Cadre Holdings Reports Q1 2025 Financial Results with Increased Net Income

Cadre Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $9.2 million, or $0.23 per diluted share, compared to $6.9 million, or $0.18 per diluted share, in the same period last year. The company’s net sales decreased by 5.6% to $130.1 million from $137.9 million, primarily due to a decline in explosive ordnance disposal (EOD) and armor products. However, the increase in net income was attributed to the absence of acquisition-related costs that impacted the previous year’s results.

In terms of operational efficiency, Cadre's gross profit for the quarter was $56.1 million, down from $57.6 million a year earlier, reflecting a gross margin of 43.2%. The company managed to reduce its cost of goods sold by 7.8% to $74.0 million, which contributed to a 13.1% increase in operating income to $13.6 million. The reduction in operating expenses, which fell by 6.7% to $42.6 million, was driven by lower restructuring and transaction costs, as well as a significant decrease in related party expenses.

Cadre's strategic developments included the acquisition of ICOR Technology Inc. and Alpha Safety Intermediate, LLC, which were completed in early 2024. These acquisitions are expected to enhance the company’s product offerings and market reach. The company also reported an increase in its orders backlog, which rose to $151.2 million as of March 31, 2025, up from $128.8 million at the end of 2024. This increase was driven by higher demand for EOD products and other safety equipment.

The company’s balance sheet showed total assets of $656.3 million, with cash and cash equivalents increasing to $133.4 million from $124.9 million at the end of 2024. Total liabilities decreased slightly to $338.7 million, with long-term debt standing at $209.1 million. Cadre's management expressed confidence in the company’s liquidity, stating that cash flows from operations and available borrowing capacity would be sufficient to meet liquidity requirements for the next 12 months.

Looking ahead, Cadre Holdings anticipates continued growth driven by its strategic acquisitions and an expanding product portfolio. The company remains focused on enhancing operational efficiencies and responding to market demands, particularly in the law enforcement and military sectors.