Larry Solow's questions to Cadre Holdings Inc (CDRE) leadership • Q2 2025
Question
Larry Solow of CJS Securities inquired about the common factors behind recent order push-outs, their potential shift into 2026, and the company's long-term margin expansion outlook.
Answer
President Brad Williams clarified that the push-outs are due to a higher proportion of large opportunities in the sales funnel across body armor, duty gear, nuclear, and EOD, not budget cuts. He confirmed some orders are now expected in 2026 while others remain in the current year's guidance. CFO Blaine Browers added that long-term gross margins are expected to reach the mid-to-upper 40s, driven by the Cadre operating model, despite the slightly lower initial margin profile of recent acquisitions.