. A live webcast is available on the company's website[17](index=17&type=chunk) - A replay of the call will be available through August 20, 2025[18](index=18&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for Cadre Holdings and Investor Relations are provided for inquiries - For Cadre Holdings, contact Gray Hudkins at **203-550-7148** or gray.hudkins@cadre-holdings.com[22](index=22&type=chunk) - For Investor Relations, contact Leon Berman or Matt Berkowitz at The IGB Group, **212-477-8438** or **212-227-7098**[22](index=22&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of Cadre Holdings' financial position, detailing assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :------------------ | | Total current assets | $381,016 | $327,571 | | Total assets | $794,437 | $652,713 | | Total current liabilities | $106,068 | $94,125 | | Long-term debt | $298,885 | $211,830 | | Total liabilities | $461,977 | $341,198 | | Total shareholders' equity | $332,460 | $311,515 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations present the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Selected Items, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $157,109 | $144,309 | $287,215 | $282,169 | | Gross profit | $64,249 | $58,650 | $120,380 | $116,278 | | Operating income | $14,685 | $19,953 | $28,237 | $31,932 | | Net income | $12,211 | $12,567 | $21,459 | $19,495 | | Diluted Net income per share | $0.30 | $0.31 | $0.52 | $0.49 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows detail the cash generated and used by operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Selected Items, in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $19,979 | $13,280 | | Net cash used in investing activities | $(92,317) | $(145,129) | | Net cash provided by financing activities | $82,943 | $149,881 | | Change in cash and cash equivalents | $12,536 | $18,212 | | Cash and cash equivalents, end of period | $137,469 | $105,903 | [Supplemental Information](index=8&type=section&id=Supplemental%20Information) [Segment Information](index=8&type=section&id=Segment%20Information) Cadre Holdings provides a breakdown of net sales and gross profit by its Product and Distribution segments, highlighting their individual contributions to the overall financial performance Segment Net Sales and Gross Profit (Three Months Ended June 30, in thousands) | Metric | Product 2025 | Distribution 2025 | Total 2025 | Product 2024 | Distribution 2024 | Total 2024 | | :----------- | :------------- | :---------------- | :--------- | :------------- | :---------------- | :--------- | | Net sales | $140,135 | $25,508 | $157,109 | $128,433 | $25,588 | $144,309 | | Gross profit | $58,433 | $5,899 | $64,249 | $52,812 | $5,865 | $58,650 | Segment Net Sales and Gross Profit (Six Months Ended June 30, in thousands) | Metric | Product 2025 | Distribution 2025 | Total 2025 | Product 2024 | Distribution 2024 | Total 2024 | | :----------- | :------------- | :---------------- | :--------- | :------------- | :---------------- | :--------- | | Net sales | $252,870 | $53,370 | $287,215 | $247,218 | $53,779 | $282,169 | | Gross profit | $108,543 | $11,920 | $120,380 | $103,833 | $12,499 | $116,278 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP net income to non-GAAP measures such as EBITDA and Adjusted EBITDA, offering insights into the company's operational performance by adjusting for specific non-recurring or non-cash items Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | LTM June 30, 2025 | | :---------------------------------- | :-------- | :-------- | :------------ | :------------ | :---------------- | | Net income | $12,211 | $12,567 | $21,459 | $19,495 | $38,097 | | Add back: Depreciation and amortization | $4,676 | $4,620 | $8,532 | $8,562 | $16,390 | | Add back: Interest expense | $3,590 | $2,003 | $5,821 | $3,640 | $10,003 | | Add back: Provision for income taxes | $4,998 | $5,047 | $8,358 | $7,017 | $19,426 | | **EBITDA** | **$25,475** | **$24,237** | **$44,170** | **$38,714** | **$83,916** | | Add back: Restructuring and transaction costs | $4,326 | $19 | $5,024 | $4,856 | $7,925 | | Add back: Other expense (income), net | $(6,114) | $336 | $(7,401) | $1,780 | $(4,460) | | Add back: Stock-based compensation expense | $2,425 | $2,084 | $4,393 | $4,151 | $8,611 | | Add back: Amortization of inventory step-up | $356 | $1,541 | $356 | $2,310 | $1,904 | | Add back: Contingent consideration expense | $526 | $58 | $857 | $509 | $1,533 | | **Adjusted EBITDA** | **$26,994** | **$28,322** | **$47,491** | **$52,810** | **$99,521** | | Adjusted EBITDA margin | 17.2% | 19.6% | 16.5% | 18.7% | | [Use of Non-GAAP Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Measures) Cadre Holdings utilizes non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide investors with a clearer understanding of its