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1. Company Snapshot

1.a. Company Description

Cadre Holdings, Inc.manufactures and distributes safety and survivability equipment that provides protection to users in hazardous or life-threatening situations in the United States and internationally.The company operates in two segments, Products and Distribution.


It primarily provides body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brands; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective and law enforcement equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products.The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition.It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, and various foreign government agencies.


The company was founded in 1964 and is headquartered in Jacksonville, Florida.

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1.b. Last Insights on CDRE

Cadre Holdings, Inc.'s recent performance was negatively impacted by the company's lagging sector performance, with its industrial products peers outpacing it this year. The company's recent acquisition of Alpha Safety and Carrs Group's nuclear assets has driven revenue and margin growth, but its expansion into the nuclear industry is still in its early stages, presenting execution risks. Additionally, the Zacks Security and Safety Services industry's growth is being driven by a growing awareness for safety and security among people, but this trend may not directly benefit Cadre.

1.c. Company Highlights

2. Cadre Holdings' Q2 2025 Earnings: Strong Financial Performance and Strategic Progress

Cadre Holdings reported a strong second quarter of 2025, with revenue increasing by 9% year-over-year and gross profit rising by 10%. The company's earnings per share (EPS) came in at $0.3, beating analyst estimates of $0.25. The revenue growth was driven by strong demand for the company's protection products, despite a fluid macro environment. The company's gross margin expansion was also notable, and it is expected to remain stable in Q3, with some pressure from the Zircaloy acquisition, before improving in Q4 with increased volume.

Publication Date: Aug -22

📋 Highlights
  • Revenue and Gross Profit Growth: Revenue and gross profit rose 9% and 10% year-over-year, respectively.
  • 2025 Guidance Update: Net sales projected between $624M–$630M; adjusted EBITDA forecast at $112M–$116M, with Q3 flat and Q4 up 6% organically.
  • Acquisition Impact: Carr's Engineering division acquisition expanded nuclear vertical's international footprint and added efficiency opportunities.
  • Pricing Momentum: Q2 pricing exceeded expectations with a 1% net increase; price hikes in Q3/Q4 expected to sustain growth.
  • Margin Outlook: Q3 gross margins pressured by Zircaloy acquisition but anticipated to rise in Q4 with higher volume and EOD business strength.

Financial Highlights

The company's financial performance was robust, with net sales expected to be between $624 million and $630 million for the full year 2025. Adjusted EBITDA guidance is between $112 million and $116 million. The company's guidance change was attributed to timing, not losses, and the majority of the funnel remains intact. According to Brad Williams, "the majority of the funnel remains intact," indicating a positive outlook for the company's future prospects.

Segment Performance

The company's nuclear business is seeing significant opportunities for growth, with the integration process with Carr's Engineering division ongoing. The company has identified potential opportunities for growth, including business development and manufacturing. The defense business is also expected to see opportunities in Europe and the US, particularly in the EOD segment.

Valuation Metrics

Using the current valuation metrics, we can assess what's priced into Cadre Holdings' stock. The company's P/E Ratio is 33.15, indicating a relatively high valuation. The P/S Ratio is 2.21, and the EV/EBITDA is 19.82. The company's Return on Equity (ROE) is 12.08%, and the Return on Invested Capital (ROIC) is 7.48%. The Net Debt / EBITDA ratio is 2.63, indicating a moderate level of debt. Analysts estimate next year's revenue growth at 8.3%, which may justify the current valuation to some extent.

Guidance and Outlook

The company expects Q3 revenue and adjusted EBITDA to be flat sequentially to Q2, with the second half of the year seeing about 6% organic growth with adjusted EBITDA up almost 19%. The company's regional supply chains provide some protection against tariffs, and it has the flexibility to move production between countries to mitigate tariffs. New product launches, such as the HyperX tactical carrier system and the ballast duty holster line, are also expected to drive growth.

3. NewsRoom

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Cadre Holdings, Inc. (CDRE) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Cadre Holdings, Inc. (CDRE) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -05

Source: zacks.com

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Cadre Holdings, Inc. (CDRE) Beats Q3 Earnings Estimates

Nov -05

Source: zacks.com

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Cadre Holdings, Inc. (CDRE) M&A Call Transcript

Oct -29

Source: seekingalpha.com

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Top 2 Industrials Stocks That May Collapse This Quarter

Oct -17

Source: benzinga.com

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Cadre Holdings, Inc. (CDRE) Analyst/Investor Day Transcript

Oct -09

Source: seekingalpha.com

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Cadre Holdings: Nuclear Is Not A Magic Word

Sep -07

Source: seekingalpha.com

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Cadre Holdings, Inc. (CDRE) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.18%)

6. Segments

Product

Expected Growth: 7.0%

Cadre Holdings, Inc.'s 7.0% growth is driven by increasing adoption of its technology-enabled real estate investment platform, expansion into new markets, and growing demand for alternative investment options. Additionally, the company's focus on providing transparency, liquidity, and diversification to investors has contributed to its growth.

Distribution

Expected Growth: 7.5%

Strong demand for industrial and logistics properties, driven by e-commerce growth and supply chain shifts, fuels Cadre Holdings' 7.5% distribution growth. Additionally, the company's strategic acquisitions and development of high-quality assets, coupled with effective asset management, contribute to its robust growth.

Reconciling Items

Expected Growth: 8.5%

Cadre Holdings, Inc.'s 8.5% growth is driven by increasing adoption of its real estate investment platform, expansion into new markets, and strategic partnerships. Additionally, the company's focus on technology and data analytics has improved operational efficiency, leading to higher revenue and profitability.

7. Detailed Products

Aerospace and Defense Products

Cadre Holdings, Inc. provides a range of products and services to the aerospace and defense industries, including advanced materials, composites, and electronic systems.

Electronics

The company offers a variety of electronic components and systems, including connectors, cables, and antennas, for use in aerospace, defense, and industrial applications.

Sensors and Antennas

Cadre Holdings, Inc. designs and manufactures a range of sensors and antennas for use in aerospace, defense, and industrial applications.

Advanced Materials

The company develops and manufactures advanced materials, including composites, ceramics, and coatings, for use in aerospace, defense, and industrial applications.

Engineering and Manufacturing Services

Cadre Holdings, Inc. offers engineering and manufacturing services, including design, prototyping, and production, for aerospace, defense, and industrial customers.

8. Cadre Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cadre Holdings, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Cadre Holdings, Inc. is high due to the concentration of buyers in the market and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Cadre Holdings, Inc. is low due to the presence of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Cadre Holdings, Inc. is medium due to the moderate barriers to entry in the market and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for Cadre Holdings, Inc. is high due to the presence of several competitors in the market and the high stakes of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.15%
Debt Cost 7.54%
Equity Weight 57.85%
Equity Cost 10.69%
WACC 9.37%
Leverage 72.85%

11. Quality Control: Cadre Holdings, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sturm Ruger

A-Score: 5.6/10

Value: 2.9

Growth: 2.8

Quality: 5.0

Yield: 8.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

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Park Aerospace

A-Score: 5.4/10

Value: 0.8

Growth: 2.4

Quality: 6.4

Yield: 7.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Innovative Solutions and Support

A-Score: 5.3/10

Value: 4.3

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Cadre Holdings

A-Score: 4.1/10

Value: 1.5

Growth: 6.4

Quality: 5.6

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Smith & Wesson Brands

A-Score: 4.0/10

Value: 4.1

Growth: 1.9

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
VirTra

A-Score: 3.3/10

Value: 3.6

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.63$

Current Price

43.63$

Potential

-0.00%

Expected Cash-Flows