Cadre Holdings 2025 Q1 Earnings Net Income Rises 33.5%

Cadre Holdings (CDRE) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company's net income for the quarter rose significantly, achieving a record high for fiscal Q1 in six years. The earnings exceeded expectations with an EPS of $0.23, up from $0.18 in 2024 Q1. Cadre Holdings also raised its guidance for 2025, anticipating net sales between $618 and $648 million and adjusted EBITDA from $112 to $122 million. The acquisition of Carr's Engineering Division is expected to contribute positively to future growth.

Revenue

Cadre Holdings experienced a 5.6% decline in total revenue for the first quarter of 2025, amounting to $130.11 million, compared to $137.86 million in the same period of 2024. The product segment contributed $112.73 million, while distribution generated $27.86 million. However, reconciling items resulted in a deduction of $10.49 million, culminating in the total revenue figure.

Earnings/Net Income

The company's earnings per share (EPS) increased by 27.8% in 2025 Q1, reaching $0.23 from $0.18 in 2024 Q1. Net income rose to $9.25 million, marking a 33.5% growth from $6.93 million in the previous year's first quarter. This upward trajectory in earnings indicates a positive performance for Cadre Holdings.

Post-Earnings Price Action Review

Cadre Holdings' strategy of purchasing shares following revenue increases quarter-over-quarter and holding them for 30 days has yielded an impressive 30.10% return over the past five years, surpassing the benchmark by 16.91%. Despite this success, the strategy's Sharpe ratio was modest at 0.39, reflecting a moderate risk-adjusted return. The maximum drawdown of -20.80% and volatility of 20.32% highlight the importance of risk management, given the potential for significant price fluctuations. This approach underscores the need for caution and strategic planning when investing in Cadre Holdings, ensuring that investors are prepared for market variability while capitalizing on growth opportunities.

CEO Commentary

“Following a record year, we continued to see strong and recurring demand for our best-in-class, mission-critical safety products in the first quarter,” said Warren Kanders, CEO and Chairman. “Despite more pronounced uncertainty in our business environment, we have been pleased with our team’s ability to navigate challenges and leverage the Cadre operating model to drive continuous improvement every day. We anticipate similar performance as we move ahead. To begin 2025, we are pleased to have delivered another quarter of financial results above expectations, highlighted by gross margins that increased 130 basis points year-over-year.”

Guidance

Cadre Holdings anticipates net sales for 2025 to be in the range of $618 to $648 million, with adjusted EBITDA expected to be between $112 and $122 million. The company reaffirms its organic growth expectations while emphasizing the importance of mergers and acquisitions as part of its strategic approach to building an industry-leading safety platform.

Additional News

In a notable acquisition, Cadre Holdings completed the purchase of Carr’s Engineering Division on April 22, 2025. This strategic move, valued at £75 million, expands Cadre's footprint in the nuclear safety sector by incorporating industry-leading brands like Wälischmiller GmbH and Bendalls Engineering. This acquisition is expected to enhance Cadre's capabilities in international markets and introduce new product categories. Additionally, on April 22, Cadre's Board of Directors declared a quarterly cash dividend of $0.095 per share, payable on May 16, 2025. Furthermore, Gianmaria Delzanno was appointed to the Board of Directors earlier in January, a move that aligns with Cadre's strategic governance initiatives.