ongoing operations and to facilitate period-over-period performance analysis, while cautioning against their use as substitutes for GAAP results - The company reports non-GAAP measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA) to provide useful information for understanding ongoing operations and focusing on period-over-period operating performance[20](index=20&type=chunk) - Non-GAAP measures are reconciled to comparable GAAP financial measures within the press release[20](index=20&type=chunk) - The company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, reported GAAP results, and may not be comparable to similarly titled measures used by other companies[20](index=20&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking information, emphasizing that actual results may differ materially due to various risks and uncertainties outlined in the company's SEC filings - The press release contains forward-looking statements, which are based on expectations and beliefs concerning future events and involve risks and uncertainties[21](index=21&type=chunk) - Actual results could differ materially from those expressed or implied in forward-looking statements due to potential risks and uncertainties described in the company's public reports filed with the SEC (e.g., Form 10-K, 10-Q, 8-K)[21](index=21&type=chunk) - The company assumes no obligation to update any forward-looking statements after the date of the press release[21](index=21&type=chunk) ```

Financial Data and Key Metrics Changes - The company reported Q1 net sales of $130.1 million and adjusted EBITDA of $20.5 million, both exceeding expectations [25] - First quarter gross margin improved by 130 basis points year over year, driven by favorable pricing and prior year inventory step-up amortization [26][70] - The company expects full-year revenue and adjusted EBITDA growth of 11% to 11.5% at the midpoints, reflecting the recent acquisition [27] Business Line Data and Key Metrics Changes - Orders backlog increased by $22.4 million during the quarter, primarily driven by EOD and Silume demand [13] - The armor business generated more revenue than expected in Q1, contributing positively to overall performance [72] - The EOD space was noted to be light in Q1, which is atypical, but the company managed to execute orders more quickly than anticipated [70] Market Data and Key Metrics Changes - The law enforcement market is expected to continue positive spending trends, supported by bipartisan support for public safety [16] - The nuclear market is anticipated to grow at a rate of 4% to 6% over time, with consistent demand observed [62] - The company is seeing multidirectional support for nuclear initiatives, including federal appointments and regulatory reforms [17] Company Strategy and Development Direction - The company aims to evolve into a multi-vertical provider of engineered mission-critical safety products, with a focus on nuclear and law enforcement sectors [4][5] - The recent acquisition of the engineering division from KARS is seen as a critical step in expanding the nuclear vertical and enhancing international presence [5][24] - The company maintains a robust M&A pipeline across all current verticals, indicating a strategic focus on both organic and inorganic growth opportunities [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term outlook despite current economic uncertainties, highlighting resilience as a key differentiator [7] - The company is proactively strategizing to mitigate tariff impacts and is optimistic about offsetting any potential pressures [29] - Management noted that the second half of the year is expected to be stronger than the first half, driven by armor and EOD project timing [30] Other Important Information - The company has increased its dividend by 9% this year, marking the fourteenth consecutive increase, reflecting confidence in business strength [14][15] - The company is actively monitoring broader market trends, particularly in the consumer channel, which represents approximately 7% of contract sales [19] Q&A Session Summary Question: Pricing commentary and contribution to the quarter - Management indicated that normal pricing adjustments were made at the start of the year, with expectations to fully offset tariffs moving forward [34][35] Question: Revenue synergy opportunities from the engineering acquisition - The acquisition is expected to enhance geographic expansion and customer relationships, particularly with existing clients in the nuclear sector [36] Question: Timing and flow of business for the rest of the year - Management noted limited backlog visibility but expects Q2 to be up from Q1, with Q4 anticipated to be the strongest quarter of the year [40][42] Question: Tariff mitigation strategies - The company is exploring various options to mitigate costs, including