Cadre Holdings Inc (CDRE) 2025 Q3 法說會逐字稿

Good morning, and welcome to Cadre Holdings third quarter 2025 conference call. Today's call is being recorded. (Operator Instructions)

早安，歡迎參加 Cadre Holdings 2025 年第三季電話會議。今天的通話將會被錄音。（操作說明）

At this time, I would like to turn the conference over to Matt Berkowitz of the IGB Group for introductions and the reading of the Safe Harbor statement. Please go ahead, sir.

此時，我謹將會議交給 IGB 集團的 Matt Berkowitz，由他進行介紹並宣讀《安全港聲明》。請繼續，先生。

Thank you, and welcome to today's conference call to discuss Cadre's third quarter results. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we make these statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

謝謝，歡迎參加今天關於 Cadre 第三季業績的電話會議。在開始之前，我想提醒大家，在今天的電話會議中，我們將做出一些前瞻性聲明，我們根據 1995 年《私人證券訴訟改革法案》的安全港條款做出這些聲明。

These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to the risks and uncertainties that face Cadre and the industries and markets in which we operate. More information on potential factors that could affect Cadre's financial results is included from time to time in Cadre's public reports filed with the Securities and Exchange Commission.

這些前瞻性陳述反映了我們基於目前已知資訊的最佳估計和假設。這些前瞻性聲明受到 Cadre 以及我們所處行業和市場面臨的風險和不確定性的影響。有關可能影響 Cadre 財務業績的潛在因素的更多信息，會不時地在 Cadre 向美國證券交易委員會提交的公開報告中披露。

Please also note that, we have posted presentation materials on our website at www.cadre-holdings.com, which supplement our comments this morning and include a reconciliation of certain non-GAAP financial measures.

另請注意，我們已在公司網站 www.cadre-holdings.com 上發布了演示材料，這些材料補充了我們今天早上的評論，並包括某些非公認會計準則財務指標的調節表。

I'd like to remind everyone that, this call will be available for replay through November 19, 2025. A webcast replay will also be available via the link provided in yesterday's press release as well as on Cadre's website.

我想提醒大家，本次通話的錄音將保留至 2025 年 11 月 19 日，供大家重播。網路直播回放也可透過昨天新聞稿中提供的連結以及 Cadre 的網站上觀看。

At this time, I would like to turn the call over to Cadre's Chairman and CEO, Warren Kanders.

此時，我想把電話交給 Cadre 的董事長兼執行長 Warren Kanders。

Good morning, and thank you for joining Cadre's third quarter earnings call. I am joined today by our President, Brad Williams; and Chief Financial Officer, Blaine Browers.

早安，感謝各位參加 Cadre 第三季財報電話會議。今天與我一同出席的有我們的總裁布拉德威廉斯和財務長布萊恩布勞爾斯。

This continues to be an exciting time for Cadre, marked by outstanding execution, disciplined growth and meaningful progress against our strategic objectives. The Cadre operating model is driving improvement every day, which is clearly reflected in another quarter of strong results.

對 Cadre 而言，這仍然是一個令人興奮的時期，其特點是卓越的執行力、嚴謹的成長以及在實現策略目標方面取得的實質進展。Cadre 的營運模式每天都在推動改進，這在另一個季度強勁的業績中得到了充分體現。

In addition to delivering financial performance above expectations in Q3, which Brad and Blaine will outline, we continue to capitalize on Cadre's robust M&A funnel. With the agreement announced last week to acquire TYR Tactical, a leading manufacturer of mission-critical protective equipment, we again delivered on our commitment to expand our portfolio and enhance Cadre's market leadership across categories.

除了第三季財務業績超出預期（布拉德和布萊恩將對此進行概述）之外，我們還繼續利用 Cadre 強大的併購管道。上週宣布的收購 TYR Tactical（一家領先的關鍵任務防護裝備製造商）的協議，再次兌現了我們擴大產品組合併增強 Cadre 在各個類別中市場領導地位的承諾。

TYR Tactical brings world-class engineering capabilities and global reach, which importantly includes relationships with key military customers in Northern Europe that we believe will help Cadre unlock new growth opportunities in high-value end markets.

TYR Tactical 擁有世界一流的工程能力和全球影響力，尤其重要的是，它與北歐的主要軍事客戶建立了關係，我們相信這將有助於 Cadre 在高價值終端市場中開拓新的成長機會。

Under the leadership of Jason and Jane Beck, TYR has seen impressive growth since its founding in 2010 and shares with Cadre a long-standing commitment to innovation, quality and a life-saving mission. We are excited to partner with Jason and Jane and welcome them both as significant shareholders.

在 Jason 和 Jane Beck 的領導下，TYR 自 2010 年成立以來取得了令人矚目的成長，並與 Cadre 一樣，長期致力於創新、品質和拯救生命的使命。我們很高興能與Jason和Jane合作，並歡迎他們成為我們的重要股東。

For Cadre, this agreement marks our sixth and largest acquisition since going public. Along with our recent deals in the nuclear and robotics markets, it underscores our relentless focus on disciplined M&A that strengthens our diversified platform of durable safety businesses. In total, over the past 24 months, we have deployed more than $400 million consistent with this strategy.

對 Cadre 而言，這項協議標誌著我們自上市以來第六次也是規模最大的收購。加上我們最近在核能和機器人市場達成的交易，這凸顯了我們對有紀律的併購的不懈關注，從而加強了我們多元化的持久安全業務平台。在過去 24 個月裡，我們總共投入了超過 4 億美元，與該策略相符。

Looking ahead, we continue to see robust acquisition pipelines in both the public safety and nuclear markets. We will remain patient and disciplined in our approach to identify high-quality, high-margin businesses that align with our operating model and can deliver sustainable growth and strong cash flow generation over time.

展望未來，我們預期公共安全和核能市場都將持續出現強勁的收購項目。我們將保持耐心和嚴謹的態度，尋找符合我們營運模式、能夠長期實現永續成長和強勁現金流的高品質、高利潤企業。

Before I turn it over to Brad, I want to thank our employees for their hard work and dedication in upholding our mission. Together, we save lives. The results this quarter once again demonstrate the strength of our culture, the resilience of our businesses and our team's ability to deliver consistent execution. We are confident that the foundations we have built will continue to drive long-term value creation for our shareholders.

在將發言權交給布拉德之前，我想感謝我們的員工為維護我們的使命所付出的辛勤努力和奉獻精神。我們攜手拯救生命。本季的業績再次證明了我們企業文化的強大、業務的韌性以及團隊持續高效執行的能力。我們相信，我們所奠定的基礎將繼續為股東創造長期價值。

With that, thank you for being with us today, and I will turn the call over to Brad. Brad, over to you.

那麼，感謝各位今天收看我們的節目，接下來我將把電話交給布萊德。布拉德，該你了。

Thank you, Warren. On today's call, Blaine and I will provide a Q3 update and business overview, including recent trends, financial performance and full year outlook, followed by a Q&A session.

