Cadre (CDRE) investor relations material

Strategic transformation and vision

• Transitioning from a specialty safety provider to a diversified industrial enterprise focused on high-margin, high free cash flow verticals, expanding total addressable market from ~$2B to $5-8B with entry into nuclear safety markets.

• Emphasis on reinforcing the core business, targeting new markets, and maintaining disciplined value creation for shareholders, with a focus on innovation, international growth, and recurring revenues.

• Operating model prioritizes incremental progress, proven tools, and cultural change, including the Cadre Operating Model and Excellence Maturity Model, to drive execution, efficiency, and continuous improvement.

• Five accretive acquisitions since IPO, including Alpha Safety and Carr's Engineering Division, have strengthened nuclear market presence and expanded product offerings.

• Long-term aspirations include 3–5% organic revenue growth, $100M in annual acquired revenue, margin expansion to 45–50%, and mid-20s adjusted EBITDA margin.

Nuclear business expansion and market drivers

• Nuclear segment built through acquisitions, notably Alpha Safety and Carr's Engineering Division, creating a group of 400 employees across eight manufacturing sites in the US and Europe, and adding $44M and £51M in revenue, respectively.

• Nuclear business addresses three verticals: environmental management (waste cleanup), national security (weapons modernization), and nuclear energy (clean power and fuel supply), supporting the full lifecycle: cleanup, deterrence, and energy.

• Environmental cleanup represents about 50% of nuclear business, with significant roles in waste retrieval, sorting, packaging, and transportation.

• Key growth drivers include government-backed cleanup initiatives, weapons modernization, and rising demand for nuclear energy due to electrification, data center growth, and government goals to quadruple or triple nuclear power output by 2050.

• Policy support and private investment are accelerating nuclear industry growth, with immediate focus on accelerating operating model synergies.

Competitive positioning and growth opportunities

• Product portfolio features high barriers to entry, with many offerings being sole-sourced or facing minimal competition, especially in containers, radiometric instrumentation, and manipulators.

• Strong customer trust and long-term relationships, particularly in niche markets like remote handling and nuclear waste management.

• M&A strategy targets innovative, engineered product businesses with strong margins, defensible market positions, and recurring cash flows, with a robust acquisition pipeline focused on expanding product families.

• R&D investment profile remains similar to core business, with much of nuclear R&D funded by government contracts, maintaining spend at around 2% of revenue.

• Sales approach emphasizes solution selling, early project engagement, and leveraging cross-business collaboration without forced integration.