Cadre Holdings Reports 8.9% Net Sales Increase in Q2 2025, Acquires Carr’s Engineering Limited

Cadre Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net sales increase of 8.9% to $157.1 million compared to $144.3 million in the same period last year. For the first half of 2025, net sales rose to $287.2 million, up from $282.2 million in the prior year. The company’s net income for the quarter was $12.2 million, a slight decrease from $12.6 million in Q2 2024, while net income for the six-month period increased to $21.5 million from $19.5 million. The decline in quarterly net income was attributed to higher transaction costs and interest expenses, partially offset by favorable foreign currency fluctuations.

The company experienced significant operational changes, including the acquisition of Carr’s Engineering Limited (Zircaloy) for $98.9 million, which contributed to the revenue growth. The acquisition was finalized on April 22, 2025, and is expected to enhance Cadre's product offerings in the nuclear safety sector. The company also reported an increase in its orders backlog, which rose to $186.3 million as of June 30, 2025, compared to $128.8 million at the end of 2024, driven by the Zircaloy acquisition and increased demand for certain product lines.

Cadre's operational metrics showed a rise in gross profit to $64.2 million for the second quarter, up from $58.7 million a year earlier, reflecting a gross margin improvement. However, total operating expenses increased by 28.1% to $49.6 million, primarily due to higher selling, general, and administrative costs associated with the Zircaloy acquisition and increased payroll expenses. The company’s interest expense also rose significantly, reflecting the debt incurred from the acquisition.

In terms of geographic expansion, Cadre operates through 20 manufacturing plants across the U.S., Mexico, Canada, the U.K., Italy, France, and Lithuania, serving a diverse customer base that includes law enforcement and military agencies. The company continues to invest in research and development to enhance its product offerings and maintain compliance with safety standards. As of June 30, 2025, Cadre reported cash and cash equivalents of $137.5 million, indicating a solid liquidity position to support future growth initiatives.

Looking ahead, Cadre Holdings anticipates continued growth driven by the integration of recent acquisitions and increased demand for its safety equipment. The company remains focused on optimizing its operations and expanding its market presence while managing the challenges posed by rising costs and interest rates.