謝謝你，沃倫。在今天的電話會議上，我和布萊恩將提供第三季最新進展和業務概覽，包括近期趨勢、財務表現和全年展望，隨後進行問答環節。

We'll begin on Slide 5. During the third quarter, we again delivered on our strategic objectives, advancing Cadre's track record of consistent and stable growth despite a dynamic operating environment. We continued to successfully implement our pricing strategy, which reflects both the strength of our brands and the value our customers place on our mission-critical products.

我們將從第5張投影片開始。第三季度，我們再次實現了戰略目標，儘管經營環境瞬息萬變，但 Cadre 依然保持了持續穩定的成長動能。我們持續成功實施定價策略，這不僅體現了我們品牌的實力，也體現了客戶對我們關鍵任務產品的重視。

Third quarter mix was positive, driven by strong demand for EOD and favorable product mix in our nuclear categories. Importantly, our organic backlog increased by $20 million sequentially, reinforcing our confidence in the outlook for the remainder of the year.

第三季產品組合表現良好，這主要得益於爆炸物處理產品的強勁需求以及核能產品類別的良好產品組合。重要的是，我們的有機成長訂單環比增加了 2000 萬美元，這增強了我們對今年剩餘時間前景的信心。

Based on our discussion last quarter, you'll recall that we saw a higher mix of large opportunities that have been delayed. This significant backlog growth is a very promising sign reflective of our progress booking some of these previously delayed opportunities. I will speak more about this progress shortly.

根據我們上個季度的討論，您應該還記得，我們​​看到大量大型專案被推遲的情況比較普遍。積壓訂單的顯著增長是一個非常令人鼓舞的跡象，反映出我們在落實一些之前被延誤的機會方面取得了進展。我稍後會詳細介紹這項進展。

In terms of capital allocation, Cadre's strong free cash flow generation enables the company to make dividend payments while also supporting core organic growth and M&A objectives. Our November dividend will mark our 16th consecutive since our IPO.

在資本配置方面，Cadre 強勁的自由現金流產生能力使公司能夠在支付股息的同時，支持核心內生成長和併購目標。我們將於11月派發股息，這將是我們自IPO以來連續第16次派發股息。

As you heard from Warren, we also delivered on our commitment to enhancing Cadre's market leadership through disciplined M&A. Our agreement to acquire TYR Tactical represents a significant step forward in advancing Cadre's strategic focus on mission-critical products with high margins, strong cash flows and compelling growth tailwinds. It further opens the door to international markets and provides access to new customers based on long-standing relationships that drive demand.

正如沃倫所說，我們也履行了透過有紀律的併購來增強 Cadre 市場領導地位的承諾。我們收購 TYR Tactical 的協議標誌著 Cadre 在推進其戰略重點——高利潤率、強勁現金流和強勁成長動力的關鍵任務產品——方面邁出了重要一步。它進一步打開了國際市場的大門，並基於推動需求的長期關係，提供了接觸新客戶的機會。

Blaine will speak more about the deal shortly, specifically about TYR's differentiated customer base and highly unique manufacturing capabilities. Overall, TYR is exactly the kind of high-quality, strategically aligned business we seek to add to our platform, one that enhances our leadership, accelerates growth and delivers long-term value for our shareholders.

Blaine 稍後將就這筆交易做更多說明，特別是關於 TYR 差異化的客戶群和高度獨特的製造能力。總而言之，TYR 正是我們尋求添加到我們平台上的那種高品質、策略契合的企業，它能夠增強我們的領導地位，加速成長，並為我們的股東帶來長期價值。

Turning to Slide 6. I'd like to highlight another major win for the company. In September, Cadre's EOD business, Med-Eng, was awarded the BEMO contract, known as the Blast Exposure Monitoring System by the US. Department of Defense. This is a $50 million IDIQ contract signifying a major achievement for our team and a significant milestone in our work with the US military. Those who have followed us since our IPO know this award has been a part of our long-term road map and something that we have been working towards since 2019.

翻到第6張投影片。我想重點介紹一下公司取得的另一項重大勝利。9 月，Cadre 的 EOD 業務 Med-Eng 獲得了 BEMO 合同，該合約被美國稱為爆炸暴露監測系統。美國國防部。這是一份價值 5000 萬美元的無限期交付/無限期數量 (IDIQ) 合同，標誌著我們團隊取得了重大成就，也是我們與美國軍方合作的一個重要里程碑。自從我們上市以來一直關注我們的人都知道，這項獎項是我們長期發展路線圖的一部分，也是我們自 2019 年以來一直在努力的目標。

While the formal press release has been delayed due to the government shutdown, the award information has been made public through sam.gov and the DoD website. Links are available in the materials we shared yesterday. The BEMO award builds on Med-Engs legacy as the global standard in bomb suits with market share of approximately 90%. Its reputation as the most trusted brand in the industry is based on decades of experience evaluating blast effects on personnel and protective equipment.

雖然由於政府停擺，正式的新聞稿被推遲發布，但授獎資訊已透過 sam.gov 和國防部網站公開。相關連結在我們昨天分享的資料中。BEMO 獎項鞏固了 Med-Engs 作為全球防爆服標準製造商的地位，其市佔率約為 90%。憑藉數十年來評估爆炸對人員和防護裝備的影響的經驗，該品牌在業界贏得了最值得信賴的品牌聲譽。

For the last 20 years, the team has been designing, manufacturing, testing and commercializing several generations of wearable blast sensors culminating in this latest technology. We are incredibly proud to win this award, which is a testament to Cadre's long-term commitment to innovation and also positions Med-Eng at the forefront of efforts to better understand and mitigate blast exposure in the field moving forward.

在過去的 20 年裡，該團隊一直在設計、製造、測試和商業化幾代可穿戴爆炸感測器，最終發展了這項最新技術。我們非常自豪能夠獲得此獎項，這證明了 Cadre 對創新的長期承諾，也使 Med-Eng 在未來更好地了解和減輕現場爆炸暴露方面處於領先地位。

Next, on Slide 7, we lay out industry tailwinds supporting Cadre's long-term growth opportunity across both our core LE and nuclear safety sectors. On the law enforcement side, we see rising safety threats globally, coupled with resilient and growing spend on protection equipment. In both the US. and in Europe, support for public safety is bipartisan.

接下來，在第 7 張投影片中，我們將闡述支持 Cadre 在核心 LE 和核安領域實現長期成長機會的產業利好因素。在執法方面，我們看到全球安全威脅不斷上升，同時防護裝備的支出也持續成長。在美國和歐洲，對公共安全的支持都是兩黨共同支持的。

Turning to nuclear. Long-term demand continues to be driven by policy and commercial tailwinds across our three market segments: environmental management, national security and nuclear energy. Support across these markets continues to build both in the public and private sectors with the government clearing the path and private investment flowing in.

轉向核武。長期需求持續受到政策和商業利好因素的推動，這三大市場領域分別是：環境管理、國家安全和核能。政府掃清障礙，私人投資湧入，公私部門對這些市場的支持持續增強。

Landmark announcements dominate the headlines from federal partnerships to state-level investments, all reinforcing the recognition that nuclear must play a central role in achieving energy security and reliability in these years ahead.

