Cadre (CDRE) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

Company overview and strategy

• Focuses on highly engineered safety equipment for professionals in public safety, military, and nuclear markets, with a heritage dating back to 1964.

• Achieved over 55% revenue growth and 97% Adjusted EBITDA growth since IPO in 2020, with significant margin expansion.

• Completed five acquisitions since IPO, operating with a decentralized structure and a proprietary operating model to drive productivity and innovation.

• Operating model emphasizes continuous improvement, associate development, and strategic execution.

• Vision includes continued diversification, targeting 3%-5% annual organic growth plus $100M in acquired revenue, aiming for mid-20s Adjusted EBITDA margins.

Market dynamics and growth drivers

• Public safety market benefits from resilient, consistent budgets and recurring product refresh cycles, with products prioritized in agency spending.

• Nuclear market strategy targets environmental remediation, national defense, and commercial nuclear energy, supporting long-term growth.

• Nuclear segment expected to grow 4%-6% annually, with some lumpiness due to project timing.

• Recent acquisitions have expanded presence in nuclear and international markets, especially through Alpha Safety, Carrs, and TYR Tactical.

• AI initiatives focus on practical applications in IT security and business processes, with each business unit identifying AI opportunities.

Competitive positioning and product leadership

• Holds dominant U.S. market share in holsters (90%) and bomb suits (87%-90%), with significant share in body armor (high 30%-low 40%).

• International growth is selective, focusing on high-margin opportunities and leveraging acquisitions like TYR Tactical for expanded reach.

• TYR Tactical acquisition brings advanced hard armor capabilities and strong international and federal presence, complementing existing brands.

• Product innovation and refresh cycles (e.g., holsters every 5-7 years, body armor every 5 years) drive recurring revenue.

• Blast sensor technology secured a $50M IDIQ with the U.S. Department of Defense, with initial orders to be shipped in 2026.