productivity acceleration and potential shifts in product lines between facilities [44][46] Question: Nuclear market demand and M&A focus - Management confirmed a robust funnel for both nuclear and law enforcement M&A opportunities, with no specific emphasis on one over the other [56][58] Question: Q1 results and year-over-year drop explanation - The year-over-year decline was attributed to tough comparisons from a strong Q1 last year, particularly in the armor business [68][70] Question: Margin improvements and future opportunities - Management highlighted strong execution on pricing and productivity as key drivers for margin improvements, with expectations for continued growth [73][74] Question: Adjusted EBITDA margin expectations post-acquisition - The engineering division is expected to be slightly dilutive initially, but management anticipates improvements in gross margins as synergies are realized [86][88] Question: Production footprint reconsideration due to tariff changes - Management expressed satisfaction with the current production footprint and noted ongoing efforts to mitigate costs in specific locations [94][96]

Financial Data and Key Metrics Changes - The company reported Q1 net sales of $130.1 million and adjusted EBITDA of $20.5 million, both exceeding expectations [25] - First quarter gross margin improved by 130 basis points year-over-year, driven by prior year inventory step-up amortization and favorable pricing [26][70] - The company expects full-year revenue and adjusted EBITDA growth of 11% to 11.5% at the midpoints, reflecting the completed acquisition of the engineering division [27] Business Line Data and Key Metrics Changes - Orders backlog increased by $22.4 million during the quarter, primarily driven by EOD and Silume demand [13] - The armor business generated more revenue than expected in Q1, contributing to the overall positive results [72] - The EOD space was noted to be light in Q1, which is not typical for the business, indicating variability in project availability [70] Market Data and Key Metrics Changes - The law enforcement sector is expected to continue seeing positive spending related to personal protection equipment, supported by bipartisan support for public safety [16] - The nuclear market is anticipated to grow at a rate of 4% to 6% over time, with consistent demand observed [62] - The company is monitoring broader weakening trends in the consumer channel, which represents approximately 7% of contract sales [19] Company Strategy and Development Direction - The company aims to evolve into a multi-vertical provider of engineered mission-critical safety products, with a focus on nuclear and law enforcement markets [4][5] - The recent acquisition of the engineering division is seen as a critical step to deepen exposure to the nuclear market and expand into new sub-verticals [5][24] - The company maintains a robust pipeline of M&A opportunities across all current verticals, including nuclear, law enforcement, first responders, and military markets [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term outlook, emphasizing resilience in navigating economic turbulence [7] - The current operating environment is characterized by unpredictability, but the company has delivered consistent and stable growth [6] - Management is optimistic about the potential for organic and inorganic growth opportunities moving forward [7] Other Important Information - The company has increased its dividend by 9% this year, marking the fourteenth consecutive increase, reflecting confidence in business strength [14][15] - The company is actively evaluating attractive M&A opportunities to add complementary businesses with strong margins and recurring revenue profiles [31] Q&A Session Summary Question: Pricing commentary and contribution in Q1 - Management indicated that normal pricing adjustments were made at the start of the year, with expectations to fully offset tariffs moving forward [34][35] Question: Revenue synergy opportunities from the engineering acquisition - The acquisition is expected to enhance geographic expansion and customer relationships, particularly in the nuclear sector [36] Question: Timing and flow of business for the rest of the year - Management expects Q2 to be up from Q1, with Q4 anticipated to be the strongest quarter of the year [40][42] Question: Tariff mitigation strategies - The company is implementing various strategies, including productivity acceleration and product line shifts, to mitigate tariff impacts [44][47] Question: Nuclear market demand and M&A focus - The company has a robust funnel for both nuclear and law enforcement M&A opportunities, with consistent demand observed in the nuclear sector [56][62] Question: Q1 results and year-over-year drop - The year-over-year drop was primarily due to tough comparisons from a strong Q1 last year, particularly in the armor business [68][70] Question: Margin improvements and future opportunities - Management noted that margin improvements were driven by strong execution on pricing and productivity, with expectations for continued improvement [73] Question: Cars acquisition and outlook - The company is taking a practical approach to guidance post-acquisition, maintaining core organic guidance flat while assessing future opportunities [75][77] Question: Production footprint reconsideration - The company is satisfied with its current production footprint and has made adjustments to mitigate costs in specific locations [93][96]