從聯邦合作到州級投資，具有里程碑意義的公告佔據了各大媒體的頭條，所有這些都強化了人們的認識：在未來幾年裡，核能在實現能源安全和可靠性方面必鬚髮揮核心作用。

Combined with nuclear material waste processing and expanding national defense initiatives, Cadre Nuclear Group is strategically positioned at the forefront of a rapidly evolving industry with large-scale and collective capabilities to support the full nuclear life cycle.

結合核材料廢棄物處理和不斷擴大的國防計劃，Cadre Nuclear Group 在快速發展的行業中佔據了戰略優勢，擁有大規模和集體能力來支持整個核能生命週期。

On Slide 8, I'll take a moment to zoom in on a couple of market trends and their impacts on our core law enforcement business. Trends in North America law enforcement remain positive, highlighted by significant federal investment in government agencies, including substantial focus on recruitment.

在第 8 張投影片中，我將花點時間重點介紹幾個市場趨勢及其對我們核心執法業務的影響。北美執法部門的發展趨勢依然積極，聯邦政府對政府機構的大量投資，包括對人員招募的大力投入，都凸顯了這一點。

Looking at another market trend highlighted on the slide, new products and innovation drive everything we do at Cadre. We continue to hear enthusiastic feedback about new products launched over the past 24 months, including our tactical carrier system, HyperX and the Safariland SX HP package, the thinnest, lightest and most protective hybrid ballistic armor on the market.

從幻燈片中強調的另一個市場趨勢來看，新產品和創新驅動著我們在 Cadre 所做的一切。我們不斷收到對過去 24 個月推出的新產品的熱情反饋，包括我們的戰術背心系統 HyperX 和 Safariland SX HP 套裝，這是市場上最薄、最輕、防護性最強的混合防彈裝甲。

Before I turn it over to Blaine, I would like to briefly address the macro environment. Last quarter, we spoke about how our full year outlook was slightly affected by our higher mix of large opportunities that have been delayed. There was a level of uncertainty related to timing and whether these opportunities would be booked this year or early next year.

在把發言權交給布萊恩之前，我想先簡單談談宏觀環境。上個季度，我們談到，由於大量大型專案被推遲，我們的全年展望略有受到影響。由於時間安排存在一定不確定性，這些機會究竟是今年還是明年年初能夠實現，都存在一定程度的不確定性。

We are pleased to report that we have made considerable progress in the third quarter booking some of these reflected in the significant backlog growth that I referred to earlier. One of those opportunities is the blast sensor five-year IDIQ that the US Department of Defense has disclosed on its website as well as sam.gov.

我們很高興地報告，第三季我們在訂單方面取得了相當大的進展，其中一些進展體現在我之前提到的顯著積壓訂單成長中。其中一項機會是美國國防部在其網站以及 sam.gov 上公佈的爆炸感測器五年期無限期交付/無限期數量 (IDIQ) 合約。

We received our first BEMO purchase order for approximately $10 million with shipments being planned throughout 2026. Additionally, we received large duty gear, armor, crowd control and EOD purchase orders in Q3. Our expectation has not changed that other larger opportunities we'll book in the coming quarters as we continue to track well on these opportunities.

我們收到了第一份 BEMO 採購訂單，金額約 1000 萬美元，計劃在 2026 年全年發貨。此外，我們在第三季也收到了大量執勤裝備、防彈衣、人群控制和爆炸物處理設備的採購訂單。我們預計，隨著我們繼續推進這些機會並取得良好進展，未來幾季我們將獲得其他更大的機會。

I'll now turn the call over to our CFO, Blaine Browers, to speak to more about M&A, Cadre's Q3 financial results and 2025 outlook.

現在我將把電話交給我們的財務長布萊恩·布勞爾斯，讓他進一步談談併購、Cadre 第三季財務表現和 2025 年展望。

Thanks, Brad. I'll kick off my comments with a review of our latest acquisition as well as our M&A strategy more broadly. As Warren and Brad discussed, we've agreed to acquire TYR Tactical, a specialty provider of high-performance advanced tactical gear, including soft armor, hard armor and tactical nylon products to US. and allied militaries and law enforcement agencies around the world. It is a business that fits squarely within the strategic criteria that define our disciplined approach to M&A outlined on the right side of the slide.

謝謝你，布拉德。首先，我將回顧我們最近的收購以及更廣泛的併購策略。正如沃倫和布拉德所討論的那樣，我們已經同意收購 TYR Tactical，這是一家專門為美國及其盟國軍隊和世界各地的執法機構提供高性能先進戰術裝備（包括軟質防彈衣、硬質防彈衣和戰術尼龍產品）的專業供應商。這家企業完全符合我們在幻燈片右側概述的、定義我們嚴謹的併購方法的策略標準。

Key attributes include a leading market position, strong brand recognition, differentiated manufacturing technology as well as exceptional product quality and commitment to innovation. A key point to underscore is that TYR Tactical -- is that the TYR Tactical customer base has minimal overlap with Cadre's existing Safariland armor business.

主要優勢包括領先的市場地位、強大的品牌知名度、差異化的製造技術以及卓越的產品品質和對創新的承諾。需要強調的關鍵一點是，TYR Tactical 的客戶群與 Cadre 現有的 Safariland 裝甲業務重疊度極低。

On Slide 11, we show TYR and Cadre's global armor revenue by customer channel, which illustrates how complementary the two brands will be in the marketplace. TYR serves a worldwide customer base, including top-tier special ops units, government agencies and militaries. You can see that 66% of its revenue is derived from international customers, while US. federal and US. military totaled 27%, both areas where Safariland does not have a major foothold today.

在第 11 張投影片中，我們按客戶管道展示了 TYR 和 Cadre 的全球裝甲收入，這說明了這兩個品牌在市場上的互補性。TYR 為全球客戶提供服務，其中包括頂尖特種作戰部隊、政府機構和軍隊。可以看出，該公司 66% 的收入來自國際客戶，而美國聯邦政府和美國軍方合計佔 27%，這兩個領域都是 Safariland 目前尚未佔據主要市場地位的領域。

In addition, TYR brings significant hard armor capabilities via their large presses and autoclaves that will be a significant resource addition to the Cadre armor business. We are excited about how the strengths of both companies will complement each other and enable new growth opportunities.

此外，TYR 的大型壓力機和高壓釜帶來了強大的硬質裝甲製造能力，這將為 Cadre 裝甲業務帶來重要的資源補充。我們對兩家公司的優勢互補，並由此帶來新的成長機會感到非常興奮。

In particular, we believe the Cadre operating model will unlock significant value for both brands. Taking a step back in terms of M&A strategy. This latest transaction demonstrates that we are not done building upon our leadership positions in our core law enforcement military categories despite our long-term vision to launch multiple new verticals.

我們尤其相信，幹部營運模式將為這兩個品牌釋放巨大的價值。在併購策略方面退一步。這項最新交易表明，儘管我們有推出多個新垂直領域的長期願景，但我們仍將繼續鞏固我們在核心執法軍事領域的領先地位。

We continue to see attractive opportunities to broaden our product range, enter new markets and increase customer wallet share. Overall, the M&A market remains strong, and we're excited about the prospect of add-on opportunities across both nuclear and core law enforcement targets moving forward.

