Cadre Holdings, Inc. · NYSE:CDRE
Cadre — Q2 2025 Earnings Presentation
22 slides from Cadre's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025
LADRE HOLDINGS SECOND QUARTER i= 2025
Slide 2: Forward-Looking Statements
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
Slide 3: Today's Presenters
TODAY’S PRESENTERS WARREN KANDERS BRAD WILLIAMS BLAINE BROWERS Chief Executive Officer and President Chief Financial Officer Chairman of the Board 3
Slide 4: Agenda
AGENDA • Q2 Highlights • Business Overview • Financial Summary • Full Year Outlook • Conclusion and Q&A 4
Slide 5: Continued Execution in Q2
CONTINUED EXECUTION IN Q2 Cadre continues to deliver on strategic objectives and capitalize on favorable market trends driving strong demand for mission-critical safety equipment Commentary: Pricing Growth: ✓ Exceeded target Q2 Mix: − Neutral mix consistent with expectations Orders Backlog: ✓ Stable
Slide 6: Long-Term Industry Tailwinds Supporting Sustainable Growth Opportunity
LONG-TERM INDUSTRY TAILWINDS SUPPORTING SUSTAINABLE GROWTH OPPORTUNITY Public Safety Tailwinds Police protection expenditures have continued to trend upward even during previous financial and industrial recessions Major US cities continue to increase police budgets European leaders continue to advoc
Slide 7: Latest Market Trends
LATEST MARKET TRENDS North American • Current administration has demonstrated commitment to prioritizing public safety Law Enforcement with significant investments in border patrol and ICE Geopolitical • Environments within conflict zones have not changed at this point to allow for Landscape unexplo
Slide 8: Key M&A Criteria
KEY M&A CRITERIA Business Leading market position Cost structure where material > labor High cost of substitution Leading and defensible technology Mission-critical to customer Strong brand recognition Financial Recurring revenue profile Asset-light Attractive ROIC Market Niche market No large-cap c
Slide 9: Acquisition of Carr's Engineering Division
ACQUISITION OF CARR’S ENGINEERING DIVISION OVERVIEW & STRATEGIC RATIONALE CADRE’S KEY M&A CRITERIA MET • In April 2025 completed acquisition of Carr’s Engineering division from Carr’s Group plc for an • Leading market position enterprise value of £75 million • Set of leading, niche global brands pro
Slide 10: Q2 Financial Results
Q2 Financial Results 10
Slide 11: Second Quarter 2025 Highlights
SECOND QUARTER 2025 HIGHLIGHTS Q2 2025 Q1 2025 Q2 2024 NET SALES $157.1M $130.1M $144.3M GROSS MARGIN 40.9% 43.1% 40.6% $12.2M / $9.2M / $12.6M / NET INCOME $0.30 per $0.23 per $0.31 per diluted share diluted share diluted share ADJUSTED EBITDA 1 $27.0M $20.5M $28.3M ADJUSTED EBITDA MARGIN 1 17.2% 1
Slide 12: Net Sales and Adjusted EBITDA
NET SALES AND ADJUSTED EBITDA NET SALES ($MM) ADJ. EBITDA1 ($MM) % CAGR % CAGR 15.3% % Y/Y 14.0 % % Y/Y GROWTH GROWTH 8.7% 10.5% at guidance at guidance midpoint midpoint FY 2025 FY 2025 Guidance FY 2024 FY 2024 Guidance Range $104.8M $567.6M Range $112M to $624M to $116M $630M FY 2023 FY 2023 $482.
Slide 13: Q2 2025 Capital Structure
Q2 2025 CAPITAL STRUCTURE June 30, 2025 (in thousands) Cash and cash equivalents $ 137,469 Debt: Revolver $ — Current portion of long-term debt 16,265 Long-term debt 300,961 Capitalized discount/issuance costs (2,076) Total debt, net $ 315,150 Net debt (Total debt net of cash) $ 177,681 Total debt /
Slide 14: 2025 Management Outlook
2025 MANAGEMENT OUTLOOK 2025 GUIDANCE • Revised midpoints versus prior forecast reflect updated expectations around the NET SALES timing of orders $624M to $630M • Ranges do not incorporate impact of new tariffs ADJ. EBITDA announced July 31 and expected to be effective in $112M to $116M August 2025
Slide 15: Conclusion
CONCLUSION Execution in line with strategic objectives in Q2 Ongoing implementation of Cadre operating model Committed to improving gross and Adj. EBITDA margins Continuously focused on M&A opportunities Capitalizing on strong macro tailwinds driving demand and visibility for Cadre's mission-critica
Slide 16: Appendix
APPENDIX 16
Slide 17: Balance Sheet
BALANCE SHEET UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) June 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 137,469 $ 124,933 Accounts receivable, net of allowance for doubtful accounts of $905 and $876, respectively 108,127 93,523 Inventories 109,604
Slide 18: Statement of Operations
STATEMENT OF OPERATIONS UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 157,109 $ 144,309 $ 287,215 $ 282,169 Cost of goods sold 92,860 85,659 166,835 165,891 Gross profit 64,249 58,650 120,380 116,278
Slide 19: Statement of Cash Flows
STATEMENT OF CASH FLOWS UNAUDITED (IN THOUSANDS) Six Months Ended June 30, 2025 2024 Cash Flows From Operating Activities: Net income $ 21,459 $ 19,495 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,532 8,562 Amortization of original
Slide 20: Statement of Cash Flows – Continued
STATEMENT OF CASH FLOWS – CONTINUED UNAUDITED (IN THOUSANDS) Six Months Ended June 30, 2025 2024 Cash Flows From Financing Activities: Proceeds from revolving credit facilities — 5,500 Principal payments on revolving credit facilities — (5,500) Proceeds from term loans 97,500 80,000 Principal paymen
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (IN THOUSANDS) Year ended Three Months Three Months Ended Six Months Ended Last Twelve December 31, Ended March 31, June 30, June 30, Months 2024 2025 2025 2024 2025 2024 June 30, 2025 Net income $ 36,133 $ 9,248 $ 12,211 $ 12,567 $ 21,459 $ 19,495 $ 38,097 Add back: Deprecia
Slide 22: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The presentation contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), (ii)