Cadre Holdings Announces Q4 and Full-Year 2024 Financial Results
Cadre Holdings, Inc., a global leader in the manufacturing and distribution of safety equipment and related products for law enforcement, first responders, military, and nuclear markets, has announced its consolidated operating results for the fourth quarter and full year ending December 31, 2024. The company reported strong financial performance driven by strategic acquisitions, increased demand across multiple sectors, and solid execution of its operational and growth strategies.
Financial Highlights
Fourth Quarter 2024:
- Net sales reached $176.0 million, compared to $124.6 million in Q4 2023, marking a significant 41.3% increase, primarily attributed to strategic acquisitions and robust shipments for armor and duty gear.
- Gross profit margin improved to 43.9%, up from 39.9% in Q4 2023, reflecting improved operational efficiencies and volume leverage on higher shipments.
- Net income was $13.0 million ($0.32 per diluted share), compared to $9.6 million in the prior-year quarter, reflecting disciplined cost management and revenue expansion.
- Adjusted EBITDA surged to $38.5 million, a 86.0% increase compared to $20.7 million in Q4 2023, with an adjusted EBITDA margin of 21.9%, demonstrating strong profitability gains.
Full Year 2024:
- Net sales grew to $567.6 million, up from $482.5 million in 2023, driven by strategic acquisitions and heightened demand for armor and duty gear.
- Gross profit increased to $233.5 million, compared to $200.7 million in 2023, reflecting operational efficiencies and a favorable product mix.
- Net income stood at $36.1 million ($0.90 per diluted share), slightly lower than $38.6 million in 2023 due to increased selling, general, and administrative (SG&A) expenses linked to acquisitions, higher interest expenses, and lower productivity in certain divisions.
- Adjusted EBITDA reached $104.8 million, up from $85.8 million in 2023, with an adjusted EBITDA margin of 18.5%, demonstrating continued profitability expansion.
- The company declared a quarterly cash dividend of $0.095 per share, an 8.6% increase over the previous annualized dividend of $0.35 per share.
CEO Statement
Warren Kanders, Chairman and CEO of Cadre Holdings, emphasized the company’s success in navigating a dynamic market environment. “2024 was a landmark year for Cadre, marked by record-breaking financial results in the fourth quarter—our strongest quarter as a public company. We successfully increased net sales and adjusted EBITDA while expanding our full-year adjusted EBITDA margins by 70 basis points year-over-year.”
Looking ahead, Kanders expressed confidence in Cadre’s 2025 trajectory, citing the acquisition of the Engineering Division from Carr’s Group as a transformative move. “This acquisition enhances our nuclear vertical, expands our international presence, and provides us with new technological capabilities in automation, robotics, and nuclear medicine. We remain committed to identifying additional acquisition opportunities Cadre Holdings that align with our strategic criteria—strong margins, market leadership, and recurring revenue streams.”
Business Segment Performance
Cadre’s business segments delivered strong performance across key metrics:
- Product segment: Gross margin increased to 45.4% in Q4 and 42.2% for the full year, compared to 40.7% and 43.1% in 2023, demonstrating improved profitability.
- Distribution segment: Gross margin stood at 21.8% in Q4 and 22.5% for the full year, slightly below 23.9% and 23.5% in 2023, due to changes in product mix and logistical expenses.
Liquidity, Cash Flow, and Capital Allocation
Cadre’s financial strength was further reinforced by prudent Cadre Holdings capital management and strategic investments:
- Cash and cash equivalents grew to $124.9 million, up from $87.7 million in 2023, reflecting improved operational cash flows and disciplined capital allocation.
- Total debt rose to $223.2 million, compared to $140.1 million in 2023, primarily due to acquisition-related financing.
- Net debt (total debt minus cash) increased to $98.3 million, up from $52.4 million in 2023.
- Capital expenditures were $1.4 million in Q4 and $5.8 million for the full year, compared to $2.7 million and $7.0 million, respectively, in 2023, reflecting continued investment in operational infrastructure.
Expansion of Credit Facilities
In December 2024, Cadre successfully secured a new credit agreement, enhancing its financial flexibility. The agreement includes $590 million in senior secured credit facilities:
- A five-year undrawn revolving credit facility of $175 million.
- A five-year term loan of $225 million.
- Two delayed draw term loans of $115 million and $75 million, earmarked for acquisitions and corporate growth initiatives.
- With $124.9 million in cash and cash equivalents, Cadre now has $489.9 million in available capital to support its Cadre Holdings expansion and acquisition strategy.
Acquisition of Carr’s Engineering Division
On January 15, 2025, Cadre announced a definitive agreement to acquire Carr’s Engineering Limited and Carr’s Engineering (US), Inc. for £75 million. This acquisition includes a portfolio of highly respected brands:
- Wälischmiller GmbH
- CarrsMSM
- Bendalls Engineering
- NW Total Engineered Solutions
- NuVision Engineering, Inc.
These Cadre Holdings brands, with established operations in the UK, Germany, and the U.S., complement Cadre’s existing nuclear safety business, strengthening its global footprint and positioning the company for long-term growth in nuclear technology sectors.
Dividend Growth
Cadre’s Board of Directors announced an 8.6% increase in the quarterly cash dividend, raising it to $0.095 per share (annualized $0.38 per share). The dividend was paid on February 14, 2025, to shareholders of record as of January 31, 2025.
2025 Outlook
For 2025, Cadre projects:
- Net sales between $572 million and $601 million.
- Adjusted EBITDA between $105 million and $115 million.
- Capital expenditures between $7 million and $9 million.
This guidance Cadre Holdings excludes any potential impact from newly announced U.S. tariffs. Given the complexities in forecasting certain expenses, the company has not provided net income guidance for 2025.
Conference Call Details
Cadre will host a conference call on March 12, 2025, at 10:00 a.m. EST to discuss financial results.
- Dial-in (US): (800)-715-9871
- Dial-in (International): 646-307-1963
- Access code: 3272793
- Live webcast: Cadre Holdings Website
A replay will be available until March 26, 2025:
- US Replay Dial-in: (800)-770-2030
- International Replay Dial-in: +1-609-800-9909
- Access code: 3272793
With a Cadre Holdings strong track record of financial performance, strategic acquisitions, and a well-capitalized balance sheet, Cadre Holdings is well-positioned for sustained growth and market leadership in 2025 and beyond.