我們持續看到拓展產品範圍、進入新市場和提高客戶錢包份額的絕佳機會。整體而言，併購市場依然強勁，我們對未來在核能和核心執法目標領域獲得附加收購機會的前景感到興奮。

Turning now to a summary of Cadre's financial performance. Slide 13 details our third quarter results. Q3 net sales of $155.9 million increased 42% year-over-year. Of note, third quarter gross margin improved 610 basis points year-over-year and 180 basis points sequentially. Year-over-year, it's driven by favorable pricing, the absence of inventory step-up amortization in the prior year and the cyber incident in 2024.

現在來總結一下 Cadre 的財務表現。第 13 張投影片詳細介紹了我們第三季的業績。第三季淨銷售額為 1.559 億美元，年增 42%。值得注意的是，第三季毛利率年增了 610 個基點，較上季提高了 180 個基點。與前一年相比，主要原因是價格有利、去年沒有庫存攤銷以及 2024 年的網路安全事件。

Illustrated on Slide 14 is net sales and adjusted EBITDA growth year-over-year, including our 2025 guidance, which I'll discuss more in a moment. Our full year outlook implies a year-over-year revenue and adjusted EBITDA growth of 10.5% and 8.7%, respectively, at the midpoint.

第 14 張投影片顯示了淨銷售額和調整後 EBITDA 的年成長情況，包括我們對 2025 年的預測，我稍後會詳細討論。我們全年的展望意味著，以中間值計算，營收和調整後 EBITDA 將分別年增 10.5% 和 8.7%。

On Slide 15, we present our capital structure as of June 30, 2025, prior to the agreement to acquire TYR Tactical. Our pro forma net leverage will be around 2.7 times when the deal closes. We believe Cadre's strong free cash flow generation, coupled with the strength of our balance sheet gives us ample financial flexibility to continue to pursue organic and inorganic opportunities ahead.

在第 15 張投影片中，我們展示了截至 2025 年 6 月 30 日的資本結構，這是在收購 TYR Tactical 的協議達成之前的情況。交易完成後，我們的淨槓桿率預計約為 2.7 倍。我們相信，Cadre 強勁的自由現金流產生能力，加上我們穩健的資產負債表，使我們擁有充足的財務靈活性，可以繼續尋求未來的有機成長和無機成長機會。

We are reaffirming our 2025 guidance on Slide 16. Net sales are expected to be between $624 million and $630 million. Our adjusted EBITDA guidance is between $112 million and $116 million, implying adjusted EBITDA margins of 18.2%.

我們在第 16 頁幻燈片中重申了我們的 2025 年指導方針。預計淨銷售額將在 6.24 億美元至 6.3 億美元之間。我們調整後的 EBITDA 預期在 1.12 億美元至 1.16 億美元之間，這意味著調整後的 EBITDA 利潤率為 18.2%。

I'll now turn it back to Brad for concluding comments.

現在我把麥克風交還給布萊德，讓他做總結性發言。

Thank you, Blaine. We're excited -- we're executing well against our strategic priorities and our strong Q3 results underscore the effectiveness of the Cadre operating model and the dedication of our talented teams around the world.

謝謝你，布萊恩。我們感到非常興奮——我們在策略重點方面執行良好，第三季強勁的業績凸顯了幹部營運模式的有效性以及我們全球優秀團隊的奉獻精神。

Complementing our core organic growth initiatives, we are particularly happy about the recent progress we have made on our M&A program with the agreement to acquire TYR Tactical. We can't wait to get started and begin the integration process following the expected close in the first half of 2026.

除了我們核心的有機成長計劃外，我們對近期在併購計劃方面取得的進展感到格外高興，我們已達成協議收購 TYR Tactical。我們迫不及待地想要開始整合過程，預計交易將於 2026 年上半年完成。

Supported by Cadre's entrenched positions and favorable industry trends across our law enforcement, first responder, military and nuclear end markets, we're excited to continue to build our platform and further enhance our market leadership moving forward.

憑藉 Cadre 在執法、緊急應變、軍事和核能終端市場中穩固的地位和有利的行業趨勢，我們很高興能夠繼續建立我們的平台，並進一步鞏固我們未來的市場領導地位。

With that, operator, please open up the lines for Q&A.

話筒，請開通問答線。

(Operator Instructions)

（操作說明）

Larry Sopo, CJS Securities.

Larry Sopo，CJS Securities。

Great, good morning, guys congrats on a good quarter. Really nice margin improvement sequentially. I think, I was just looking at because I guess year-over-year is a little tough to look at because of the cybersecurity comp. But any thoughts, any color just on the nice sequential improvement? It looks like gross margin was up almost 20 bps, which dropped to EBITDA. I imagine the operating model can't work that fast.

太好了，早安，各位，恭喜你們本季業績出色。利潤率季比顯著提升。我覺得，我只是在看，因為考慮到網路安全競爭，逐年比較有點困難。但對於這種循序漸進的改進，大家有什麼想法或看法嗎？毛利率似乎上升了近 20 個基點，導致 EBITDA 下降。我想這種營運模式不可能這麼快就能奏效。

So, I'm just curious, any thoughts on that? And just color on how Carr's is progressing under that operating model, which you obviously only have for a few months, but any thoughts on that would be great.

所以，我只是好奇，大家對此有什麼看法？請描述一下 Carr's 在這種營運模式下的發展情況，雖然這種模式你只有幾個月的時間，但任何想法都將不勝感激。

Yeah, no, I appreciate the question, Larry. And when we look at the margin improvement, I'd say the really positive piece we see is it's pretty broad-based. This isn't margin driven by one particular business. So sequentially, we saw improvement really in all our major categories. And kind of within that, you're going to have some price sequentially. A lot of that's driven by productivity and then some positive mix in the quarter as well.

是的，謝謝你的提問，拉里。當我們審視利潤率的提升時，我認為真正積極的一點是，它的提升範圍相當廣泛。這並非由某一特定業務所驅動的利潤率。因此，我們所有主要類別都逐一看到了改善。而且，其中還會包含一些依序排列的價格。這很大程度上是由生產力提高以及本季度一些積極的產品組合所驅動的。

But again, kind of going back, it is very broad-based. This isn't a case where one particular business was driving that improvement. But it's what we really like to see, which is everyone really executing well and seeing those margins drop through.

但話說回來，從某種意義上說，它的基礎非常廣泛。這並非某個特定企業推動績效提升的案例。但我們真正想看到的是，每個人都能很好地執行戰術，利潤率自然會下降。

And then Larry, it's Brad. On the Carr's side of things, you asked about the operating model and kind of where we're at on it. Really good progress. We've actually had the gentleman that leads our Cadre operating model has been over to Germany and also the UK meeting with Bendalls and also Walischmiller businesses, and taking a look at the progress they've made with the initial tools in the operating model. And as of the week before last, the team reported just exceptional progress.

