Cadre Holdings 2025 Q2 Earnings Slight EPS Decline Despite Record Net Income

Cadre Holdings reported mixed results for Q2 2025, with a slight decline in EPS but record-setting net income for the fiscal quarter, the highest in six years. Despite the EPS drop, revenue growth and improved gross profit underscored operational strength, though the company did not provide updated financial guidance, maintaining prior expectations.

Revenue
Cadre Holdings reported total revenue of $157.11 million for Q2 2025, reflecting an 8.9% year-over-year increase. The product segment led with $140.13 million in sales, while the distribution segment contributed $25.51 million. Reconciling items, primarily intercompany eliminations, offset with a negative $8.53 million impact. This growth was driven by recent acquisitions and sustained demand across key markets.

Earnings/Net Income
Net income for Cadre Holdings declined to $12.21 million in Q2 2025, a 2.8% decrease from $12.57 million in the prior-year period. Earnings per share (EPS) also slipped to $0.30, down 3.2% year-over-year. Despite these declines, the company set a new record for Q2 net income, the highest in six years, signaling continued resilience in its business model.

Price Action
Following the earnings report, Cadre Holdings' stock price showed positive momentum in the short term. The stock climbed 3.07% during the latest trading day and 3.25% for the week, with a stronger 6.39% gain month-to-date.

Post-Earnings Price Action Review
A strategy of purchasing Cadre Holdings shares after the earnings report and holding for 30 days yielded a 13.33% return, outperforming the 48.58% return of the benchmark. However, the strategy underperformed by 35.25% in excess returns. With a CAGR of 4.42%, a maximum drawdown of 0.00%, and a Sharpe ratio of 0.12, the strategy appeared to be low-risk with steady, if modest, growth.

CEO Commentary
Warren Kanders, CEO and Chairman, highlighted the company’s 9% year-over-year revenue growth and 10% gross profit increase, attributing the performance to recent acquisitions and strong demand for mission-critical safety equipment across law enforcement, first responder, military, and nuclear markets. Kanders also emphasized Cadre’s resilience, capital allocation discipline, and strategic acquisition of nuclear brands from Carr’s Group as key enablers of future growth. He expressed confidence in the company’s $137 million in cash and $175 million in undrawn revolver capacity to support both organic and inorganic expansion opportunities.

Guidance
Cadre Holdings did not provide specific net income guidance for 2025 but expects net sales in the range of $624 million to $630 million and Adjusted EBITDA in the range of $112 million to $116 million for the full year. The company anticipates capital expenditures of between $7 million and $8 million. These forecasts reflect updated expectations regarding the timing of orders but exclude the impact of recently announced tariffs. The company cited the difficulty of forecasting certain expenses and gains affecting net income as the reason for not providing net income guidance.

Additional News
Recent corporate developments include the acquisition of several leading nuclear brands from Carr’s Group, which Kanders highlighted as a strategic move to expand the company’s exposure to a high-growth market segment. These acquisitions are expected to support Cadre’s long-term growth strategy. On July 22, 2025, the company also announced a quarterly cash dividend of $0.09 per share, payable on August 15, 2025 to shareholders of record on August 1. This represents an annualized dividend of $0.38 per share. Additionally, management will host a conference call on August 6, 2025 to discuss the results and recent corporate developments.