Core Insights - The company views the current geopolitical risks and security challenges as opportunities for growth and leadership in the industry [2][3] - The commitment to support professionals in high-stakes environments, such as EOD technicians and nuclear safety teams, is a fundamental aspect of the company's culture and operational focus [2][3] Industry Overview - The landscape of protection has evolved, now encompassing not just physical armor but also the safeguarding of critical infrastructure and energy systems [3] - The company's expansion into nuclear safety, including the development of containment, detection, and rapid response platforms, aligns with its strategic goals and core competencies [3] - Recent achievements, such as the award of Advanced Blast Sensors over a five-year period, highlight the company's ongoing commitment to innovation and excellence in safety technology [3]

Summary of Cadre Holdings 2025 Investor Day Company Overview - **Company**: Cadre Holdings (NYSE: CDRE) - **Industry**: Nuclear Safety and Defense Equipment - **History**: Founded in 1964 as SafariLand, transitioned to a publicly traded company in 2021 after multiple acquisitions and restructuring efforts [10][11][12] Core Business and Strategy - **Transformation**: Cadre is evolving from a specialty safety provider to a large-scale industrial enterprise focused on high-margin sectors, including national security and clean energy [5][4] - **Revenue Breakdown**: - 20% from company-owned distribution - 80% from innovative product manufacturing [13][15] - **Employee Base**: Over 2,600 employees across 21 manufacturing facilities [16] Financial Performance - **Adjusted EBITDA Growth**: Increased by 740 basis points since 2020, indicating strong operational focus on productivity and continuous improvement [35] - **Leverage**: Post-acquisition leverage remains below 2x, showcasing financial prudence [36] - **M&A Strategy**: Focus on sensible acquisitions with multiples between 5x and 11x adjusted EBITDA, emphasizing cost synergies [37][38] Nuclear Business Focus - **Market Drivers**: - Environmental management of nuclear waste - National security and weapons modernization - Growth in nuclear energy as a clean energy source [66][68][69] - **Recent Acquisition**: Acquired Alpha Safety in March 2024, expanding capabilities in nuclear engineering and environmental cleanup [63] Key Initiatives and Projects - **Blast Sensor Program**: Awarded a $50 million contract for the Blast Exposure Monitoring System, enhancing capabilities in blast sensor technology [42][43] - **Environmental Cleanup**: Cadre's nuclear segment is heavily involved in the cleanup of radioactive waste, with significant annual investments [73][76] - **Nuclear Energy Growth**: The U.S. aims to quadruple nuclear energy production by 2050, presenting a substantial market opportunity for Cadre [89] Market Trends and Opportunities - **Geopolitical Tensions**: Increasing global safety threats and geopolitical unrest are driving demand for Cadre's products [50][51] - **AI and Energy Demand**: The rise of AI technologies necessitates increased energy production, with nuclear energy positioned as a key solution [70][88] - **Regulatory Changes**: Recent executive orders are streamlining the regulatory process for nuclear projects, facilitating market entry and expansion [92] Long-term Vision - **Growth Aspirations**: Targeting 3% to 5% organic revenue growth, with an additional $100 million from acquisitions annually [54][55] - **Margin Improvement**: Aiming to increase adjusted EBITDA margins from low 40s to 45-50% [56] - **Commitment to Safety**: Cadre emphasizes its mission of saving lives through innovative safety equipment, with a notable record of 2,254 lives saved [16][17] Conclusion - Cadre Holdings is strategically positioned to capitalize on the growing nuclear market, driven by environmental, security, and energy needs. The company's focus on innovation, operational excellence, and prudent financial management underpins its long-term growth strategy.

Cadre Holdings Overview - Cadre is transforming from a public safety company to a diversified industrial company focused on highly engineered safety products in stable markets[7] - The company estimates its core Law Enforcement (LE) business has an annual Serviceable Addressable Market (SAM) of approximately $2 billion[8] - Cadre's diversified industrial focus, including domestic nuclear, expands the annual SAM to approximately $5-8 billion[8] - Cadre's revenue for FY2024 was $568 million, with an aspiration for 3-5% organic growth supplemented by $100 million in annual M&A[40] - The company's adjusted EBITDA for FY2024 was $105 million, representing an 18.5% margin, with an aspiration for mid-20s% adjusted EBITDA margin[40] Cadre Nuclear Group - Cadre Nuclear Group was formed through the acquisition of Alpha Safety in March 2024 and Carr's Engineering Division in April 2025[44, 45] - Cadre Nuclear Group had £51 million in revenue for FY2024 (ended August 31, 2024)[46] - The Waste Isolation Pilot Plant (WIPP) shipment expectations create a robust, federal-backed, multi-year demand environment, with a budget of ~$600 million in 2025 versus $350 million in 2020[58] Contracts and Awards - Med-Eng was awarded a $50 million Indefinite Delivery Indefinite Quantity (IDIQ) contract with the Department of Defense for a Blast Exposure Monitoring System (BEMO)[26, 28]

Core Insights - Cadre Holdings, Inc. is a global leader in manufacturing and distributing safety equipment for law enforcement, first responders, military, and nuclear markets [1] Event Announcement - The company will host an Investor Day on October 8, 2025, at the New York Stock Exchange in New York City [1] - The event is scheduled to begin at 10:00 am ET and will feature remarks from Cadre's management team [1]

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) ```