然後是拉里，是布萊德。關於卡爾公司這邊，你問到了營運模式以及我們目前的狀況。進展非常順利。實際上，我們負責領導幹部營運模式的先生已經前往德國和英國，與 Bendalls 和 Walischmiller 公司會面，並考察了他們在營運模式的初始工具方面取得的進展。截至上上週，該團隊報告稱取得了非常出色的進展。

So culturally, they're excited about the tools. They're adopting the tools. It takes a while to learn these tools and master them as we go forward, but we're really excited about what's going on and the progress that's happening.

從文化角度來看，他們對這些工具感到興奮。他們正在採用這些工具。學習和掌握這些工具需要一段時間，但我們對目前的情況和所取得的進展感到非常興奮。

Great. And just switching gears, if I can, just on the Med-Eng, and I know you discussed this a little bit more at your Analyst Day, $50 million IDIQ. I imagine or I suppose this could expand significantly over the longer term. It's a much larger market opportunity. And I think this was an exclusive award for you, too. So, any just color on that longer-term opportunity there?

偉大的。換個話題，如果可以的話，就說說 Med-Eng 吧，我知道您在分析師日上對此進行了一些討論，5000 萬美元的 IDIQ 合約。我猜想，從長遠來看，這種情況可能會顯著擴大。這是一個更大的市場機會。而且我認為這也是專門為你頒發的獎項。那麼，關於這個長期機遇，有什麼具體資訊嗎？

Yeah, absolutely. So, if you remember back in IPO days, we had this listed as one of our kind of longer-term opportunities. And like a lot of bigger R&D projects like this with US. Department of Defense, things get pushed around and delayed.

是的，絕對的。所以，如果你還記得IPO時代的話，我們當時就把這檔股票列為我們長期投資機會之一。就像我們與許多其他大型研發項目一樣。國防部那邊，事情總是被推來推去，一拖再拖。

So that's where we kind of ended up at this point. But the good news is, at this point, it looks like that award, the $50 million IDIQ and then the initial $10 million purchase order, which is great, by the way, for those that know IDIQs, sometimes those initial purchase orders aren't that large. So that just shows you the commitment that's behind the program at this point from the DoD.

所以，這就是我們最終的結論。但好消息是，目前看來，這項撥款，即 5000 萬美元的 IDIQ 合同，以及最初的 1000 萬美元採購訂單，都已落實。順便說一句，這很棒，因為對於那些了解 IDIQ 合約的人來說，有時最初的採購訂單金額並不大。這足以說明國防部目前對該計畫的重視程度。

We're going to take one of these at a time. So, this obviously gives us an upper hand on any competitors out there in the marketplace that have been looking at blast sensors or working on blast sensor technology, because now with this adoption for us, it gives us that opportunity to take this technology to other countries.

我們將一次處理其中一個問題。因此，這顯然使我們在市場上所有關注爆炸感測器或致力於爆炸感測器技術的競爭對手中佔據了優勢，因為現在有了這項技術被採用，我們就有機會將這項技術推廣到其他國家。

I won't disclose which countries have already reached out but we've had other countries reach out asking for sensors, having meetings with our technical teams, et cetera. So, we'll see where it goes, but we feel like it's a good future forward with the blast sensor program.

我不會透露哪些國家已經與我們聯繫，但其他一些國家也與我們聯繫，要求提供感測器，與我們的技術團隊舉行會議等等。所以，我們會看看它未來的發展方向，但我們覺得爆炸感測器專案前景光明。

Great thank.

非常感謝。

You I appreciate all that.

我很感激你所做的一切。

Thanks, Larry.

謝謝你，拉里。

Jeff Van Sinderen, B Riley Securities.

Jeff Van Sinderen，B Riley 證券公司。

Oh, good morning everyone just wanted to touch on or circle back to, I guess, gross margins, SG&A leverage. As we're thinking about Q4, anything in the expected mix of business that's likely to impact gross margin, also realizing it's early and you haven't closed the TYR acquisition yet.

哦，大家早安，我只是想再談談毛利率和銷售、管理及行政費用槓桿率。展望第四季度，我們考慮業務組合中任何可能影響毛利率的因素，同時也意識到現在還為時過早，而且你們還沒有完成對 TYR 的收購。

But assuming the closure of TYR and then second half contribution from TYR next year, among other business inputs, would you expect gross margin to increase, yes, next year, just thinking about all that together?

但假設 TYR 關閉，並且 TYR 明年下半年的貢獻，以及其他業務因素，您是否預期毛利率會上升？是的，明年，綜合考慮所有這些因素？

Yeah, I appreciate the question. For gross margins in Q4, we expect them really to land somewhere between Q2 and Q3 rates, maybe a little bit on the higher end range based on what we've seen in Q3 and the backlog makeup for the rest of the year.

是的，感謝你的提問。對於第四季度的毛利率，我們預計會介於第二季和第三季之間，根據我們在第三季看到的情況以及今年剩餘時間的積壓訂單構成，可能會略微偏高一些。

And then, I think as you've seen before, if you look back to Q4 last year, the operating leverage can be pretty powerful, with bigger volume quarters, and that's what we kind of look out as the rest of the year. So very positive outlook for the remainder of this year.

然後，我認為正如你之前看到的，如果你回顧去年第四季度，你會發現營運槓桿作用非常強大，銷量更大的季度就是如此，而這正是我們對今年剩餘時間的期望。所以對今年剩餘時間的展望非常樂觀。

When we layer in TYR, keep in mind, we'll have inventory step-up amortization as well as some intangibles amortization, which will impact the GAAP gross margin that we'll report. So there's probably a little bit of pressure there into next year but that's really only at that gross margin line. As we move down to adjusted EBITDA, as we've said, it will be accretive on the bottom line.

當我們把 TYR 納入考慮時，請記住，我們將有存貨攤銷以及一些無形資產攤銷，這將影響我們將要報告的 GAAP 毛利率。所以明年可能會有一些壓力，但這真的只是毛利率的問題。正如我們之前所說，當我們把數據轉向調整後的 EBITDA 時，這將增加公司的淨利潤。

So we get very excited about that and really bringing those two businesses together as we talked about. We think there's a tremendous value on both sides of the business. I'm looking forward to having the TYR business join the Cadre family and really the opportunity for both sides to learn from each other.

所以，我們對此感到非常興奮，並期待著像我們剛才談到的那樣，真正將這兩家企業結合起來。我們認為這項業務對雙方都有巨大的價值。我期待TYR加入Cadre大家庭，也期待雙方有機會互相學習。

Okay. And I know you touched on this a little bit at the Analyst Day, but -- maybe you can kind of speak to the manufacturing capabilities of TYR. And on that side of the business, how close will you be to vertical integration and manufacturing once you have TYR in-house?

好的。我知道您在分析師日上稍微談到了這一點，但是——也許您可以談談TYR的製造能力。在業務的這一方面，一旦 TYR 被納入公司內部，您離垂直整合和製造還有多遠？

Yeah, reat question, Jeff. So just to kind of go over the capabilities that TYR has and kind of contrast that to what our, I'll call it, our Safariland brand and a couple of other armor brands have. So first of all, it's the pressing capability, that's the biggest one from an equipment standpoint.

