Cadre (CDRE) investor relations material

Executive summary

• Q3 2025 net sales rose 42–42.5% year-over-year to $155.9 million, driven by acquisitions, strong demand in core markets, and favorable product mix, especially in EOD and Nuclear segments.

• Net income for Q3 2025 was $10.9 million, up 199.3% from $3.7 million in Q3 2024, primarily due to higher gross profit and acquisitions.

• Organic order backlog increased by $20 million sequentially, reaching $204.3 million as of September 30, 2025.

• Announced agreement to acquire TYR Tactical for $175 million, the largest acquisition to date, expanding tactical gear portfolio and international reach, expected to be accretive upon closing in 2026.

• Awarded a $50 million IDIQ contract by the U.S. Department of Defense to subsidiary Med-Eng, with an initial $10 million order to be shipped in 2026.

Financial highlights

• Gross profit for Q3 2025 was $66.6 million, up 66.5% year-over-year, with gross margin improving to 42.7% from 36.6% a year ago, driven by higher volume, favorable pricing, and lower inventory step-up amortization.

• Adjusted EBITDA for Q3 2025 was $29.8 million (19.1% margin), up from $13.5 million (12.4% margin) year-over-year.

• Operating income for Q3 2025 was $18.7 million, a 244.2% increase year-over-year.

• Cash and cash equivalents were $150.9 million at quarter end, with net cash from operations at $42.5 million for the nine months.

• Total debt increased to $311.2 million as of September 30, 2025, mainly due to acquisition financing.

Outlook and guidance

• Full-year 2025 net sales expected between $624 million and $630 million; adjusted EBITDA guidance is $112 million to $116 million.

• Capital expenditures for 2025 projected at $7 million to $8 million.

• Management expects continued strong demand in core markets, supported by a robust backlog and recent acquisitions.

• Confident in successful integration of TYR Tactical and additional large opportunities expected to book in coming quarters.