Cadre Unit Receives $50 Million IDIQ Contract from the Pentagon
Contract Award: Cadre Holdings' subsidiary Med-Eng, LLC has received a 5-year contract worth up to $50M from the U.S. Department of War for the Blast Exposure Monitoring Program.
Technology Purpose: The BEMO systems will measure and record blast overpressure exposures during training operations, contributing to the DoW's Brain Health program.
Company Statement: Cadre President Brad Williams emphasized the importance of this technology in enhancing the military's ability to monitor and evaluate blast exposure events.
Commitment to Innovation: The project reflects Cadre's dedication to innovation and their mission of saving lives through advanced electronics and software engineering solutions.
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- Acquisition Details: Cadre Holdings has completed the acquisition of TYR Tactical for a total price of $144 million, which includes $120 million in cash and $24 million in common stock, along with $1 million in restricted stock units, demonstrating the company's commitment to expanding in the tactical gear market.
- Performance Expectations: The acquisition is expected to be immediately accretive to Cadre's earnings and adjusted EBITDA margins, indicating a strategic intent to enhance financial performance and market competitiveness.
- Market Expansion Opportunities: Through this acquisition, Cadre gains access to the European defense market and expands its influence among global law enforcement and military customers, further solidifying its market leadership.
- Future Development Strategy: CEO Warren Kanders stated that Cadre will continue to seek M&A opportunities in the public safety and nuclear markets, reflecting a strong commitment to future growth and strategic planning.

- Dividend Increase: Cadre Holdings raised its quarterly dividend from $0.095 to $0.10 per share, marking a 5.3% increase that reflects the company's ongoing improvement in cash flow and profitability, which is expected to boost investor confidence.
- Dividend Payment Schedule: The new dividend will be payable on February 13, with a record date of January 30 and an ex-dividend date also on January 30, ensuring that existing shareholders receive timely returns, thereby strengthening the shareholder base.
- Sales Target: Cadre Holdings has set a sales target of $624 million to $630 million for 2025, indicating the company's optimistic outlook for future performance while actively advancing the acquisition of TYR Tactical to achieve this goal.
- Contract Win: A subsidiary of Cadre Holdings secured a $50 million contract with the Department of Defense, which not only provides a significant revenue stream but also enhances the company's market position in the defense sector.

Contract Award: Cadre Holdings' subsidiary, Med-Eng, has secured a 5-year contract worth up to $50 million from the U.S. Department of War to provide a Blast Exposure Monitoring (BEMO) system aimed at enhancing warfighter safety during training operations.
Technological Innovation: The BEMO system will utilize advanced sensor hardware and software to monitor and record blast overpressure exposures, contributing to the DoW's Brain Health program and enabling real-time updates for military personnel.
Future Deliveries: The first deliveries under this contract are expected to begin in 2026, following a competitive development program focused on improving identification methods for blast overpressure exposures in combat and training environments.
Company Background: Cadre Holdings, based in Jacksonville, Florida, specializes in safety equipment for various sectors, including law enforcement and military, with a commitment to innovation and user safety through its products.
Validea's Small-Cap Growth Investor Model: The model, based on Motley Fool's strategy, identifies small-cap growth stocks with strong fundamentals and price performance, highlighting Westwood Holdings Group Inc (WHG) and Cadre Holdings Inc (CDRE) as stocks with improved ratings of 76%.
Westwood Holdings Group Inc (WHG): This investment services company has seen its rating rise from 49% to 76%, indicating solid fundamentals and valuation, with a focus on providing investment advisory and trust services.
Cadre Holdings Inc (CDRE): Engaged in manufacturing safety products, Cadre's rating improved from 63% to 76%, reflecting strong fundamentals and valuation, with a product range that includes body armor and other safety equipment.
Imperial Petroleum Inc (IMPP): This oil and gas operations company experienced a rating increase from 59% to 72%, indicating a positive shift in its fundamentals and valuation, specializing in the transportation of petroleum and petrochemical products.
Quarterly Revenue Growth: Cadre Holdings, Inc. reported $155.87 million in revenue for Q3 2025, a 42.5% increase year-over-year, although it fell short of the Zacks Consensus Estimate of $159.64 million.
Earnings Per Share (EPS): The company achieved an EPS of $0.27, up from $0.09 a year ago, surpassing the consensus estimate of $0.26 by 3.85%.
Investor Insights: Investors are closely monitoring revenue and earnings changes to gauge the company's financial health and stock price performance, comparing these metrics to previous years and analyst expectations.
Additional Resources: Zacks Investment Research offers insights and recommendations, including a report on the "7 Best Stocks for the Next 30 Days."
Earnings Announcement: Aerospace and defense company Cadre (NYSE:CDRE) will announce its earnings results this Tuesday, with analysts expecting a revenue growth of 46.5% year on year to $160.2 million and adjusted earnings of $0.28 per share.
Recent Performance: Cadre previously exceeded revenue expectations by 3.3% last quarter, but missed adjusted operating income estimates and full-year EBITDA guidance. The company has only missed Wall Street's revenue estimates once in the past two years.
Industry Context: Peers in the aerospace and defense sector, such as Byrna and RTX, have reported positive Q3 results, with Byrna achieving 35.1% revenue growth and RTX 11.9%, indicating a generally favorable environment for the industry.
Investor Sentiment: Cadre's stock has increased by 13.8% over the past month, with an average analyst price target of $43, slightly above its current share price of $42.70, suggesting cautious optimism among investors heading into the earnings report.