是啊，問得好，傑夫。所以，我來簡單介紹一下TYR的功能，並將其與我們旗下的Safariland品牌以及其他幾個防彈衣品牌的功能進行比較。首先，從設備角度來看，最重要的就是壓制能力。

So as raw materials become more advanced in the armor market from suppliers like Honeywell and DSM and others, as those become more advanced, they require a higher level of pressing capacity. And the reason you need that is to press materials so that you can elongate molecules and the raw materials so that you continue to have strength in materials within that process.

隨著霍尼韋爾、帝斯曼等供應商在裝甲市場中使用的原料越來越先進，對壓制能力的要求也越來越高。之所以需要這樣做，是為了壓製材料，從而拉長分子和原料，以便在過程中保持材料的強度。

So just to give you an idea, Safariland capabilities from a pressing tonnage standpoint is anywhere from 250 tons to -- we maxed out around 500 tons of compressing capacity. TYR has two large presses at 7,000 tons, okay?

為了讓大家有個概念，從壓制噸位來看，Safariland 的能力在 250 噸到——我們最大壓縮能力達到了 500 噸左右。TYR有兩台7000噸的大型壓力機，懂嗎？

So at this moment, what we've been having to do with our hard armor business, I am talking plates and shields with some of the newer materials is we have to go externally with a few other companies to press some of these materials so that we can get to the level of pressure that's needed. So, we're very, very excited about these capabilities that the TYR folks have in the Peoria facility there. And as we go forward, that pressing capability will be used by both companies.

所以目前，我們在硬質防彈衣業務方面，我指的是使用一些新型材料的防彈板和盾牌，我們不得不與一些外部公司合作，對這些材料進行壓制，以便達到所需的壓力水平。所以，我們對TYR公司在皮奧裡亞工廠所擁有的這些能力感到非常非常興奮。展望未來，兩家公司都將利用這種迫切的能力。

And in terms of vertical integration, Jeff, we will be -- our vertical integration will not be any more than what it is today, right, because we press today, TYR presses today. In the armor business, if we were going to go additional vertical integration in the supply chain, that would be into the raw material side of things, ballistic materials, for example, nylon materials and that side of the supply chain, which we're definitely not in that space.

至於垂直整合方面，傑夫，我們的垂直整​​合程度不會比現在更高，對吧，因為我們今天還在印刷，TYR 也是今天還在印刷。在裝甲產業，如果我們要進一步垂直整合供應鏈，那將進入原料環節，例如彈道材料、尼龍材料以及供應鏈的這一環節，而我們目前絕對沒有涉足這個領域。

Okay, excellent. I appreciate that. It seems like overall, it gives you a pretty nice competitive advantage in manufacturing capabilities.

好的，太好了。我很感激。整體而言，這似乎能為你帶來相當不錯的製造能力競爭優勢。

Okay, appreciate it. Jeff.

好的，謝謝。傑夫。

Egan McDermott, Jefferies.

伊根‧麥克德莫特，傑富瑞集團。

And taking the question. Organic growth in the quarter looks to have been driven by armor and duty gear. Do you have a sense of how much of that is the step-up in demand for these end markets versus easier cyber comps?

回答這個問題。本季有機成長似乎主要由防彈衣和執勤裝備推動。您認為這其中有多少是因為這些終端市場的需求成長，而有多少是因為網路競爭相對容易造成的？

Yeah, you were a little tough to hear, but I think you were asking about organic growth for armor and duty gear, and on a year-on-year just because of the tough cyber comp. Is that correct?

是的，你的話有點難聽，但我認為你是在問裝甲和執勤裝備的自然增長情況，以及由於網絡競爭激烈而導致的年增長率。是這樣嗎？

That is correct. Sorry, if I'm not coming in clear...

沒錯。抱歉，如果我表達得不夠清楚…

No, no, that's all right. When we look at -- and it's a difficult number. Let's maybe start with that, trying to adjust out the cyber and spread it out. When we look year-on-year or sequentially, we did see growth in the armor business. And when you kind of spread out prior year for duty gear, our run rate was up from last year.

不，不，沒關係。當我們審視這個數字時——這是一個難以理解的數字。或許我們可以從這方面入手，試著調整網路環境並將其分散開來。從同比或環比來看，我們確實看到了裝甲業務的成長。考慮到前一年的執勤裝備庫存，我們的生產力比去年有所提高。

So, we look at that and say we're in a pretty good position. And then based on the bookings and large orders that have come in and outlook for the year, we're pretty confident we'll have organic growth in those businesses. So very excited about kind of where they position and Q3 makes it very difficult to kind of unpeel them. But I appreciate the question.

所以，我們看了看，覺得我們處境相當不錯。根據目前收到的預訂量和大訂單以及今年的展望，我們非常有信心這些業務將實現自然成長。我對他們的定位感到非常興奮，但第三季的情況讓這一切變得很難理清。但我很感謝你的提問。

Yeah, I would just add to that by saying just to underscore, last quarter, we talked about the higher number of large opportunities that we had in our funnel that the teams were working on. And we got asked quite a few questions about our confidence level in those. And I think we've shown that, right, with our increase in our backlog. The backlog increase of $20 million, $10 million of that BEMO and then another $10 million are these larger orders that we’re tracking and doing really well on.

是的，我還要補充一點，為了強調這一點，上個季度我們討論了我們銷售管道中團隊正在努力跟進的大型商機數量較多。我們被問到了不少關於我們對這些問題的信心程度的問題。我認為我們已經證明了這一點，對吧，我們的積壓訂單數量增加就是最好的證明。積壓訂單增加了 2000 萬美元，其中 1000 萬美元來自 BEMO，另外 1000 萬美元是我們正在追蹤並進展非常順利的較大訂單。

So, the team is lining up those orders, knocking them off one by one and grabbing those wins. And as we get into the rest of the year, we've got additional opportunities that fall in that large order bucket that we spoke of last quarter, and we're still in that lead position and really excited about those when they do come through. And some of those are very noteworthy type opportunities that we can't wait to talk about externally if we win those.

所以，球隊正在按部就班地完成這些任務，逐一解決，最後贏得勝利。隨著今年剩餘時間的到來，我們還有一些機會屬於我們上個季度提到的大訂單範疇，我們仍然處於領先地位，並且對這些訂單的到來感到非常興奮。其中一些機會非常值得關注，如果我們能拿下這些機會，我們迫不及待地想對外公佈。

That sounds great and that's helpful. If I could maybe ask a follow-up. The offset, I guess, in the quarter was order timing in the nuclear business. And with, I think, $6.5 million taken out of the nuclear backlog last quarter. Would you call out any risk in that end market in terms of demand or funding, whether it'd be US or international?