Financial Data and Key Metrics Changes - Q1 net sales reached $130.1 million, with adjusted EBITDA of $20.5 million, both exceeding expectations [23] - Gross margin improved by 130 basis points year-over-year, driven by favorable pricing and prior year inventory step-up amortization [24][70] - The company expects full-year revenue growth of 11% to 11.5% and adjusted EBITDA growth of 11% to 11.5% at the midpoints [26] Business Line Data and Key Metrics Changes - Orders backlog increased by $22.4 million during the quarter, primarily driven by EOD and Silume demand [13] - The armor business generated more revenue than expected in Q1, contributing positively to overall results [72] - EOD space was noted to be light in Q1, with limited bomb suit opportunities impacting revenue [70] Market Data and Key Metrics Changes - The law enforcement market is expected to continue positive spending trends, supported by bipartisan support for public safety [15] - The nuclear market is anticipated to grow at a rate of 4% to 6% over time, with strong demand driven by national security and environmental safety initiatives [62] Company Strategy and Development Direction - The company aims to evolve into a multi-vertical provider of engineered mission-critical safety products, with a focus on nuclear and law enforcement sectors [4][5] - The recent acquisition of the engineering division from KARS is seen as a critical step in expanding the nuclear vertical and enhancing international presence [5][22] - The company maintains a robust M&A pipeline across all current verticals, indicating a strategic focus on both organic and inorganic growth opportunities [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term outlook despite current economic uncertainties, highlighting resilience as a key differentiator [7] - The company is proactively strategizing to mitigate potential tariff impacts and is optimistic about offsetting any pressure generated by existing tariffs [28][91] - Management noted that the second half of the year is expected to be stronger than the first half, driven by armor and EOD project timing [29] Other Important Information - The company increased its dividend by 9% this year, marking the fourteenth consecutive increase, reflecting confidence in business strength [14] - The engineering division acquisition is expected to enhance capabilities in remote handling and robotics, positioning the company favorably in the nuclear market [22] Q&A Session Summary Question: Pricing commentary and contribution to the rest of the year - Management indicated that normal pricing adjustments were made at the start of the year, with expectations to fully offset tariffs moving forward [34][35] Question: Revenue synergy opportunities from the engineering acquisition - The acquisition is expected to enhance geographic expansion and customer relationships, particularly in the UK and Japan [36] Question: Timing and flow of business for the rest of the year - Management expects Q2 to be up from Q1, with Q4 anticipated to be the strongest quarter of the year [41] Question: Tariff mitigation strategies - The company is exploring product line shifts and productivity acceleration to mitigate tariff impacts [44][47] Question: Nuclear market demand and M&A focus - The company has a robust M&A funnel for both nuclear and law enforcement sectors, with consistent demand observed in the nuclear market [55][62] Question: Q1 results and year-over-year drop - The year-over-year drop was attributed to tough comparisons from a strong Q1 last year, particularly in the armor business [68][70] Question: Margin improvements and future opportunities - Management noted that margin improvements were driven by strong execution on pricing and productivity, with expectations for continued growth [74] Question: Cars acquisition and outlook - The company is taking a cautious approach to guidance post-acquisition, maintaining core organic guidance flat while assessing future opportunities [76][78] Question: Production footprint reconsideration - Management expressed satisfaction with the current production footprint and ongoing efforts to mitigate costs in specific regions [93][96]