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Jun 30
Cadre Holdings Q2 2025 Earnings Report
Cadre Holdings reported its second quarter 2025 financial results, showing increased net sales and gross profit year-over-year, driven by strong demand for safety equipment and recent acquisitions.
Key Takeaways
Cadre Holdings delivered strong revenue growth and profitability in the second quarter of 2025, with net sales increasing by 9% and gross profit by 10% year-over-year. The company's performance was bolstered by recent acquisitions and continued strong demand for its mission-critical safety products across various markets, despite a fluid macro environment. Adjusted EBITDA was $27.0 million, with an Adjusted EBITDA margin of 17.2%.
Net sales for Q2 2025 increased by 9% year-over-year to $157.1 million, primarily due to recent acquisitions.
Gross profit rose by 10% year-over-year to $64.2 million, with the gross profit margin improving to 40.9% due to favorable pricing and product mix.
Net income for the quarter was $12.2 million, or $0.30 per diluted share, a slight decrease from the prior year, mainly due to acquisition-related costs.
Adjusted EBITDA for Q2 2025 was $27.0 million, representing an Adjusted EBITDA margin of 17.2%.
Cadre Holdings
Cadre Holdings
Cadre Holdings Revenue by Segment
Revenue by Segment
Product Segment Revenue
CapyFin.comDistribution Segment Revenue
CapyFin.com Forward Guidance
For the full year 2025, Cadre Holdings expects net sales to be in the range of $624 million to $630 million and Adjusted EBITDA in the range of $112 million to $116 million. Capital expenditures are projected to be between $7 million and $8 million.
Positive Outlook
- Expected strong full-year net sales guidance of $624 million to $630 million.
- Anticipated full-year Adjusted EBITDA of $112 million to $116 million, indicating continued profitability.
- Company is well-positioned to leverage strong brands and drive long-term growth.
- Strong cash balance of $137 million and undrawn revolver capacity of $175 million for organic and inorganic growth opportunities.
- Continued positive demand trends for mission-critical safety equipment across various markets.
Challenges Ahead
- Timing of large opportunities has shifted more than in prior years, potentially impacting short-term results.
- Guidance does not incorporate impacts from new tariffs announced July 31st, which could affect future performance.
- Net income guidance is not provided due to forecasting difficulties, limiting a complete financial outlook.
- Adjusted EBITDA margin for Q2 2025 decreased compared to the prior year.
- Net income for Q2 2025 slightly decreased year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income