聽起來不錯，這很有幫助。如果可以的話，我想問一個後續問題。我猜想，本季業績下滑的原因是核能業務的訂單時間安排。而且，我認為上個季度核能專案積壓款項減少了 650 萬美元。您認為終端市場（無論是美國市場或國際市場）在需求或資金方面有任何風險嗎？

No, great question. I mean this is -- you're going to be part of that Alpha Safety, if you think about that nuclear business with large opportunities, because it is more concentrated on fewer large opportunities, just naturally, we're going to see some timing around that backlog build and then backlog bleed as they execute on the projects.

不，問得好。我的意思是，如果你考慮核能產業的巨大機遇，你就會明白，你將成為 Alpha Safety 的一部分。因為核能產業更專注於少數幾個大型機遇，所以很自然地，我們會看到積壓訂單的累積和專案執行過程中積壓訂單的減少。

But when we look ahead and look at the funnel of opportunities for both the Zircaloy businesses as well as the Carr's businesses, formerly Carr's businesses and Alpha, we're still very bullish on outlook for next year and beyond.

但當我們展望未來，審視 Zircaloy 業務以及 Carr's 業務（以前是 Carr's 業務和 Alpha）的機會管道時，我們仍然對明年及以後的前景感到非常樂觀。

Matt Koranda, Roth Capital.

Matt Koranda，Roth Capital。

Hey guys, maybe just attacking sort of the growth question, because I know the comparison is a little wonky from last year, attacking it from a different angle. What was the nuclear contribution, I guess, to product revenue in the third quarter between Carr's and Alpha?

嘿，各位，也許我們可以從不同的角度來探討成長問題，因為我知道與去年相比有點不太恰當。我想問的是，在卡爾公司和阿爾法公司之間，核能對第三季產品收入的貢獻是多少？

The Carr's businesses would be kind of like what you'd expect based on what we disclosed for revenue, if you kind of split it out, so that gets some just a little bit under $20 million and Alpha was slightly less in the quarter than you'd expect on a run rate basis.

如果將卡爾家族的業務拆分出來，其表現應該與我們披露的收入大致相符，因此卡爾家族的業務收入略低於 2000 萬美元，而 Alpha 在本季度的收入按運行率計算略低於預期。

Okay. That helps. And then maybe just switching gears and thinking about the guidance that's implied for the fourth quarter. Just curious how the government shutdown might impact things if the shutdown drags on deeper into the fourth quarter. Is there any impact that's contemplated in the guidance? Or how should we just be thinking about sort of delivery schedules and the disruption that could happen?

好的。那很有幫助。然後或許可以轉換思路，思考一下第四季的業績預期。我只是好奇，如果政府停擺持續到第四季後期，可能會對情況產生怎樣的影響。指導意見中是否考慮了任何可能的影響？或者我們應該如何考慮交付計劃以及可能發生的中斷？

Hey Matt, it's Brad. I appreciate the question. We have considered that in the guidance overall. There's a couple of our business units and a couple of our product lines that we're watching closely that are connected more to government being open and whether that's sign-offs on various shipments that need to go out or just the fact that with the government shutdown, if folks aren't doing training and doing work to then pull through some of the shorter cycle type businesses that we have.

嘿，馬特，我是布萊德。感謝您的提問。我們在整體指導原則中已經考慮到了這一點。我們正在密切關注幾個業務部門和幾條產品線，它們與政府是否開放關係密切，無論是需要出貨的各種貨物的審批，還是政府停擺導致人們無法進行培訓和工作，從而影響到我們一些週期較短的業務。

So those are contemplated in the Q4 side of things. We're going to keep watching them. We've got our teams. We've got our hit list of which ones those are. The teams go through those on a weekly basis when they go through their daily management sessions daily and weekly, and they're on top of those to continue to push those as we go forward. So, at this point, we're optimistic that we've got it covered in there.

所以這些都是第四季需要考慮的問題。我們會繼續關注他們。我們已經組建好了團隊。我們已經列出了一份名單，上面都是這些目標。團隊每週都會在日常管理會議中討論這些內容，並且他們會密切關注這些內容，以便我們可以繼續推進這些工作。所以，目前我們樂觀地認為，我們已經考慮到了這一點。

Okay. All right. Great. And then maybe just if I could sneak one more in. Great to see the PO on the blast sensor for $10 million. I know we're always asking for more detail here, but any thoughts on sort of the cadence of how that could be delivered? Is it going to be like a lumpier within one or two quarters next year or should we just be kind of thinking about a ratable delivery on that PO throughout next year?

好的。好的。偉大的。然後，也許我還能偷偷再加一個。很高興看到一千萬美元的爆炸感應器採購訂單。我知道我們總是要求提供更多細節，但是對於如何以合適的節奏提供這些信息，大家有什麼想法嗎？明年一、兩個季度內交貨量會像之前一樣出現波動嗎？還是我們應該考慮明年全年按計劃完成該採購訂單的交貨？

Matt, I think we expect it to be a bit lumpier. There's kind of two -- I wouldn't say challenges, but two things you got to think about. I mean we have the first PO in the IDIQ. We'll work to deliver those as soon as possible to the end user, which likely kind of weights it towards the kind of front half to middle of the year. What we don't know yet, right, and certainly, the government shutdown is helping is kind of visibility on any follow-on orders, and that's one we'll just have to wait and see.

馬特，我覺得我們預期它會有點凹凸不平。這裡有兩個——我不會稱之為挑戰，但有兩件事你需要考慮。我的意思是，我們擁有IDIQ中的第一個採購訂單。我們將努力盡快將這些產品交付給最終用戶，這可能意味著交貨時間將在今年上半年到年中之間。我們現在還不知道的是，政府停擺肯定有助於我們了解後續命令的走向，而我們只能拭目以待。

Totally fair. All right, I'll leave it there. Thanks guys.

完全公平。好了，我就說到這裡吧。謝謝各位。

Thanks, Matt.

謝謝你，馬特。

Jordan Lyonnais, Bank of America.

喬丹·里昂，美國銀行。

Hey, good morning. Thanks for taking the question. I just want to ask on your guide, is there any downside risk just on if the government remains shut down through the rest of either the quarter or just late into November? And then two, how are you guys thinking about opportunities for next year with the DHS funding from the reconciliation bill starting to go out for the World Cup?

嘿，早安。感謝您回答這個問題。我想問一下，如果政府繼續關閉到本季末或11月下旬，是否會有下行風險？其次，你們如何看待明年國土安全部根據和解法案撥付的資金將如何用於世界盃？

Hey, I'll take the first part of that. So, that's a similar question to what Matt just asked in terms of the -- what's going on from a government shutdown perspective and what's affecting us. So again, we feel like we've got any of those potential slippages covered in the Q4 guidance side of things or the full year guidance side of things. But when you look at some of those opportunities within some of the business units they do exist potential delays, but we feel like we're covered at this point.

嘿，我來負責第一部分。所以，這和 Matt 剛剛問的問題類似，都是關於政府停擺到底發生了什麼，以及這會對我們造成什麼影響。所以，我們再次認為，我們已經在第四季度業績指引或全年業績指引中涵蓋了所有潛在的下滑情況。但當你審視某些業務部門中的一些機會時，你會發現它們確實存在潛在的延誤，但我們感覺目前我們已經做好了應對準備。

And then on the -- your question about the DHS and World Cup. We would likely expect some uptick in spending around security. I think it's difficult for us at this point to really point to particular products, or opportunities just because it hasn't kind of gone through the funnel. But the great news is the teams are out there, staying close to our end users, our customers, our distributors and just making sure we're in a position to fulfill those needs if and when they ask. But at this point, really difficult for us to put an estimate out.

然後是關於你提出的關於國土安全部和世界盃的問題。我們預計安防方面的支出可能會有所成長。我認為目前我們很難指出特定的產品或機會，因為它還沒有經過銷售漏斗的篩選過程。但好消息是，我們的團隊始終與最終用戶、客戶和經銷商保持密切聯繫，確保我們能夠在他們提出需求時隨時滿足他們的需求。但目前我們真的很難給出預估。

I'd just add to that. When you think about security when it comes to those kind of larger scale events like that, there's any federal folks involved, state and local, when you go head to toe when you look at those folks, right, with the TYR acquisition, Safariland products, whether it's holsters, body armor, there's helmets involved, shields involved, crowd control products, you name it, that type of stuff. That's why we continue to build out in our public safety side of things.

我還要補充一點。當你想到這類大型活動的安保問題時，你會發現聯邦、州和地方各級人員都參與其中。當你從頭到腳審視這些人時，你會發現，TYR 收購了 Safariland 產品，無論是槍套、防彈衣、頭盔、盾牌、人群控制產品，等等，應有盡有。這就是為什麼我們要在公共安全領域不斷擴張的原因。

We've been in it for a long time, very comfortable with public safety, who's out there, who's in the market, opportunities to go after. This is squarely within what we do. So, I'm sure when that contends to move forward as it firms up with the breadth of products we have, we're going to be right in the mix of that.

我們在這個行業已經很久了，對公共安全領域非常熟悉，了解市場上有哪些人，有哪些機會可以爭取。這完全符合我們的工作範圍。所以我相信，隨著我們產品線的不斷完善，當這個趨勢向前發展時，我們肯定會成為其中的重要一員。

Great, thank you guys.

太好了，謝謝大家。

Thank you.

謝謝。

Mark Smith, Lake Street.

馬克史密斯，湖街。

Hi guys, I wanted to ask about input costs and inflation. Is there anything that you see kind of going up significantly? And similar with that, has anything changed in your outlook or ability to take price at and above inflation?

大家好，我想問關於投入成本和通貨膨脹的問題。你覺得有哪些東西的價格會大幅上漲？同樣地，您對價格趨勢的看法或接受高於通貨膨脹率的價格的能力是否有所改變？

No. Thanks. Great question. Our inputs have tracked pretty consistently with what we've seen recently. Obviously, there's some variability coming into the year with tariffs and the likely impact. But we haven't seen any price come through from destocking from any of our suppliers. So, it's one we're staying close to but that has not been anything unexpected at this point. And we don't have any indications that next year is going to be significantly different. So, we're comfortable there, staying close to it. The other pieces we kind of look to -- kind of the two pieces to counteract any of that pressure if it was to occur, right?

不。謝謝。問得好。我們的投入與近期的觀察結果基本一致。顯然，今年關稅及其可能產生的影響存在一些不確定性。但是我們還沒有看到任何供應商因為清倉而降價。所以，我們會密切關注此事，但到目前為止，這並不出乎我們的意料。目前沒有任何跡象表明明年情況會有很大不同。所以，我們覺得待在那裡很舒服，離它很近。我們還要關注其他方面——也就是用來抵消可能出現的任何壓力的兩個方面，對吧？

On the price side, as you asked, nothing's changed in the dynamic. It is one, a tool we need to be and we'll continue to be thoughtful in the application of it, right? No difference in how we always approach it that we want to be thoughtful and make sure we're getting the value that the products deserve based on their performance in the field.

價格方面，正如你所問，市場動態沒有任何變化。它是一種我們需要的工具，我們會繼續認真思考如何運用它，對嗎？我們對待產品的態度始終如一，那就是深思熟慮，確保產品根據其在實際應用中的表現獲得應有的價值。

And the second piece is really about model, right, and making sure we're leveraging those tools to offset whether it's material or labor inflation or drive increased throughput or better margins. So, as we kind of look at it, we feel pretty good about that material inflation environment as we see it today. We also feel really good about the tools we can leverage to counteract that and really maintain the business and the margins.

第二點其實是關於模式的，對吧？要確保我們利用這些工具來抵銷材料或勞動力通膨，或提高產量或獲得更好的利潤率。所以，從整體來看，我們對目前的物質通膨環境感到相當滿意。我們也對我們能夠利用的工具感到非常滿意，這些工具可以有效應對這種情況，並真正維持業務和利潤率。

Okay. And then I also want to ask about new product mix, and I know this is tough with nuclear and acquired business and maybe not as much on a year-over-year comp. But just as we think about the legacy business, how have new products mixed here recently versus kind of historical averages? And then I'm curious, similar to that with TYR, if there's a history or legacy of innovation and new product mix that drives that business.

好的。然後我還想問一下新產品組合的情況，我知道核能和收購業務很難做到這一點，而且與去年同期相比可能不太明顯。但就像我們思考傳統業務一樣，最近新產品的表現與歷史平均值相比如何？然後，我很好奇，就像 TYR 一樣，是否有創新和新產品組合的歷史或傳統來推動該業務的發展。

Yeah, It's a tough number for us to track, but I can tell you when we look at a couple of the business specifically, compared to what we've historically done with our portfolio significantly refreshed in the last few years, we're seeing gains in those markets with those new products. So that's very exciting for us.

是的，這個數字很難追踪，但我可以告訴你，當我們具體觀察幾個業務時，與我們過去幾年大幅更新的產品組合相比，我們看到這些新產品在這些市場取得了增長。這對我們來說非常令人興奮。

And on the TYR, TYR was really built on innovation. And Jason and Jane and the rest of the team have done a fantastic job of innovating both around the tactical that carrier, the nylon as well as the body armor. So, we expect as we bring these two teams together that we'll really get the best of both worlds and continue that innovation journey for both of us. So very excited about the future.

而TYR，其發展歷程真正建立在創新之上。傑森、簡和團隊其他成員在戰術背心、尼龍材質以及防彈衣的創新方面都做得非常出色。因此，我們期望將這兩個團隊合併後，能夠真正發揮雙方的優勢，並繼續推進雙方的創新之旅。對未來充滿期待。

Great thank you.

非常感謝。

Thanks Mark.

謝謝你，馬克。

At this time, there are no further questions. I will now hand today's call over to Brad Williams for closing remarks.

目前沒有其他問題了。現在我將把今天的電話會議交給布拉德威廉斯，請他作總結發言。

Thank you, operator. I'd like to thank everyone again for joining us on today's call and for your continued interest in Cadre. Have a great day.

謝謝接線生。我再次感謝大家參加今天的電話會議，也感謝大家一直以來對 Cadre 的關注。祝你有美好的一天。

This concludes the conference call. Thank you, and have a great day.

電話會議到此結束。謝謝，祝您今天過得愉快。